A Project Report Submitted on

ADVERTISING
Master of Business Administration
(Applied Management)
Second year
Project Submitted By

Mr PRITESH S PARIKH
Enrolment No- 4740900170
Under The Guidance of
Mr. SAMEER CHARANIA Mr. Sachin
Jaykar.
Project Guide Location
Head
The NIS Academy The NIS
Academy

THE NIS ACADEMY

Sakinaka, Andheri (E) Mumbai.
(2010-2011)
 Acknowledgement

One of the pleasant aspects of preparing a project

report is the opportunity to thank those who contributed
to make the project completion possible.

I am extremely thankful to Mr. SAMEER

CHARANIA (Project Guide) & Mr. Sachin
Jaykar (Location Head). Whose active interest in the
project and insights helped me to formulate, redefine &
implement our approach towards the project.

I am also thankful to all those seen & unseen hands

& heads which have been of direct or indirect help in
the completion of this project.

We further feel indebted to our respective college, for

their assistance, encouragement, inspiration and various
suggestions from the conception to completion of the
project. They have helped us to prepare a factual,
realistic and pragmatic report in limited period than
would have been possible.

CERTIFICATE

This is to certify that Mr PRITESH S PARIKH,

Enrolment Number-4740900170 has successfully
completed the project work as partial fulfilment
of the requirements for the Masters of Business
Administration
(Applied Management) in the academic year 2010-
2011

Signature of Project Guide Signature Of Location

Head

____________________ ___________________

Mr. SAMEER CHARNIA Mr. Sachin Jaykar

 Signature Of FacultY Miss Priya R Rathore.
Date
Place

College Seal

DECLARATION

I, the undersigned student of THE NIS ACADEMY of

Masters of Business Administration (Applied

Management)

second year, hereby declare that, I have completed this

project of

ADVERTISING in the academic year

 2010-2011. The information in this project is true

and original to best of my knowledge

______________________

Mr. PRITESH S PARIKH

Enrolment no.- 4740900170

ADVERTISING
The word that bridges the gap between “no more” to “know more”-
Advertising………. and further between “know more” and “grow more”.
Knowledge is power, they say and today the biggest weapon of power in
anyone’s hands is that of advertising.

In this jungle of name and fame, where every creature confidently defies
William Shakespeare when he says,” What’s there in a name” there is definitely
everything attached to name and it’s this name which gives you fame……And
what gives an identity it’s name? Well, the only golden word “Advertising”
Definitely roses will not smell less sweet by any other name but businesses will
undoubtedly go back to the coffers if the world forgets their names and to keep
them alive in the minds of billions, you go for publicity.
Due to the increasing role of the advertising agencies and so-called dominion
over our minds, today the level of consumer awareness could be well adjudged
from the fact that even a toddler identifies in the spur of the moment an ad of
Cadburys’ chocolates or Amul Butter been run on the screen of the idiot-box
ornamenting our spacious drawing rooms. The American Marketing
Association, defined advertising as “any paid form of non-personal
presentations of idea, goods or service by an identified sponsor.”In other words
we can say that Advertising is brand building through effective communication .

WHAT IS ADVERTISING?

Advertising is a process, not a medium in its own right, although it uses

different media forms to communicate. Advertising, in its simplest form, is the
way in which the vendor or manufacturer of a product communicates with
consumers via a medium, or many different media. Advertising is a form
of communication intended to persuade an audience (viewers, readers or
listeners) to purchase or take some action upon products, ideas, or services. It
includes the name of a product or service and how that product or service could
benefit the consumer, to persuade a target market to purchase or to consume that
particular brand. These messages are usually paid for by sponsors and viewed
via various media. Advertising can also serve to communicate an idea to a large
number of people in an attempt to convince them to take a certain action.
Commercial advertisers often seek to generate increased consumption of
their products or services through branding, which involves the repetition of an
image or product name in an effort to associate related qualities with the brand
in the minds of consumers. Non-commercial advertisers who spend money to
advertise items other than a consumer product or service include political
parties, interest groups, religious organizations and governmental
agencies. Nonprofits organizations may rely on free modes of persuasion, such
as a public service announcement.

Advertising = messages

Advertising can be as “For Sale” card placed on a supermarket noticeboard:

The vendor is giving notice that a product is for sale at a given price to people
who might be interested in buying it. This harks back to the earliest forms of
advertising, when exotic new goods shipped into Europe from the Far East and
India (eg tea and spices) needed to be brought to the attention of potential
buyers.

However, even a supermarket noticeboard might be considered a crowded

marketplace as there may be other desks offered for sale, and other
advertisements for customers to read. In order to attract a customer's attention to
this particular advertisement, the person offering the desk for sale has to make it
eyecatching, possibly by adding some colour.
 They also have to emphasise the benefits of the product they are offering. There
are only two basic benefits that a product has when compared to others of a
similar sort. It can be described as being better or cheaper(or both!!):

They might also add an image of the desk - a picture is worth 1000 words after
all - in order to persuade the consumer still further that this desk is the right
desk to buy. They might add a headline or slogan to their ad, to announce
exactly what it is that is being sold. Thus they have all the basic elements of
print advertising: a catchy slogan, an image, and copy text. This advertisement
will hopefully fulfil its purpose which is to provide information which might
influence someone to buy the desk. It has done this by linking the vendor of the
desk to people who are looking to buy a desk. The link appears in the medium
of the supermarket notice board, and the vendor pays the owner of the medium
to place it there. The vendor has chosen this medium because the kind of people
who buy the kind

Therefore advertising is:

 A message from vendor/manufacturer to consumer

 Intended to give information which will influence consumer choice
 Aimed at a known audience
 Paid for

What do companies use advertising for?

 • Inform people about their products/services and improvements in
products

• Make their brand names familiar to people

• Give a personality to the brand/ company which sets it apart from other
brands

• Remind customers about their brand at the right time and

• To help sales force be more effective

• To reinforce customer confidence in their purchase

Why do they employ agencies?

So that a complex communication can be explained in an easy to understand,

interesting and meaningful way

Role of advertising in brand promotion

• Introduce

• Inform

• Persuade

• Build brand loyalty among consumers

• Create image & meaning for brand

Role of advertising for a marketer

• Cost effective method to communicate to a large audience

• Creates image and symbols around a brand to differentiate it other than

functional benefits

• To strike a chord with the consumers when differentiation may be

difficult to achieve
Advertising leaves an impact on

• On product

• On Price

• On competition

• On consumer choice

• On Business cycle

• Value addition

Functions of Advertising

1). Product and Brand Information--this is the main function of advertising.

2) Incentive to Take Action--provides consumers with reasons to switch brands

by presenting reasons through copy or graphics.

3) Reminder and Reinforcement--advertising must be constantly reminding the

consumer about the name of the brand or its benefits.

The Five Players of Advertising

a. There are five key players in the advertising world: 1). The advertiser 2). The
advertising agency. 3). The media. 4). The vendor. 5). The audience.

The Advertiser: The advertiser is the individual or organization that usually

initiates the advertising process. The advertiser makes the final decision about:

1) The target audience.

2) The media that will carry the advertising.

3) The size of the advertising budget.

4) The length of the campaign.

The Advertising Agency Advertisers hire independent agencies to plan and
implement part or all of their advertising effort.

1) An advertiser uses an outside agency because it believes the agency will be

more efficient in creating an individual commercial or a complete campaign.

2) Large advertisers are involved through:

a) The Advertising Department--most large businesses have one of these.

b) The In-House Agency--performs most, if not all, of the functions of an

outside advertising agency.

The Media

c) The media are the channels of communication that carry the messages from
the advertiser to the audience. Media organizations are organized to do the
following:

1) Sell space in print media.

2) Sell time in broadcast media.

3) Sell space and time in electronic and other support media.

4) Assist in media selection and analysis.

5) Help with ad production.

Vendors

d) Vendors assist advertisers, advertising agencies, and the media with tasks of
putting together an ad (such as artists, song writers, or musicians).

The Target Audience

e) The target audience has a direct bearing on the overall advertising strategy.
Especially the creative strategy and the media strategy.

Roles of Advertising

Advertising can be explained in terms of the four roles it plays in business and
in society:

1) The Marketing Role—

a) Marketing is the process a business uses to satisfy consumer needs and

wants through goods and services.

b) A target market is the particular set of consumers that the company chooses
to direct its marketing effort towards.

c) Marketing communication--a method for communicating or promoting.

d) The marketing mix (4 Ps) consists of product, price, promotion, and place.

2) The Communication Role--advertising as a form of mass communication

transmits different types of market information to match buyers and sellers in
the marketplace. Advertising informs and transforms.

3) The Economic Role--

a) The market power model considers advertising to be a means of persuasion

that increases product differentiation and decreases consumers’ willingness to
substitute competing alternatives, (brand loyalty, through repeated messaging)

b) The model based on the economics of information theory assumes that price
elasticity is a function of consumer awareness and of qualitative knowledge
about close brand substitutes. Advertising is information under this model.
(Price is determined by the consumer depending on Brand perception,
credibility & exclusivity)

4) The Societal Role--

a) Informs us about new and improved products.

b) Teaches us how to use these innovations.

c) Helps us to compare products and features and make informed decisions.

d) It mirrors fashion and design trends and adds to our aesthetic sense.

e) Can advertising manipulate/ persuade people? Yes: because it’s all about
selling dreams & people want to believe! Captain Cook salt was actually ENO.
Kesar actually doesn’t do anything for the skin as claimed by fairever. There is
no nimbu in any of the nimbu soaps it’s only it’s chemically created essence.
Testimonials are an effective tool. Pantene, Diamonds, Dove.

Basic requirements of an ad

• Attention value

• Conviction value

• Retention value

• Recall value

• Motivational value

• Empathy value

• 5. Current Advertising Issues

• Interactive Advertising
a) Some experts believe that technology, especially interactive
technology, will
change the face of advertising completely.

b) Today, this technology has as a primary purpose the ability to gather

and evaluate information, not to advertise.

c) Integrated marketing communication is the practice of unifying all

marketing communication tools so they send a consistent, persuasive
message to target audiences that promotes company goals. Tools include:
1) Advertising.
2) Sales promotion.
3) Direct marketing.
 4) Public relations.
5) Packaging.
6) Personal selling.
Inside-out planning means marketers plan advertising messages based on
what they believe is important.
2) Outside-in planning means marketers start with data about
consumers and prospects to plan the advertising message.

Globalization
f) With trade barriers coming down, advertisers are moving into new
global markets.

Huge multinational agencies are beginning to get more and more

international accounts.

1) Advertisers must consider whether to standardize or customize ads as

they spread to other cultures.

Niche Marketing
g) Advertisers are moving toward smaller and smaller markets
(niches). Selective media is being used to reach these groups.
1) This trend is often called fragmentation.

Consumer Power, Relationship Marketing, and Customization

h) Three trends are important:
1) Consumers have more information to give them more muscle in
the market- place. (In a bid to outdo the competition the manufacturer has
to give full info to the consumer)
2) Relationship marketing refers to a strategy that takes advantage
of computer databases to provide targeted services and product offerings
based on customers’ history of transactions with the company. (Dominos
& Time share)
 3) Mass customization takes advantage of flexible manufacturing to
make individualized products. (Sachin & Palio)

4) Adaptive marketing means continually revising the product offering,

on an individual basis, to satisfy customer demands. (New Improved/ ab
nimbu yukt Cinthol)

In advertising today, it is no longer sufficient to just have creative ads.

Professionals have learned that explicit objectives should drive the
planning, creation, and execution of each ad. This not only makes good
sense but it is also cost effective.
Good or great ads work on two levels. First, the ads should satisfy the
consumer’s objectives by engaging them and delivering a relevant
message. At the same time, the ads must achieve the sponsors objectives.
Therefore, the advertiser is responsible for meeting its own goals as well
as those of the consumer. Several ideas for accomplishing this objective
are presented. In summary, three broad dimensions characterize great
advertising: strategy, creativity, and execution.

The 5 M’s: While developing an advertising program the following have

to be kept in mind:

• Mission- What are the advertising objectives?

• Money- How much can be spent?
• Message- What message should be sent?
• Media- What media should be used?
• Measurement- How should the results be evaluated?
 ADVERTISING OBJECTIVES:
• All Advertising objectives must flow from prior decisions on target
market, market positioning & marketing mix. These objectives can be
classified according to whether their aim is to inform, persuade or
remind.

• Informative Advtg: To build primary demand.

• Persuasive Advtg: To build selective demand for a particular brand at the
competitive stage. Experiential advertising, Comparative advertising.
• Reminder Advtg: Used for mature, established brands, to reinforce their
superior quality & make the consumer feel repeatedly that by buying their
product they have made the right choice, by reinforcing their brand.

ADVTG BUDGET:

• It’s difficult to ascertain for a company as to how much they should

spend. One must remember that advtg has a carryover effect that lasts
beyond the current period. Although advertising is treated as a current
expense, part of it is really an investment that builds up an intangible
asset called Brand Equity.

• #1. Stage in the product life cycle: Launch, established, or middle.

• #2. Market share & consumer base: What is the status of the brand.

• #3. Competition & clutter: How many competitors are there & how
much is the clutter through which it needs to break through.

• #4. Advertising frequency: How many times does the message need to
relayed, displayed.

• #5. Product substitutability: Lifestyle consumer perishables like

Cigarettes, booze, colas, need to heavily advertise to establish a different
& attractive image. Also when the brand can offer unique (USP) physical
benefits or features.

ADVTG MESSAGE:
 • The message has to come from a creative process, has to be creative &
strategically correct!
• FOUR STEPS TO DEVELOP A CREATIVE STRATEGY:

• #1. MESSAGE GENERATION: Benefit to consumer, product concept.

• #2. MESSAGE EVALUATION & SELECTION: Focus on one core

selling proposition. Desirability, exclusiveness & believability. Conduct
market research to determine which appeal works with T.A.

• #3. MESSAGE EXECUTION: The messages impact depends not only

upon what is said but also on how it is said. Some ads aim for rational
positioning (Vicks Action 500, Brings relief faster, Surf, Gets clothes
cleaner) & others for emotional positioning (Moov, ORS, Dettol).

• Message Types & execution styles: There must be a cohesion of style,

tone, words & format while creating & executing the message. Slice of
life, lifestyle, fantasy, mood or image, musical, personality symbol,
technical expertise, scientific evidence, Testimonials, Celebrity
endorsements.
• #4. SOCIAL RESPONSIBILITY REVIEW: Advtg. must be within
socio-legal limits. No false claims, no deception. To be socially
responsible, advertisers must be careful not to offend people, human &
child rights, ethnic groups, minorities etc.

ADVTG MEDIA:

How to choose effective media?

What is the desired reach, frequency & impact; choosing among major media
types; selecting specific media vehicles; deciding on media timing & deciding
on geographical media location.
Media Selection: Finding the most cost effective media to deliver the desired
number of exposures to the T.A. Media Planner has to figure out the most cost
effective combination of reach, frequency & impact. Keeping the above in mind
the right media types have to be chosen, this depends on the T.A., Product,
Message, Cost.

Vehicle Selection: Depends on circulation, audience, effective audience (T.A.),

effective ad-exposed audience (Aware T.A.).

Media timing: Choosing the right time to release.

The timing pattern should consider three factors.

Buyer turnover: Rate at which new buyers enter the market.

Purchase frequency: number of times during the release does the average
buyer buy the product.

Forgetting Rate: The rate at which the buyer forgets the brand.

Geographical location: How to allocate Advtg. Budget, space & time.

National buys or spot buys, or local buys. In markets known as Areas of
dominant influence (ADI’s) or Designated.

EVALUATING ADVTG. EFFECTIVENESS:

Through research- Pre & Post testing.

Communication- Effect Research: To determine whether an ad is

communicating effectively, also known as Copy testing.

# 1.Direct rating method. Shows ads & asks for reaction/ rating/ evaluation.

#2. Portfolio tests- Tests recall of consumers, therefore effectiveness.

#3. Laboratory Tests- Equipment used to test psychological reaction to ads:
heartbeat, Blood pressure, pupil dilation, perspiration etc, indicating attention
getting power.

Sales- Effect research: Have sales increased?

Sales are determined by product’s features, price, availability & competitor’s

actions.

Advertising Expenditure: How much?

Share of voice: How much is the spend in comparison to others in same product
category?

Share of market: What percentage of the market does the product enjoy

Advertising effectiveness: By dividing share of market by share of voice.

Historical Approach: Correlating past sales to past advtg. expenditure,

evaluating short term & long term marginal sales effects of advertising.

How does advertising work?

• Awareness
• Interest
• Desire
• Action

25% tried

Dos of Advertising
• Informative
• Entertaining
• Involving

Donts of advertising

• Never lie

• Over claim benefits

• Never insult or talk down to the customers

 • Compare with competitors

Creating good advertising

• Build a meaningful relationship with customers

• Must know why do people buy?

Why do people buy?

• Because there is a need or want for it

• Because there is an established relationship

Benefits of advertising

• Tangible, measurable benefits

• Perceptive benefits- helps their role

• Value benefits- deep rooted concerns are addressed

What do client expect from their advertising?

• Clutter breaking solutions which to break the clutter should be

• Innovative, hat ke

• Creative-Media synergies that give them value for money

Risks in advertising

• Playing safe

• Just lies there unseen, unheard, unresponded

Distinctions within Advertising

• Advertisements

– Specific messages designed to

persuade an audience

• Advertising Campaign
 – An integrated series of ads and promotions that communicate a
central theme or idea

• Integrated Brand Promotion (IBP)

– Coordinating promotional tools with advertising to build and

maintain brand awareness, identity, and preference

Advertising as a Communications Process

• Production:

– The advertiser and social context determine ad content.

• Accommodation and negotiation:

– The ways in which consumers interpret ads.

• Reception:

– The context of ad reception and the audience’s understanding of an

ad result in a meaningful interpretation of the ad.

Audiences for Advertising

• Household Consumers

• Business Organizations

• The Trade Channel

• Professionals

• Government

Audience Geography - Global,International, National,Regional and Local.

Brands

Most advertising today is about communicating the complex range of messages

about a product known as branding. A brand is a product or range of products
that has a set of values associated with it that are easily recognised by the
consumer. A brand is distinguished immediately by its name and/or a symbol
(eg the Nike swoosh, the adidas three stripes). Brand Identity is created by using
the following:

1. Brand Essence - a way of summing up the significance of the brand to

stockholders and consumers alike of the brand in one simple sentence

2. Brand Slogan - a public way of identifying the brand for consumers - often
associated with a logo

3. Brand Personality - marketeers can describe their brand as though it were a

person, with likes and dislikes and certain behaviour

4. Brand Values – what does it stand for/against?

5. Brand Appearance - What does it look/sound/taste like?

6. Brand Heritage - how long has it been around? does it have customers who
have been loyal to it for many years?

7. Emotional benefits – how it avoids/reduces pain or increases pleasure

8. Hard benefits – bigger? Better? Cheaper? Washes whiter?

As consumers, we tend to be more familiar with a whole brand, as opposed to

individual products. The process of advertising allows us to associate values
with products that may not have a real connection to them - for instance, Nike
has always selected rebellious athletes to promote its shoes, the 'bad boys' of
basketball, tennis & football, and therefore the Nike brand has connotations of
rebelliousness,

Advertising in Brand Development and Management

1. Information and persuasion
2. Introduction of new brands—extensions
3. Building brand loyalty/brand equity
 4. Creating an image/meaning
5. Building brand loyalty in the trade channel

Trends Affecting the Advertising and Promotion Industry

• The “Undoing” of Agency Consolidation and Globalization

• Media Proliferation and Consolidation

• Media Clutter and Fragmentation

• Consumer Control:

– Blogs and TiVos

Advertising As Institution

Advertising is also a media institution, which means it is an industry with its

own way of doing things, its own channels of communication, and its own key
personnel who carry out skilled tasks. It is bound by its own regulations, and
penalises those who break those regulations. It also has a number of award-
giving bodies, and it rewards good work, as judged by peers. Advertising

companies are known as agencies, and they produce and distribute advertising
material on behalf of their clients, the manufacturers or service providers.

Structure of advertising industry

 Advertisers

Advertising and Promotion Agencies

External Facilitators

Media Organizations

Target Audience

Advertising As Part of Our Culture

If you look around you, you will find your world filled with advertising - on
huge billboards in the streets, on the pages of magazines, between the tracks
played on the radio, on the walls of the subway, on the pages of internet sites, at
the bottom of emails, on the backs of cinema tickets, on the shirts of football
players. It seems that any surface that will hold still long enough to be read is
considered a potential advertising medium. The fact that there is so much
advertising out there means that it is part of our daily cultural experience - it's
almost impossible to avoid it. Therefore the study of advertising is not just
about WHAT manufacturers say to consumers, but it about HOW it is said.
Advertisements can have an influence far beyond a simple message about a
product. Advertisements can introduce characters to the public imagination,
make icons out of actors, have everyone repeating a catchphrase ('Wassup"
anyone?), get audiences arguing over plot points or waiting for the next
instalment, and generate news stories. Advertisements often take on a cultural
life of their own, and occupy space in the media beyond that which has been
paid for. This, of course, is great for the advertisers!

This adidas ad, featuring David Beckham, made headlines as the largest ever
piece of outdoor advertising in the UK, possibly the world, in May 2002. Fort
Dunlop is a Birmingham landmark, and can be seen from the M6 (which is
often completely jammed with traffic) although it was claimed that the ad could
be seen from up to a mile away on a clear day. The ad itself was larger than a
football pitch, with the image of Beckham's face measuring 20m x 20m (cue
lots of Football Bighead headlines from the UK tabloids). As well as having a

huge (sorry...) impact on the local environment, the ad generated press coverage
around the world on account of its size.

 As well as being part of the news agenda, advertisements are a reflection of a
society's wants and needs at any particular point in time. They also, through
the way that they represent gender, age, wealth, success, happiness etc
provide excellent material for historians and sociologists researching social
attitudes of an era or a culture at a particular point in time.

Advertising reflects the values of a society - all the things that people want to
have or to be - and can be used as a measure of dominant hopes and fears. Our
own appearance-obsessed culture will provide plenty of fruit for future
investigation. The Wallis ads shown (from a campaign entitled "Dressed to
Kill") tell us a lot about attitudes to women - from both a male and a female
perspective - and the power of sexuality in our society. They also show what we
find acceptable to laugh at,

Advertising Makes The World Go Round

The messages relayed through advertising may range from the straightforward
("Buy this now - it's cheaper!") to the subtle ("Buy this now - it will make you
attractive to the opposite sex!") but they all cost money to put "out there". A lot
of money. The giants of the corporate world (Nike, Coca-Cola, Proctor &
Gamble) all pour millions of dollars into advertising on an annual basis. They
want their messages to be heard, and as a by-product of all this, they financially
support the media through which we hear or see their messages. Without
advertising there would be no television except re-runs, magazines would be
thin, colourless and prohibitively expensive, and many internet sites would not
be able to afford their server space. When big companies cut down their
advertising budget the effects are keenly felt by the media which rely very
heavily on revenue from selling advertising space. The money simply stops
coming in and the economic effects are drastic: magazines fold, TV stations
slash original programming, and internet companies crash out of existence.

This is worth remembering next time you complain about the way a movie on
TV is broken up by commercial breaks, or that you can't watch your favourite
show on the internet until you've sat through an ad: if the advertising wasn't
there you wouldn't be watching.

Therefore the study of advertising is essential for a Media Studies student. As

well as analysing form and content, you need to understand how advertising
allows other media to exist, and how it generates cultural identity. A world
without advertising would be a very different place to the one that we know.

A BRIEF HISTORY OF ADVERTISING

As we have seen, an advertisement can be very simple, and simple advertising,

eg for events, has been around for a long as people have been trying to make
money out of attracting a wider public. Posters announcing an event were
probably the first form of advertising, and these date back to gladiatorial
contests in Ancient Rome. The first advertisements, however, which fit our full
definition of advertising (ie paid for, occupying space in a media form) appear
in newspapers in the seventeenth century. These tended to be straightforward
statements of fact, without any fancy typesetting or illustrations, and were often
indistinguishable from the news stories around them. As the eighteenth century
wore on, the Industrial Revolution gathered pace, and consumer goods became
more sophisticated, manufacturers began to recognise that they needed to create
a need for their products. Many items were new to consumers, or were new
variations. Josiah Wedgewood, who manufactured pottery in England in the
second half of the seventeenth century, was particularly good at creating new
markets for his wares through advertising. He brought cups and plates into the
budget and households of middle class families - a much larger market than the
wealthy aristocratic households who had previously been the only purchasers of
dinner sets.

The nineteenth century saw the skills of the advertiser come to the forefront, as
ads began to mix images and words, and adopt the techniques of language and
layout that we are familiar with today. With the proliferation of goods and
services in this century, it became recognised that advertising was an important
part of business, and should be dealt with by experts in the field. Most of the
advertising agencies that dominate the global markets today were founded in the
latter part of the nineteenth century.

During the early part of the twentieth century,

governments began to recognise the power of advertising
to get their message across to their 'consumers' (ie their
citizens). This was particularly apparent during the First
World War, when advertising was used to enlist soldiers
and enforce government policies. We look back at some
of these advertisements now and think of them as
blatant propaganda, or the deliberate spreading of ideas
in order to further a cause. Many of these ads use
techniques of psychological manipulation which now
seem to us crude and unfair, deliberately setting out to
frighten the target audience, or shame them into
following instructions. These posters assume a very specific power relationship
between advertiser and audience, and we notice that the advertiser assumes that

they know best and are giving the audience information for their own good. A
modern audience has a more sophisticated approach to advertising and is more
sensitive to any attitudes which might be considered openly patronising. How
do you think a modern audience might respond to the poster on the right?
Click here for some analysis of a propaganda poster from 1916.
Advertising was a large, well established industry in 1914 and it continued to
expand after the First World War. Psychology was growing in stature as a
science during this period, and advertisers where quick to latch on to key ideas
(the desire to 'belong', subconscious fears) in order to reach their audience. As
new ways of reaching a mass audience became technologically available
(cinema, radio) advertising was quick to latch on to new media and became an
important way for broadcasters to help fund their programming. Radio was an
especially successful way to reach audiences in the 1920s - between 1923 and
1930 60% of American families acquired a radio set. The term 'soap opera' as
we know it came into being as soap manufacturers sponsored domestic radio
dramas in return for frequent plugs for their product. Listen to some 1920s radio
advertising here.
After the Second World War there was both a boom in consumer spending
AND a new medium: television. Millions of dollars annually were poured into
the coffers of advertising agencies as manufacturers sought to inform newly
prosperous consumers of the dazzling array of new goods they could purchase
(washing machines, vacuum cleaners, food mixers, TV sets...) that they never
previously knew they needed. With the combined impact of image AND sound,
it soon became clear that brand recognition was much greater with TV than with
radio and soon the airwaves were full of programmes like Kraft Television
Theatre, Colgate Comedy Hour, and Coke Time as advertisers scrambled to
access this new wave of consumers. This is sometimes referred to as the single-
sponsor era, as the tv programmes were actually produced by the advertising
agencies and paid for by a single sponsor. The 1950s were bonanza years for
advertising, and it was at this stage that the men (mainly) behind the ads became
media stars and shot into the league of the super-highly paid. Men such
as David Ogilvy and Leo Burnett graced the covers of magazines and were seen
to have real power by the rest of the business world. Their theories of
advertising were seized on by agencies around the world, and much of their
thinking is still part of advertising practice.
As the 1960s began, the networks wanted more control over the content and
style of programming and as TV became more sophisticated and production
costs rose, single sponsors began to struggle. NBC executive Sylvester Weaver
came up with the idea of selling not whole shows to advertisers, but separate,
small blocks of broadcast time. Several different advertisers could buy time
within one show, and therefore the content of the show would move out of the
control of a single advertiser - rather like a print magazine. This became known

as the magazine concept, or participation advertising, as it allowed a whole

variety of advertisers to access the audience of a single TV show. Thus the
'commercial break' as we know it was born.

Can You Say, "Cha-ching!"?

Today's advertising industry grosses billions of dollars yearly, both in the U.S.
and worldwide. Make no mistake about it, the ad world is BIG business. A lot
of larger companies involved in online advertising (think Google), as well as
offline agencies and the like, are getting or have already gotten rich from other
people's advertisements. Gotta love free enterprise.
Even we hubbers are involved in the promotion game, trying to ever increase
our AdSense earnings while satisfying our urge to write. When fun and profit go
together, it's a beautiful thing.
Though we may be on the cutting and trendy edge of technology today,
advertising is far from young and modern.
Ancient Want Ad Written On Papyrus
Lost: Chariot, white with gold trim, gold spikes on wheels, toga and pointy
helmet in back seat. Last seen outside of forum on gladiator's night. Reward of 2
goats for it's safe return. Please send messenger to Ben Hur's house with any
news.
Papyrus Ads

I'd be interested to know what the ROI was with these

Ancient Advertising Roots

In fact, using messages to sway the public began long before the new world was
even discovered.
Ancient Greeks and Romans used to advertise for their lost and found items
on papyrus. I'm not sure what kind of items those might have been, perhaps they
needed to locate their togas after the orgy or couldn't remember where they
parked the chariot. It matters not. What's important here is that they were
issuing advertisements long before today's internet advertisingever existed.
We're going for history, here.
If you have a chance to rifle through the ruins in ancient Arabia or Pompeii,
you'll find signs promoting politicians and commerce of the day. Somehow, it
doesn't surprise me that political messages were among the first developed ads.
Okay, you thought those first two examples were old? Well, hang onto your hat
because we're going back even farther in time.
A visit to South America, Asia or South Africa will afford you evidence of the
very first advertisements of humankind. Wall paintings depicting sales and
commerce messages still exist today. If you happen to visit those countries, it
would probably be worth taking the time to see them yourself. Since the wall
painting promotionsare dated way back to 4000 BCE (Before the Common Era),
I think it safe to say that they are the most durable billboards every made.

Descendant of the First Billboards

Even as far back as 4000 BCE, people were using wall paintings as
endorsements

History of Advertising Time Line

4000 BCE - Wall paintings promoting commerce in South America, South

Africa and Asia

Ancient A.D. - Papyrus ads in Pompeii, Egypt, Greece and Arabia

Middle Ages - Signage was born; vocal advertising

17th Century - Ads started appearing in handbills and newspapers

19th Century - Mail-order advertising became popular, along with paid

advertising in newspapers; lead up to the birth of advertising agencies

1869 - First full-service ad agency is opened in Philadelphia

1920's - Sex in advertising got its start with the introduction of women
being used in the photography of ad campaigns; radio advertising was born
1940's - Radio sponsorships serve as the template for television
commercials

Signs of the Times

Business owners of the Middle Ages hung signs outside their shops with images
for those who could not read

Now, We're Evolving

It was baby steps all through the infancy of advertising.

Eventually, history hit the middle ages and the earth's population naturally
increased and spread out over a larger area. Back then, most folks could not
read. Therefore, the shopkeepers began using signs with simple images to
advertise their businesses. Ye old boot cobbler would have a sign illustrating a
boot, the candle maker would have a candle on his, and so forth. To further
attract business, town criers were employed for open air markets. The criers'
vocal advertising let the consumers know where to find the goods.

Jump ahead a few hundred years to the 17th century. Now, things are really
starting to get modern. More people can read, print has been invented and new
forms of advertising are being born.

Advertisements were being used in handbills and newspapers for the first time.
Mainly they were used for the promotion of books and paper sales and they
worked really well. As you may expect, it wasn't long before the "spammers"
came along and infiltrated the industry. False advertising abounded and the
regulation of ad content came into being.

Let's spring ahead 200 more years and into the 19th century. That brings us to
the development of mail-order advertising. I imagine that it was big business for

a time in history when most people never ventured more than a few miles from
home. It probably opened up a whole new world to them. Since this is all
supposition on my part, I may as well throw in that it probably took a long time
to get the goods. Be that as it may, this was another step in the evolution of a
billion plus dollar growth industry.

Another item in the 1800's to take note of is the introduction in France of paid
advertising in newspapers. What a difference that has played to the ad makers
and sellers since then.

History of Advertising in India

Indian Advertising starts with the hawkers calling out their wares right from the
days when cities and markets first began. Concrete advertising history begins
with classified advertising. Ads appear for the first time in print in
Hickey’sBengal Gazette, India’s first newspaper (weekly). To ‘advertise’
meant merely to ‘inform’ until the end of the eighteenth century, and the early
newspapers and periodicals announced births, deaths, arrivals of ships from
England, sale of household furniture, etc. some journals like the Bengal Journal
(first published in 1785) even offered to print government advertisements free.
The front page of most such journals carried only advertisements. But before
long persuasive copy began to replace mere information. This is evident from
the appearance of punch lines such as ‘superior to anything of the kind hitherto
imported’ and ‘warranted to the first quality’. Discounts and special services
also began to be offered by the beginning of the nineteenth century. Later, new
products and services established themselves on the market through the
advertisement columns of the newspapers and periodicals. The power of
advertising increased rapidly with the growth in trade and commerce.
With the increasing impact of the industrial revolution on our country, the
number of advertisements from British business houses rose sharply. ‘Agents’
flourished at the time as space contractors, obtaining advertisements for
newspapers and periodicals on a commission basis. Leading newspapers like
‘The Statement’ and ‘The Times of India’, which had their own advertising
departments, offered their own facilities to ‘agents’. This was of great
advantage to both the advertiser and the publisher, for the advertiser, it saved
the bother of preparing a suitable layout for the advertisements, for the
publisher, it assured a certain uniformity of standard in the advertisements
appearing in its column. This practice was responsible for turning advertising
into a distinct profession. These ‘agents’ were forerunners of the ‘advertising
agencies’.

Advertising in the early 20th century

Two main events responsible for growth of Indian advertising agencies were:
the Swadeshi Movement (1907-1911), which gave rise to indigenous industries,
and the second, was the installation of first rotary linotype machine by
the Statesman of Calcutta in 1907.
In few years, other papers too installed the new machine, which made it
possible to produce a cheap newspaper with a large national circulation. The
first Indian Ad Agency, the Indian Advertising Agency, was launched around
this time, and is still going strong. The main functions of these agencies were to
secure advertisements and to get them published in the press. The major British
agencies during this time were: Alliance Advertising Associates, Publicity
Society of India, L.A. Stronach and Co, and others. They catered to the need of
the affluent British and Indian elites living in the metropolitan cities. They
rarely advertised Mass consumer items like tea and cigarettes.
During the war, press advertising was exploited to raise funds for the war effort.
Ad   Agencies   established   during   this   period-included   Alliance  
Advertising Association Ltd, at Bombay, started by the British India
Cooperation of Kanpur, to sell its manufactured goods. Mr. L.A.Stronach, the
manager of Alliance, bought up the Bombay branch of the agency and started in
1922 his own agency, with a branch in London. It provided production and
media services to advertisers (unlike the space-selling agencies) and so even
manufacturers of competing products or brands had to use these services.

The Inter-War Years

During the inter-war years a few Indian agencies too sprang up, the most
notable being the modern Publicity Co. in Madras, the Calcutta Publicity, and
the Oriental Advertising Agency in Tiruchirapalli. The Vasudevea Publicity
Service was started in Delhi to carry out outdoor publicity campaigns in Uttar
Pradesh, Punjab and Delhi. In 1931, the first full-fledged Indian Ad Agency, the
National Advertising Service, was established. Among the other Indian
Agencies to be launched during this period were: New India Publicity Co. 1930,
Paradise Advertising Agency of Calcutta (1928), the Indian and Eastern
Newspapers Society (IENS), and others. The IENS was set up as a central
organization of the newspaper owners of India, Burma and Ceylon. The society
looked after the interests of newspaper publishing houses; an indirect effect of
the formation of the IENS was the standardization of Ad agency practices. The
IENS also sought to foster better publisher agency relationship.
The establishment of the Advertising Agencies Association of India (AAAI) in
1945, and the Audit Bureau of Circulation (ABC) in 1948 helped to bring some
order to the competitive field. The AAAI came to be recognized as a
representative body of the profession, with the authority to represent its interests

and problems. The ABC gave some credibility to the claims of newspapers
regarding their circulation.

Post-Independence Advertising
Following World War II and the Indian Independence, the British-owned
agencies were sold to Indian business. Several agencies, however, retained an
‘affiliate’ status with the main branches of the agencies in London. They
continue to enjoy this status even today, though American multinational
agencies have replaced affiliation with British agencies.
At independence the advertising business was well on its way to growth and
expansion. Partition did not touch the business at all. The introduction of multi-
color printing, improved printing machines (like offset and web offset), and the
development of commercial art gave the Ad business a further leap. Agencies
began to offer, besides space selling, many more services, such as artwork,
organization of fairs and exhibitions, market research, public relations
consultancies.
The phenomenal growth in the media, especially television and cable has given
a boost to Indian advertising. Market research and readership surveys have led
to the further professionalization of the business. Individual publishing houses
like ‘The Hindu and The Times of India’ first conducted readership surveys.
Now, National Readership Surveys (NRS) and Indian Readership Surveys (IRS)
as well as regular Television Rating Points (TRP) measurements provide
advertisers with statistical data on which to base their media plans.

Importance of advertising

The aim of any business is to maximize the sales of that business. This
maximization results into a lot of revenue and profits for the company. Ads
ensures that the sales of the business increase. The second importance is that the
product which is sold under the banner of a specific brand also becomes a
household name. For example, Coke or coca-cola is a house hold brand name.
Same is the case of Pepsi. Such popular brand names have huge customer base
that is loyal to the brand and continues to purchase the product for a prolonged
time period. Such a customer base also introduces the product and brand to
many other people.

Creation of awareness is the primary objective of any advertisement. Thus,

when any product is advertised, people become aware about its existence and as
mentioned above, a need and craving to purchase and own the commodity.

From the business point of view, advertising not just optimizes sales and
product promotion but the goodwill of the specific brand that is earned is an
important asset. A well known brand not only has a good customer base but it is
a great ground to introduce new products under the same banner. In such a case,
there is a very high probability that people are going to purchase the new
product out of curiosity. It is often said that reputation gained and maintained
due to advertising helps out the business through out the life time. The logic
behind that is simple. When advertising creates awareness, people know about
the product and when they known about the product, they pay attention to its
newer advertisements and the probability that the person will buy the product
will increase. To conclude the paragraph it can be said that advertising helps
business gain loyal customers as well as a good platform in the entire market. 

Advertising Industry
Advertising is the means of informing as well as influencing the general public
to buy products or services through visual or oral messages. A product or
service is advertised to create an awareness in the minds of potential buyers.
Some of the commonly used media for advertising are T.V., radio, websites,
newspapers, magazines, bill-boards, hoardings etc. As a result of economic
liberalization and the changing social trends advertising industry has shown
rapid growth in the last decade.

Advertising is one of the aspects of mass communication. Advertising is

actually brand-building through effective communication and is essentially a
service industry. It helps to create demand, promote marketing system and boost
economic growth. Thus advertising forms the basis of marketing.

Advertising plays a significant role in today's highly competitive world. A

career in advertisement is quite glamorous and at the same time challenging
with more and more agencies opening up every day. Whether it's brands,
companies, personalities or even voluntary or religious organizations, all of
them use some form of advertising in order to be able to communicate with the
target audience. The salary structure in advertising is quite high and if you have
the knack for it one can reach the top. It is an ideal profession for a creative
individual who can handle work-pressure.

Today, new areas are emerging within advertising like event management,
image management, internet marketing etc. Event management wherein events
are marketed, Image management wherein a a particular profile of an individual
or an organisation is projected. Internet marketing has also brought about a lot
of changes in advertising as Internet means that one is catering to a select group
of audience rather than a mass audience.

Overview of Advertising Industry in India

The structure of the advertising industry in Asia Pacific has been affected by
globalisation and international alignments creating a smaller number of very
large agencies and the growth of independent major media buying houses. Very
sophisticated software optimisation and planning systems are now integral to
the industry, enabling agencies to offer a unique positioning in the marketplace
to attract new business.

American companies are discovering the appeal of marketing their products in

India. With a population of approximately one billion, and a middle class that's
larger than the total population of the United States, there's definitely money to
be made. Local retailers in apparel, food, watches and jewellery have all
increased their average ad spending by almost 50% in the past two years.
Coupled with many other local players big retailing brands are spending to the
tune of Rs 12,000 crores annually on advertising and promotional activities.
This figure, according to industry estimates, was less than Rs 400 crores about 3
years ago. Which means the growth has been a whopping 40%? The local firms
are using all the available advertising tools from electronic to print, outdoor
advertising and even models. The advertising and promotional spending by
local brands is substantial during the festival season and almost 70% of the
spending is done between September to January. The advertising industry in
India is growing at an average rate of 10-12% per annum. Over 80% of the
business is from Mumbai and Delhi followed by Bangalore and Chennai.

Types of advertising
Print advertising

Press advertising describes advertising in a printed medium such as

a newspaper, magazine, or trade journal. This encompasses everything from
media with a very broad readership base, such as a major national newspaper or
magazine, to more narrowly targeted media such as local newspapers and trade
journals on very specialized topics. A form of press advertising is classified
advertising, which allows private individuals or companies to purchase a small,
narrowly targeted ad for a low fee advertising a product or service. Another
form of press advertising is the Display Ad, which is a larger ad (can include
art) that typically run in an article section of a newspaper.

Such advertisements are found in newspapers, newsletters, and magazines. A

great deal of planning generally goes into this type of advertising. This often
requires a team of individuals.

There are some people who are employed to create the best ideas to attract
attention and inspire people to spend their money. These people develop a
concept. Then, they decide on the imagery and wording that sufficiently ties the
idea together.

There may be other individuals who deal with placement. Generally, the larger
the advertisement, the more it costs to place it in a publication. Also, some areas
of publications can be considered premium spots, and these are expensive. It is,
therefore, important for a publication to make sure its clients get the exposure
they pay for.

Print advertising is often an important source of revenue for a publication. It is

beneficial to the publications to sell more and bigger advertisement spaces.
These duties often fall upon a sales team.

Mailers are another type of print advertising. These advertisements range from

elaborately designed postcards to note-sized white paper with plain print. They
are distributed by postal workers who place them into residents' mailboxes. A
major challenge with this type of print advertising is getting people to pay
attention. Many of these items are often regarded as junk mail and discarded
without being viewed.

To reduce the chances of this happening, some advertisers try to interact with
people directly. They do this with print advertising known as fliers. In many
cities, people stand on corners or walk through traffic handing out
advertisements. The reasoning for this is that it is often believed a person is
more likely to pay more attention to something that is received by hand-to-hand
distribution.

People will always use paper as a medium for information and because of this
fact, we will always have print advertisement of some kind or another. It is true
that we might be seeing a natural balance occurring in the market where online
and other modes of advertising are taking more of a share then the originally
primary form of advertising being print.

For many businesses, advertising in print is simply still the best way for the
owners to reach their clientele. While the subscription rates of newspapers and
magazines have declined, there are significant numbers of people still reading
print information and enough that advertisers are still pumping millions and
millions of dollars into print advertisement every year.

Newspaper advertising is still the most popular form of print advertising but
other print types have seen a rise or decline, depending on their effective nature.

A good example of this is the decline in junk mail that we receive inside of our
federal post boxes. These types of ads have become less popular due to the fact
that many people simply toss it out without looking if it doesn't have first class
postage on the document or envelope.

 There is still a significant use of print advertising through our federal mail
system. A prime example of this is the use of weekly fliers by supermarket and
grocery stores. These print flies often contain the details of weekly sales that
allow for smart shopping. Also, many people still use the coupons that are
included in such fliers. Until we have become a complete digital society, we
will still see the use of these physical print coupons by many in our society.
Many stores of course will only give you the discount if you actually have the
physical coupon in your possession.

Types of Print Media:

Newspapers: Newspapers are the most popular forms of print media. The
advertiser in this case can choose from a daily newspaper to a weekly tabloid.
Different types of newspaper cater to various audiences and one can select the
particular category accordingly. Advertisers then design press advertisements
where in the size is decided as per the budget of the client. 

Magazines: Magazines also offer advertisers an opportunity to incorporate

various new techniques and ideas. Magazines are one such form of print media
that give a more specific target group to the client. The client can make a choice
of the particular magazine as per the product. 

Newsletters: Newsletters also form an important part of print media. These

target a specific group of audience and give information on the product. 

Brochures: Brochures give detailed information about the product. These are

mainly distributed at events or even at the main outlet when a consumer needs
to read in detail about the product. 

Posters: Posters are forms of outdoor advertising. The message in a poster has
to be brief and eye catching as it targets a person on the move.

Apart from these media, direct mail marketing, flyers, handbills/leaflets, banner

advertising, billboard advertising, press releases etc are all the various types of
print media.

Display Ads
When you think of magazine advertising, you probably think first of display
advertising. These are the glossy, four-color ads that dot most consumer
magazines. Display advertisements can shill everything from new cars and
smart phones to upcoming movies, newly published books and the pilots for
next fall's TV shows.

Classifieds
Usually located in the back pages of magazines, classified are small, usually
black-and-white, ads that most often contain text but little or no other artwork.
Classifieds often list homes for sale, financial services, help-wanted jobs and

other services. In fact, classifieds are often an eclectic mix that might even
include personal ads and dating service promotions. These ads may look small,
but magazines often rely on them--thanks to the volume of classifieds they
receive--as a solid revenue stream.

Advertorials
Advertorials are often difficult to spot. That's because they usually look similar
to a story or feature in the magazine. There's a difference, though; advertorials
are written by the marketing department of a company to promote a specific
product or service. The advertorial may include what looks like a standard
headline--an advertorial promoting a newly released collector's coin might have
a headline such as "Rare Coin Released to the Public"--and even feature quotes
from people thrilled with a certain product or service. 

Different Ideas
 For localised businesses often it’s simply not cost-effective to target a large
geographical area through advertising in magazines or newspapers. Many local
communities print a wide range of materials, such as calendars or community
magazines, and advertising here may be more effective.
 You could try designing and printing a calendar and distributing it to people in
the local area. Include coupons redeemable each month to encourage consumers
to take action.
Advantages of print media advertising:
 
Specific Target Audience:
In print media, the advantage of catering to specific target audience opens up
countless opportunities to enhance sales figures. A fashion magazine would
highlight cosmetic products and fashion accessories. At the same time, a sports
magazine would display sports related ads to cater to its readers. There is no
wastage of resources as ads get to reach the target audience.
 
Loyal Readerships:
In the print media industry, readership is mostly longstanding and loyal.
 
Special Ad Positioning:
A major advantage in magazine advertising is that an advertiser can request
special ad positioning. This means you can ask that your ad is placed in a
specific page or within a column article. This will bring greater visibility to the
brand. This is also commercially more effective as potential buyers would

notice it. It is a different matter if you don’t want to specify where your ad
should appear.
 
Credibility:
Over a period of years, magazines create a vast pool of loyal readers who feel
safe in its very credible environment. The interactive element may be less when
you compare it with the aggressive online advertising. But the key factor is
credibility that print media continues to reign over. It explains why magazines
are known as potential promotional vehicles. It adds improved quality branding
that adds great value to your range of products.
 
Long Life Span:
Compared to websites or national newspapers, magazines enjoy the longest life
span. There are some magazines that are treasured across decades like valuable
references. The National Geographic is such an example as its content is never
redundant.
 
High Reach Prospective:
Another advantage is that magazines have a high reach prospective. This is
because magazines get passed from family to friends to customers to colleagues
and so on.
 
Glossy Ads: 
Unlike newspaper advertising, magazine advertising gives great scope to glossy
ads. These are usually trend setting and eye catching. The best thing is that
every body loves to look again and again at glossy ads. So maximum visibility
is again reiterated through magazine advertising.
 
That is why it is stated often that consistent advertising ensures a cumulative
effect. The more familiar buyers are with a brand, the more likely they would
buy it. That is why print media advertising will never be out of fashion.

Disadvantages of Print Media

 The cost incurred can sometimes be expensive considering the medium

you choose.
 The shelf life of any particular print medium is limited. Newspapers for
example, are amongst the public eye only for a day.
 This medium may not always give you a wide reach. Internet, on the
other hand, can target a global audience.
 There is a limitation in terms of the kind of people who may actually read
your message. The particular newspaper may not actually be accessible

every time to your target group, which means, your message may be
missed! 

 You may have to plan months in advance to advertise in print media. It

does not offer you flexibility when you are faced with a tight deadline.
 Advertisements may get lost in all the clutter of editorial and ads by
competitors.
Some of the great print ads of all time are as follows
]
Television advertising

A television advertisement or television commercial, often

just commercial, advert, ad, or ad-film (India)–is a span of television
programming produced and paid for by an organization that conveys a message.
Advertisement revenue provides a significant portion of the funding for most
privately owned television networks. The vast majority of television
advertisements today consist of brief advertising spots, ranging in length from a
few seconds to several minutes (as well as program-length infomercials).
Advertisements of this sort have been used to promote a wide variety of goods,
services and ideas since the dawn of television.
The effect of commercial advertisements upon the viewing public has been
successful and pervasive.
In many countries, including the United States, television campaign
advertisements are considered indispensable for a political campaign. In other
countries, such as France, political advertising in television is heavily restricted,
[1]
 and some, like Norway, completely ban it.

History

The definition of 'advertising' which states that it is a form of communication

intended to spread awareness about products and services - with the intention of
persuading the consumers to go for them, is best highlighted by 'television
advertising'. Basically, the term 'television advertisement' refers to a television
program which is produced and paid for by an organization to spread awareness
about the products and services it has to offer. Being an audio-visual form
of advertising, television advertising has a definite edge over its counterparts in
the field of mass market advertising, and that makes it is one of the costliest
form of advertising today. (A single 30 second ad slot at annual Super Bowl
costs around US$3 million.) The seven decade long television advertising
history speaks in volumes about the amount of development that this field has
been subjected to since its inception.
First Television Commercial
In the United States of America, television advertising history began with the
advertisement of Bulova watch manufacturing company on 1st July, 1941. This
was not just the first TV advertisement of the United States, but was the first TV
commercial of the world as well. The 10 second ad featured a clock
superimposed on the map of the United States, accompanied by a voice over
saying "America runs on Bulova time." It was aired on NBC (which was then
known as WNBT-TV) before a baseball match between the Brooklyn Dodgers
and Philadelphia Phillies. Interestingly, Bulova was the first company to make it
to radio advertising as well - a feat achieved by the company earlier 1926 with
the first radio commercial of the United States.

Television Advertising Initial Growth

The phenomenal success of Bulova advertisement made other companies jump
onto television advertising bandwagon, and very soon some of the major players
of that era - including Pan American World Airways and Botany Worsted Mills
had television advertisements of their own. The number of television sets in the
United States had also increased by a significant margin during 1940s, and by
the end of this decade, the number of companies which resorted to television
advertising to sell their products had increased manifolds. As a result of the
tremendous growth that the television advertising industry had witnessed within
a decade of its beginning, the American Association of Advertising Agencies
was formed as a regulatory body for TV advertisements.

Single Sponsor Trend

A new trend of advertising - that of single sponsor television programs, surfaced
in the United States in 1950s. In this case, a single company sponsored the
entire program and used the same as a platform to advertise its products, instead
of several companies buying an ad slot on the network as we see today. Among
the companies which used the single sponsor program technique efficiently
were major companies such as General Electric (GE) and Colgate. The decade
also witnessed the introduction of television advertising in Europe - wherein the
60 second long Gibbs Toothpaste commercial aired on 22nd September, 1955,
became the first commercial to be aired in Europe.
Commercial Breaks
Yet another important milestone in the history of TV advertising came in 1960s
with the introduction of 1-2 minute advertising slots - the commercial breaks,
during an ongoing TV show. As opposed to the earlier trend of single sponsor
programming, now it was possible for several companies to use a popular
program as an advertising platform together. It was one of the most efficient
ways of marketing, and companies like Tide and Crest took it as an opportunity
to expand their ad campaigns. During this period, an hour long television
program had around 9-10 minutes reserved for commercial break in which ads
with a duration of 30-60 second were aired.

Controversies and Developments

In 1970s, the broadcast of controversial television advertising which promoted
cigarettes was banned by the administration. This resulted in a tussle between
the government and television networks for whom these ads constituted a
significant portion of the total revenue. The decade also marked the advent of
alcohol companies in the field of television advertising. The brief history of
television advertising between 1970s and 1990s - was marked by some notable
changes such as the increase of time slot reserved for commercial breaks from 9
to 19 minutes. The end of 1990s also marked the launch of TiVo - an electronic
television programming schedule, which drew flak for its commercial-skipping
capabilities. The decade also marked the debut of popular actors and sports
person in TV commercials and that paved the way for brand endorsements.

By far, the most important moment of television advertising history was the
launch of local cable TV services which brought television advertising - which
was until then restricted to large companies, within the reach of small
companies. These small companies used cable TV advertising to market their
products and services at the local level. In the course of its growth, television
advertising has continued to be in the news for good as well as bad reasons.
This trend continues even today with television advertising pros and
cons dividing the world into two halves - with one half advocating it and other
half criticizing it.

Pros and Cons of Television Advertising

Advantages of Television Advertising 

 The biggest advantage of employing television advertising is its capacity

of communicating the product to a large number of people (both regional
and national level) in a short span of time.
 By using visuals, sound and actions, television advertising allows
the target market to see and hear the messages being conveyed through
advertisements. Thus, this improves the credibility of the message which
grabs the attention of a large audience.
 Television advertising is highly effective in influencing customers and
slowly persuading the target market although it may not induce instant
sale, like that of search engine advertising.
 This advertising form has the advantage of utilizing different channels
(say, cartoon) at different timings (say, time at which people usually
watch TV) to hit the required target market. Organizations plan their
advertisements to be telecasted targeting different segments of people,
such as children, house wives, youth and so on.
 Since a single product is broadcasted by numerous companies, customers
have a wide variety of options to select from.
 Small businesses can make the most out of television advertising by
developing creative advertisements to easily attract people and induce
them to purchase the products.

 
Disadvantages of Television Advertising

 The main disadvantage of television advertising is the high cost

involvement. Since the advertisement has to be repeated several times to
catch the attention of the customers, it includes a high cost to air the
advertisement on television channels.
 Producing a television advertisement requires hiring of script writers,
actors, video editors, or an advertising agency which means the entire
process is a complicated procedure.
 Making changes in a television advertisement is another demerit of this
advertising medium. The script has to be updated and the entire
advertisement is re-shot which means emptying your pockets further
unlike newspaper advertising wherein updating sale pricing or special
offer is as simple as swapping out a coupon.
 Advertisements on the television lasts only for a few seconds thereby not
being very effective in conveying much about the product to the target
market.
  At times, due to lack of relevant information on products, television
advertisements can be obscure and doubtful.
 Not all advertisements are creative and intrusive. Hence, not all viewers
may be attracted towards the advertisement.
 The advertisement has to be broadcasted at least 5 to 7 times to achieve
message retention and consumer action. In case the product is not
telecasted several times, it is simply a waste of money.

Radio advertising

While many people may view radio as a less popular medium than the Internet
or television, the truth is that radio still manages to penetrate areas of our daily
lives still off-limits to other media. Consumers can listen to radio in their
vehicles, in waiting rooms, in many restaurants and a number of grocery
stores. Radio advertising targets that captive audience through a series of 30
second or 60 second spots which promote products or services in a memorable
way.

Radio advertising is based on the idea of creating an audio-only environment

and placing the listener inside of it. A typicalradio spot features a professional
voice-over artist reading descriptive copy over an appropriate bed of
background music. Important information may be repeated several times over
the course of the spot, such as contact phone numbers, addresses, website
URLs, or a geographical reference. As one spot of radio advertising ends,
another spot begins and the process continues until the program resumes.

Some radio advertising can be very elaborate, using several different voice

actors to perform a short comedic spot or customized music to punch up the
most important parts of the advertising copy. Other radio advertising, especially
when produced by a local radio station, is more straightforward, with a
recognizable disk jockey or business owner providing the voice-over.
Depending on the size of the radio station and the client's budget, on-air talent
may be responsible for the production of radio advertising or it may be farmed
out to a professional advertising agency to achieve the client's vision.

Because radio station managers have a limited number of minutes available

for advertising during an average hour, radio spots tend to last either 30 or 60
seconds. A station may build in several scheduled breaks during an hour,
typically at twenty minutes or so after the top of the hour and twenty minutes
before the top of the next hour. If there is enough radio advertising spots

available, additional breaks at ten minutes before the hour and ten minutes after
the hours may be added. Each break may have two to three minutes allotted for
spots, which can be introduced with a station jingle or a longer promotion called
as weep.

Advertisers generally pay for the number of times a particular radio spot is

played, or "dropped" in radio lingo. A radio ad dropped primarily during the
overnight hours may be less expensive than a similar ad dropped during the
popular morning or afternoon drive times. Radio advertising, especially for a
popular station with a powerful transmitter, can be a considerable expense up
front, but the number of potential listeners within range of the station is often
exponentially higher than subscribers to local newspapers or regular viewers of
local television stations.

History

The first radio broadcasts aired in the early 1900’s.[6] [7] However, it wasn’t until
1919 that radio stations began to broadcast continuously, similar to what we
know today. In the United States, on November 2, 1920, KDKA aired the first
commercial broadcast.[8] As more stations began operating on a continuous
basis, station owners were increasingly faced with the issue of how to maintain
their stations financially, because operating a radio station was a significant
expense.[9]
In February 1922, AT&T announced they would begin selling “toll
broadcasting” to advertisers, in which businesses would underwrite or finance a
broadcast, in exchange for being mentioned on the radio.[10] WEAF of New
York is credited with airing the first paid radio commercial, on August 28,
1922, for the Queensboro Corporation, advertising an apartment complex.
[11]
 However, it appears other radio stations may actually have sold advertising
before WEAF. As early as May 1920, an amateur radio broadcaster leased out
his “station” in exchange for $35 per week for twice-weekly broadcasts.[12] And,
in Seattle, Washington, Remick’s Music Store purchased a large ad in the local
newspaper advertising radio station KFC, in exchange for sponsorship of a
weekly program, in March 1922.[13] Additionally, on April 4, 1922, a car dealer,
Alvin T. Fuller, purchased time on WGI of Medford Hillside, Massachusetts, in
exchanges for mentions.[14] So, although WEAF is credited with the first
advertisement, it appears other radio stations ran advertisements prior to August
1922.

During radio’s Golden Age, advertisers sponsored entire programs, usually with

some sort of message like “We thank our sponsors for making this program
possible”, airing at the beginning or end of a program.[15] While radio had the
obvious limitation of being restricted to sound, as the industry developed, large
stations began to experiment with different formats.[16] The “visual” portion of
the broadcast was supplied by the listener’s boundless imagination.
[17]
 Comedian and voice actor Stan Freberg demonstrated this point on his radio
show in 1957,[18]using sound effects to dramatize the towing of a 10-
ton maraschino cherry by the Royal Canadian Air Force, who dropped it onto a
700-ft. mountain of whipped cream floating in hot-chocolate filled Lake
Michigan, to the cheering of 25,000 extras.[19] The bit was later used by the
USA's Radio Advertising Bureau to promote radio commercials'
The radio industry has changed significantly since that first broadcast in 1920,
and radio is big business today. Although other media and new technologies
now place more demands on consumer’s time, 95% of people still listen to the
radio every week.[20] Internet radio listening is also growing, with 13 percent of
the U.S. population listening via this method.[21] Although consumers have more
choices today, 92 percent of listeners stay tuned in when commercials break
into their programming.[22]

Radio Advertising Costs

Radio advertising cost is perhaps the most obvious and important of the top
three characteristics of radio advertising that makes it a very attractive
advertising vehicle. On both creative development and media costs, radio beats
TV by a significant margin. Where the most simple and least expensive TV spot
ad will easily cost well over $50,000 and take months to produce, you can have
a radio spot developed for less than $1,500... in a matter of days or weeks. In
terms of media costs, you'll often pay a minimum of thousands of dollars for TV
media placement. However, you can air a radio spot for under $100 at agency
discounted rates and you can air a full week's radio advertising test on multiple
stations for as little as $2,500. With TV, you can invest hundreds of thousands
of dollars before you know whether a campaign will either take flight or until
enough is learned to determine that it won't work. With radio, the testing
happens much faster, so it costs you less in time value of money, as well as up-
front and at-risk investment. Factor in TV dubbing costs and the picture only
gets better for radio advertising costs.

Radio Advertising Reach

An advertising medium must reach your target customers or it provides no
benefit. Radio has a wide-scale appeal to consumers. Even with the alternatives
available today, listening patterns appear to be stable, indicating that radio
remains a popular consumer choice. The 13,000 radio stations (approximately
8,800 FM, 5,000 AM) broadcasting across the United States together reach over
94% of the US population over 12 years old each week, according to Arbitron's
American Radio Listening Trends report. With radio, there is rarely a question
of whether you'll be able to reach your target customer.

Target ability
The third characteristic of radio that solidifies its advantage to you is its target
ability. The fundamental advertising axiom of reaching the right people at
the right time with the right message at the right cost is more possible with
radio than with TV or print, the other large-scale "push" direct response
advertising mediums. As a result, your dollars spent on radio advertising are
more efficient, generating a greater return on investment. With the right data,
for example, your radio advertising agency can tailor your media plan so your
radio ads reach moms between the ages of 34 and 45. The radio industry's
grouping into formats is partially responsible for radio's ability to target your
customer efficiently. Here is a summary of the formats that reach corresponding
demographics2(note that further targeting is possible by sex and other variables
beyond age):

Age Target Format(s)

Teens 12-17 Primarily CHR, some Urban, Alternative
Adults 18-24 CHR, more Alternative, Urban preference
Adults 25-34 Alternative, Rock, CHR, some Urban, AC
Adults 35-44 Rock, AC primarily
Adults 45-54 Oldies, AC
Adults 55-64 Classical, New AC
Adults 65+ Adult Standards, Classical, News Talk

What sells on Radio? 

Radio buyers purchase a wide variety and growing number of products, ranging
from vitamins and nutritional supplements to CD's/music, and health and beauty
items such as hair care, skin care, and weight loss/diet products. Other stable
radio advertising categories include household cleaning products,
kitchen/cookware products, financial, and travel offerings. We've also seen a
growing trend toward using radio advertising to drive online traffic as well as
support retail sales.

Formats

They have a broad range of choices when it comes to the type and length of
radio commercial message they air. With changes in the radio industry and
better production technologies, the mode of commercial presentation has
changed, and commercial advertisements can take on a wide range of forms.
The two primary types of radio ads are “live reads” and produced spots.
Cousin to the ad-libbed commercial, live read refers to when a DJ reads an
advertiser’s spot on the air, delivered from a fact sheet or from personal
knowledge. It can also refer to when the DJ “endorses” the advertiser’s goods or
services. The Radio Advertising Bureau defines an endorsement as: “A
commercial in which the…program personality personally recommends an
advertiser's product or service, often done live during the program.”  Live read
and endorsement are not synonymous. An endorsement takes the form of a
personal recommendation by the DJ to the listening audience, whereas a live
read could simply be the DJ reading from a script.
Produced spots appear to be more common. A spot is ‘produced’ if the radio
station or an advertising agency creates it for the client.  Produced commercial
formats include: straight read with sound effects/music in the background,
dialogue, voiced by two or more personalities, monologue (where the voice
talent portrays a character, as opposed to an announcer), and jingles.  Studies
show that the quality of the commercials is as important to listeners, generally,
as the number of ads they hear.
Digital technology has improved in-house production capabilities and now
enables stations not only to create spots more efficiently and quickly, but also
allows for instantaneous transfer of the commercial from one station to another.
Also, as a result of the trend towards consolidation in local markets, non-
competing stations can easily exchange talent, thus increasing the diversity of
voices available to local advertisers.
Additionally, radio advertisements are purchased either “locally” or
“nationally”.  National advertising refers to ads that run in several markets, such
as those for chain stores. Radio advertising is typically sold either “directly”,
where a business purchases the airtime directly from the radio station, or
through an advertising agency that purchases the ad and produces the
commercial for the business. When a client purchases spots directly from the
station, most stations will produce a commercial for the advertiser at no charge.

Advertisers can also go to independent companies for production of their

commercial message.
In general, most advertisers cannot use well-known, popular music in their
advertisement, unless they have prior approval from the recording artist and are
willing to pay royalty and use fees to the copyright holder each time the ad airs.
Radio stations and independent production companies typically have “music
banks” that will sound similar to popular music, enabling an advertiser to
produce a spot that sounds as though it “belongs” on a particular station.
In terms of commercial content, some ads include a call to action, designed to
elicit a response within a specified time period.  A call-to-action allows an
advertiser to measure and track listener’s response to their radio schedule.
Examples of direct response advertising include asking listeners to call a certain
business or phone number, log onto the business’ website or come by a certain
location by a certain time. The more typical radio advertisement is the general
ad that’s designed to let the listener know about a good, service, promotion or
event.
A certification program for radio copywriters — the Certified Professional
Commercial Copywriter — was created for the Radio Advertising Bureau by
Dan O'Day.
Research and rates

Radio stations today generally run their advertising in clusters or sets, scattered
throughout the broadcasting hour. Studies show that the first or second
commercial to air during a commercial break has higher recall than those airing
later in the set.[
Arbitron is one of the primary providers of ratings data in the United States.
Most radio stations and advertising agencies subscribe to this paid service,
because ratings are key in the broadcast industry. Ad agencies generally
purchase radio based on a target demographic. For example, their client may
want to reach men between 18 and 49 years old. The ratings enable advertisers
to select a specific segment of the listening audience and purchase airtime
accordingly. Ratings are also referred to as “numbers” in the business.
The numbers can show who is listening to a particular station, the most popular
times of day for listeners in that group, and the percentage of the total listening
audience that can be reached with a particular schedule of advertisements.

The numbers also show exactly how many people are listening at each hour of
the day. This allows an advertiser to select the strongest stations in the market
with specificity and tells them what times of day will be the best times to run
their ads.
Besides the basic numbers, most radio stations have access to other data, such
as Scarborough that details more about the listening audience than just what age
group they fall into. For example, some data will provide the types of activities
listeners participate in, their ethnicity, what type of employment they do, their
income levels, what kinds of cars they drive, and even whether or not they have
been to a particular entertainment or sports venue in the past month or gone to a
spa.
Radio stations sell their airtime according to day parts. Typically, a station’s day
part line-up will look something like the following: 6am-10am, 10am-3pm,
3pm-7pm, and 7pm- midnight. The spots running after midnight, from 12am-
6am, are referred to as “overnights”. Though this schedule of day parts can vary
from station to station, most stations run similar day part line-ups’ and sell their
advertisements accordingly. Drive times, or morning and evenings when people
are commuting, are usually the most popular times of day and when each station
has the most listeners. The “rates”, or what the station charges the advertiser,
will reflect that.
Rates can also be affected by the time of year an advertiser runs. January is
almost always a very slow time of year, and many stations run specials on their
rates during that month. During busier times of the year, stations can actually
sell out of ads entirely, because, unlike the print media, radio stations only have
a limited number of commercial units available per hour. During the dot-com
boom, some stations ran as much as twenty minutes of ads per hour.  While
commercial levels are nowhere near as high today, with the average station
running approximately nine minutes of ads per hour,  peak periods can and do
sell out.
Thus, advertising rates will vary depending on time of year, time of day, how
well the station does in the particular demographic an advertiser is trying to
reach, how well a station does compared to other stations, and demand on
station inventory. The busier the time of year for the station, the more an
advertiser can expect to spend. And, the higher ranked a station is in the market,
according to the ratings data, the more an advertiser can expect to get charged to
run on that station.

Advertising rates can vary depending on the length of spot the advertisers elects
to run. Although sixty second spots are the most common, stations also
sell airtime in thirty, fifteen, ten and two second intervals. Thirty-second ads
have always been popular in television advertising, but radio stations just
adopted this format recently. Clear Channel kicked off the “Less is More”
initiative in 2004, utilizing thirty-second commercials in markets across the US.
Though studies show that fewer commercials cause better recall rates,  research
indicates that traditional sixty-second spots may be the better option, with
higher brand and message recall than the newer thirty-second ads.
Stations will also run ten-second spots, or billboards. Typically, this type of spot
runs adjacent to some station feature, such as the traffic report, stating, “This
traffic brought to you by…”, and is usually limited to about thirty words.
Fifteen-second spots are generally reserved for station promotional
announcements, although some stations sell them.
In addition to traditional radio advertising, some stations are selling airtime
during their streaming broadcasts. In the past, the radio station stream included
only the commercials that were also running on air. CBS announced it would
begin airing ‘live reads’ in its streaming radio broadcasts, sold and voiced
separately from the stations’ regular spots, noting the efficacy of live
endorsements.
Regulatory considerations

The Communications Act of 1934 established the FCC, which, in turn, regulates

the broadcasting media.  In response to the payola scandal of the 1950’s, the
FCC established guidelines, known as “sponsorship disclosure” rules. These
rules apply to both pay-for-play and advertisements alike, recognizing that
consumers deserve to know “by whom they are being persuaded”. Of particular
note to advertisers is Section 317 of the Act, also known as the “Announcement
of Payment for Broadcast” provision. It states, in general terms, that where
money, services or other valuables are directly or indirectly paid to a radio
station, in exchange for mentions on the air, the station must disclose that
fact. For example, if a cell phone provider gives a free cell phone to a station’s
DJ, who then talks about that cell-phone provider on the air, perhaps mentioning
what great service he has, the announcer must disclose that it is an
advertisement.

Usually, listeners are able to discern radio advertisements from entertainment

content. The Communications Act does include an “obviousness” exception:
where it is obvious that something is a commercial, the announcement-for-
payment provision does not apply. However, where anything of value has
changed hands in exchange for mentions on the air, a station has a duty to
disclose it.
The Federal Trade Commission is also responsible for broadcast industry
regulation, in terms of false or misleading advertising practices. In October
2009, the FTC published guidelines regarding endorsements, requiring clear
disclosure of the connection between an advertiser and an endorser. Under the
FTC guidelines, an endorser is responsible for disclosing any “material
connections” they have with a seller/business.
In recent years, there has been a trend toward the blurring of
entertainment/editorial and advertising content.[88] Marketers are “embedding”
products into the media so that consumers are not aware they are being
advertised to. In radio, it is sometimes difficult to tell where DJ chit-chat ends
and an advertisement begins.

Pros and cons of radio advertising

Pros

 You can target your advertising to a specific audience. Different radio

stations have different formats, from news/talk to oldies to rock. Decide
who you are trying to reach (teenagers, families, urban men, suburban
moms), and then choose the radio format that reaches your audience.
 A 30-second ad on radio is often less expensive than a 30-second TV ad
and easier to produce.
 Radio ads can be produced very quickly, unlike television ads. And
unlike magazine print ads, you do not have to wait for the next issue to
come out.
Cons

 While a reader can cut out your print ad and save it for later use, a radio
ad is very ephemeral, playing over the radio for a minute or less.
 Morning and evening commutes are key times when many businesses
want their ads to run, and there are only so many spots to go around. This
can drive up the cost for those choice time slots.

 Radio can often be background noise. You will need to run your ad
more than a few times in order for it to make an impact.

Outdoor advertising
Outdoor advertising is essentially any type of advertising that reaches the
consumer while he or she is outside the home. This is in contrast
with broadcast, print, and Internet advertising.
Out of home advertising, therefore, is focused on marketing to consumers when
they are "on the go" in public places, in transit, waiting (such as in a medical
office), and/or in specific commercial locations (such as in a retail venue).
Outdoor advertising formats fall into four main categories: billboards, street
furniture, transit, and alternative.[2]
OOH does not have a “OFF” button, it is always “ON”

OOH as estimated by PWC is expected to become Rs 2,000 cr industry by 2010.

Though the part of media-spend in OOH is only 6% for now the industry has
shown promising growth.

History

The majority of individuals who were illiterate. The oldest known billboard ad
was posted in the Egyptian city of Thebes over 3,000 years ago and offered a
reward for a runaway slave. Prior to the late 1700s, the predecessor to the
modern day billboard—billposting—was prevalent throughout Europe, but only
as an informal source of information. It wasn't until the invention of lithography
in the late eighteenth century that billboards as a medium expanded into an art
form. The first art poster was created in 1871 by Englishman Frederick Walker,
who was commissioned to create the playbill for the play "Lady in White" in
London. By the early 1900s, schools for poster art were being formed and artists
like Talouse Lautrec were making names for themselves.

The first large scale use of the billboard as an advertising tool was as circus
posters printed or secured on horse-drawn trucks that would precede a show to
town in order to increase interest and attendance. At this time, billboards were
not standardized or controlled by any laws. During 1872-1912, organizations in
the United States met to create billboard standards. Originally, the standard set

was 24-sheet poster panels with a total size of 19.5 x 8.7 ft (6 x 2.6 m). Today,
that size remains the same, while technology has reduced 24 sheets to 10.

It was also during the early 1900s that electric billboards were used to light up
cities. Prior to the electric billboard, cities were dark, foreboding places. The
electric bill-board brought the cities to life at night, creating a more hospitable
atmosphere that induced people to stay on the streets. Hence, the birth of
nightlife.

By the late 1920s, more people were purchasing automobiles and traveling
beyond the city. Billboard advertising expanded as well, and for the first time,
billboard advertising had to consider a wider range of demographic audiences.
Billboard art and design changed with the times, reflecting new technologies
and the mood of a generation. With the use of photography and comics,
billboards portrayed a world without problems during the depression of the
1930s. The 1950s gave rise to the hand-painted billboard and use of sexual
innuendo in campaigns. Billboards were extensively used in China to promote
Red Army politics. It was also during this time that billboard companies utilized
the boom truck with a crane to move billboards and place them in more
prominent positions. During the 1960s, celebrity endorsements became essential
and the advent of the superstar was born. Focus shifted from the family to the
singles lifestyle and the medium itself was emulated in the Pop Art movement.
As interest in environmentalism increased during the late 1960s and early
1970s, billboard ads borrowed images from nature. It was at this time that the
Marlboro man on horseback was born. In the 1970s and 1980s, campaigns used
sexually explicit rather than implied themes. Objects were omnipotent and were
created larger than life with little or no accompanying text. Many new things are
now involved in ooh industry. Digital ooh is of the new trends in today’s world.
Billboards and others platforms of ooh will be continue in near future also.

In India

Present Scenario
Outdoor today is an important element and strategic to a media plan. The top
brands using outdoor are a veritable blue chip list of advertisers: AT&T,
American Express, IBM, McDonald's, Procter & Gamble, to name just a few
brands that know about wise investments, brands that have plenty of choices to
market their products. The interest has been steady and growing and with good
reason. Outdoor offers outstanding value for the money and a myriad of ways to
ratchet up exposure. Whether matched with other media to extend reach or used
extensively on its own to saturate a market, outdoor can't be beat. Its ubiquitous
presence insures that when a consumer is ready to purchase, the brand is top of
mind.
 
From Billboards to Out-Of- Home
Today it seems, consumers are in a hurry and outdoor provides quick and
concise information to help individuals make rapid purchase decisions. Outdoor
surrounds consumers with ubiquitous presence offering media choices that suit
every target audience, geography and strategic plan. 
Outdoor is a comprehensive mix of effective media delivery mechanisms that
reach people in their cars or on subways, in airports and malls or in any number
of growing outdoor media settings. Outdoor is roadside, outside and inside,
above and below ground and on the move.
 
 
 
      

 
                              A diverse cross-section of formats comprise outdoor
advertising today
 
 
OOH Media Vehicles
OOH Media broadly describes a variety of advertising vehicles, which reach
consumers where they shop and travel.
 
Billboards
Billboard formats can reach today's highly mobile consumer audience with
high-impact, strategic positioning and market-to-market coverage. But that's not
all. Billboards can deliver on clean eye-popping exposure 24/7, clutter free
messages in a uniquely customized environment and desirable suburban
coverage filling gaps left by other media.
 
One of the new innovations in the area of billboards is the I-Board, which is
built on Internet-technology, and can use any telecom backbone facility
available to display a sequence of rapidly changing advertisements by a host of
different advertisers. The offerings to the advertisers are changing and growing
in number.
 
Street Furniture
Street furniture advertising is can be very flexible and innovative. Many street
furniture displays are located near shopping and commerce centres, these
outdoor products provide a last reminder for consumers, just moments before a
potential purchase decision is made. It makes street furniture advertising ideal
for brand recognition near a point-of-purchase. It can also generate high
awareness and can effectively target population segments or be used to reach a
broad-based marketplace. Formats range from simple to interactive, locations
vary from dense urban centres to suburban roadways.
 
Consumers’ on-the-go
Transit products such as displays that reach people travelling - by plane, train
or automobile, bus or cab, and on foot offer extremely targeted outdoor
messaging  solutions. They are visible at all hours, with particular strength
during rush hour. Take your pick of the product pack - mix and match.
Combining transit products can make a tremendous impact improving: reach,
frequency and overall impact in one cohesive media package.

Alternative Outdoor Media – The New Twist

A whole new field of advertising formats has emerged in OOH media to impact
consumers head-on during the course of daily activities. Originally developed to
bridge gaps in urban centres, the alternative outdoor products have today grown
into a sophisticated and viable business. The beauty of these ad forms is the
targeting they
provide, and their synergy within micro markets.
 
Alternative outdoor media can cover a market far and wide or provide synergies
with locations strategically placed around a town.
Industry Size
Today, the Out-of-Home (OOH) market accounts for approximately 6.0% of the
total ad spends in India. As shown below, the OOH ad spends in India compare
favourably to the worldwide ad spend on OOH.

Factors Driving the Growth of OOH Media

OOH has suddenly started gaining attention. The reasons for such a
phenomenon can be as follows: 

Increasing ad-spends
The growth in Indian economy has led to better employment prospects and thus
people have more disposable incomes. The result of this has been more
consumption and more purchase. It requires the brand marketers to reach out to
the audience through every possible means. With the increasing media spends
the share over OOH media has also increased.
 
Clutter on traditional media
Media penetration has increased phenomenally over the past few years.
Increasing penetration has led to increasing demand from a clutter free
advertising. OOH provides ample opportunity to advertise for clutter free
advertising. 
Increasing working population
More and more people are on the move today. In metros, on an average, people
spend 3-6 hours of the day travelling, which makes them potential audience to
OOH media.
 
Aptness in Rural Marketing
In rural areas the impact of OOH is high. Rural areas do not have high literacy;
therefore print is not the best medium for advertisers. Significant power
shortage doesn’t let TVCs to be effective either. To the growing interests of
FMCG giants in rural marketing, OOH offers excellent Return on Investment
(ROI).
 
Local Advertising
OOH being a localized and cheap medium by nature also attracts a lot of
local advertising. It turns out to be cost-effective and relatively cheaper medium
than other broadcast based regional or national media which is affordable for
local advertisers. Language problems can also be easily overcome by this
localized medium.

Digital Out Of Home - DOOH

Digital out-of-home refers to dynamic media distributed across placed-based

networks in venues including but not limited to cafes, bars, restaurants, health
clubs, colleges, arenas and public spaces. DOOH networks typically feature
independently addressable screens, kiosks, jukeboxes and/or jumbotrons.
DOOH media benefits location owners and advertisers alike in being able to
engage customers and/or audiences and extend the reach and effectiveness of
marketing messages. It is also referred to as Digital Signage.
DOOH also includes stand-alone screens, kiosks, and interactive media found in
public places. The availability of inexpensive LCD screens with built-in media
players has opened the door for companies to add interactive video messages in
Point of Purchase (POP) Displays. The displays allow consumers to get
additional information at the moment of decision on a product or service.
Growth in the DOOH industry has been increasing in 2009, with more POP
manufacturers, advertisers, and content developers moving to digital.
1. Hoardings
2. Billboards
3. Unipoles
4. Gantries
5. Bus shelters
6. Bqs
7. Non lit bqs
8. Back lit bqs
9. Flagpoles
10.Kiosks
11.Metro kiosks
12.Hydraulic van
13.Wallscape
14.Taxi ads
15.Mobile vans
16.Trains
17.Kinglong buses
18.Dth and ooh screens

Advantages of OOH
Innovativeness
A big reason for the popularity of OOH Media is the innovations that have
happened in OOH advertising over the past decade. Today, OOH media is not
just about plain hoardings trying to catch attention but being innovative in terms
of commercials used, display made and the way the hoardings and panels
execute.
 
People still remember the memorable outdoor campaign for Araldite adhesive,
which stuck a real, life-size car to a billboard. Below that came the punch line:
‘It also sticks handles to teapots’. Among the more recent examples of
outstanding use of outdoor is the campaign for the launch of the BMW Mini. In
an age in which everyone lives by the ‘big is better’ philosophy, it was no easy
task to emphasize how small this car is. But BMW Mini tried anyway and the
innovative campaign showed outstanding results.
 
Flexibility
“OOH as a medium has the greatest flexibility in terms of being able to
transform ideas and imaginations into reality.” - Brent Kennedy, Head of DDB
Creative, Japan With digital technology being used, the OOH medium is
offering significant flexibility to the advertisers to change the messages as
required in timely fashion. You can illuminate the OOH media as per
requirements and as per time.
 
Coverage
Unavoidable – outdoor advertising is visible from all corners. It can be seen on
city buses, bus stops, hoardings, billboards, gymnasiums, parks, railway
stations, malls and all other public places. It can cover anybody’s imagination.
 
 Impact
OOH displays are intended to get people's attention while they drive or walk. It
can catch attention during rush hours when people are stuck in traffic and are
unable to do anything. OOH advertising is an effective way to remind the
audience of the product being advertised at the time just before purchase. This
works as an impact medium for national advertisers as it reinforces the impact
of a particular brand.
 
Challenges to the Growth of OOH
The OOH industry appears to be a promising industry in India but if
comparisons are drawn between OOH in India and OOH globally it clearly
shows that Indian industry is still in a nascent stage and lot has to be done
before OOH becomes an important and investment effective medium in the
Indian context.
 
              

CONS

In neighbourhoods it reaches the same people who pass by the location, but fails
to reach new people. 
On major highways it reaches long-distance drivers, but not local people.
Outdoor can only give a
single, quick message, which must be caught by the eye of the passerby. It does
not allow for
product details or more than a single, chief sales benefit or name identification.  
Examples

Posters
Hoardings
Bus Shelter

Bqs
Non-Lit Bqs
Back Lit Bqs
Wallscapes
Mobile vans

Trains
Great examples of ambient advertising
 Online advertising
Online advertising is a form of promotion that uses the Internet and World
Wide Web for the expressed purpose of delivering marketing messages to
attract customers. Examples of online advertising include contextual ads
on search engine results pages, banner ads, Rich Media Ads, Social network
advertising, interstitial ads, online classified advertising, advertising
networks and e-mail marketing, including e-mail spam.
The term online advertising is simply a term that relates to advertising online, or
advertising over the Internet. In practice online advertising is about getting your
website in front of the people who are interested in your product or service. All
you have to do is find the best terms and phrases that people search for who
would like to purchase exactly your goods and services. If you can do this then
your online advertising will be successful, however, if you select the terms and
phrases that do not relate to the goods you are selling then your keyword based
online advertising efforts will likely fail. It really is as simple as that.
In fact more and more small business owners are using online advertising to
market their goods and services to their target audience testing different
keywords to specific pages of their website in an attempt to get more leads from
their online advertising campaigns. And guess what? Yes small business people
are finding out that without a doubt advertising online is the most economical
way to market their goods or services to prospective buyers.
For those of you who are unsure if online advertising programs even work just
open a pay per click account with Google, Yahoo or Bing and see what that
does for you. It is simple enough. If you want to see how valuable targeted
keyword based traffic is regarding sales of your products or services this is the
easiest way to do it. One thing, before you get that paid traffic account, ask
yourself if you were a prospective buyer of your product or service would you
be inclined to buy your goods after visiting your website. Be honest about it. If
the answer is no then work on your website or on your landing page, that is, the
first page people see when they click on that online ad from Google or Yahoo or
Bing. Be consistent in the message to your visitors. If you can include
testimonials from previous customers that would be great. You need to have a
defined privacy policy so that new customers know that their information is not
sold to marketing firms, you know that happens all the time. Do you provide
some sort of guarantee for the goods you sell online? If not why not? If you do
then you are miles ahead of your competitors. Put yourself in your customers
shoes for a moment, and try to think about what would please them. Now you
are ready to sell your goods and services online.
Online Advertising will exceed $142 billion dollars by 2014. That may seem
like a lot but keep in mind that total advertising is forecasted to hit $564 billion
by the year 2014. That means that online advertising will represent 25% of total
advertising, up from about 12% of total advertising just last year. This trend is
undeniable as more and more people get their information, entertain themselves,
and communicate, via online sources. We think 25% of total advertising by
2014 is low - look for that number to be closer to 42.8% or $188 billion in total
online advertising by 2014. That is great news for Google and Yahoo and Bing,
not so great news for your less and less favourite television stations, particularly
these mega cable news networks who are having a hard time selling their ad
space. Note that total online advertising is estimated to total $62 billion this year
(2010).

Competitive advantage over traditional advertising

One major benefit of online advertising is the immediate publishing of

information and content that is not limited by geography or time. To that end,
the emerging area of interactive advertising presents fresh challenges for
advertisers who have hitherto adopted an interruptive strategy.
Another benefit is the efficiency of advertiser's investment. Online advertising
allows for the customization of advertisements, including content and posted
websites. For example, AdWords, Yahoo! Search Marketing and Google Ad
Sense enable ads to be shown on relevant web pages or alongside search results
of related keywords.
Internet Business Models
 There are 8 different online business models:
 Virtual storefront
 Information brokers
 Transaction brokers
 Online marketplace
 Content provider
 Online service provider
 Virtual community
 Portal
  They use advertising to either:
 Generate Revenue through Selling Advertising
 Generate Customers through Buying Advertising
Types of Online Advertising
- Paid Advertising
Pay Per Click (PPC)
Advertiser pays when their ad is clicked
e.g. Google Ad words, Yahoo Search Marketing, Google Ad sense

Pay Per Impression (PPM)

Advertiser pays for every appearance of their ad on a web page
e.g. banner ads or popup ads.
Pay Per Action (PPA)
e.g. pay per sale, e.g. affiliate programs

 Article Submission
  “Content is king” online
 Submit magazine style articles to other websites, in return for a
link to your website

 Natural Search Engine Ranking

 Key is to rank highly for the keywords that your target market will
search for

 Search Engine Optimization (SEO)

Benefits of Online Advertising
 Cost effective: Online advertising is results-driven advertising, i.e. you
pay only after the pre-determined “success”
 Targeted: You can easily reach a specific reader based on geography,
areas of interest and context of the content.
 Search: The internet is predominantly used for information; people are
looking for answers about their problems, a particular type of product or
solution
 Reach: You can reach a much wider audience online
 Measurable: Online advertising is transparent. Reporting and analysis
gives comprehensive evidence of the return on investment for all
advertising activities.
 Act now: Consumers can immediately click on a link to access more
information, make a direct purchase or register for newsletters or
services.

How can online advertising help small business?

Online advertising is so flexible that even small businesses can afford to look
into advertising online. Where else can you track leads per advertising
keyword? Where else can you track the cost per lead? Where else can you track
the dollar cost per sale? Only online advertising allows you to select the
keywords for your online advertising campaign and track the effectiveness of
each and every keyword in terms of sales and revenues. This is the ultimate
power of online advertising. You wonder why Google has become a
powerhouse in keyword based online advertising. Send us an email to
info@onlineadvertising.net and we will help you get started with all this online
advertising stuff, in very simple easy to understand terms.
Why do I want to use advertising online for my web site?
Having your web site advertised on a search engine is important when you
know recent findings on the habits of search engine users. Researchers at
Pennsylvania State University found that:
1) 80% of users typically visit only the first three results from a search query.
2) 54% of the users views only one page of results in each keyword search
session.
3) 19% of the users view the second page of search engine results, and less than.
4) 10% looked at the third page of search engine results.
How can we be sure that online advertising works?
According to market research sources, search engines outperform all other
online advertising media in driving visitors to web sites. Moreover, consumers
are five times more likely to purchase products after seeing search listings
versus banner advertising. In fact, statistics show the following:
1) 77% of Internet users employ search engines more frequently than any other
online advertising media, surpassing banner ads, Web links, and e-mail links as
the leading tool for discovering information about a product or service.

2) 84% of Internet users who are online four or more hours each day reported
they use search engines frequently to discover Web sites and find products or
services.
3) 55% of Internet users are more likely to purchase online after seeing search
listings versus 9% for banner advertising.
Online Advertising industry
Growth in online advertising is back and getting stronger every day -- the
recession in online advertising is over, according to eMarketer. Search engine
keyword based marketing, like Google Ad Words, is still growing at double
digit growth rates, and per click revenues are increasing too. More and more
business people are understanding the power and simplicity of search engine
marketing and how online advertising benefits their business (in terms of sales).
So yes the world economy is growing again, ever so slightly, however online
advertising (specifically search) continues to grow at a healthy pace.
The world of online advertising can be divided into a several different
advertising options. These options are not exclusively the only areas from which
to choose, however they represent the most popular areas within the online
advertising menu. And they are:
1. Search engine advertising: more than 50% of the total spent last year in
online advertising. This relates to keyword based search engine optimization
and paid advertising via pay per click campaigns. The three biggest sources of
this type of advertising are Google, Yahoo, and Bing {MSN}. There are plenty
of additional smaller online search advertising options but these three are the
best of the best and each one has a pay per click advertising interface that is
simple to use. Just in case you are wondering the big three search engines
represent 98% of the entire search advertising market. Get it correct with the big
three search engines and you are getting it right with 98% of your keyword
based search audience. The great thing about search engines is that they make it
so easy to purchase traffic. In fact online advertising has now become as easy as
click, setup, and pay. All you need to do is select the appropriate keyword(s) for
your service offerings, select the geographic region you want to represent, and
away you go. Note that search advertising is paid per visitor so if your ad is not
clicked on you pay nothing. How would you like to buy a billboard on the road

That you only pay for when someone calls you. Experts refer to this type of
online advertising as an outstanding deal. Even google will give you free credit
card processing for all the goods you sell online providing you are purchasing
traffic from them and providing your ROI (return on investment) is less than or
equal to 1,000 percent. Even Google thinks you should be able to make ten
times your online advertising spend in total revenues. That speaks volumes
about online advertising right there.
2. Display ads: 21% of the total online advertising last year and falling fast.
Banner or contextual advertising is not popular and is not working, even at these
cheap costs per thousand impression rates. Here you rent space on a web site
and if you get lots of visitors to your site great since you pay for the space and
not for the visitors. This is not the best way to advertise, but there are plenty of
places to get CPM deals in the $0.60 or lower range so why not pay next to
nothing and see what sticks.
3. Classified advertising: 17% of all spending last year or just over $4 billion
dollars spent on classified advertising. So next time you say classifieds are not
for your company or service offering you better think again. In terms of dollars
spent last year classifieds came in at roughly one third of the amount spent on
keyword based search. Classified ads run at a cost per space and not for visitors
directed to your website so again you are paying per thousand page impressions
whether people click on your ad or not.
4. Lead generation: 6% of all advertising spending last year, or over $1.4 billion
dollars. It is interesting to see Google use lead generation in some cases since
we all know Google is getting short end of the stick on their paid keyword
based advertising (per click). How do we know that? Well if I am a company
and I spend $1 to make $3 from traditional advertising (TV, radio, newspaper)
and now I am spending money with Google to the tune of $1 for each $9 in
revenues then it stands to reason that Google is getting the sorry end of the stick
compared to the cost of traditional advertising. Some argue this is exactly why
keyword based search advertising is destined to grow.

5. Rich media: 4% of all spending last year or almost $1 billion dollars. This
sort of relates to display ads, except that these ads are video targeted and most
networks know that the targeting aspect alone will improve conversion rates. In
advertising the better the targeting the higher value and the greater the
advertising revenues. Could this be why Google bought youtube for over $1.5
billion dollars?
6. email: holding on at 2% of total online advertising last year. Hard to believe
email advertising accounted for $500 million dollars in revenues last year. That
is a lot of money spent on email advertising.
Why is search online advertising valuable
Search online advertising brings keyword based search traffic to your door.
Keyword based search brings exactly your targeted audience to your ad
message.
Technology experts predict that more and more people will access the Internet
at a higher speed than ever before and this added speed makes getting audio or
video news and information simple and fast. Keyword based video advertising
will get increasingly popular as the cost of broadcasting that video over the
Internet falls and as more and more people can see that video clearly (as a result
of increasing access speeds). How neat would that be if we could see a video of
the product or service before we actually bought it, or see the people behind the
company that sell us that "catalytic converter". Online advertising via video
feeds to your cellphone from live or recorded messages are only a moment
away. Technology is moving so fast even the online advertising industry can
barely come up with applications that meet the changing (and better) Internet
technologies. The future of online advertising looks bright and very exciting to
be sure. It is up to you to make sure you understand the changes that are taking
place and up to you to become part of the online advertising boom.

How can you make online advertising easy to understand?

Online advertising is made easy by the search engines. Put it this way, if you
can read then you can get your product or service on any of the big three search
engines in less than ten minutes. All you have to do is open an account at
Google or Yahoo or MSN and away you go. It doesn't get any easier than that.
They have experts who help you every step of the way, and quite frankly their
advertising programs are so user friendly it is incredible. Online advertising
made easy.
Summary
 Online advertising is an effective means of generating revenue and
generating traffic to a business
 The types of advertising include:
 Paid advertising models
  Free advertising models
 A business will utilize a variety of the advertising mediums to suit their
needs

Media
Media is a very important part of advertising because to carry most of the
advertising media vehicle is required to reach mass audience.
Media clearly has no boundaries

MASS MEDIA

Traditional media are BROADCAST (reaching to a wider audience) and Non-

traditional media are NARROWCAST (reaching to a smaller audience)

CINEMA
Non traditional media
 • Television
• The unit in which TV is bought is time
– Spots ( as seconds)
– Sponsorships
– Scrolls
– Logo presence
Role of Television
• Audio-visual medium which uses color, sound & music
• Emotion building – can tell a story
• Also builds image of a brand or a company
• An engaging medium - Intrusive
• Ability to reach large geographically spread out audiences
• Therefore, more cost effective – lower cost per contact
• Audience segment selectivity through choice of channels (e.g Business,
sports, Movies, Kids etc.) or choice of programs
How can the medium be used differently
• Sponsorships
 • Innovations like Roadblock to counter zapping
• Teaser/ revealers
• Vignettes, advertorials
• Creating properties tailor-made to the product – e.g Close-up Antakshari
• Scrolls
Typical Costs
• Ave 30 s Spot on Cricket :Rs. 7,50,0000
• Ave 30s Spot on Star Plus :Rs. 8,00,000-9,00,000
• Ave 30s Spot on Music Channel :Rs 8000-10,000
• Costs are different for different time-bands (e.g)

• Morning Band ( till 12:00 Noon)

• Afternoon Band ( 12:00 – 17:00)

• Evening Band ( 17:00-20:00)

• Primetime ( 20:00 – 24:00)

• Usually, on buying on Primetime, an advertiser gets certain incentive

spots on off-prime

Strengths

 Audio-visual Impact. Unsurpassed for building high, fast awareness.

 Cost Efficient

 As a medium offers the fastest reach build-up but can use some vehicles
for frequency building

 Very merchandisable to sales force and trade

 Continuous monitoring

 National and regional buys possible

Weaknesses
  High absolute cost

 High production cost

 Lot of wastage for sharply targeted products

 Increasing concerns about clutter and zapping

 Quality/ content of programming - an issue for advertisers, viewers and

suppliers
Print
• Basically classified into
– Newspapers
– Magazines
Newspapers: Classifications

• Based on size
– Broadsheet – e.g. TOI, ET, Hindu
– Tabloid – e.g. Midday, Mumbai Mirror

• Based on Geography
– Pan Global / Pan Regional – Which cover many countries : e.g
WSJ, IHT, Al Hayat
– National : Which have a nationwide coverage- e.g. Times of India

– Local : Which cover limited geography – e.g. Mumbai Samachar,

Pudhari, Ananda Bazar Patrika

• Based on Content
– News, Business, Sports
Newspapers : Unit

• The basic unit of buying newspaper is SPACE as COLUMN

CENTIMETER or sqcms
Column centimeter = No. of columns (width) x cms. (height
Normal broad sheet
 Qtr Pg
26.5 cm H x 4 col W

Normal tabloid

1/2 Page
18cms H x 6 col W

Role of news papers

• Active medium
• Announcement Medium
• Credibility of content
• Localized reach – geographical selectivity
• Copy allows for more description
• Coupons / response mechanisms
• Habitual medium

Innovations in news paper advertising

False Wraps, Jackets, Inserts, Belly bands, Logo branding, Total buy-out,
Sticker operations, Personalized copies and Ear Panels.
Magazines: Classification
By periodicity

• Weeklies

• Monthlies

• Quarterlies

• Annuals
By Types

• News/ Current affairs

• Women

• Business

• Lifestyle

• Travel

• In-flight

• Property

• Hobby

Magazines : Unit
• The currency by which Magazines are bought is Number of Pages

– Half Page

– Full Page

– Double Spread
Role of Magazines
• Active medium
 • Glossy production values
• Good environment for the ad to be seen in
• Targets the consumer in a receptive or a leisure mood
• Segment or interest group selectivity

– E.g. Travel, Gardening, Business, Youth, Techie

• Longer shelf life – longevity of the campaign

• Image builder, high impact per exposure

Strengths

Can offer reach or selectivity

Can get good editorial fit

Geographic flexibility

Highly improved color reproduction, esp for magazines

Excellent for conveying detailed or long copy

High involvement medium

Portable

Weaknesses

Single dimension - visual only, non-intrusive, reader controls ad

exposure, can easily ignore
 High degree of clutter - most publications are 40-50% advertising

Can’t control exposure by time of day, day of week.

Slow reach build up

Lack geographical flexibility

Long lead time

Radio
Radio: Classification
• By Frequency

– AM

– FM

– Satellite
• By geography

– National – VB

– Local – Fever FM
• By Type

– More in western markets

– News, Weather, 70s, Classical, Rock, Talk show

Radio: Unit
• Like TV, Radio is also bought in units of time

– Spots

– Sponsorships

– Sweepers / super sweepers

Strengths

 Local & Cost efficient

 Low unit cost

 Reaches consumers while they are (physically) out on the road &
interactive

 Theater of the Mind

 Good support medium

 Short Lead times

 Low Production costs

Weaknesses

 Single dimension... audio only.

 Primarily a background medium

 Low average ratings; very fragmented

 Difficult to build reach...requires inclusion of many stations/formats

 Clutter: as many as 19 commercial minutes per hour

Outdoor/Ambient
A medium which drives innovative usage. The use of outdoor is driven by
location, size and cost
Following are some examples
Role of Outdoor

• Public Domain : Provides mass reach

• ‘Always On’

• Frequency /visibility booster, larger surface area

• Localized medium

• Attention grabbing : (@Strategic location)

• Cost effectiveness : large unrestricted audience

• Impact through innovations

• Options for either short term or long-term usage

Disadvantages

• Segmentation not possible (other than geographic!)

• High production costs

• Clutter in key arterial roads

• No cost benchmarks

Putting Things in Perspective

Outdoor Media Sector: Growth Drivers

• Enhanced levels of infrastructure development activities in the country,

especially in tier 2 and tier 3 cities

• Audience fragmentation in traditional media

• Higher spending on OOH from sectors such as Telecom and Media and
Entertainment
Outdoor Media Sector: Key Challenges

• Alack of a central authority to regulate the sector

• Lack of a scientific metric to measure the effectiveness of the medium

• Fast changing regulatory framework- In case there are more interventions

to bans Billboards in other cities as well, the performance could be
adversely affected

• Slowdown in construction development and reduction in expansion plans

of malls

Cinema

The Unit

• Cinema is bought as spots

• The material is a 35mm film reel

• Normally, the duration are 30s or 60s but other durations are also used

• For low cost production, filmlets are used – flash animation

• Cinemas traditionally used to be stand-alone

• The new trend is of multiple cinema halls in the same venue – Multiplex

• The idea behind Multiplex is to provide a complete entertainment &

leisure experience with shopping arcades, food court etc.
Advantages

• Audio-visual medium which uses color, sound & music

• Emotion building – can tell a story with dramatic effect

• Also builds image of a brand or a company

• An captive audience

• Shows the brand in a larger than life environment

• Community medium - Targets the consumer with peers or family

• Localized Medium

Disadvantages

• Cannot deliver high reach

• Accessible only to few

• Very little flexibility for innovative usage

• High Production costs

• Viewership is entirely dependant on the title of the movie

Online

• The future Media

• Technology has extended & redefined the media landscape

• Internet penetration is on the rise

– Online shopping – Travel, entertainment, information

– Opportunity for micro-targeting

Advantages

• Highly interactive medium

• Measured response

• Possibility of personal targeting

• Highly amenable to innovations

• Engaging – targets the consumer in a relaxed environment

Disadvantages

• Low attention span of users – not possible to expand on communication

• Irritant value

• Internet penetration is still restricted

• Not capable of delivering reach

Direct mail

Direct mail is a common form of direct marketing, and may be employed by

for-profit businesses, charities and other non-profits, political campaigns, and
other organizations. Advertisers often refine direct mail practices into targeted
mailing, in which mail is sent out following database analysis to select recipients
considered most likely to respond positively. For example a person who has
demonstrated an interest in golf may receive direct mail for golf related
products or perhaps for goods and services that are appropriate for golfers. This
use of database analysis is a type of database marketing. Alternatively,
unaddressed direct mail may be sent on a neighbourhood-by-neighbourhood
basis. Whether at the individual or neighbourhood level, direct mail marketing
allows recipients to be targeted, attempting to match the demographic profile of
the recipients to one most closely matching that of likely customers.
Individually targeted direct mail may be tailored based on previous transactions
and gathered data. For example, all male recipients of an offer may receive a
personalized package with a man’s picture on the cover, while all female
recipients receive a picture of a woman.
Advertising industry

Global scenario

Contribution to the Global economy

• Contributes 0.99% to the global GDP

• Worldwide, the ad industry is expected to grow 6.7% to reach $61 bn

• Food, beverage and personal/health care generate 23.6% of the global

advertising markets value

• WPP Group plc generates 6.9% of the global advertising markets value.

• The contribution of the advertising companies towards the yearly global

revenue sums up to approximately $60 billion

• Trends in the advertising industry indicates that the as many as 50

companies which are quite reputed hold around 40% of the market stake

Know the leading players

• WPP:

– British Marketing Giant, personal creation of Sir Martin Sorrell

– Owns 4 of the world’s largest Advertising Agencies – O & M,

JWT, Young & Rubicam & Grey.

– Owns media networks Mindshare, Mediaedge:cia, Mediacom &

Maxus under the banner of Group M

– Controls a substantial portfolio of market research, PR, direct

marketing, design and consultancy subsidiaries

– Latest additions to the group are digital advertising network 24/7

Real Media in 2007, and global research group TNS, acquired
during 2008

– Revenues for 2008 were around $13.6 bn

• Omnicom Group:

– Owns the highly reputed agencies - BBDO, DDB and TBWA

– It’s main media buying network is OMD Worldwide

– Also controls an extensive collection of marketing services

companies including PR giant Fleishmann-Hillard, digital and
direct marketer Rapp, and branding agencies Interbrand and Wolff
Olins

– Omnicom was the #2 ad organization worldwide in 2008 with

revenues of $13.4bn

• Interpublic Group (IPG):

– Owns the agencies – McCann Erickson and Lowe and Draft FCB

– It’s main media network is Initiative Media

– Interpublic was the #3 ad organization worldwide in 2008 with

revenues of almost $7.0bn

• Publicist Group (France):

– Owns the agencies – Saatchi & Saatchi, Leo Burnett,

– Has a strategic alliance with Dentsu

– Other jewels in the Publicist crown include multi-hub creative

networks Bartle Bogle Hegarty (BBH –partly owned though a large
minority stake) and Fallon

– Owns Ambience Advertising in India

– The Media Planning & Buying arm of this group is the london-
based ZenithOptimedia

– The group is especially strong in Digital Marketing, Have bought

over the Digital biggies Digitas and Razirfish

– In 2008, Publicist Group was the #4 ad organization worldwide

with revenues of around $6.9bn.
• Dentsu:

– No advertising agency dominates its market as comprehensively as

Dentsu, which controls around 30% of all mass media advertising
in Japan

– Has a staggering portfolio of more than 6,000 clients

– Since 2000, the giant has begun to spread its wings, becoming one
of the principal backers of the newly expanded Publicis Groupe in
a concerted bid to increase its share of Western advertising budgets

– In 2008, Dentsu was the #5 marketing organization worldwide with

combined revenues of around $3.3bn

• Aegis plc:

– Aegis is best-known for its biggest subsidiary, the worldwide

media network Carat Media

– Also includes the digital network Isobar and market researcher

Synovate, as well as second-string media agency Vizeum

– Aegis ranked #6 ad organization worldwide in 2008 with revenues

of around $2.5bn

• Havas:

– It controls two worldwide networks in Euro RSCG and media

buyer MPG

– Owns a collection of regional agencies, of which the biggest is

Arnold Worldwide in North America

– Havas ranked #7 ad organization worldwide in 2008 with revenues

of around $2.3bn. 
Indian Scenario

• Growing at 16–18 per cent, the Indian advertising industry is estimated at

US$ 4.16 billion

• Expenditure on advertising expected to rise from 0.5 per cent of GDP to

0.53 per cent in the next three years

• The Indian advertising industry is expected to grow 61% by 2010 (with

advertising spend climbing to Rs. 36,731 crore)

For every hundred rupees spent by Indian advertisers, Rs. 91 is spent on

television and the print media while the outdoor media accounts for Rs 5. The
rest is divided between cinema, radio and the Internet

Know the leading players

Top 20 creative directors of the Industry

Leading Specialist agencies

Know the leading media agencies
 Recent trends

• The pie of traditional mass-media advertising has shrunk dramatically,

while marketing services — or what was once known as ‘below-the-line’
— has gained in prominence

• Advertisers are funneling larger shares of their ad budget into new and
emerging media, forcing the large holding companies to invest heavily in
digital agencies, design-specialist shops, retail solution companies and
the like

• Also, the promise of more ‘science’ — and assurances of greater focus on

advertising ROI — from these specialists is likely to keep advertisers
from straying

Is the agency model dead?

• Obviously agencies will continue to be around for many years to come

• Creativity and ability that was once trapped in the agency space has now
been set free

• The Client is in control of their own destiny, knowledgeable about their

customer, how to best form a valuable bond between them and empower
internal teams to explore the relationship

Advertising Agencies can be classified by the range of services that they offer.
Also, advertising agencies range in size from one man shows to large firms that
employ thousands of people. Accordingly, different types of advertising
agencies are:

 Full service agencies

 Creative boutiques
 In-house agencies
 Specialized agencies
 Media buying services
 Full-service agencies- as the name implies, a full service agency is one
that handles all phases of advertising process for its clients: it plan, creates,
produces and places advertisements for its clients. In addition, it might provide
other marketing services such as sales promotion, trade shows, exhibits,
newsletters and annual reports. In short a full service agency will provide four
major functions:
1. account management,
2. creative development and production,
3. media planning and
4. Buying and research services.
One major point that differentiates a full service agency from other is that the
personal work full time and the services provide are extensive. The services
usually provided by a full service agency include collecting and analyzing
market data, proposing strategy, preparing and producing the ads, placing the
ads in approved media, verifying the advertisements appearance (publication,
broadcasting, etc), invoice the client, collect the bills and pay the media and
other suppliers.

Creative boutiques- it is an organization that specializes in the actual creation

of advertisements. In general, boutiques create imaginative and interesting
advertising themes and produce innovative and original advertisements. A
company that uses a creative boutique would have to employ another agency to
perform the planning, buying and administrative functions connected with
advertising.
Full service ad agency studies the product or service and determines its
marketable characteristic and how it relates to the competition. At the same time
the agency studies the potential market, possible distribution plans and likely
advertising media. Following this, the agency makes a formal presentation to
the client deadlines, it’s finding about the product and its recommendation for
an advertising strategy.
Creative boutiques are different from freelancers. Freelancers are individuals
who work on their own with out any formal attachment with any agency.
Clients or agencies hire these from time to time. The clients also hire creative
boutiques.
In-house agencies- such agencies are owned and supervised by advertisers or
the client organizations. The organizational structure and functioning of in-
house agencies are similar to full service agencies in most cases. The
advertising director of the company usually heads an in-house agency. In house
agencies are organized according to the needs and requirements 9of the
company and are staffed accordingly. Some companies solely depend on their
in-house agencies for their advertising needs. Others depend both on their in-
house agency and outside agencies. Some other companies allow their agencies
to take outside jobs.

Specialized agencies- there are many agencies, which take up only

specialized advertising jobs. Certain fields like medicine, finance, outdoor
advertising, social advertising, etc. require specialized knowledge. So there are
agencies, which concentrate only on areas and employ people with the required
talents. These agencies are usually small in size.

Media buying agencies-it is an organization that specializes in buying radio

and television time and reselling it to advertisers and advertising agencies. The
services sells time to the advertisers, orders the spots on the various stations
involved and monitors the stations to see if the ads actually run.
This trend for special media buying agencies started in the 1970s. Such agencies
have a lot of contacts in the media and offer very low commission on media
rates. Media buying agencies complement the creative boutiques. Also large
companies use their specialized negotiating talents for buying media space and
time.

The Structure and disciplines in an advertising agency

Account servicing

Creative

Media

Account planning

Research

Administration

Accounts
 Print Production

Film Production

Outdoor

New Media

Human Resources

Information cell

New business development cell

Specialized departments

Training

The Advertising Process

The development of advertising is a sequential process which must reflect the

marketing strategy

Consumers’ interaction with advertising

The Scale of Advertising Effect

The ultimate goal of any advertising is to affect the consumer’s thinking

or behavior.

In the Scale of Ad Effect, we have a tool which helps determine what that
effect should be.

There are 5 possible effects from direct call for action, to the indirect
reinforcements of attitudes

DIRECT

Direct Action – Prompting immediate consumer action like Coupons

filled, telephone calls, orders placed, reps invited…purchase made

Seek Information – Disseminating information…purchase is imminent

Relate to own needs and wants – Get into the considered set…purchase
will be made when the opportunity arises
 Bring to Top of Mind – Remind for repurchase… purchase will be made
when the opportunity arises

Modify Attitudes – Correct, modify or re-evaluate,reasons inhibiting

purchase…will encourage re-trial

Reinforce Attitudes – Reassure correctness of purchase…encourages

repeat purchase

Determination of Advertising Strategy

*Leslie Butterfield (1997)

The Campaign Planning Cycle

By J Walter Thomson

The planning cycle is a series of 5 questions

These questions lead us through the entire planning and creative process

It constitutes a unique way of thinking about advertising, as it takes us

through a process of learning, building, evaluating and modifying
hypothesis

The planning cycle is not a short term, one campaign system. It is a

system dedicated to brand building. Starts where we end…a cycle

Q 1 - Where are we?

It requires you to collect facts; about the market, the competition, the
consumer and your brand.
 These may be culled from available statistics, from syndicated studies,
government sources, your media or research departments or supplied by
the clients themselves

Get as much information as possible to obtain the correct analysis, a must

to begin well

Social and Economic Factors

The Market

The Products in the market

Consumers in the market

Competitive position

Company policy

Q 2 - Why are we there?

An analysis based on the study of all the information collected in the

earlier stage

What trends in the competitive marketing, brand or advertising activity

have led to the current situation

Must be able to draw conclusions as to why the current position exists, in

the market and in the consumer’s mind

Past brand and competitive advertising analysis

The consumer; attitudes and perceptions

Factors affecting the brand sales

Q 3 - Where could we be?

These are objectives and goals that is set for the brand

They must be designed to be achievable

Marketing Objectives in terms of brand share and brand volume

 Advertising goals being the changes, new directions or restatements of
what we need to do at the different stages of the consumer buying system
that is new, different or simply the same

What can we do to modify or restate the brand’s position

Brand Objectives

Product Change

Market Share Projection

User Change

Usage Change

Brand Positioning

Brand Strategy

Q 4 - How do we get there?

The answer must encompass all activities, not only creative and media
recommendations, but total communications; PR, DM, Display,
Research, Timing and Budgets

The summary of the creative brief

Creative Proposals

Media Proposals

Research Proposals

Any other specific proposals

Q 5 – Are we getting there?

Monitoring progress
 Tracking studies

Research

Sales, Brand Share performance

Annually or Bi-annually

Positioning

The position of a brand or product is the perception it brings about in the

mind of the target consumer
This perception reflects the essence of the brand in terms of its functional
and non-functional benefits in the judgment of the consumer
It is relative to the perception held by that consumer, of competing
brands, choices, categories, all of which, can be represented as points or
positions in this perceptual space and together, make a product class
The four basic components of positioning concepts
Product class or the structure of the market in which our brand will
compete
Consumer segmentation
Consumer perception of our brand in relation to competitors, leading to
perceptual mapping
The benefits offered by a brand. These benefits may also be expressed as
attributes
Setting Advertising Objectives

First part of the campaign development process

Evolved out of the total marketing strategy

It could be either short term or long term

Should be realistic, achievable and measurable

Must take into account what advertising can and cannot do

Must lay decision criteria to evaluate campaigns

The Definition

A specific communication task aimed at a defined target audience and

accomplished in a given time

A clearly stated measurable end result of an advertising message,

messages, campaign or programme

The objective is always measure in terms of change in awareness,

preference, attitude, belief, conviction or behavior

The advertising objectives could be to:

Inform and build awareness

Create brand knowledge

Reinforce positive attitudes about the brand

Precipitate buying action

Build an image

Increase sales

It is important to note that increasing sales cannot be the sole objective of

advertising

Advertising must be viewed as one of the many factors influencing sales,

the other elements of the marketing mix like pricing, distribution,
packaging, timing of launch, environmental factors etc.
 Short term Objectives

Build awareness

Promote new uses for a product

Extend the selling season

Motivate Dealers

Stimulate primary demand for a product type

Establish credentials

Establish image

Long term Objectives

Change habits

Change attitude and beliefs

Build a favourable image

Educate the consumer

Correct a well entrenched perception

An example:

To create an awareness of Brand X among 70 % of our target market

(primarily women in the top 50 markets,in the age group 18-45, with one
or more children, and having a monthly household income of Rs. 25000
and above) by the end of year 1, the introductory year of the national
campaign

To have 70% aided recall in our target group of our brand’s

message/image as projected by the creative
 To have 60% of our target group report a preference for Brand X over
other competing brands

Factors that affect setting of Advertising Objectives

Factors that affect the setting of the advertising objectives are:

Marketing Objective

Marketing Strategy

PLC

Competition

Financial Resources

Developing the Advertising Plan

Integral part of the marketing plan

Cannot and does not exist in isolation of other marketing communications

mix

Needs total integration

Competitive factors will influence the effectiveness of the advert

campaign

Review of the background situation

Competitive analysis

Overview of the brand

Analysis of the consumer

Who is he?
 How does he buy?

What are his motivations?

Statement of the marketing goals

Summary of advertising recommendations

Summary of creative recommendations

Budget determination

Summary of evaluation procedures

The Buying System

Understanding how people buy

Six stages of thought and action that consumers go through when making
a purchase decision

The objective is to move the consumer swiftly through the process

towards either purchase or re-purchase

Ensures total communication plan for the brand

The Six Stages

Trigger

Consider

Search

Choose

Buy

Experience

Trigger
 First there is a something that triggers off the need…What has
been the trigger for the purchase?

Routine – The need to replenish supplies like washing powder,

toothpaste, soap etc

Impulse – A purely spontaneous purchase like ice-creams,

chocolates or candy

Solution – A need to solve an existing problem like a new washing

machine or disinfectant or medicines

Lifestyle – An indulgence purchase for pleasure, like holidays or a

new suit or Hi-Fi

Some categories are a blend or reasons, for e.g. Cars can be bought for
both solution and lifestyle reasons.

Consider

Next, the consumer begins to think about what he wants from the
purchase

There are 4 needs a purchase can satisfy:

Self maintenance – Shampoo, Razor or Foodstuff

Self Expression – For Personal Image - Clothes,

Cars, Cigarettes

Self Reward or gift – For Personal Satisfaction like

chocolates, jewelry or books

Self Improvement – Computers, Books, Banking

Search

Next, the consumer begins to collect and evaluate information

There are 4 sources which range from active to passive

• Direct Experience

• Word of Mouth
 • Editorial

• Publicity or Advertising

Choose

The consumer now begins to compare and form preferences for the
available brands

There are 2 factors which will influence choice

• Functional Values: Will one purchase perform better than

another? Is it better value? Is it going to last longer?

• Non-functional Values: Which brand is more appealing? A

more attractive personality? A better reputation? A perceived
popularity? Reflects the image of the user?

Buy

Now, that the consumer has made up his mind to make a final
purchase…

There are six factors that could make or break the selection of our
brand

• Distribution – Availability

• Display – On the shelf, In-store

• Promotion – Ideally Brand related

• Trial – Can the consumer try it at the POS?

• Salesman

• After-Sales – Warranties, Guarantees, AMC etc

Experience

Now, the consumer is using the brand, only one factor has any
effect: Did the product perform as promised?
Development of advertising

Most advertising agencies use a precise format for the purpose of briefing
creative work

Aim is to provide the creative departments with the appropriate guidance

to the development of creative material in a succinct and easily
comprehensible form

The creative brief is the basis of all advertising development and should
encompass, in summary form, all major findings of research and other
inputs upon which the advertising will be eventually based

The Creative Brief – Point 1

What are the opportunity and/or problem which the advertising must
address?

A brief summary of why we are advertising at all

The current consumer perceptions that advert is suppose to enhance or

correct

The consumer’s point of view

The Creative Brief – Point 2

What do we want the people to do as a result of the advertisement?

Direct Action, Seek Information, recognise brand’s relevance, bring it top

of mind, change attitudes or retain

The Scale of the Ad Effect

The Creative Brief – Point 3

Who are we talking to?

 The Creative Target group and not the Marketing Target Group

Not just Demographics, but Psychographics as well

Accurate profile

The Target Group

The most effective advertising knows who it is talking to

The Marketing Target Group

The Advertising Target Group

The Creative Target Group

The job is to derive a specific and clear advertising target group

from within the marketing target group, then translate this into
meaningful creative terms that will allow us to get into the target’s
mind

The Marketing Target Group

Very broad definition

Encompasses all potential users – latent as well as potent

Casting the net very wide

E.g. Anti-dandruff shampoo targeting people with dandruff as well as

people who want to prevent dandruff

The Advertising Target Group

Narrow casting – Current Users, Occasional Users, Lapsed Users, Users

of another category, brand etc.

Precise for maximum effect – what stage of the buying system are we
trying to impact

E.g. A cooking oil can broadly target all who cook but can narrow it
down to women who cook regularly and use a specific oil, quantity or a
brand
The Creative Target Group

Tightly focused – Defined in terms of lifestyle, mindset, motivation,

personality, opinions, passions etc.

‘Igniting or Lighting the Creative fire’

E.g. A health drink targeting Mothers aged between 25-40 with small
children who are concerned about the proper all round development of
their children as opposed to Mothers aged between 25-40 with small
children

The Creative Brief – Point 4

What is the Key Response we want from our Advertising?

One single thing that we want the consumer to notice or believe as a

result of our advertising that will best distinguish our brand from
competition

Consumer language – How will the consumer express it?

Its not what you put in…it is what the consumer takes out…the stimulus
response theory

The GIGO effect

The Stimulus & The Response

The most effective advertising is not about sending messages

The Stimulus-Response Theory

E.g. The Comedian

Identify the desired response…the key response…bear the following in

mind:

Consumer is not a moron

Be Single minded

Consumer language and not manufacture language

The Creative Brief – Point 5

 What information attributes might help produce this response?

Functional or physical attribute

Psychological emotional user need which the brand fulfills

Avoid a laundry list

Functional Discriminators

What unique, practical characteristic makes your product different

from others?

It should be a formula or technical enhancement. It could be faster, or lighter

or tougher or bigger

It has to be a practical difference. If it has no demonstrable advantage,

then it will not discriminate in the consumer’s mind

It must not be too easily duplicated otherwise it will soon be equalled or

superseded

If the product has nothing physically unique, then say so. It highlights the
importance of the Non-functional discriminators

Non-functional Discriminators

Unique characteristics which serve no practical purpose the brand

possesses that differentiate it from other products

It could be reputation or rarity

It could be more beautiful or more contemporary or more colorful or

more fragrant

Generally, it will be what; purchase or ownership of this brand will say

about the consumer that others would not. It could be a display of their
good judgment, their status or their intelligence

Discriminators fabricated by the advertising are fragile unless based on a

product characteristic
 If there is no alternative to the fabrication of brand discriminators, major
emphasis will be placed upon the brand personality

The Creative Brief – Point 6

What aspect of the brand personality should the advertising express?

Capture the essence of the brand in one single sentence

Unique blend of its characteristics that the advertising help to highlight

Not a cluster of traits

Luna, Spark, CDM, Amul

Describe the brand in human terms

Unique personality can be the key differentiator

Makes the brand more appealing

Cannot be replicated

Does not mean a description of the target group

Brands, like people, have a blend of functional and emotional appeals

which can be described in human terms

And while the individual appeal may not be unique, your particular blend
of appeals can be

In a highly competitive market, where no single appeal can discriminate,

the way be blend our brand’s personality becomes critical

Lists of human traits like; intelligent, lively, gregarious only represent the
ingredients.

A personality has to be humanized, e.g. the brand is your favorite uncle,

not very exciting but completely trustworthy

Ensure that the brand personality is supportable by the brand. At the risk
of stating the obvious, a luxury soap could not have the personality of
Rambo

How to describe a Brand Personality

 Vivid and human like

Distinctive

Relate to TG – identification or aspiration

Brand Personalities

Mrs. Corn Flakes – A woman who dedicates her life selflessly to the
well-being of her family. But retains her sense of proportion. Your
Mother

Ms.Lux – A woman who is extremely aware that her very glamorous life
means she is continually under close public scrutiny. A star

The Salem Couple – Young, modern, optimistic, innocents who love the
life they live. Today’s beautiful people

Mr. Listerine – A totally gregarious fellow with an extremely wide circle

of friends who leads full life. A real popular guy

Mr. Colgate – A Teacher

Mr. Mentadent – A scientist

The Creative Brief – Point 7

Are there any media or production constraints?

Medium

Size

Color

Length

The Creative Brief – Point 8

Any additional information that could be useful

Promotional Plans

Public Relation exercise

 Legal Restrictions

Company Sensitiveness

Ethics

Creative Strategies and Tactics

The determination of the creative platform

Achieving distinctiveness is a paramount consideration and the driving

force behind the creative process

Bland advertising fails to attract the attention of the consumer

It passes like a ship in a dark night

Key factors which make people notice advertising are:

When the product itself is inherently different

When the advertisement is sufficiently unusual

When the advertisement has some particular personal relevance

The ‘Hard-Sell’ approach

Is an approach in which the advertiser uses specific facets of the

product or service, to convince the target audience that it is the best
available

More of a rational approach

The ‘Soft-Sell’ approach

By contrast, it uses a somewhat more subtle approach to the

differentiation of its products

More of an emotional approach

The Idea

The most effective advertisement has a recognisable idea

Both for creators as well as evaluators

Vivid Demonstration – What the brand does

Vivid Metaphors – What the brand stand for

An idea is a new combination of old elements

Kaleidoscope – always a new pattern

An idea rests upon the ability to see relationships

A new relationship

Random Juxtaposition/Syncopate

Characterised by –

Surprise

Sympathy

Shivers

Simplicity

Synergy

Distinctive

Memorable

Durable

Important for the

creation of good
advertising
The brand’s benefit to the consumer is
conveyed, not just by selling a message, let
alone a series of messages. But single-
mindedly by ONE BIG IDEA – a visual
and/or aural expression of that one key
concept exclusively linked to the brand.
Arresting, exciting, unexpected
Examples – Rin,Center Shock

The advertisement must communicate a

benefit. But is must distinguish that benefit
from others promised by competitive brands.
The brand must therefore communicate
uniqueness; Uniqueness may reside in the
physical brand itself (e.g. formulation) or in
some other value inextricably associated with
the brand. One of those values is the
Advertising.
Thus whether the benefit of the brand is
unique or not its expression must be.
Examples – Pears, Liril
It has immediate dramatic impact, arouses interest,
holds and deepens that interest.
It elicits a favourable emotional response by
appealing to the consumer’s self interest, relating to
a known need or problem and promising satisfaction
of that need or a solution to the problem.

Examples – Dettol Soap

A relationship is built on mutual understanding. The

situations shown, the style of presentation, the
people depicted, the language and tone of voice
used…all reveal the advertiser's understanding of,
and sympathy with, the consumer’s experience and
aspirations.
The advertiser should induce a strong feeling in
favour of the brand and establish a preference for the
brand,so that the consumer feels confident in
choosing it.
Examples – Raymond, ICICI, Cadburys Dairy Milk

Statements made. Demonstrations shown must not

be misleading. They must be fully accepted by the
consumer.
Though the manner of presentation may involve
humour or hyperbole, the fundamental brand
benefit must always be felt to be obtainable.
Examples – Dove, Feviquick
 Anything that can be misunderstood will be
misunderstood. Too many thoughts, too many
impressions will confuse and lose the consumer’s
attention.
The execution should be simple and the
expression unambiguous.
It should be clear from the advertisement what
the target consumer is expected to do.
Note- This does not mean that everything needs
to be spelt out. Communication is two-way. The
consumer should participate.
Examples – Bajaj Sunny, Fevicol Shutter

The big idea must be inextricably linked to the brand

name.
It must be remembered only in association with
brand.

Examples – Hero Honda ( Fill it, Shut it & Forget it)

v/s TVS Calendar, Lux
Ideally, the Big Idea should find expression in all
media (TV, Print, Radio, Outdoor, Direct mail etc.)
Each medium has its own characteristics which offer
opportunities for exploitation.
The Big Idea itself is fundamental, but the writing
and design of the advertisement should take
maximum advantage of the media possibilities
available.
Examples – Print Advt of Scratch & Sniff, Hoarding
stuck with objects, Radio exploiting sound, TV
Commercial with Demonstration

The Big Idea will endure

It is not one advertisement but a campaign
It is not one campaign but a series of campaigns
It must be capable of development. This is more
than simple repetition or even variations on a
theme
The Big Idea will not only endure. It will grow.
Examples –Commercials of Onida, Fevicol
 Each advertisement affects the consumer’s perception
of the brand. If any one advertisement conflicts with
that perception it will cause, at best neutral, at worst a
negative feeling. Several such advertisements will
begin to weaken the brand personality.
It is vital therefore to ensure consistency. Each
advertisement helps to build or reinforce the desired
brand personality.
Examples – Airtel, Orange, Asian Paints
Styles of advertising – creative execution style

Product as hero

Product demonstration

Problem-solution

Slice of life

Testimonial

Spokesperson presenter

Endorsements

Opportunistic or topical advertising

People like me

Mini-drama

Continuing character

Pastiche or borrowed interest

Spectacular, musical, stage show

Non-verbal

Infomercial
 Teaser advertising

Animation

Fantasy

Fear/Intrigue/Shock advertising

Humour

Surrogate

Ethical Aspects of Advertising

• Ethics are the moral standards against which behavior is judged.

• Key areas of debate regarding ethics and advertising are:

– Truth in advertising

– Advertising to children

– Advertising controversial products

• Truth in Advertising

– Deception is making false or misleading statements.

– Puffery (commercial exaggeration) is legal.

– Cannot legislate against emotional appeals

• Advertising to Children—Issues

– Advertising promotes superficiality and materialism in children.

– Children are inexperienced and easy prey.

– Persuasion to children creates child-parent conflicts.

– What does the literature say about kid’s abilities to process

persuasive information?

• Advertising Controversial Products

– Critics question the “targeting” of minorities.

 • Tobacco, alcohol, gambling and lotteries are product
categories of greatest concern.

– How does the concept of “primary demand” provide insights here?

– What does the literature say about advertising’s impact on these

product categories?

Regulatory Aspects of Advertising

• Areas of advertising regulation:

– Deception and unfairness

• Competitive issues

– Vertical cooperative advertising

– Comparison advertising

– Monopoly power

• Advertising to children

Consumer Behavior

Consumer Behavior: a wide spectrum of things that affect, derive from, or form
the context of human consumption.

Perspectives:

1. Consumers are Systematic Decision Makers

– Maximizing the benefits from purchases defines the purchase—

consumers are deliberate.

2. Consumers are Active Interpreters

– Cultural/social membership defines purchases.

Consumer Decision-Making:
The Systematic Decision Maker
 I think, therefore I
buy

The Consumer Decision-Making Process

Cognitive Dissonance

The feelings of doubt and concern after a purchase is made. Dissonance

increases when:

1. The purchase price is high

 2. There are many close alternatives

3. The item is intangible (example?)

4. The purchase in important

5. The item purchased lasts a long time

Modes of Consumer Decision-Making (Vary by involvement and

experience)

1.Extended Problem Solving

Deliberate, careful search

Limited Problem Solving

Common products, limited search

3. Habit or Variety Seeking

Variety seeking—switches brands at random

Habit—buy single brand repeatedly

4. Brand Loyalty

Conscious commitment to find same brand each time purchase is made.

Key Psychological Processes in Advertising

• Attitude

– Overall evaluation of an object person or issue on

continuum=like/dislike; positive/negative.

• Brand Attitude

– Summary evaluations that reflect preferences for various products

and services.

• Salient Beliefs

– Small number of key beliefs. Five to nine salient beliefs typically

form the critical determinants of attitude.
 • Multi-Attribute Models (MAAMs)

– Evaluative Criteria: attributes consumers use to compare brands

– Importance Weights: priority assigned to attributes

– Consideration Set: group of brands that are focal point of decision

effort

Beliefs: knowledge and feelings consumer has about various brands

Key Psychological Processes

• Information Processing and Perceptual Defense

– Cognitive Consistency Impetus: Strongly-held beliefs to make

efficient decisions.

– Advertising Clutter: Large volume of ads causes overload.

– Selective Attention: Most ads are ignored because they do not fit
consumer’s need state.

– Cognitive responses: Thoughts that occur to consumers at moment

when beliefs are challenged by persuasive communication .

• The Elaboration Likelihood Model (ELM)

– Central route persuasion in high involvement products

– Peripheral cues rather than strong arguments shape attitudes in

low-involvement products.
Consumer as Social Being

I buy what I am

Consuming in the Real World

Object
Meaning
Advertising as Social Text:
How Ads Transmit Sociocultural Meaning

Individual
Individual consumer
consumer

Factors Affecting Consumer Decision Making

CONSUMER
CONSUMER
DECISIONS
DECISIONS