Five Factors for a Advertising Farm

ALI ZULFIKAR ZAHEDI BBA, PGDPM, MBA, DIP IN AD (UK)

2008

What makes a good advertisement? What steps should be taken before advertising? The factors considered to most influential in getting people to notice advertisement Define what is meant by ‘In house’ and ‘External’ advertising agencies. What are the benefits or disadvantages of each? Five main factors would an agency consider when planning an advertising campaign

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2008

ALI ZULFIKAR ZAHEDI, BBA, PGDPM, MBA, DIP in AD (UK)

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What makes a good advertisement?

What makes a good advertisement? To know this answer we must know before the answer of what are Good Advertisement and then that Good Advertisement what could bring for the company. I assigned about the Good Advertisement on first assignment paper, in here I would like to give more focus about the tools that makes a good advertisement and how it could be done success. Also here I would like to bring the 8 old rules of advertising that should have in every advertisement for getting good outcome

� Company must have a USP – unique selling proposition. � company must offer rational benefit � Humor does not sell � company must have a memorable slogan � company must have a logo in the ad � company must show the product in the ad � Every ad in a campaign must look the same � Creative ads do not sell

The most successful ads are usually ones that have a clear concise title, a thorough and accurate description with good punctuation, clear pricing, excellent images and any other information which is relevant such as shipping costs etc. Generally speaking, if there were two ads advertising the same item and one of them was clear and concise with lots of information and the other ad was basic with little information, the ad with more information will vastly outperform the basic one. Ads with little information or bad punctuation send 'bad vibes' to buyers who will look elsewhere to buy. In fact there’s many things make the ad more effective such as

• The time for making ads

• Slice of the customers, company want to reach • Trend of ad if it is go well from first time • The way the advertise writhe

• The colours of advertisement • Words select to express the idea

• The image company want to trans to the customer

• The cost of advertisement • Repeating the advertisement

• The aims of advertisement

• Value of the ad for the others • The use of the product or service company present to the others • Target market (who the advertisement is aimed at example men, woman,

teenagers etc.) • Tone of voice

Now is most interesting thing is that after build & Broadcast a good advertisement what company will get outcome-if the advertisement is not good company could not get any outcome.

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The first duty of advertising is to make something happen. And to make the happen company must follow some rules before build & broadcast their advertisement to the audience. Here are the 10 simple rules to evaluate the advertising company encounter:

1. Does the ad tell a simple story, not just convey information? A good story has a beginning where a sympathetic character encounters a complicating situation, a middle where the character confronts and attempts to resolve the situation, and an end where the outcome is revealed. A good story does not interpret or explain the action in the story for the audience. Instead, a good story allows each member of the audience to interpret the story as he or she understands the action. This is why people find good stories so appealing and why they find advertising that simply conveys information so boring.

2. Does the ad make the desired call to action a part of the story? A good story that is very entertaining but does not make a direct connection between the desired call to action - the purpose of the ad - and the story is just a very entertaining story. The whole point of the story in advertising is to effectively deliver the desired call to action. If the audience does not clearly understand the desired call to action after seeing the ad, then there is no point in running the ad. Contrary to popular belief, having an entertaining story and clearly delivering the desired call to action are not mutually exclusive.

3. Does the ad use basic emotional appeals? Experiences that trigger our emotions are saved and consolidated in lasting memory because the emotions generated by the experiences signal our brains that the experiences are important to remember. There are eight basic, universal emotions - joy, surprise, anticipation, acceptance, fear, anger, sadness, and disgust. Successful appeals to these basic emotions consolidate stories and the desired calls to action in the lasting memories of audiences. An added bonus is that successful emotional appeals limit the number of exposures required for audiences to understand, learn, and respond to the calls to action - people may only need to see emotionally compelling scenes once and they will remember those scenes for a lifetime.

4. Does the ad use easy arguments? "Jumping to conclusions" literally gave our ancestors an advantage even when the conclusions that made them jump were wrong because delaying actions to review information could have deadly consequences. Easy arguments are the conclusions people reach using inferences without a careful review of available information. Find and use easy arguments that work because it is almost impossible to succeed when working against them.

5. Does the ad show, and not tell? "Seeing believes" and "actions speak louder than words" are two common sayings that reflect a bias and preference for demonstrated behaviour. This is especially true when interests may not be the same. Assume audiences are sceptical about any advertising and design advertising that shows and does not tell.

6. Does the ad use symbolic language and images that relate to the senses? People prefer symbolic language and images that relate to the senses. People are far less receptive and responsive to language and images that relate to concepts. Life is experienced through the senses and using symbolic language and images that express what people feel, see, hear, smell, or taste are easier for people to understand, even when used

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to describe abstract concepts. The language and images used in advertising should "make sense" to the audience.

7. Does the ad match what viewers see with what they hear? People expect and prefer coordinated audio and visual messages because those messages are easier to process and understand. Audio and visual messages that are out-of-sync may gain attention, but audiences find them uncomfortable.

8. Does the ad stay with a scene long enough for impact? People have limited mental processing capacities. Quick cuts to different scenes require people to devote more of their limited resources to following the cuts and fewer resources to processing each scene. It takes people between eight and ten seconds to process and produce a lasting emotional response to a scene. Camera movement or different camera angles of the same scene can engage people through their orienting responses while providing enough time for them to process the scene.

9. Does the ad let powerful video speak for itself? Again, the processing capacity of our brains is limited and words may get in the way of emotionally powerful visual images. When powerful visual images dominate - when "a picture is worth a thousand words" - be quiet and let the images do the talking.

10. Does the ad use identifiable music? Music can be a rapidly identified cue for the recall of emotional responses remembered from previous advertising. Making the same music an identifiable aspect of all advertising signals the audience to pay attention for more important content. Company could make a check list like below for their advertising effectiveness:

Name: ____________ Date: __________

What Makes a Good Advertisement?

Write a summary of what makes this an effective, or ineffective,

advertisement._____________________________________________________________

_________________________________________________________________________

Criteria

1 Stinky �

2 O.K. �

3 Awesome

☺ Name of product 1

2 3

Graphics (pictures)

1 2 3

Colourful

1 2 3

Mechanics Does it make

sense?

1 2 3

Slogan 1 2 3 Overall Rating

1 2 3

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What steps should be taken before

advertising?

It is always wise to think before act, so it is a must to make a plan before making advertisement to take action. Should think of choosing advertising style, and media outlets for advertising, it is suggested that company should first need to establish the strategy, or the advertising plan before action that company will follow, which may help to achieve and accomplish company’s goal of advertising.

The following is the tips could be noted:

1. Think before leap. List all the things that company can think out. It is very important to make a nice plan. 2. Set the adverting aim in the middle, and branch the tasks and ideas. This is to rearrange the brainstorm of the advertising plan.

3. Make lines with the elements that can target the audience, also, the prospects of the advertising. This will form the stem of the plan.

4. When writing the plan should pay special attention to strategy and timing. Should be careful with wording about what the company want to say.

5. Proof reading, and make necessary changes.

It is also important to know before broadcast advertising is what method company going to use for their advertisement. So, to avoid any difficulty, follow these five tips for advertising success.

Step 1: Set the Budget Step 2: Consider the Options

Step 3: Use available help

Step 4: Test Step 5: Roll it out

Step 1: Set the Budget

Company need to set aside enough money to buy sufficient advertising to see what works, but not so much that a losing campaign will break the bank. It depends on the type of business, how much money can afford to risk, and what the desired outcome is.

Step 2: Consider the Options

Company need to figure out which medium is most likely to get the message in front of desired audience. Company have the basic choices as below:

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• Television Pros: Lots of exposure and credibility. Cons: Expensive, often not useful for a much localized business.

• Radio Pros: Able to target market effectively by choosing the right station or format. Cons: Can be expensive. Need a lot of repetition to get people to remember the message.

• Newspaper and Magazines Pros: Wide coverage area. It has Ability to target market by advertising in specific sections. Cons: Can be expensive. It May get lost among other ads.

• Yellow Pages Pros: People who use the book are looking to buy – right now. Cons: Again, expensive with lots of competition.

• Internet Pros: Pay-per-click is smart because company only pay for qualified leads. Cons: Getting noticed.

Step 3: Use available help

There is plenty of free assistance to help to create and run a successful advertising campaign.

Step 4: Test

The way to avoid making an expensive advertising mistake is to test an ad before run with it. For instance, with newspapers, consider running a smaller ad for a shorter amount of time before going with the big ad for a longer time. Company might consider an overnight radio campaign to gauge interest; that costs about a quarter of what a drive time campaign would run.

Step 5: Roll it out At the end company will decide what medium works for business, created a budget and run a test. Company can bet advertising campaign is less risky and it may yield some great results.

Here is some more brief about to take step before advertising. On an image advertising campaign, company need to know the type of image to wish to convey. A key component of decision should be an understanding of current image and competitors' images. This knowledge can be gained through image research and perceptual mapping. After plotted the importance and performance ratings, company can begin to formulate a "desired image." In doing so, company need to consider several things:

• Company competitive position on each attribute,

• Whether company’s “strengths" are recognized in the marketplace,

• corporate mission,

• perceptions of how feasible it would be to move an attribute in perceptual space,

• The uniqueness of desired position.

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• Go after the company target audience.

• Highlight your competitive advantage.

• Establish an image.

• Company have to spend money to make money

• Advertise in the right places.

• Should not allow the budget to run company’s advertising campaign

• Diversify.

• Should not try to be everything to everyone.

• Test the ads in advance.

• Finally Monitor the ads

Below techniques are also to be noted about the step to be taken before advertising to make successful advertisement:

1. Internet Advertising Techniques

2. Direct Mail Advertising Techniques 3. Writing as Advertising Techniques

4. TV Advertising Techniques

5. Public Relations as one of the “Earned” Advertising Techniques 6. Print Advertising Techniques (Newspaper, Magazine, etc)

7. Radio Advertising Techniques

8. Word-Of-Mouth and Buzz as Advertising Techniques

1. Internet Advertising Techniques The advertiser should understand the most powerful advertising technique on the Internet is showing up in organic search results (ideally first page, in the first three results). The advertiser should understand that Internet display ads perform best with flash animation, motion, or video. The advertiser should understand the eye reads top left to bottom right and those impacts the click-through rate depending on where the text links or display ads are on the page. The advertiser should understand that the page upon which the consumer clicks is just as important as the ad or link that got them there. The advertiser should not assume that just because company built a website people will visit it.

2. Direct Mail Advertising Techniques The advertiser should make the letter look like newsworthy content – Content gets read, not advertising. The advertiser should attach news articles blown up to fit on 8 ?” x 11” paper as an attachment to direct mail piece. The advertiser should use any “special offer inside” language on envelope or “hey look at me” advertising techniques when using a letter envelope. The advertiser should use an 8 ?” x 11” letter in B2B direct mail, but do use A4 or executive sized stationary – higher read rate and higher response rate vs. full sheet letter.

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3. Writing as Advertising Techniques The advertiser should understand that the use of certain words is power words which produce results. The advertiser should use present tense – better response than past tense. The advertiser should use the word “you” or “your” far more than “I” “me” or “we.” The advertiser should use words like these in your writing or advertising techniques which produce demonstrated higher response rates:

• You • Now • Discover • This • These • Amazing

The advertiser should understand that asking a question with the word you in it is one of the best ever advertising techniques.

1. TV Advertising Techniques

The advertiser should use TV as a way to legitimize the brand, launch the brand, or reposition the brand. When used prudently and selectively, it can be one of the best advertising techniques depending on the situation. The advertiser should investigate buying “remnant” TV media and making opportunistic buys for a fraction of retail prices. The advertiser should make sure the TV spot looks like nothing else on TV (in order to stand out). The advertiser should make sure company have a compelling offer, and a compelling newsworthy announcement. The advertiser should pay special attention to audio in the TV spot…recall of ads with music in the ad (not background music) produces higher recall and captures more attention. If company have people in the TV spots, do make sure to have them with their eyes looking right in the camera…the stopping power and attention rates are higher with ads that have people looking at directly in the eye. The advertiser should have a response medium (website, telephone number, SMS number, etc). If company don’t, it could be one of the worst advertising techniques. The advertiser should understand that for response, early AM and late evening produce higher response rates (if someone is up at those hours, they often have nothing else going on and are paying more attention than normal). The advertiser should test your TV creative on the Internet before putting it on TV…or test at small levels before putting on untested TV creative in large media buys.

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The advertiser should not accept mediocrity in TV creative. Mediocre TV spots in costly TV media, is the most common blunder in all advertising techniques.

2. Public Relations as one of the “Earned” Advertising Techniques

Company should understand that Public Relations are fundamentally different than advertising. PR is not necessarily in the genre of advertising techniques, but on average PR is 6X more powerful because people pay attention to content 6X more than advertising (that’s starting at 500% higher ROI).

3. Print Advertising Techniques (Newspaper, Magazine, etc)

The advertiser should understand that a print ad which looks like an “ad” will fail unless company have an amazing offer (great discount, sale, limited time only). Without an offer, an ad that looks like an “ad” won’t get read. The advertiser should make the ad look like content (use the same font style and layout as the publication). The advertiser should understand that ads with lists and bullet points get read more than ads with paragraphs. The advertiser should understand that copy in quotations gets read 13% more than without quotations. The advertiser should not ever use a reverse print ad (black background with white font) it’s hard to read and has proven repeated lower response rates…one of the worst advertising techniques.

4. Radio Advertising Techniques

The advertiser should understand that radio advertising works best with high frequency and proper timing. The advertiser should understand that the first five seconds of your radio ad may be the most important…a cell phone and the radio preset button is a moment away from avoiding ad. The advertiser should understand that reads from DJ’s get more attention because they seem like content from a familiar voice versus a stranger’s voice. The advertiser should understand that one of the most powerful advertising techniques is to produce fresh radio creative every week versus running the same radio spot for more than a week. The advertiser should understand that if it sounds like content, people will listen…if it sounds like an ad…people won’t.

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5. Word-Of-Mouth and Buzz as Advertising Techniques

It should be noted that word-of-mouth or buzz is created with pull, not “bought” like print advertising; it also noted that this lost art which was practiced before the advent of Television is more powerful than any other set of advertising techniques (Euro RSCG Study found it 10X more effective than TV or Print advertising). The advertiser should understand that the root of all buzz is a seven-letter word: stories.

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The factors considered to most influential

in getting people to notice advertisement

The factor which is considered to influence the people in advertisement is one of the most important questions to understand in an advertising industry. On the Other hand the factors, such as economic, gender, media, individual and technology, all are dependent on the

Communications Factors. When a new visitor comes to see a new advertisement for the first time an initial impression will be formed pretty quickly. A good first impression will drastically increase the chances of that visitor returning again, and a bad first impression will be difficult to overcome. There are so many methods of advertisement and in each method; have some factors which are influence people. Explanation of below factors could be considered which influence people into advertisement are.

• Vague/Specific • Connected/Disconnected • Pleasant/Painful

Vague/Specific—this factor deals with the objectives of the ad. Some are a long-term focus, while others are more short-term. Whether an ad is vague or specific has very little to do with how well it works, but it is very important for understanding a purpose of an ad. A creator of an ad must understand whether their objectives are vague or specific.

Vague: A vague ad is one that works to promote the company, the company’s brand, or an entire line of products. It is an attempt to build a brand for the long-term. It does not specify a particular product or its benefits. In vague advertising some companies flash their logo while creatively boasting the overall goodness of their brand. Other companies choose to quickly show all of their products and services in a way that ties them all together in a brand. By building a brand this way, advertisers can hopefully make an impression in a consumer’s mind. And next time the consumer is shopping and they see a product of the brand, they will have potential to buy this product. Furthermore, exposure to this type of advertising will keep a consumer loyal and it will also provide a background for more specific advertising in the future.

Specific: Specific advertising is more short-term and concrete. It is used to sell a particular product or service. The brand is made clear, but the actual product is the focus of the ad. The objective of the advertising is for immediate sales. This is the most common type of advertising. Clients are usually much focused on the short-term, and small budgets do not allow for much vague advertising. Also, many companies feel that their brand might be too unknown or even boring to advertise without showing a product.

Connected/Disconnected—This factor emphasizes the degree to which the advertising is relevant to a consumer’s needs and wants. An ad that is connected works better than one that is disconnected.

Connected: An ad that is connected is one that portrays the product’s benefits in a way that can fit into the consumer’s life. In other words, it connects to the consumer. It

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gives the consumer a reason to buy the product or brand. For example, if a dog food is made of real meat as opposed artificial ingredients, an ad should tell us why this is this better for the dog. Does the dog even know the difference? Will the dog jump higher and run faster? Will the dog live longer?

Disconnected: An ad that is disconnected does not demonstrate why the particular product will be useful to the consumer. It might be very creative and amusing, but it is completely irrelevant to the product and does not attempt to connect the product to the consumer. Many advertisers work so hard to be funny and different, that they completely miss their objectives to the client. For example, a funny commercial with dogs that are talking and singing songs about how they love real meat might be very entertaining. But will consumers buy the product? What will the dog get out of it? What was the name of the product again?

Pleasant/Painful— A pleasant ad of course works more than a painful ad. This a factor that most obviously determines how well an ad works. Even doctors can figure out the pleasantness or painfulness of an ad. This factor is how most consumers judge an ad, which is why the industry has such a bad reputation.

Pleasant: It is very important for an ad to be pleasantly entertaining. It must be emotional or exciting in some way. Ads are also pleasant if they surprise or shock the consumer. The art of creating a pleasant ad is a delicate one. It is very important that an ad stands out among the thousands of boring or annoying ads.

Painful: We all know what a painful ad is like. These are the ads that give us advertising folks a bad name.

There are two types of painful ads. One type is a genuine attempt to make creative and pleasant advertising, but unfortunately is an attempt that is way off. We can all remember those cheesy ads with annoying jingles. Of course we can never forget the ads the try to make us cry, but instead make us vomit. Perhaps the reason for this extreme lack of taste is that the advertisers are, while trying to be creative, also trying to satisfy the connection factor discussed earlier. They feel it is more important to make the product relevant, and they unfortunately give up on making an ad that is both pleasant and connected.

The other type of painful ad is one that makes no attempt to be creative. These ads are usually a deliberate attempt at annoyance and repetition. Some do believe that these ads work. If the definition of work is simply sales, then this is often true. This however, does not satisfy the Burton definition. This is a very cheap shot at a consumer. Advertisers are often very successful at drilling holes in consumers’ brains by giving loud, disconnected, annoying messages that pushes the product over and over again. Eventually, consumers become so familiar with one and only one . . .and only one. . . and only one . . . and only one product that they find themselves pulling that product off the shelf. While it might increase sales, it is in very poor taste.

There are some more factors that could influence people to an advertisement are below:

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1. Advertising Frequency- Advertising frequency refers to the number of times an advertisement is repeated during a given time period to promote a product's name, message, and other important information

2. Media Timing- Another major consideration for any company engaging in an advertising campaign is when to run the advertisements. For example, some companies run ads during the holidays to promote season-specific products. The other major consideration for a company is whether it wants to employ a continuous or pulsing pattern of advertisements. Continuous refers to advertisements that are run on a scheduled basis for a given time period. The advantage of this tactic is that an advertising campaign can run longer and might provide more exposure over time. For example, a company could run an advertising campaign for a particular product that lasts years with the hope of keeping the product in the minds of customers. Pulsing indicates that advertisements will be scheduled in a disproportionate manner within a given time frame. Thus, a company could run thirty-two television commercials over a three-or six-month period to promote the specific product is wants to sell. The advantage with the pulsing strategy is twofold. The company could spend less money on advertising over a shorter time period but still gain the same recognition because the advertising campaign is more intense.

3. Reach- Reach refers to the percentage of customers in the target market who are exposed to the advertising campaign for a given time period. A company might have a goal of reaching at least 80 percent of its target audience during a given time frame. The goal is to be as close to 100 percent as possible, because the more the target audience is exposed to the message, the higher the chance of future sales.

4. Colours – The look of the advertising will obviously be a factor in people’s Mind first impressions. The colours can have a huge impact on the overall attractiveness of the advertising,

5. Logo/Branding – Another factor in the overall look of the advertising is the logo and branding. Most importantly, the logo should help to brand the business in the way that customers to think of the product.

6. Typography – A somewhat subtle influence is the typography and fonts. A change in the typography may not be a drastic change, but it can make all the difference.

7. Layout – One of the most important design elements is the layout. Whatever layout should draw the reader’s attention to those items that are most important. Layout can be used not only to create an attractive design, but also to make the add easy for customer.

8. Reputation – Company pre-reputation is one of the most factors to enfluence people to get more attention on advertisement.

9. Clarity of Purpose – New customer should be able to very quickly determine the purpose of an advertisement.

10. Unprofessional Items – Some items like low-quality animated and hit counters can give a negative first impression.

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11. Quality of Images and Photos – It’s amazing how much impact a high-quality photo or graphic can have on a design.

12. Video and Audio – sound quality should be the most modern or attractive to catch the audience at first play

It is also noted the factors of psychology that the last century, psychologists have been studying simple persuasion tactics that can be used to motivate people and get them to take immediate action. This article gives three persuasion strategies guaranteed to have a positive impact on the advertisement.

Strategy #1: Make the Product Appear “In Demand” or “Hard-to-Get”. Always present product as “limited,” “scarce,” or “in demand.” Why? People want what they can’t have. Repeatedly, persuasion researchers have shown that human beings find more value in things that they have a hard time obtaining. When customers feel an opportunity is about to be taken away or product is running out, they want it more. Therefore, present opportunity as “scarce,” “exclusive” or “in demand.”

Strategy #2: Talk Losses, Not Gains. Persuasion experts know that salespeople who learn to talk losses, not gains, will achieve optimal results. In other words, rather than telling a prospect what he or she will gain by using the product, tell them what they are going to lose by not using the product. This strategy works because the pain of losing something that you already have is more intense than the pleasure of gaining something don’t have. Strategy #3: Position Yourself as Someone Valued by the “Experts”. When uncertain about what product to buy, human beings often look to the behaviour of others, especially experts, to determine their own course of action. This is why it is often seen advertisements claiming that “four out of five doctors recommend …,” or, “the fine food experts since 1969.” Company can use the expert strategy for own purposes. Do this by finding experts who have a high opinion of product or service. Share their testimonials, advertise awards business has earned, collect and share comments of satisfied customers. Convince the customers by showing them that the experts say that the product is the best.

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Define what is meant by ‘in house’ and

‘external’ advertising agencies. What are

the benefits or disadvantages of each?

ADVERTISING AGENCY HOUSE The field of advertising is emerging as a big player in the game of business today. Without advertising, no business can flourish as there will be no significant profits. No matter how good the products are, if company don’t have great ads to promote the brand name and the product with the brand label, company cannot expect any breakthrough profit. Advertisements are a way of reaching out to millions of people out there and create the interest in them to buy products. Important facts about advertising and teaches how you can use advertisements to promote the company’s products. The Type of advertising agency born in the early days of advertising when some large advertisers established their own agencies primarily in order to save media commissions and achieving total control of their advertisement. A agency house is a firm that

• Creates new promotional ideas, • Designs print, radio, television, and internet advertisements, • Books advertisement space and time,

• Plans and conducts advertising campaigns, • Commissions research and surveys, • Provides other such services that help a client in entering and succeeding in a

chosen market.

These agencies were financially backed by the advertiser and were set up as independent full-service agency to perform all advertising functions on behalf of the advertiser. The concept of the house agency has changed over time. Today, many large advertisers utilize an in-house agency operation. This in-house service differs from the external house agency in that it works internally and provides a kind of advertising administrative centre with a minimum of staff that coordinates and directs advertising efforts to outside services. So, there is clearly come out for two kinds of advertising agency like ‘In House’ Agency and the ‘External House’ Agency. Below is the brief of each:

Meant by ‘In House’ Advertising Agency:

An in-house agency is an agency responsible within the advertiser's organization for all advertising activities. An "In-House" agency simply means placing own ads for them self, instead of paying an outside agency the commission. Company insert the ads; deduct the commission (usually 15%). However, COMPANY MUST USE THE PROPER FORM. An order placed under ordinary business letterhead will not do. Also, it is a good idea to preface

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masthead on own FORM with words "Advertising Agency." For example, Smith's advertising Agency instead of Smith & Company. The three essentials while operating an "In-House" advertising agency – � Proper FORM � Advertising agency masthead � Remittance with order.

It could be some time before in-house agencies become the norm, but in a world where speed and integration of communications are key, the idea of having an agency on tap and on site could prove irresistible. Below some example of company who are operating there in house agencies are:

Samsung Besides producing its own creative work, Cheil has the authority to recommend and call pitches. It was also instrumental in arranging Samsung's sponsorship of Chelsea FC.

Benetton The retailer's often controversial 'United Colors of Benetton' ad campaign has been developed by its in-house ad team. The group also owns design research centre Fabrica.

Hyundai The Korean marque launched a London office of in-house agency Innocean last year. It handles strategy and agency brief-ings for Hyundai, but has not yet produced any creative work.

No doubt; bringing functions in-house can save on cost. But it can end up costing in other ways.

Meant by ‘’External House’ Advertising Agency:

External agencies are those which are not in-house operated by the advertiser. It’s a deferent individual firm which is work for the advertiser with a commission. An external house advertising agency or ad agency is a service business dedicated to creating, planning and handling advertising (and sometimes other forms of promotion) for its clients. An external agency is independent from the client and provides an outside point of view to the effort of selling the client's products or services. An external agency can also handle overall marketing and branding strategies and sales promotions for its clients.

Typical external agency clients include businesses and corporations, non-profit organizations and government agencies. Agencies may be hired to produce single ads or, more commonly, ongoing series of related ads, called an advertising campaign.

The right advertising agency can give the marketing strategy a professional shot in the arm, helping the company to attract new customers and hang on to existing ones. The external agencies take the compensation and that is derived from three different sources:

� 15% commissions from the media on the rate charged for media space or time

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� Fees charged for services (usually non commissionable, such as a market survey); however, situations will occur when the price-value relationship between media placement and creative services is out of balance (e.g., when a client uses the same broadcast commercial for a long period of time, incurring no creative costs, but incurring millions of dollars in broadcast billing), and agencies will be compensated by the substitution of a fee system in place of the 15% commission.

� Percentage charges on materials and services used in the preparation of advertisements; in this area, clients are charged cost plus 17.65%

Benefits or Disadvantages of ‘In House’ and ‘External’ Advertising Agency

It's legitimate, practical and effective, but like so many other promises, there are pros and cons involved. While hiring an advertising agency has its share of benefits and advantages, the prospect is not devoid of a set of drawbacks and disadvantages either. Nevertheless the decision to hire an advertising agency or depend upon the company’s marketing division for the advertising of the products and / or services, differs from organization to organization and depends heavily upon the nature of the product offerings in the product line and sometimes even the organization structure as well. Many companies also have an in-house agency that is an advertising agency that is under the umbrella of the parent company. Both the agency got some advantage and disadvantage to broadcast. Here is a little brief about this as below:

Benefits of ‘In House’ Advertising Agency

Economic prospect: By setting up company’s own advertising agency and placing advertising under own agency name, most magazines will allow the standard 15% agency commission plus and extra 2% cash discount. So, if the annual ad budget is $5,000 this amounts to a saving of $850 a year, which is a considerable piece of change. If company handle own advertising correspondence, work with layout artists and write own ads, its well worth the while to set up company’s own in-house ad agency and could save a ton of money.

Employee prospect: In house agency employee are advertiser recruited and they are controlled by the company’s rules and easily could work for over time to create advertisement and there is scope to be trained up on this job for the future requirement.

Product knowledge prospect: : ‘In House’ Advertising Agency are known fully understand the product value or the customers as well as the company rules that take things out of control such as delivery schedule, importance, and company’s competition.

Security prospect: In house agency could keep hide some important information for them self that could not be out to a third party. But external agency might come to know some important information which could be flash to outside after break the relation between advertisers and the external advertising agency.

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Concentration prospect: In house agency will give more priority and accurate concentration to own advertisement always whether it is small or big. And they will try to make it in timely without any delay.

Disadvantage of ‘In House’ Advertising Agency

Establishing prospect: The negative side to this operation involves the initial cost of establishing the new agency, which isn't very difficult, but it might be considered time-consuming. To initiate an agency company will have to have a name for it other than the regular business name. Example: If company name is Nationwide Electronics and the owner name is John Smith, it could be the agency like John Smith Advertising or The J.S. Advertising Agency,

Correspondence prospect: The in house agency address will have to be different than the mother company's, but this can be resolved by renting a post office box for the ad agency and using home or office address for the other.

Banking prospect: Company have to open a separate checking account under the agency name because all advertising payments will be issued thru the agency, and probably be required to register the agency as a new business.

Experience prospect: In house agency does not have sufficient creative and artistic resources, past multi advertising experience, so output could be poor rather than an external professional agency. They also might not have better information on demographics across a broader region of the country or internationally, so, gathering information is to be not up to mark, however from sales and marketing department the in house agency could gain some information.

Benefits of ‘External House’ Advertising Agency

Experience prospect: They have creative and artistic resources, they can provide access to these resources more cheaply or for short term requirements, they provide an independent view of your product, they may have better information on demographics across a broader region of the country or internationally, they can normally buy advertising at rates lower than individual companies can, they give you someone to sue if it is screwed up.

Communication prospect: The RIGHT agency can give the target and how to best communicate the product's benefits to market. They know the challenges and the opportunities by using their experience.

Creativity prospect: Advertising agencies are the professionals who can take the company’s basic ideas and make them incredible. With an agency company get the synergy of having many diverse ideas come together rather than relying on only one or two minds. An agency will give to advertiser fresh ideas from another perspective.

Money saving prospect: One of the biggest benefits beyond the creativity is that ad agencies can save businesses money in the long run by acquiring the below:

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� They have the ability to buy media in bulk at rates that a single business cannot obtain.

� They are educated as to the best times and places to run ads to reach company’s target market, ultimately minimizing wasted spending.

� They can help the advertiser fine tune the target market so that the message is designed to reach that company want to reach.

� An Agency will usually provide a full creative recommendation at no additional charge

Experienced Staffing Prospect: Another benefit provided by the advertising agencies is the benefit of experienced staffing with expertise in the field of advertising. Since their focus is narrow, they are able to generate more prolific results as compared

to the company itself.

Disadvantage of ‘External House’ Advertising Agency

Economic prospect: Ad agencies are a too expense/investment. The heavy payment that an advertising agency charges from the organizations is another matter of concern that could be classified as a disadvantage

Product knowledge prospect: External House’ Advertising Agency take things out of advertiser’s control such as delivery schedule, they can be more expensive, they can have a conflict if they also advertise for company’s competition, they may not fully understand the product value or the customers as well as the company knows.

Time prospect: It usually takes advertising agencies a great amount of time and effort to update their creation and even more so if they have to redesign their advertisement. Though it is not operated in house, so communicate could be extensive between agency and the advertiser.

Concentration prospect: As the advertising agency would have a number of other accounts to work upon, the attention of the advertising agency would be divided and not exclusive, giving the product a definite disadvantage. The external agency give more priority with their old and big client rather than new.

Security prospect: external agency could gain some internal information of advertiser, and might come to know some important information which could be flash to outside or to competitor after break the relation between advertisers and the external advertising agency

Conclusion

Nevertheless before reaching a final decision, a company should always weigh the pros and cons of each option against each other and should base its decision in the light of their interpretation. Advertising has become such a specific and exclusive field that it has its own mechanics of operations, its own experts to seek advice from and its own distinct significance not just in the arena of marketing but also in the entire dimension of branding the product. Therefore companies are investing a great deal in their advertising fully aware of the manifold benefits and returns that it brings back to their brand and the role it plays in

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entrenching brand equity and fulfilling the brand contract. For that purpose, many successful organizations are now seeking the succor of advertising agencies to deal with the advertising aspect of their product or more precisely the promotional aspect of their product as besides advertising, the ad. Agencies are also involved in designing many other innovative promotion techniques such as sales promotion techniques, direct marketing etc.

Two principles ways in which

agencies operate An advertising agency has a very different structure from that of a regular organization. On a general front, an advertising agency contains five departments namely the

• Account management department, • The account planning (strategy) department, • The internal services department (inclusive of the traffic department, the creative

department, the print production department, the human resources department and the finance department)

• The media-planning department.

The account management department is the department that is in direct contact with the clients. As for the account planning department, it is also called the strategy department that is mostly involved in research and strategizing the advertising campaign. The creative department is responsible for the art (copy-writing and photography) aspect of the advertising campaign. Next comes the media planning department that plans and co-ordinates with media agencies to determine the most effective way to channelize the advertising in order to achieve optimum results. Last but not the least the internal services department handles the internal affairs of the advertising agency like the finances and the human resource department Advertising agencies in effect work is by actually getting familiar with their clients' product or service in addition to identifying exactly which demographic would denote the best target audience for any promotion. For instance if a company sells funky skateboards, an ad agency would probably attempt to fix up the company's TV commercials when sports programs or teenagers programs are on air. The advertising industry is in transition, moving from an old above-the-line/below-the-line position to one that is driven by the Internet and the massive increases in online spending and that is better described as "through the line." The digital age is bringing about fundamental changes in the way in which both the media industries and advertising agencies operate. The traditional broadcast and print media have to reinvent their finance models in order to compensate for declining advertising revenues as advertisers chase audiences across the plethora of media platforms that are now available. Some media owners are embracing the opportunities provided by digital media and redefining themselves as content owners. HOW AGENCY WORK?

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The workflow in an agency is not as linear as one may initially expect. Projects typically do not start in one department, and then get handed off to the next, and so forth. The process is much more collaborative with multiple agency departments involved at key points along the way. This may seem a bit chaotic at times, but the process encourages input from diverse points of view, stimulates healthy debate and allows strong ideas to emerge regardless of the source. Ultimately, the process leads to the best possible creative. While no two advertising projects run exactly the same, what follows is a rough chronology of how most advertising is generally created: Project assignment: The client details his business objectives to the account manager, and together they define the role that advertising is expected to play. Often advertising is just one component in a marketing plan that also includes many communications efforts – public relations, promotions, direct mail, etc. The account manager collects as much information as possible and briefs the key agency departments – strategic planning, creative, and media. Strategic Development: The goal of strategic development is to find a compelling story about the product (referred to as the positioning) and a unique message for the advertising creative (the creative brief). Media Development is typically initiated alongside of strategic development. The media team creates a detailed profile of the target consumer -- how old are they? How much money do they earn? Where do they live? What are their hobbies? A media plan is developed to reach these consumers based on their media consumption habits. The plan is presented to the client and (when approved) is purchased by the media buyers. Creative Development: the creative team develops rough versions of ads. After input by the creative director, the account manager and strategic planner are consulted for further fine-tuning. Creative work is then presented to the client and, when approved, is often tested among consumers. The advertising will be judged a success if it grabs consumer attention and motivates him to try the product – changes may be made if necessary at this point. Once finalized, TV spots are shot, radio spots recorded, and the print ads produced. Campaign Debut: The Traffic Manager sends the advertising where it is needed and ensures it debuts in accordance with the media plan. This can get quite complicated, as each type of ad must be finished at varying times prior to debut - magazine ads will need to arrive as much as a month prior to publication, while TV and Radio spots may be needed by stations just a few days before air.

There are some principles ways in which agencies operate as below:

1. Media This department takes over the media buying and media planning. The sub categories under this are: Media operations and Media Planning

2. Accounts

this department handles the clientele in terms of what are the various brands for which the agency works etc.

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3. Client servicing

This department is essentially the show window of the agency. It takes care of meeting clients, analysing its needs and turning the client brief into the creative brief.

4. Creative

Here comes the department which handles the preparation of the ad from copy to layouts to design to art. This also is divided into copy and art where the former conceptualises and the latter prepares the layout

5. Production

this department is responsible for actualising the ad. It’s here where the actual production of the ad takes place. It is also noted on the other way by two basic ways in which agency operate through departmental organization and group organization. Departmental organization in which all work coming into the agency is allocated to individual artist or copywriters as it comes in. A writer may work with half a dozen different artists and vice versa. Group organization, where people on the contact, creative and media side are placed in groups that handle certain accounts. Thus they specialized in the work of certain clients.

Conclusion

It is important for an advertiser to know that in most cases, the agency will be excited to do everything they can for your business, and they may not be able to afford their level of enthusiasm. So, It is important to determine what you need from the agency before they attempt to make that choice for you. Company should make sure to know the customers before they think about advertising, Should not be rush into any advertising expenditure without planning the strategy. Consider using an advertising agency to produce cost-effective Advertising.

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Five main factors would an agency

consider when planning an advertising

campaign

An advertising campaign needs to have clear, measurable objectives, whether it is designed to communicate product benefits or to support an event. In order to achieve these objectives, it must also be planned carefully. There are so many stages to consider, from defining the target market to setting a budget and there are so many important issues to consider when planning advertising campaign. One of the first and foremost is that adequate and accurate information should be presented.

Certain businesses choose to advertise when their target audience is most likely to buy their product or service. Sometimes this can be seasonal - a toy retailer, for example, will focus its advertising efforts around the run-up to Christmas. If company selling to other businesses, it's worth identifying when the customers and potential customers will have the budget, so We must also decide the budget allocation, what comprises a particular segment, and what sort of success criteria to examine post mortem. Although these aren't the only things to look at, following some key factors those are important to starting an ad campaign.

THE PRODUCT

Company should describe the product or service that is the focus of the campaign. Include the product’s sales history, market share, strengths, weaknesses, key benefits, brand image, and other factors important for an understanding of the product’s or service’s performance and place among its category competitors.

Advertiser has to understand what they want to Accomplish. Determine the one most important thing company need the advertising to do. Advertiser has to be as specific as possible. They have to judge exactly what type of sales company wants to increase.

The product may be a new product or service, or an existing brand with an established track record. Each agency team should submit a list of three products or services it would like to work on, company also keep in mind while adverting not only simple increase sales but rather to increase the market share of teenagers to use the product.

THE TARGET MARKET

Identifying a target audience may be the key factor between profit and loss. The slogan has to be in mind of advertiser ’ADVERTISE IN THE RIGHT PLACES’. To find places to advertise, it may be best to consider navigation of the internet. In a research report published by Michael Day and Traugott Koch of UKOLN Metadata Group, they found the internet works best using Classification mapping, for finding and retrieving information. Their research concluded, “Classification schemes vary in scope and methodology, but can be divided into universal, national, general, subject specific, and home-grown schemes”.

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Targeting is the art of minimizing the advertisements to the people who are most likely to become a customer. If done effectively, it will produce results with minimal advertising expense. These savings will enable to offer products or services at a competitive rate while maintain a profit margin.

With an objective and a product in place, the advertising campaign will next need to focus on developing the target market, with the information of who wants product or service. What are their age, gender, nationality, income level, and general interests? If company just starting out, company should make some guesses. As a company or site evolves, different target markets will emerge, and sometimes surprise the advertiser. Advertiser can find out quite a bit about the target audience by analyzing site traffic origins, search engine key phrases, polling current customers/site visitors, and by examining the competition very closely.

Some general targeting segments are: Age Groups, Homeowners, Renters, Single Men or Women, Couples, Couples with Children, Regions, Type of Employment, and Income Grouping, product wise and psycho graphically. Depending on the offering, it may be a good idea to initially target one of these groups, until the business becomes established.

In a report published by Jose Luis Moraga-Gonzalez (Assistant professor at Erasmus University Rotterdam, and research fellow of the Tindergen Institue), focusing on Internet advertising, he found, "firms that were unable to target their ads to different consumer segments found a Zero-profit equilibrium exists". On the other hand, his research revealed, “If firms employ targeted advertising, they can obtain positive profits”.

BUDGET ALLOCATION

There are two ways to set a budget for the advertising campaign: • Company should ask them self what they can afford to spend, OR

• company can calculate the investment needed for advertising campaign in order to

generate the sales required to make the business successful Each agency team will submit a budget request in response to the client’s directive to create a new promotion campaign that promises an improved market position in the selected market. Obviously the agency must know how much may be spent on a campaign. Budget will be divided between costs of producing the advertisements and placing them in the media.

The budget should be based on a determination of what it will take to reach in marketing objectives and company’s proposed communications objectives. It would be Explained specifically how company arrived at their budget recommendation. It would be Described how company’s plan to allocate the budget to each communications vehicle and target audience and justify, How it would be allocated the recommended budget over the life of the promotional campaign.

THE TIME TABLE

When company want to this to happen, it is an important factor for an advertising campaign. Next company need to determine exactly over what time period company want the objective

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to be reached. It could a week, a month, six months or even a year. Media people will know t the exact time of copy date. A schedule can then be made listing dates for presentation of the advertising idea, date of client approval, when the campaign will start and finish, etc.

Sometimes Timing is everything. Example; can we think it's a great idea to promote ski outfits or Christmas trees during summer? If company want a successful advertising campaign, then company should know which product is suited at a particular time. This also applies to products and services that company may think as 'season-less '.

THE STRATEGIES

The strategy is the main factor before starting any advertising campaign. And the entire thing is depend on strategy. For businesses with large numbers of target customers in well-defined market segments, advertising is often a cost-effective way of communicating with them. This briefing covers:

• Setting the promotional objectives and deciding whether to advertise. • Determining the promotional budget. • Deciding where and when to advertise. • Measuring the effectiveness of the advertising campaign.

The advertising campaign strategies could be set up as with the blew point:

� company’s objectives

Before deciding whether to use advertising, clarify what company are trying to achieve. Company’s ultimate objective is probably to increase sales. But the promotional activities may focus on intermediate objectives that make sales and other business objectives easier at the end of the day. Company have to Draw up a list of SMART objectives (specific, measurable, agreed, realistic, time-limited), against which they can measure the effectiveness of campaigns, company may need to create awareness of something, or change customer attitudes by

• Creating a reputation as the market leader may allow to increase the prices and win

long-term contracts • Building brand awareness for a product makes the product easier to sell. It also

makes it easier to launch new products. • Making consumers feel good about company can boost sales.

Company may need to convey a specific one-off message to market. For example, informing people of a special offer, or a particular benefit of the product.

� In the mix Company should consider whether advertising is the most cost-effective way of achieving the objective, or whether other forms of promotion would be more effective. Company has to have the answer before campaign of some question like; what common characteristics define the target market? Who makes the buying decision, what media best reach company’s target market, Could advertising carry the right message, Would advertising work within the timescales,

� The budget Deciding how much company should spend is as much an art as a science. If company launch a new product into a new market, company need to spend heavily to achieve customer awareness. Company has to have the answer before campaign of some question

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like, What are the competitors doing, How far are company from achieving the objectives, What is the advertising worth to company, What media can afford to consider.

� Media selection Company should identify the segment of the market and decide which media best reach the target audience then finding advertising media is straightforward — though the choice of media is now vast.

• Company should look in BRAD (formerly British Rate and Data). • Company should Look at the possibilities, and observe where your competitors

advertise. • Company should Consider traditional, new media and non-mainstream methods • Company should ask a selection of people from the target market what they read and

watch. • Consider the use of a specialist media buying agency to help advertiser • Company should ask newspaper and magazine advertising departments for media

packs. • Company should ask for a readership profile, which analyses characteristics and

spending habits of readers. • Company should examine advertising rates for different sizes and types of

advertisements and different positions. • Company should choose the media that match the needs.

� What and when Company’s advertising campaign is just one part of marketing strategy. So, company should have to make sure it is suitable for the particular product or service. So, advertiser has to know what are trying to achieve is central to strategy, advertiser’s objectives will determine what aspects of the product or Service Company should highlight and when company should advertise. For example, ads to generate immediate sales are not effective for products that require demonstrating, or that need special skills or knowledge to operate. Company should Consider the timing of your campaign with the answer of When are the target customers likely to be most receptive to company’s ad, When do company want the targets to respond and what is the likely lead time from advertisement to action. Company have been Make sure company’s response is professional and carefully planned.

� Measuring effectiveness The Measure the effectiveness of advertising in terms of the objectives, if the strategic objective is to raise the profile of the company, it will probably have to carry out market research studies to find out about customers’ attitudes. If company’s aim is to create sales, you should be able to measure response fairly easily and cheaply. Company have to calculate the total costs of campaign and weigh them against the response. And have to be making sure to have allowed for all the likely costs. For example:• The cost of buying advertising space, Design costs, including print preparation, Brochures and other literature, The fulfilment cost (goods, postage, delivery, employee costs and so on), Some ads may generate many responses but convert few to sales. If your conversion ratio is poor, something is going wrong, Review the brochure or follow-up literature.

Five Factors for a Advertising Farm

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