Advertising Campaign Management

Learning Objectives What are the essential ingredients in advertising campaign management, including the role of advertising? When should a company employee an external advertising agency rather than completing the work in-house? How do companies choose advertising agencies? What roles are played within advertising agencies and client companies?

Learning Objectives What steps are completed as part of advertising campaign management? What are the primary goals of advertising? What are the key elements of an advertising budget? What are the issues in the media selection process? How does a creative brief facilitate effective advertising?

Overview Roles that advertising play in the overall IMC program Advertising campaign management is the process of preparing and integrating an advertising program with the overall IMC message. One element is developing the message theme which outlines the key idea(s) the advertising campaign conveys. Three elements to look at are the leverage point; the appeal; and the executional framework A leverage point is the key element in the advertisement that taps into, or activates, a consumer’s personal value system (a value, idea, or concept).   The appeal is the approach used to design the advertisement that attracts attention or presents information to consumers, through the use of humor, fear, sex, logic, or emotions. The executional framework explains how the message will be delivered. Methods include the slice-of-life approach, fantasies, dramatizations, and ads constructed using animation.

Learning Objective # 1: What are the essential ingredients in advertising campaign management, including the role of advertising?

Overview of Advertising Management An advertising management program is the process of preparing and integrating a company's advertising efforts with the overall IMC message. Four activities combine together to form the advertising management process: Review the company's activities in light of advertising management Select an in-house or external advertising agency

Overview of Advertising Management Develop an advertising campaign management strategy Complete a creative brief The guiding principle of these four efforts is consistency. The company’s goods or services and methods of doing business should match the advertising agency chosen, the strategy of the campaign, and the work of the advertising creatives. The result should be a coherent message stating the theme of the entire IMC program.

Advertising and the IMC Process Advertising continues to be a major component of integrated marketing communications. It remains part of the “traditional” promotions mix of advertising, consumer and trade promotions, and personal selling. These functions, along with other activities such as direct marketing, digitally-generated content, public relations efforts, and alternative marketing strategies, form the basis for communicating with customers.

Learning Objective # 2: When should a company employ an external advertising agency rather than completing the work in-house?

In-House Versus External Advertising Agencies Advantages of in-house advertising include: lower costs aligning all communications the CEO can work closely with the marketing team a better understanding of the product and company mission ability to quickly produce commercials lower turnover rate in the company

In-House Versus External Advertising Agencies Advantages of external agencies are: can reduce costs by being more efficient with time greater expertise access to top talent an outside perspective

Budget Allocation Considerations A small account usually may not be attractive to an advertising agency. Smaller accounts generate lower revenues. If the agency charges a higher fee to compensate, it becomes too costly for the small firm. In contrast, for smaller accounts, the breakdown may be 25–40–35. This means that only 25 percent is being spent on media purchases. The other 75 percent of the funds goes to the creative and production work.

Budget Allocation Considerations One rule of thumb marketers consider is a 75–15–10 breakdown, where 75 percent of the money spent on advertising should be used to purchase media time or space, 15 percent to the agency for the creative work, and 10 percent for the actual production of the ad.

Crowdsourcing Crowdsourcing is the process of outsourcing the creative aspect of an advertisement. Unilever used this approach for meat snack brand as did Doritos for a Super Bowl ad. Harley Davidson also uses crowdsourcing.

Learning Objective # 3: How do companies choose advertising agencies?

External Advertising Agencies Individual ad agencies provide a number of services for companies seeking to refine their IMC programs. Consulting and giving advice about how to develop target markets Providing specialized services for business markets Providing suggestions on how to project a strong company image and theme Supplying assistance in selecting company logos and slogans Preparation of advertisements Planning and purchasing media time and space

Associated types of firms Media service companies, which negotiate and purchase media packages (called media buys) for companies. Direct marketing agencies that handle every aspect of a direct marketing campaign, either through telephone orders, internet programs, or by direct mail. Consumer promotions or trade promotions agencies. Public relations firms are experts in helping companies and individuals develop positive public images, and are also called in for damage control when negative publicity arises.

Choosing an Agency Goal setting Selection criteria – agency size, relevant experience, creative reputation & capabilities, production & media purchasing capabilities, client retention, personal chemistry Creative pitch Agency selection Goal-Setting   Before any contact is made with an advertising agency, it is important to identify and prioritize corporate goals. Clear goals help ensure a good fit between the company and the agency. Selection Criteria Even firms that have experience in selecting agencies must establish the process and criteria in advance. The objective is to reduce biases that may enter into the decision process. Common selection criteria, as shown in Figure 5.7 include: Agency Size Agency size, especially as it compares to the size of the company hiring the agency. Relevant Experience Relevant experience in an industry is a second evaluation criterion that companies use. At the same time, there can be no conflicts of interest. Creative Reputation and Capabilities One method of judging an agency’s creativity is to ask for a list of awards the company has received. Although awards do not always translate into effective advertisements, Production and Media Purchasing Capabilities These capabilities should be examined if these services are needed. Other Criteria Other services available, client retention rates, and personal chemistry are revealed as the final steps of selection take place. Creative Pitch Advertising agencies that are chosen to compete provide a formal presentation addressing a specific problem, situation, or set of questions, called a shootout. The presentations reveal how each agency would deal with specific issues that arise during preparation of a campaign. Agency Selection Chemistry may be a factor in the choice. It can be assessed as members of the advertising agency meet with members of the marketing department. When the process has been completed, the agency and the company work together to prepare the advertising campaign.

Learning Objective # 4: What roles are played within advertising agencies and client companies?

Roles of Advertising Personnel The primary roles within the agency Account executives Creatives Traffic Managers Account Planners The primary roles within the agency are the account executives, creatives, traffic managers, and account planners.   Account Executives The advertising account executive is the key go-between for both the advertising agency and the client company. Creatives Creatives are the persons who actually develop and produce advertisements. Creatives face long hours and work under enormous pressures to design ads that are effective and which produce results. Traffic Managers These individuals work closely with the advertising agency's account executive, creatives, and production staff. They schedule the various aspects of the agency’s work to make sure it is completed on time. Account Planners The account planner becomes the voice or advocate for the consumer in the advertising agency. This person has the responsibility of making sure the creative team understands the consumer (or business). Account planners interact with the account executive and the client to understand the target audience of the ad campaign.

The Role of Quality Communication The company's marketing department manager should work closely with the advertising agency's account manager to overcome these obstacles. The manager should remain aware that missteps and changes to an advertising program are costly in terms of additional advertising agencies fees as well as the less effective campaign that might result. Stewardship reports help clients review the process and the outcome. Updating clients is critical when large amounts of money are being spent on advertising

Learning objective # 5: What steps are completed as part of advertising campaign management?

Advertising Campaign Management Managing an advertising campaign is the process of preparing and integrating a specific advertising program in conjunction with the overall IMC message. The steps of advertising campaign management are:

Steps in ad campaign management Conduct and review the advertising research. Establish communication objectives consistent with the overall IMC program. Review the communications budget. Select the appropriate media based on the viewing habits of the target market. Prepare a creative brief.

Advertising Research To best understand a company's customers, their purchasing habits, and the other key ideas about them, various forms of advertising research are available. Two primary approaches exist: Product-specific research involves identify key product characteristics that become selling points. Consumer-oriented research will be used to understand the context of a product's use. One common approach used by agencies to understand a client’s customers is a focus group, which consists of consumers who are retained to talk about a particular topic, product, or brand.

Learning Objective # 6: What the primary goals of advertising?

Advertising Goals Building brand awareness Providing information Persuasion Supporting marketing efforts Encouraging Action Advertising Goals   Several advertising goals are central to the IMC process. Building Brand Awareness Brand awareness means the consumers recognize and remember a particular brand or company name when they consider purchasing options. The brand should be a top of mind brand. A top choice brand is the first or second pick when a consumer reviews his or her evoked set (possible purchasing alternatives). Many products become top of mind or top choice due to brand equity, the set of characteristics cause consumers or businesses to believe that a brand is different and better. In business-to-business marketing, brand awareness is often essential to being considered by members of the buying center. Providing Information Typical information for consumers includes a retail store’s hours, business location, or sometimes more detailed product specifications. For business-to-business situations, information from some ads may lead various members of the buying center to consider a particular company as they examine their options. Information is one component in persuasion, which is another objective of various advertising programs. Persuasion Advertisements may be designed to convince consumers that a particular brand is superior to other brands. Changing consumer attitudes and persuading them to consider a new purchasing choice is a challenging task. Persuasive advertising is used more in consumer marketing than in business-to-business situations. Supporting Marketing Efforts Manufacturers use advertising to support trade and consumer promotions, such as theme packaging or combination offers. Both manufacturers and retail outlets use advertising in conjunction with coupons or other special offers. When ads are combined with other marketing efforts into a larger, more integrated effort revolving around a theme, the program is called a promotional campaign. Encouraging Action Many commercials encourage the audience to take action by dialing a toll free number or going to a website. Action-oriented advertising is heavily used in the business-to-business sector. The most common goal is to generate sales leads.

Learning Objective # 7: What are the key elements of an advertising budget?

The Advertising Budget After the total dollars allocated to advertising have been established, account managers and company leaders need to agree on how to use the funds. This includes the media usage pattern and distribution. Three basic tactics include: Advertising the most when sales are at peak seasons Advertising the most during low sales seasons Level amounts

The Advertising Budget Advertising during peak seasons can be accomplished in two ways: A pulsating schedule of advertisements with continuous advertising and bursts of higher intensity during peak seasons. A flighting approach or schedule means ads are presented only during peak times, and not at all during off seasons. A continuous campaign schedule involves advertising in more level amounts throughout the year. Budgetary constraints must also be incorporated into the strategies and tactics used in the advertising program.

Learning Objective # 8: What the issues in the media selection process?

Media Selection Selecting the appropriate media requires an understanding of the media usage habits of the company’s target market and then matching that information with the profile of each medium’s audience. In business-to-business markets, knowing the trade journals or business publications that various members of the buying center most likely read assists in the development of a print advertising campaign.

Media Selection While media buys are guided by the advertising agency and the client company, media companies typically make the purchases. A trend toward involving media companies at an earlier stage in the campaign process has evolved.

Learning Objective # 9: How does a creative brief facilitate effective advertising?

The Creative Brief A Creative Brief contains information for the creative. It contains information provided by the account executive and is used by the creative department to produce an advertisement that conveys the desired message. The basic components of a standard creative brief are outlined in the subsequent slides

Step 1. The Objective The first step in preparing the creative strategy is to identify the objective of the advertisement. Some possible objectives may include: Increase brand awareness Build brand image Increase customer traffic Increase retailer or wholesaler orders Increase inquiries from end-users and channel members Provide information

Step 2: The Target Audience A creative should know the target audience. The more detail that is known about the target audience, the easier it is for a creative to design an advertisement that will be effective. Target market profiles that are too general are not very helpful

Step 3: The Message Theme The message theme outlines the key idea of the ad program. The message theme is the benefit or promise (USP). Message themes can be oriented toward either rational or emotional processes. A left-brained ad is oriented toward the logical, rational side, which manages information such as numbers, letters, words, and concepts. A right-brained ad deals with emotions and works with abstract ideas, images, and feelings. The message theme is the benefit or promise (unique selling point) the advertiser wants to use to reach consumers or businesses. Message themes can be oriented toward either rational or emotional processes. A left-brained ad is oriented toward the logical, rational side, which manages information such as numbers, letters, words, and concepts. Left-brained advertising is logical and factual. A right-brained ad deals with emotions and works with abstract ideas, images, and feelings.

Step 4: The Support Support takes the form of the facts, which substantiate the message theme.

Step 5: The Constraints Constraints deal with legal and mandatory restrictions for ads, or company imposed requirements. They include: Legal protection for trademarks, logos, and copy registrations. Disclaimers about warranties, in which the disclaimer specifies the conditions under which they will be honored. Disclaimers about offers spell out the terms of financing agreements, as well as when bonuses or discounts apply. Disclaimers about claims identify the exact nature of the statement made in the advertisement

Exercises Pick up a magazine that you read on a regular basis. Examine 10 advertisements and identify the major selling point in each one. Was the major selling idea clear or was it difficult to ascertain?

Choose one of the following Choose one of the following. Using the information in this chapter, prepare a creative brief. You can pick a brand from within the product category. Energy drink Fast food restaurant