GLOBAL aDVERTISING

Top Global Advertisers

Top Global Advertising Agencies

The Global Ad Agency Job To coordinate with the global advertiser in terms of final message creation & media selection To effectively construct a media schedule for the various local markets within its global network To communicate the global advertisements effectively into various smaller local markets To account for across-country variability in financial arrangements & payments

Global Advertising Defined GLOBAL ADVERTISING – media advertising that is more or less uniform across many countries, often, but not necessarily in media vehicles with global reach

Pros and Cons of Global Advertising ADVANTAGES CONSISTENCY OF BRAND COMMUNICATIONS MEDIA SPILLOVER COST SAVINGS IMPROVED PRODUCTION LEVERAGING A GREAT IDEA DISADVANTAGES IMAGES AND SYMBOLS MIGHT NOT BE LOCALLY ACCEPTABLE APPROPRIATE MEDIA MIGHT NOT BE AVAILABLE PRODUCT USAGE IS NOT THE SAME LOCAL CREATIVITY IS STIFLED

Drivers of Global Advertising SUPPLY SIDE 1) GLOBAL AD AGENCIES 2) GLOBAL MEDIA DEMAND SIDE 3) GLOBAL CUSTOMERS 4) PREFERENCE CONVERGENCE 5) GLOBAL COMPETITORS

Four Components of Global Advertising STRATEGY – Global ads involve products &services that are positioned similarly across markets, wherein the product’s appeal is consistent ORGANIZATION – global ads are typically directed from headquarters with the help of advertising agencies with a global network MEDIA – with global reach are used, creating spillover that crosses borders to reach customers in different countries & follows traveling customers around the globe MESSAGE & CREATIVE – copy & visualization may be uniform across markets, uniformity decreases based on how different each local market is from another

Global Ad Categories IDENTICAL ADS – ads are identical, usually with localization only in terms of language voice-over changes & simple copy translations (e.g. the Marlboro cowboy ads) PROTOTYPE ADVERTISING – the same ads, but the voice-over may be changed to avoid language & cultural problems, & the ad may be re-shot with local celebrities (e.g. Drakkar Noir) PATTERN STANDARDIZATION – similar but less structured global approach, wherein the positioning theme is unified & some alternative creative concepts are planned, but execution differs between markets (e.g. Xerox)

PROTOTYPE ADVERTISING PATTERN STANDARDIZATION Global Ads: Same everywhere? PROTOTYPE ADVERTISING PATTERN STANDARDIZATION Brand Name same Theme same Visual same Positioning same Actors same Words same Language (local) Media same Materials same Slogan same Brand Name same Theme same Visual same Positioning same Actors not same Words not same Language (local) Media not same Materials not all same Slogan same

Web Ads Are Naturally Global WEB ADS are those boxed inserts on the screen that appear as you surf the web. They are interactive in the sense that you can click on them to get more information about the product/service. Types of Web ads: Banner ads – most common, measured in pixels Tickers – banner ads that move across the screen Interstitial ads – ads that flash while a request is being handled, filling up idle loading time. Pop-up ads – ads that appear once a site has been loaded prior to webpage access Transactional ads – let you order/request something without leaving the current webpage Roadblocks – full screen ads that users must pass through to get to other screens Rich media ads – the web version of a TV commercial, with audio and motion

The International Mass Communication Process Producer/ marketer/ advertiser Sets objectives and advertising budget Advertising agency Develops message (encoding) and selects media Mass Media Carries the message Opinion leaders, individuals Receive the message and interpret (decoding) Coordination and control Generate feedback on effects Individuals Think, feel and act (hierarchy of effects) Sender’s cultural setting Receiver’s cultural setting

Cultures and Visual vs Verbal Processing VISUAL PROCESSING Low literacy Younger Segments Low Involvement products High context societies VERBAL PROCESSING High Literacy Older segments High involvement products Low context societies TV commercials Magazines Newspapers Radio Ads

REPEAT PURCHASE/LOYALTY The Hierarchy of Effects ADVERTISING EXPOSURE AWARENESS KNOWLEDGE LIKING/ATTITUDE PREFERENCE TRIAL REPEAT PURCHASE/LOYALTY

Matching Ad Objectives and Media TV, Radio Words (spoken/written), Print, TV/Radio TV, Magazines, Cinema, Outdoor Ads Media must be timely, newspapers, TV AWARENESS KNOWLEDGE ATTITUDE CHANGE & IMAGE BUILDING INFLUENCE BEHAVIOR

Global Advertising is Most Powerful When… • the image communicated can be identical across countries • the symbols used carry the same meaning across countries • the product features desired are the same • the usage conditions are similar across markets

Goodyear’s Latin-Am. Campaign Planning

Global Tire Ads: Language pitfalls How do you say “tire” in Latin America’s Spanish? What to say Where to say it CAUCHOS CUBIERTAS GOMAS LLANTAS NEUMATICOS Venezuela Argentina Puerto Rico Mexico, Peru, Guatemala, Colombia Chile

Goodyear: Lessons for Global Advertisers By focusing on regions, it may be possible to reap the scale benefits & cost efficiencies of global advertising without sacrificing too much on the side of local adaptation. The early involvement of country subsidiaries & agency professionals not only facilitates later acceptance of unified themes but also helps broaden the sources of powerful campaign concepts. The process by which pattern standardization is arrived at needs to allow open & free exchange. Even when the company has operated for years in a market, research is still necessary, especially when conditions are changing.

Takeaway As the affluence of countries grows, new products/services appear, & customers need more information. Advertising becomes more important and advertising expenditures as a percentage of GDP increase.

Takeaway As markets integrate, global communications expand, & customers become more similar, pan-regional advertising campaigns will become increasingly cost-efficient & more effective than multi-domestic advertising.

This helps avoid the pitfalls of standardized & translated messages. Takeaway Instead of complete uniformity, global advertising tends to follow a pattern standardization approach with unified slogan, visualization, & image but with local execution in terms of language, spokespersons, & copy. This helps avoid the pitfalls of standardized & translated messages.

Takeaway The global advertising agency is often at an advantage over local rivals when it comes to global /regional advertising. But independent local advertising agencies have combined with others to form multinational networks & can sometimes offer stronger local talent.

Takeaway Developing a global campaign takes time, effort, & planning. The process should involve headquarters and ad agency managers & local representatives whose knowledge will help formulate the global communication strategy.