Wednesday, June 25, 2014

Advertising: A Very Short Introduction

This time I familiarized myself with domain of advertising with Advertising: A Very Short Introduction by Winston Fletcher. The book is part of Oxford University Press’ Very Short Introductions series. With this brief experience I could consider checking out also other titles from them. Some notes collected from the book follow, following the chapters of the book :)

1. Advertising

  • Advertising – what is it?
    • Advertising is one type of marketing communication (other types include e.g. packaging, sales promotions, commercial emails, public relations etc.)
    • Definition by the writer: An advertisement is a paid-for communication intended to inform and/or persuade one or more people.
    • To sell isn’t always the (only) reason
  • Advertising objectives for a campaign vary a lot. Some examples:
    • launch a new brand
    • launch a new product to an existing brand
    • make people who haven’t heard of a brand become aware of it
  • Advertising strategy – this is where the campaign objectives should be spelled out
  • Target market – defined population sectors
  • What do customers want from their brand?
    • Emphasis has been shifted from product formulations towards end-benefits.
    • Brand image, emotional side
  • Diversity of advertising – good to note
    • Diversity of services and products
  • Account planners – usually the ones who study and analyze the wealth of information

2. Industry structure

Tripartite of advertisers, media and agencies

  • Advertisers
    • Retailers, manufacturers, finance companies, charities, governments etc.
  • Media
    • Print, TV, posters, radio, cinema and the Internet.
    • classifieds vs. display
      • Ads that people look for (classifieds)
      • Ads which look for people (display)
    • print & Internet have both classifieds & display
    • TV, radio, cinema and posters carry mainly display advertising
    • Before arrival of TV, print advertising was largely on classifieds
    • Digital revolution with the Internet
  • Agencies
    • In the 1970’s, agencies have split to creative agencies and media agencies.
    • Digi revolution has resulted in digi departments and separate digi agencies.
    • This is the part of the tripartite that relies & works fully on advertising.

3. Advertisers

  • Most businesses advertiser
    • Note that not all businesses advertise.
  • 4 criteria for a (successful) brand:
    • The brand will have a unique name and packaging, and usually a logo, all of which will be easily and instantly recognizable by its target market.
    • It must be perceived by its target market to have qualities which differentiate it from others, similar brands. (brand positioning)
    • The qualities will be both functional and emotive; its purchasers will both think and feel the brand is different from, and in their eyes superior, others.
    • These perceptions will allow the brand to command a premium price over unbranded, commodity products, and thus to generate greater profits for the company that owns it.
  • Valuation of the brand by its target market is what matters.

4. Media

  • Media – Latin plural form of the singular noun medium
  • Medium (Oxford English Dictionary): Any intervening substance through which a force acts on objects at a distance or through which impressions are conveyed to the senses.
  • Criteria for choosing media
    • Reach – How many people in the target market does the medium reach ? What kind of people?
    • Cost – How much does it cost to use the medium? (Compared with alternative media, which provides the best value for money)
    • How powerful and persuasive it is as an advertising medium?
  • Cost per thousand (readers/watchers/… in the target market) is the typical comparison criteria within certain type of media.
    • Note that it seldom is helpful to compare cost per thousand straight between media (effects with different types of media are too different)

Different types of media

  • Note that the descriptions are from the UK point of view.

Press and Magazines

  • National newspapers
  • Regional newspapers
    • Higher cost per thousand than with nationals
  • Consumer magazines
    • Higher reader-to-circulation ratio (one paper is usually read by more people)

TV

  • In the UK, strong governmental control on TV advertising
  • Fragmentation has increased recently
  • Writer states that no evidence of the Internet or Video-on-demand resulting as TV viewership falling

Rest (minor media)

  • Direct mail
  • Outdoor and transport
  • Radio
  • Cinema

The Internet

  • Has grown much
  • Most Internet advertising for products & brands for which customers require detailed information.
  • Provides much better options for targeting than other mediums

5. Creative agencies

  • The messages you put into advertisements are but the means to an end.
  • The end is what the target market makes of the messages.
  • Copy/art cooperation
    • Before TV words were the beef → copywriter was the top
    • Nowadays working mostly as copy/art teams (copy & art together)
  • Creativity is an incremental process
  • Account planning & account management have a big role
  • Globalization trend

6. Media agencies

  • Advertising agencies have mostly been split to creative and media agencies (specialization)
  • Media agencies: help advertisers to fish where the fish are – at the lowest possible cost
  • In media agencies analysis, research, numbers are the thing
  • Two roles: planning (strategic) & buying (negotiating)
  • Media selection factors:
    • Budget
    • (Technical) nature of the medium
    • Coverage of the target market
  • One principal expertise of media agencies is choosing between trade-offs
    • Media selection
    • Size, frequency, timing etc.
  • Digital (Internet) has also brought pay-per-click charging

7. Research

  • Some historical notes on advertising research
    • 1909: Psychology of advertising (Walter Dill Scott)
    • 1923: Scientific advertising (Claude Hopkins)
      • Still relevant stuff for coupon advertising
    • 1950’s: Motivation research
    • 1957: Subliminal advertising study (later admitted to have been a hoax)
    • from early 1940s to late 1960s: Unique Selling Proposition (Ted Bates)
  • Today no more search for the Golden Key
  • Pre-testing & post-launch testing
    • Pre-testing
      • Important that the interviewees are members of the target group
      • 1-1 or focus group interviews
    • Post-launch testing
      • Advertising awareness (only an approximation of campaign effectiveness)
      • KPIs (pre-defined)
  • Other techniques have also been tried (pupil dilation, eye tracking, MRI, …)

Misc. links

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