Advertisers: Local to Global

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Explain how advertisers organize

Describe the various groups in advertising

Discuss differences between local, national and global advertisers

Today’s Objectives

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Advertisers (Clients)

Agencies

Media

Suppliers

The Advertising Industry: Organizations

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SalesTechnology

Research

Accounting

Marketing

Management

Law

Most are employed by advertisers, not agencies.

The Advertising Industry: People

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Directed to customers in the same geographic area as the advertiser.

Independent businesses

Govt. & nonprofits

Franchisees and dealers

Chain retailers

Local Advertisers

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Designated Market Area (DMA)

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Charlotte DMA includes Rock Hill

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Franchise/Dealer: Hendrick BMW

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Chain retailers: Macy’s

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Independent businesses: Morris Jenkins

Morris Jenkins

TV commercial: http://www.youtube.com/watch?v=K-rT8mP3-CA

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Government /non-profit: United Way

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Department structure for small advertisers with high volumes of work

Insert ex. 4-1, p. 100

Department structure for small advertisers

Position = 2.9” horiz., 1.5” vertical

Size = 4.6” TALL

Resolution = 300 dpi

Local Advertisers

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Department structure for small advertisers with high volumes of work… in this economy.

Insert ex. 4-1, p. 100

Department structure for small advertisers

Position = 2.9” horiz., 1.5” vertical

Size = 4.6” TALL

Resolution = 300 dpi

Local Advertisers

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Types of local advertising

Recruit employees, offer services, sell

merchandise

Classified

Regular price-line, sale or clearance

Product

Create favorable image, increase

awareness, foster goodwill

Institutional

Local Advertisers

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Product

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Product

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Institutional

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Institutional

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Classified

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Two key purposes

Build manufacturer’s brand image

Help distributors, dealers or retailers make more sales

Cooperative (Co-op) Advertising

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Co-Op Ad

Oreck, the manufacturer, provides funds for local stores to advertise

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Regional: one or several states

National: several regionsor entire country

Regional & National Advertisers

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Centralized department structure

Regional & National Advertisers

The whole company or corporation shares a single marketing department

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Decentralized department structure

Each major division, brand or region has its own marketing department, responsible for its own advertising

Regional & National Advertisers

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Regional Advertising

  

Cheerwine ad: http://adsoftheworld.com/media/tv/cheerwine_bear_dance_off

Newspaper ad for Allen Tate Realtors, real estate brokerage in NC, SC

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Regional Advertising

  

A weekly sales flyer for Giant Foods, a grocery store chain in

Maryland, Virginia and the District of Columbia

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Top 10 National Advertisers, U.S. 2008

Rank CompanyAd Spending

($Billions)

1 Procter & Gamble 4.838

2 Verizon Communications 3.700

3 AT&T 3.073

4 General Motors 2.901

5 Johnson & Johnson 2.529

6 Unilever 2.423

7 Walt Disney Co. 2.218

8 Time Warner 2.207

9 General Electric 2.019

10 Sears 1.865 Source: Ad Age, adage.com

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Comparison of national and local advertising

National Advertisers

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National Advertisers

Mike & Mike radio commercial for SkoreIt

http://www.youtube.com/watch?v=i1I9GqnO2wI

 

AT&T newspaper ad

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National Advertisers

Online ad (sliding billboard) for US Airways Vacations

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Global Advertisers

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Standardized approach in all countries

Extensive research to ensure ad is basic & universal

Centralized global structure

Global Advertisers

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Decentralized international structure

Divisions have ad agencies to handle product lines

Brands within a line handled by own managers

Category managers for brand in each market

Global Advertisers

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Top 10 Global Advertisers, 2009

Source: Ad Age, adage.com

Rank CompanyAd Spending

($Billions)1 Procter & Gamble 9.72

2 Unilever 5.72

3 L'Oreal 4.04

4 General Motors 3.67

5 Toyota Motor Company 3.20

6 The Coca Cola Company 2.67

7 Johnson & Johnson 2.60

8 Ford Motor Company 2.45

9 Reckitt Benckiser 2.37

10 Nestle 2.31

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Source: costmetic-makeovers.com

Global Advertisers

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Global Advertisers

iPad, France: http://www.youtube.com/watch?v=kJBmXTV6J20

Coca Cola, China: http://www.youtube.com/watch?v=ANfFwFqTS9o

McDonald’s, Egypt: http://www.youtube.com/watch?v=fxNacguMeWI

Pepsi, India: http://www.youtube.com/watch?v=sRcPKxlpmow

Look familiar?

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Heinz ketchup ad from the Leo Burnett Group, Copenhagen

“The only American you can hit without being sued”

Global Advertisers

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Source: adverbox.com

Global Advertisers

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Source: adverbox.com

Global Advertisers

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Global AdvertisersAriel = Tide