chapter Advertising

What is Advertising?  Impersonal, one-way communication about a product that is paid for.  Campaign: A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals. Prius Campaign

Top Ten Leaders by U.S. Advertising Spending

Major Types of Advertising Enhance corporation’s identity Pioneering Competitive Comparative Product : Advertising: Focuses on benefits of a specific product or service Product : Advertising: Focuses on benefits of a specific product or service Institutional Advertising Institutional Advertising Advocacy advertising Trunk Monkey Dow Human ElementDow Human Element (Institutional) Bud Designated Driver

Product Advertising PioneeringPioneering  Stimulates primary demand for new product or category  Used in the PLC introductory stageCompetitiveCompetitive  Influences demand for brand in the growth phase of the PLC  Often uses emotional appeal ComparativeComparative  Compares two or more competing brands’ product attributes  Used if growth is sluggish, or if competition is strong Prius iPhone 3G Dunkin/Starbucks McCafeMcCafe Intervention Reminder: FedEx Schwab

Advertising and the PLC

Advertising Campaign A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals Online

Developing a Campaign 1.Set Objectives –Inform, persuade, remind? –Awareness, interest, desire, action? 2.Determine your budget 3.Make your creative choices –What are you going to say? –How are you going to say it? 4.Make your media choices –Where and how often are you going to advertise? 5.Evaluate: Did you do what you set out to do? Did you meet your objectives?

Determining Advertising Budgets  Companies use a variety of criteria for setting advertising budgets: –What the company can afford –Percentage of sales –Advertising as much as the competition –Establishing particular objectives, developing a budget to meet objectives

Making Creative Decisions Positioning Statement: Setting the personality for the product in the minds of the consumer. Value Proposition: Central message; single, clear message why your product is better at solving the consumer’s problem. Attributes and Benefits (Appeal): Attribute that resonates with customers, differentiates from competition; Benefit explains why this is important to you the consumer. Execution Style: How the ad is put together; humor, music, celebrities, style, etc. What does this ad look like and feel like?

Attributes and Appeal (Benefits) Attribute APPEAL (Benefit) APPEAL (Benefit) “Powerade’s new line has been reformulated to combine the scientific benefits of sports drinks with B vitamins and to speed up energy metabolism.” So? “So, you’ll satisfy your thirst with a great-tasting drink that will power you throughout the day.”

Common Appeals  Health and fitness  Love or romance  Fear  Admiration  Fun and pleasure  Vanity  Egoism  Environmental consciousness  Social responsibility  Show the need or problem  Others… Allstate Subway Theraflu

Execution Style  Scientific  Slice of life  Demonstration  Mood or image  Lifestyle  Testimonial  Humorous (most popular execution style)  Fantasy  Musical  Real or animated product symbols Samsonite UPS-Explanation Career Builder Bridgestone

Media Channels Traditional Media  Newspapers  Magazines  Radio  TV  Outdoor  Internet Alternative Media  Shopping carts  Screen savers  DVDs/Video Games  Mobile phone ads  Blogs  Tweets  Stealth marketing  Buzz marketing

Media Selection Considerations Cost per Contact Cost per Contact Reach Impression The cost of reaching one member of the target market. Usually measured as CPM, or cost per 1000 contacts. The percent of a potential audience exposed to advertising one or more times during a given period. A single instance of an advertisement being delivered to and seen by an audience member. Usually expressed as thousands (000). A single instance of an advertisement being delivered to and seen by an audience member. Usually expressed as thousands (000). The number of times an individual is exposed to a message during a time period. Audience Selectivity Audience Selectivity The ability of an advertising medium to reach a precisely defined market. Frequency

Example  Audience of kite boarders –1000 total in the country  Advertise in “Kite Boarders Today Magazine” –Circulation= 750 paid subscriptions –Monthly publication  New kite company places a one page ad for 12 months, costs $1000 per ad –Reach (monthly) = 75% –Frequency = 12 x per year (or 1x per month) –Impressions = 750 –If 200 subscribers passed the magazine along to someone else, impressions would increase to 950 –CPM = ($1000/750) * 1000 = $1, to reach 1000 people (see below)

Vogue Color Rates 1 pg 3 pg 6 pg 9 pg 12 pg 4-Color: 1 page 151, , , , ,508 2/3 page 114, , , , ,227 1/2 page 102,028 98,967 96,927 93,866 90,805 1/3 page 68,011 65,971 64,610 62,570 60,530 1/6 page 33,994 32,974 32,294 31,274 30, pg 24 pg 30 pg 36 pg 48 pg 4-Color: 1 page 131, , , , ,418 2/3 page 99,930 97,633 96,484 95,335 93,038 1/2 page 88,764 86,724 85,704 84,683 82,643 1/3 page 59,170 57,809 57,129 56,449 55,089 A.B.C (6 mos. aver.) Total Subs Paid Subs Verif Subs Single Assoc 1,298, , ,470 52, ,750 … Average non-analyzed non-paid circulation (not incl. above): Total 42,391 TERRITORIAL DISTRIBUTION Mar/09–1,481,975 N.Eng. Mid.Atl. E.N.Cen. W.N.Cen. S.Atl. E.S.Cen. 80, , ,860 62, ,651 53,582 W.S.Cen. Mtn.St. Pac.St. Canada Foreign Other 123,333 85, ,191 70,390 56,304 3,073 Paid Advertising Rate Base: 1,200,000.

People Color Rates Regular Special World's Most Year Issues Issues I Issues II Beautiful End 4-Color: 1 page 274, , , , ,050 2/3 page 234, , , , ,600 1/2 page 185, , , , ,580 1/3 page 125, , , , ,570 Regular Issues–Rate base: 1,725,000. Special Issues I–Rate base: 1,800,000. Special Issues II–Rate base: 1,850,000. World's Most Beautiful–Rate base: 1,900,000. Year End–Rate base: 2,100,000.

Sports Illustrated Color Rates 1 ti 4-Color: 1 page 352,800 4 columns 472,300 2/3 page 294,000 1/2 page 247,000 1/2 page (h) spread 458,600 1/3 page 158,800 Rates include bleed. 7. COVERS 1 ti 4-Color: 2nd cover spread 811,400 3rd cover 388,100 4th cover 458, Upfront Ad Rates

Comparing Magazines: Which is the better buy? Time MagazineNewsweek Magazine Per page cost$156,000$144,000 Circulation4 million3.1 million Calculation of CPM (156,000/ 4,000,000)x1000 (144,000/ 3,100,000)x1000 CPM$39.00$46.45 CPM=Cost of ad per circulation x 1000

Media Scheduling Continuous Media Schedule Continuous Media Schedule Flighted Media Schedule Pulsing Media Schedule Pulsing Media Schedule Seasonal Media Schedule Seasonal Media Schedule Advertising is run steadily throughout the period. Advertising is run heavily every other month or every two weeks. Advertising combines continuous scheduling with flighting. Advertising is run only when the product is likely to be used.

Media Scheduling Scheduling: continuous flighted pulsing seasonal WinterSpringSummer Fall

Sample Media Schedule for Video Game