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Advertising Demystified

17 Friday Apr 2015

Posted by Gregory Dean in Advertising, Marketing Philosophy, Marketing Strategy

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advertising media, Greg Dean, Gregory Dean, Marketing, Marketing Strategy, newspaper advertising, print media, radio advertising, television advertising

Begin with the communication objective

An advertising campaign starts by identifying a communication objective. One important issue is establishing the right combination of information to properly communicate the message and satisfy the communication objective. The advertising budget should be established before the creative strategy is written.

The creative strategy is the roadmap for the campaign.

A target audience is the keystone for a creative strategy. The objectives as well as the key benefits need to be defined in the creative strategy. According to Arens, Schaefer, & Weigold (2009), the detailed creative strategy consists of the following elements:

  • The basic problem the advertising must address.
  • The objective of the advertising.
  • A definition of the target audience.
  • The key benefits to communicate.
  • Support for those benefits.
  • The brand’s personality.
  • Any special requirements.

These elements represent seven important steps for writing a creative strategy. Each step needs supporting research and business decisions distilled into a clear and concise set of instructions to guide the creative team. At a bare minimum, a creative strategy should contain an objective statement, a support statement, and a tone or brand character statement.

Choosing the correct media for an advertising campaign

Before selecting the most effective media for an advertising campaign, the media planners and buyers need to be aware of the alternatives or options available. In addition, there should be a complete understanding of how the target audience accepts, reacts, and responds to the various media.

Special consideration is given to the reach and frequency of each medium (Arens, Schaefer, & Weigold, 2009). Reach is defined as the number of unique individuals that will be exposed to the advertising using a specific medium. Frequency is defined as the number of times a single member of the target audience will be exposed to the advertisement during the lifespan of the campaign.

In many cases, a media planner leverages several communication channels simultaneously as part of an overall cross-media campaign strategy. This approach is very effective when the selected media complement one another. For example, a broadcast email campaign works very well if coupled with a campaign-specific website. The recipient is already on-line when receiving the email message, so it makes sense to make the call-to-action a simple link to the online-advertisement.

Print, radio, television and more…

Print media, as with other communication channels, has several pros and cons. One advantage that print media has over the television and radio is that it is capable of delivering more detailed information. Moreover, the target audience has the opportunity to read and re-read the advertisement as well as pass it along to others. Print media also offers very good controls over target segmentation. For example, magazine advertising offers options for delivering targeted advertising in geographic and demographic specific editions of their publication. The downside of print advertising, particularly in newspapers and magazines, is the existence of competing advertising in the same publication. Magazine advertising is expensive compared to other print media communication channels.

Television advertising is known traditionally as the medium with the longest reach. The mass coverage of television advertising is appealing to companies needing to carry consistent messages across several geographic areas. Using sight, sound, motion, and color allows advertisements to be entertaining in addition to informative. One major problem with television advertising is with ad skipping technologies. Digital video recording devices (DVRs) are a household mainstay. Consumers are recording programs and watching them at their own convenience—skipping the commercials along the way. Production costs and lead-time to produce a television advertising are a disadvantage when compared to other communication channels.

Out-of-home, direct mail and specialty advertising

Advertisers leverage various forms of out-of-home media when the need arises to expand their market coverage beyond the reach of traditional marketing channels. Depending on the specific out-of-home medium, certain factors are considered before a campaign is deployed. Outdoor advertising, which encompasses several variations of billboards and bulletins, is considered to be a low cost alternative to traditional alternative to television, radio, and newspaper advertising. Covering more than 9000 markets across America, outdoor advertising gives advertisers the ability to rapidly reach any portion of their geographic market (Arens, Schaefer, & Weigold, 2009). The anticipated return on investment (ROI) is a consideration as each medium is compared for effectiveness. Message saturation and the cost for exposure is part of the metric used in determining the viability of a particular form of advertising.

Direct mail advertising is considered to be one of the most effective communication channels. Measurable results, such as response rates, are considerably more accurate in a direct mail campaign because of the targeted method of deployment. A well-formulated direct mail campaign consists of a targeted mailing list and variable, relevant messages. Outdoor and transit advertising rely on the target audience to pass-by or be passed by a marketing message. Direct mail advertising is delivered one-to-one to the intended audience. If the advertiser needs to deploy a campaign where the message needs to be unique to each recipient, direct mail using variable data driven content is the only solution. Newspaper advertisements are not unique to each reader. Television and radio advertisements are directed to a local, regional, or national audience with a common, non-personalized message at each level.

Specialty advertising serves a purpose beyond traditional communication channels. Premiums, for example, are used to enforce the brand or continue a message from other advertising efforts. My refrigerator is covered with magnets (specialty advertising) from various local television stations, pizza delivery companies, and insurance companies. You might also find a few desk calendars from local businesses in my home office.

Planning a media advertising campaign

Media planning, if not a science, is certainly an exercise in mathematics.

While I agree that creativity is an integral part of planning an advertising campaign, decisions on the placement and timing are equally as critical. Advertising is only effective when the intended audience is exposed to the message. Not just any set of eyes and ears, but the target audience. A media planner must consider many things simultaneously while constructing a plan to deploying an advertising campaign.

 

Media planning framework ensures the media plan is aligned with the advertising and marketing plans. Media objectives are goals derived from the advertising strategy. Audience objectives and message-distribution objectives are two major components of a media objective (Arens, Schaefer, & Weigold, 2009). The audience objective is the underlying definition of the target audience the advertiser intends to reach. The definition includes the demographic, psychographic, and geographic information of the audience. For example, targeting a certain age group in a campaign is considered an audience objective.

The advertiser’s ethical responsibilities

It is the responsibility of an advertiser to do what is morally acceptable by society. It is possible, as proven by Calvin Klein and Abercrombie & Fitch, to act unethically without breaking any laws (Arens, Schaefer, & Weigold, 2009). The morals of our society has been challenged and changed many times over. We would never have seen a television commercial during an episode of Leave it to Beaver featuring a scantily clad female eating a cheeseburger while washing a car. The personal value system of our society has become more tolerant and less traditional.

The advertising industry has several mechanisms in-place to help regulate and control the content of an advertisement. There are still a few irresponsible marketers who believe that it is easier to apologize than ask permission.

The agency responsible for spawning ethically challenged advertising does not suffer nearly as bad as the company represented in the offensive advertising.

Consumer groups can impact advertising by complaining directly to the company whose products are being touted inappropriately. I like the idea of self-regulation. When advertising agencies scrutinize one another, everyone benefits.

Expect a few critics

Responsible advertisers create advertising copy best suited to attract a target audience to a specific product or service, and at the same time maintain certain sensitivity to societal issues. Advertising is a part of society. In many cases, advertising influences society. The many cultures that makeup a society dictate levels of acceptance. Some advertising copy sparks interest from certain groups within a society, and at the same time offends others. Is this irresponsible advertising? Perhaps. I believe this is more of a case where the advertiser uses a targeted message, but chooses a media vehicle that crosses into markets outside the intended target. I believe that satellite radio, simply because of the broad reach, could cross cultural boundaries.

Public service announcements are by nature intended to be in the best interest of a society. However, all other advertising runs the risk of sparking controversy. Many complaints are centered on claims of false advertising or puffery. In contrast, some consumers are convinced that purchasing products that are frequently advertised decreases the risk of dissatisfaction. The theory is that a company in the public spotlight is less likely to misrepresent their products and services (Arens, Schaefer, & Weigold, 2009). Other criticism includes the idea that advertising affects the value of products, therefore creating an economic impact to a society.

References:

Arens, W., Schaefer, D., & Weigold, M. (2009). Essentials of Contemporary Advertising. McGraw-Hill Irwin, New York.

How Advertising Content and Design Influence Buying Behavior

16 Thursday Apr 2015

Posted by Gregory Dean in Marketing Philosophy, Marketing Psychology, Marketing Strategy

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advertising media, Buying Behavior, Consumer Behavior, Greg Dean, Gregory Dean, magazine advertising, Marketing, Marketography, newspaper advertising, print media, radio advertising, television advertising

Creativity in advertising sparks emotion and motivates a prospect or consumer to react. The content of an advertisement is responsible for informing, persuading, and reminding—ultimately influencing buying behavior. The design is directly responsible for attracting attention. It is important to engage the viewer and peak their interest all the while establishing credibility building desire.

Everything from images, graphics, text, and colors contribute to influencing buying behavior.

The three components of a message strategy, verbal, nonverbal, and technical, combine to describe how an idea will be communicated. In the case of the multi-media communication channels (i.e. television, internet), the verbal elements are derived from copy and converted into a script and delivered as a sound byte. When the medium is print, the verbal elements are designed to be read and understood. The nonverbal elements of a message strategy encompass visuals, such as graphics, and their usage specific to the media. A message strategy developed for radio would not include nonverbal elements. It would, however, include the technical element. Slogans, jingles, contact information, and even disclaimers are considered members of the technical element within a message strategy.

The combination of the message strategy elements are intended to engage a buyer and effect their behavior. The message strategy continues the vision identified in the creative strategy to cascade a common message across different media as part of an overall advertising strategy.

References:

Arens, W., Schaefer, D., & Weigold, M. (2009). Essentials of Contemporary Advertising. McGraw-Hill Irwin, New York.

Advertising Media: More Choices Than Ever

09 Tuesday Mar 2010

Posted by Gregory Dean in Marketing Technologies

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advertising media, digital media, electronic media, Internet advertising, magazine advertising, newspaper advertising, print media, radio advertising, television advertising

Advertising media are the delivery mechanisms, or media vehicles, for all non-personal communication. Advertising media includes television, radio, print, and digital media. Each medium has several strengths and weaknesses. It is important to understand the different applications of each medium and the relationship of each communication channel to the target audience. Successful advertising is dependent on delivering a message to the target audience through the most effective advertising medium.

Advertising in the United States precedes the Declaration of Independence by three score and a decade. Advertising Age published a timeline (2005) revealing the past 295 years of advertising in America. The first newspaper advertisement appeared in a Boston Newspaper and was published in 1704. It was composed as a simple classified advertisement to sell an estate in Long Island (Advertising Age, 2005). Throughout the same century, articles and news stories gave way to advertising.

In 1843, Volney Palmer opened the first advertising agency (Holland, 1974). The agency, originating in Philadelphia, could only draw upon print media as a communication channel for their advertising campaigns. The first American-based advertising agency was formed eighty years before advertisers acknowledged the radio as a media vehicle, and over a century before television was invented.

At the turn of the twentieth century, newspaper and magazine advertisements were responsible for the lion’s share of revenue from print media advertising. In 1900, receipts from newspaper and magazine advertising topped 150 million dollars (Sherman, 1900). Advertising agencies found creative ways to position advertising for not only competing with other advertisements, but also vying for time against the articles. Compelling headlines atop an article were no match for a catch phrase and illustration in an advertisement. In his early twentieth century article, Sherman (1900) acknowledged that advertising had become a reader’s priority (p. 3). Individuals were actually reading the advertisements in a publication before they would read the articles.

A few decades into the twentieth century, the radio was beginning to be recognized as a viable alternative to print media. At the very least, radio could be used in conjunction with print media for enforcing a brand. The additional communication channel offered options to advertising agencies never before considered. The concept of cross-media advertising was born.

When television was invented, advertisers were already accustomed to creating advertising messages for electronic media. While it should have been a simple transition, developing marketing campaigns for television introduced several new challenges to advertisers.  The influence of both print and radio advertising is evident in early television advertising. Postwar television advertisements seemed to be nothing more than a spokesperson reading a script, but with the simple visual element of a printed sign or poster resting on an easel.

James Schwoch (1990) attributes the slow transition to the fact that radio performers were tasked with promoting a product on the new medium (p. 55). They were not accustomed to facing a camera while being illuminated by excessive lighting all the while surrounded by large production crews. As a result, television advertisements were nothing more than radio ads with the addition of a moving picture.

In much the same way as electronic media gained the advertising spotlight over print media, digital media has become the communication channel of the twenty-first century. Advertising agencies are only beginning to understand the extensiveness of digital media. Just over forty years ago, the Internet was discovered. The Internet of today in no way resembles the humble beginnings of four decades ago, but rather a powerful communication channel with the combined benefits of both print and electronic media to advertisers. With a plethora of options for delivering an advertising message, media planners are tasked with choosing the media best suited for the advertising campaign.

Depending on geography, a consumer may be exposed to several thousand commercial messages per day (Arens, Schaefer, & Weigold, 2009). Each message is competing for attention, and ultimately to raise awareness about a particular product or service. Every advertiser has the same advantages and disadvantages with advertising media. While advertising is a very crowded playing field, savvy media planners who understand the strengths and weaknesses of each advertising medium level the field. Technology has contributed to the expansion of advertising media from traditional print, through broadcast channels, and into the digital world. Early adopters of new media usually enjoy the benefits of a less crowded playing field, but at the risk of not reaching a broad enough audience. Riding the coattails of technology is a risky proposition usually reserved for the advertisers with products and services attractive to a digital audience. Companies are perceived as trendy or leading edge when using the latest technologies to host and deliver advertising messages.

With several advertising media options, a media planner is tasked with identifying the medium best suited for the campaign. Reach and frequency are considered for each media alternative—weighed against the strengths and weaknesses of each medium—and if deemed a proper fit, added to the media mix for an advertising campaign. The four top-level media alternatives include television, radio, print, and digital. Within each medium are contained specific ingredients of the media mix.

Print media encompasses any message that is produced on printed surfaces (Arens, Schaefer, & Weigold, 2009). Print media includes—but not limited to—newspapers, magazines, billboards, posters, and brochures. Print media is the oldest form of advertising communication. While evidence of print media used in advertising can be traced back to 3000 B.C., developments during the preindustrial age are responsible for the birth of print media in modern advertising.

Magazine advertising is a member of the print media mix. Magazines have been established as one of the best methods for communicating an advertising message to a select audience—second only to direct mail. The articles and editorial within a magazine are written with a particular audience in mind. As a result, any advertising within the magazine will be exposed to the same target audience. Additionally, magazines offer a longer shelf life than many other advertising media.

Magazine advertising, compared to other print media, requires a longer lead-time and advanced planning by advertisers. The frequency at which a magazine is published results in limited exposure and latency between campaigns. As digital media is becoming the preferred publication platform for both publishers and subscribers, hard-copy magazine circulations are declining. One ongoing debate surrounding magazine advertising revolves around the question of whether or not a consumer is willing to pay for access to extra advertising (Depken and Wilson, 2004).

Newspapers attract advertisers that are looking for more frequency and a concentrated reach. George and Waldfogel (2003) explain the importance of advertising in newspapers to consumers that share a similar preference (p. 765). Consumers will sometimes discuss an advertisement with other consumers. The cost of advertising in a newspaper is substantially less than advertising in a magazine. A daily newspaper offers advertisers the ability to reach a local or regional audience quickly and often. Newspaper advertising is not limited to printing within the pages of the actual newspaper, but extends into inserts and supplements using the physical newspaper as a carrier of externally printed content.

Newspaper advertising is idea for advertisers attempting to reach a mass medium. Newspapers are one of the few print media that a consumer may interact. It is not uncommon for a reader to highlight or circle classified advertising and clip coupons from an advertisement in a newspaper. Advertising in a newspaper is less competitive than in a magazine. One reason is because of market relevancy. In a publication such as a magazine, the reader demographic is narrowed to an audience interested in the variety of content contained therein. Every advertiser in a magazine is competing in the same market.

As with any advertising media, there are several shortcomings associated with newspaper advertising. Newspapers are printed on paper not suited for reproducing high quality images and graphics. Inconsistent and inaccurate color is a concern for an advertiser tasked with branding a corporate logo and imagery. A newspaper is responsible for delivering news and information to a local or regional area. Advertising, while an important revenue stream, takes a backseat to articles and editorial. Newspaper ads are typically placed at the discretion of the newspaper editor.

Television and radio are referred to as electronic media. Electronic media offers capabilities not available in print media. By using either television or radio as the media vehicle, advertisers can give their campaigns a voice. In the case of television, advertisements leverage the benefits of full motion and rich audio. Both television and radio have the potential to reach a large audience with an advertising message blurring the lines between informational and entertaining.

Arens, Schaefer, & Weigold (2009) polled adult viewers before concluding that television can stake claim to the most authoritative, influential, persuasive, and exciting of all advertising media (p. 328). The same survey reveals that radio is positioned well below newspapers and magazines in the authoritative and persuasive categories.  Television offers advertisers more options for the creative team to design and distribute an advertising message. Sight, sound, and motion are used in tandem to breath life into an advertising message. Prior to the Internet, television was the only medium that could reach a target audience and touch several senses concurrently.

Broadcast television advertisers can draw upon several advantages electronic media has over other forms of advertising. The mass coverage offered by broadcast television attracts national advertisers. The broadcast television medium has a low cost for exposure. Advertisers weigh the advantages—such as the ability to isolate a market segment by choosing the programming within which the advertising will air—against the various disadvantages associated with broadcast television.

Some disadvantages are not unique to broadcast television, or even electronic media in general. Ad skipping, bypass, or opt-out technology is prevalent in almost every advertising media. A newspaper advertisement can be easily overlooked as a reader chooses to concentrate only on editorial. Radio advertising is bypassed simply by station surfing during commercials. Digital media, the newest member of the media mix, is not immune to ad skipping techniques. An Internet user is in complete control of the browsing experience. They can easily click and move away from the advertising content. Broadcast email leverages automatic filters to trap unsolicited email messages.

Cable television advertising boasts a few advantages over broadcast television advertising. Considering the programming on cable television is more specialized, advertisers can compose a more relevant message and select a more specific target audience. Cable television advertising is also less expensive than broadcast television advertising.

One distinct disadvantage of advertising on cable television is fragmentation. The selection of channels and variety of programming on cable television reduces the audience saturation for each station. The quality of cable television, especially the smaller local stations, is a factor a media planner may consider when developing a strategy.

Satellite broadcast television is competing heavily with cable television for market share. Consumers are not concerned with which option offers less commercials, but rather more channels. When the competitive dust settles, the consumer is mostly concerned with price and value. The average household spends less than one-half of one percent of their budget on television services (Goolsbee and Petrin, 2004, p. 365). Revenue generated from advertising funds television programming.

Radio advertising shares many of the same benefits of television advertising. One difference is the fact that radio is considered a one-on-one medium. An advertiser can format a message and leverage the predictability of a listener. Radio stations concentrate on a specific genre, which in turn attracts a particular market. Satellite radio is a threat to traditional radio. Unlike television, satellite radio is a subscription service with many stations commercial free.

Cost and audience are the two main advantages of radio advertising. Radio stations typically have loyal listener base and the cost to reach the audience is less than television advertising. Considering that radio is only heard, advertisers are challenged with describing a product without the benefit of a visual element. Radio advertisements tend to sound similar, especially if the disk jockeys are the spokespersons on several advertisements.

The Internet has exposed several new concepts to advertisers. Unlike the other advertising media, the Internet requires a consumer to pull or request information. Whether through a link on a popular search engine or typing directly into the address bar of a browser, a consumer invokes a request. In marketing terms, the consumer skips several stages of the purchasing cycled and quickly becomes a prospect or hand-raiser.

The Internet is a fresh new venue for advertisers. The same rules that a media planner would apply to other advertising media hold true for digital advertising. The demographic of Internet user is very broad. A single advertising strategy for each campaign is not practical. Individual web sites have a specific target audience. Advertisers select web sites that attract a target audience within their market, and then purchase space for listings, banner ads, and hyperlinks.

E-Mail advertising is one of the most popular and least expensive forms of advertising. Irresponsible advertisers with a blithe disregard to the long-term effect of oversaturation have created undue challenges for future advertisers hoping to leverage this medium. There are several ways for advertisers to differentiate themselves from solicitors and make it past junk mail filters. Using a CAN-SPAM compliant email service is a must.

Internet advertising is interactive. Individuals can interact with content and provide real-time feedback. The Internet is global. Consumers are using the Internet to become better informed about products and services. Many consumers research a product on-line and compare pricing before making a purchase (Brown and Goolsbee, 2002). The disadvantage of Internet advertising includes the cost to reach a target audience. Search engines use a pay-per-click model and advertisers bid for positioning on the search term results page.

Several mainstream insurance companies advertise across all advertising media. Each campaign is targeted to a specific demographic and delivered using the communication channel most widely accepted by their market. While each advertising media is used concurrently during an advertising campaign, the specific strengths of each medium are leveraged. Brown and Goolsbee (2002) recognize that the Internet fosters price differentiation within the insurance industry (p. 482). Moreover, insurance companies actually encourage consumers to shop pricing of their competitors.

Insurance companies use print media and electronic media to enforce their brand and drive traffic to their web site. The corporate web site is positioned to be their best salesperson on their best day. The Internet has become a virtual extension to many businesses. In addition to a traditional storefront, many insurance companies created a click-and-mortar environment to reach beyond physical boundaries.

Doraszelski and Markovich (2007) report that more than $280 billion was spent on advertising in 2006 (p. 557). The ability of advertisers to recognize the advantages of one advertising medium over another creates measurable results and a guaranteed profit for agencies and the companies they represent. Digital media is currently enjoying the spotlight from advertisers. However, the traditional tried-and-true media vehicles remain a plausible option. Individually, each media is a powerful communication channel. Combined, as in a cross-media campaign, they become exponentially more effective.

References

Advertising Age. (2005). The advertising age timeline. Retrieved March 6, 2010, from http://adage.com/century/timeline/index.html

Arens, W., Schaefer, D., & Weigold, M. (2009). Essentials of contemporary advertising. McGraw-Hill Irwin. Boston.

Brown, J., Goolsbee, A. (2002). Does the Internet make markets more competitive?  [Electronic version]. The Journal of Political Economy, 110(3), 481-507. Retrieved             March 8, 2010, from JSTOR: http://www.jstor.org/stable/3078438

Depken, C., Wilson, D. (2004). Is advertising good or bad? Evidence from U.S. magazine subscriptions. [Electronic version]. The Journal of Business. 77(2) S61-S80 Retrieved  March 3, 2010, from JSTOR: http://www.jstor.org/stable/3663733

Doraszelski, U., Markovich, S. (2007). Advertising dynamics and competitive advantage. [Electronic version]. The RAND Journal of Economics, 38(3), 557-592. Retrieved March 4, 2010, from JSTOR: http://www.jstor.org/stable/25046325

George, L., Waldfogel, J. (2003). Who affects whom in daily newspaper markets? [Electronic version]. The Journal of Political Economy, 111(4), 765-784. Retrieved March 2, 2010, from JSTOR: http://www.jstor.org/pss/3555158

Goolsbee, A., Petrin, A. (2004). The consumer gains from direct broadcast satellites and the competition with cable television. [Electronic version]. Econometrica, 72(2), 351-381. Retrieved March 8, 2010, from JSTOR: http://www.jstor.org/stable/3598906

Holland, D. (1974). Volney B. Palmer: The nation’s first advertising agency man. [Electronic version]. The Pennsylvania Magazine of History and Biography, 98(3), 353-381.             Retrieved March 4, 2010, from JSTOR: http://www.jstor.org/stable/20090872

Schwoch, J. (1990). Selling the sight/site of sound: Broadcast advertising and the transition  from radio to television. [Electronic version]. Cinema Journal, 30(1), 55-66. Retrieved March 8, 2010, from JSTOR: http://www.jstor.org/stable/1224850

Sherman, S. (1900). Advertising in the United States. [Electronic version]. Publications of the American Statistical Association, 7(52), 1-44. Retrieved March 7, 2010, from JSTOR: http://www.jstor.org/stable/2276425

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