Advertising budget setting, Pros and Cons of

Advertising budget Advertising budget setting, setting,

Pros and Cons of various Pros and Cons of various mediamedia

Group Members Jinesh Gada -

18Kailash Gaokar -

19Devendra Jadhav -

21Debopam Saha -

45Prasad Kulkarni -

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What is Advertising ?What is Advertising ? any paid form of non-personal

presentation and promotional of ideas, goods, or services by an identified sponsor using mass media.

Who advertises?◦ products◦ Brands◦ celebrities◦ Governments◦ Non-profits

What is Media ?What is Media ?Media are the agencies, means or

instruments used to convey messagesMass media refers collectively to

all media technologies, including the Internet, television, newspapers, and radio, which are used for mass communications, and to the organizations which control these technologies

Media Planning?Media Planning? To Whom?

◦ Demographics? Psychographics? ◦ Where do their emotions lie (intangible benefits)? ◦ What will “pull the trigger”?

Achieve What? (Objectives)◦ Awareness? Trial? Educate? Persuasion? Switching?

What? ◦ What are we trying to convey? (Quality, Price, Place)

Which Channel?◦ TV? Radio? Magazine? Billboard? Internet?◦ Driven by target audiences, objectives and budgets.

Evaluating Ad MediaEvaluating Ad Media

Key Advertising DecisionsKey Advertising DecisionsSetting objectivesSetting the budgetDeveloping the advertising

strategyEvaluating advertising

campaigns

Advertising BudgetAdvertising BudgetAdvertising budgets are the

means of determining and controlling this expense and dividing it wisely among departments, lines or services.

Advertising budget will help you choose and assess the amount of advertising and its timing.

It will also serve as the background for next year's plan.

How to Calculate Ad How to Calculate Ad Budget ???Budget ???

Methods

◦Percentage of Sales or Profits

◦Unit of Sales

◦Objective and Task

Advertising MediaAdvertising MediaPrint Media

◦Newspaper◦Magazines

Place Media◦Billboards◦Transit

Broadcast Media◦Television◦Radio

Narrowcast MediaDirect

marketingTelemarketi

ngDirect mailInteractive

media (The Internet)

Newspaper Advertising: Newspaper Advertising: AdvantagesAdvantages High reach. High geographic concentration. Good frequency. Tangibility. Short lead times (flexibility). Relatively low cost. Ability to communicate detailed

information. Ability to place in most appropriate

location. Ability to schedule to exploit day-of-week

factors.

Newspaper Advertising: Newspaper Advertising: DisadvantagesDisadvantages High waste factor and inability to

target. Limitations on creative format. Relatively poor reproduction quality. Clutter. Short life span. High cost of national coverage.

Magazine Advertising: Magazine Advertising: AdvantagesAdvantages Tangibility. High audience selectivity. Good reproduction quality. Long life span and good pass-along

rate. Prestige and credibility. Ability to communicate detailed

information.

Magazine Advertising: Magazine Advertising: DisadvantagesDisadvantages Limitations on creative format. Clutter. Low reach. Low frequency. Long lead times. Relatively expensive. Difficulties in geographic targeting. Inability to schedule to exploit day-of-

week factors.

Advantages of BillboardsAdvantages of BillboardsHigh frequencyGeographic flexibilityLow cost per exposureGood coverage mediumLocalized support mediumLow involvement products

Disadvantages of Disadvantages of BillboardsBillboardsFleeting messageLimited informationLong lead timesLocation unavailabilityVisual pollution

Advantages of TransitAdvantages of TransitCaptive audienceLow costSupports mass transit systems

TransitTransit

Disadvantages of TransitDisadvantages of TransitLack of statusCluttered environmentLimited information potential

Television Advertising: Television Advertising: AdvantagesAdvantages Potentially high reach. High persuasive impact. Availability of uniform national

coverage. Exploits day-of-week and time-of-day

factors. Some geographic and demographic

selectivity.

Television Advertising: Television Advertising: LimitationsLimitations High total cost. Short life span. Inability to transmit detailed

information. Clutter. Relatively high waste factor.

Radio Advertising: Radio Advertising: AdvantagesAdvantages Relatively low cost. Audience selectivity. High frequency. Short lead times (flexibility). Exploits time-of-day and day-of-week factors.

Radio Advertising: Radio Advertising: DisadvantagesDisadvantages No visual communications. Can’t transmit complex messages or

detailed information. Short life span. Clutter. Shared attention.

Direct Marketing : AdvantagesDirect Marketing : Advantages

Audience selectivity. Highly flexible. Relatively uncluttered. High level of personalization. Ability to measure response. Tangibility. Low minimum cost. Short lead times.

Direct Marketing : Direct Marketing : DisadvantagesDisadvantages “Junk mail” syndrome and high

discard rate. Relatively high total cost. Limitations on creative format.

Interactive Media: Interactive Media: AdvantagesAdvantages Cost effectiveness. Easy to modify. Interactive content. International reach. Expanding market. Constant availability. Ease of traffic measurement.

(Internet(Internet))

Interactive Media: Interactive Media: DisadvantagesDisadvantages Privacy concerns. Partial market coverage. Navigation problems. Loss of control.

(Internet(Internet))

Miscellaneous AdvertisingMiscellaneous AdvertisingMOVIE TRAILERS

◦ Controlled by motion picture companies and distributors, not theaters

Blimps and PlanesEvents and SponsorshipsSMS AdvertisingTicket backsOOH media