Advertising:
Paid mass non-person communication
Product Advertisements
Product advertisements: are advertisements that focus on selling a good or service and
which take three forms:(1) pioneering (or informational), (2) competitive (or persuasive),
and (3) reminder.
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Institutional Advertisements
Institutional advertisements:are advertisements designed to build goodwill or an image for an organization rather than promote
a specific good or service.
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Institutional Advertisements
• Advocacy
• Pioneering Institutional
• Competitive Institutional
• Reminder Institutional
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Chevron and BridgestoneWhat is the type and purpose of each advertisement?
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https://www.facebook.com/photo.php?v=461220498290&set=vb.431744650466&type=3&theater
http://www.bridgestonetire.com/about/news/tv-commercials#
Got Milk? and U.S. ArmyWhat is the type and purpose of each advertisement?
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http://milkdelivers.org/got-milk-campaign/
World Wide Fund, Candie’s, and GeicoWhat is the appeal and purpose of each advertisement?
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http://www.youtube.com/watch?v=kWBhP0EQ1lA
http://www.geico.com/about/commercials/#.UozzWcSfjfs
“Use facts, not fantasy. Don’t sermonize; advertise.”
“If an ad doesn’t sell, if it doesn’t ultimately ring the cashregister, it is a waste of money.”
Jeffrey Fox
Advantages:
1.Cost/contactCPM = (cost/unit)/reach X 1000
Example: Jay Leno: $51,000/ 30 sec reaches 5 million
Super Bowl: $3.5 mill/ 30 sec reaches 111 million
CPM for Leno = $ 10.20CPM for SB = $ 31.50
Advantages:
1.Cost/contact2.Repetition
Two-Factor Theory
+
-
Valence
Advantages:
1.Cost/contact2.Repetition 3.Versatility
Advantages:
1.Cost/contact2.Repetition 3.Versatility
4. Atmosphere
http://www.livingroomcandidate.org/commercials/1964
http://www.livingroomcandidate.org/commercials/1984
Advantages:
1.Cost/contact2.Repetition 3.Versatility
4. Atmosphere5. Prestige
Prestige factor is very odd:
Disadvantages:
1.Cost Super Bowl is still $6-7 mill/ minute!!
Disadvantages:
1.Cost2.Flexibility
Disadvantages:
1.Cost2.Flexibility3.Clutter
Disadvantages:
1.Cost2.Flexibility3.Clutter Also a problem with repetition
Disadvantages:
1.Cost2.Flexibility
3.Clutter4.Credibility “Alternative Explanation”
Disadvantages:
1.Cost2.Flexibility
3.Clutter4.Credibility “Alternative Explanation”
5.High Waste
Disadvantages:
1.Cost2.Flexibility
3.Clutter4.Credibility “Alternative Explanation”
5.High Waste6.Lack of Action
Disadvantages:
1.Cost2.Flexibility
3.Clutter4.Credibility “Alternative Explanation”
5.High Waste6.Lack of Action
7.Problem measuring effectiveness
DEVELOPING THEADVERTISING PROGRAM
1. Identifying the Target Audience
2. Specifying the Advertising Objectives
3. Setting the Advertising Budget
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DEVELOPING THEADVERTISING PROGRAM
4. Designing the ads
Humorous appeals
Increases credibility
Increases memory
Increases likability
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DEVELOPING THEADVERTISING PROGRAM
4. Designing the ads
Fear appeals
Protection racket
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http://www.youtube.com/watch?v=ivAx1zgdWoM
DEVELOPING THEADVERTISING PROGRAM
4. Designing the ads
Sex appeals
Careful!
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http://smallbusiness.chron.com/examples-sex-appeal-advertising-works-60861.html
DEVELOPING THEADVERTISING PROGRAM
5. Selecting the right media
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SELECTING THE RIGHT MEDIA
Basic Terms
• Reach
• Rating
• Frequency
• Gross Rating Points (GRPs)
• Cost per Thousand (CPM)
= Reach × Frequency
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Factors to Consider
• Buyer Turnover
• Forgetting Rate
• Purchase Frequency
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FIGURE 15-1FIGURE 15-1 Television, direct mail, and newspapers account for more than 65% of all advertising expenditures (in $millions)
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FIGURE 15-2FIGURE 15-2 Advertisers must consider the advantages and disadvantages of the many media alternatives
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Television
• Out-of-Home TV
• Online TV (OTV)
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Television
• Wasted Coverage
• Cable and Satellite TV
• Infomercials
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• Regional Issues
Magazines
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Radio
• Satellite Radio • Drive Times
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Newspapers
• Falling Circulation & Ad Revenue
• New Types of News Organizations
• Online and Mobile
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Yellow Pages
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• Paid Search
• Rich Media
Internet
• Banner/Display Ads
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Outdoor
• TransitAdvertising
• Billboards
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FIGURE 15-AFIGURE 15-A Alternative structures of advertising agencies used to carry out the advertising program
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EXECUTING THEADVERTISING PROGRAMPRETESTING THE ADVERTISING
Pretests
• Portfolio Tests
• Theater Tests
• Jury Tests
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Posttests
Aided Recall Unaided Recall
Attitude Tests Sales Tests
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