advertising - peeping inside
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AdvertisingPeeping Inside
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What we mean?
Means of creativecommunication.Means to exercise the right tochoose.It connects an identifiedsponsor with the targetaudience.Uses mass media to reachbroad audiences
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Development of Advertising
Signets were used.Signets were replaced by written words or messages.
In 17th
century Newspaper advertising cameMain source of revenue generation for newspaper andspace selling came into existence.In 1888, Coca cola registered its trademark.
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1886
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1905
19071920
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1961 - 1962
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1964 - 1969
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Advertising in India
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76% of consumers dontbelieve that companies tellthe truth in advertisementsIA
M THEMEDIA
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ONLY 14% TRUST ADS
CREATING BUZZ
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69 % INTERESTED IN ADBLOCKING TECHNOLOGIES
CRE
ATING BUZZ
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AW OF FEW
10% INFLUENCE PURCHASI NG BEHAVIOR OF
OTHER 90%
CRE
ATING BUZZ
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Key Findings
(Jan- June 2010)Coca Cola India Ltd' ,'Pepsi Co' and 'Cadburys India Ltd' were the topthree advertisers of 'Food & Beverages' sector on TV.'Aerated Soft Drinks' category had the maximum share of 'Food &Beverages' sector TV ad pie.
HUL had the highest share i.e. 28% of 'Personal Care/PersonalHygiene' sector TV ad pie followed by 'Reckitt Benckiser (India) Ltd' and'Colgate Palmolive India Ltd' with 11% and 9% share respectively.'Toilet Soaps have 37% share followed be Tooth Pastes andFairness Creams category at 13% & 11% respectively.
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Reach Target AudienceAdvertising is used to "reach" and communicate withthe target audience for the promotion.
Eg - If a daycare center conducts apromotion to offer a week of freechildcare for new customers, itmight use magazine advertising toreach working moms with childrenunder age 5.
Close attention would be paidto how many readers the magazine
reaches who meet the targetaudience criteria. Readershipstatistics from several magazineswould then be compared to makethe final selection of where to placethe advertisement about the
promotion.
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Generate AwarenessAdvertising media should be used strategically andeffectively to achieve awareness of the promotionand gain a Return on Investment (ROI).
Eg - A newly opened fitness club in a citymight develop a promotional campaign totarget higher society members. The fitnessclub could strategically purchase radioadvertising time to air commercials duringmorning and evening commute hours (alsoreferred to as "drive time"), to reach thetarget audience. The club could then tracknew members and revenue gained as aresult of airing the radio commercials.
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Drive TrafficMarketers and advertisers often set a goal to "drive traffic"during a promotion.This term can encompass driving traffic to all stores in achain, specific retail locations or perhaps a website.
Eg - A tax preparation software companymight place a banner ad on the websitefor an office supply store.The banner ad could promote a discountor free use of the program for a limited
time. When people click on the banner ad they are driven (or redirected) to thewebsite for the software company to getthe free trial or purchase the softwareduring the promotional period.
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Communicate the Call to
ActionThe "call to action" is a major element of the advertisingmessage. In a promotions campaign, it is used to tell thetarget audience what to do to participate in the promotion andgain the benefits or advantages offered.
Eg 1. A banner ad on a website will say, "click here" for more
information.2. A TV commercial promoting a special sale at a departmentstore will say "shop this weekend only."
3. A newspaper ad promoting a free oil change might say, "bringin this ad" in order to get the free service.
In each case, the advertising serves to tell the target audience totake an action that qualifies them to take advantage of thepromotion.
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Measure Response and
EffectivenessAdvertising provides a means to measure theoverall response and results of the promotioncampaign.
Eg 1. In an online advertising campaign, the number of clicks on banner ads and number of website visitors canbe tracked.
2. Polling customers at check-out or at promotional events
is also a useful technique to gather data to compareresults when different forms of advertising are used(such as print, online banners and commercials ).
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The Functions of
AdvertisingBuilds awareness of products and brandsCreates a brand image
Provides product informationPersuades peopleProvides incentives to take action
Provides product remindersReinforces past purchases and brandexperiences
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Benefits of Advertising
Information reach to large base in shortestpossible time.Building Brand Image promise of consistentquality, service, warrantyInnovation new product development. Encouragescompetition and offer new choices to consumersGrowth of Media revenue generation. 60% cost of magazines, more than 70% of the cost of newspapers and nearly 100% of the cost of TV andradio.
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What Makes an Ad Effective?
1. Gets your attention2. Delivers the message
3. Creates an impression for a product or brand4. Influences people to respond5. Separates the product or brand from the
competition
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Key PlayersAdvertiser
Agency
Media
Supplier/Vendor
Target Audiences
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Commission
Negotiated Fee
Hourly Rate
How Agencies Make Money?
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Agency Evaluation
Sales increasesPercentage share of the market the brand
holdsReturn on Investment (ROI)
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Thank You!