Display Advertising (in Russian) by Russian Herald, Seminar 2
Seminar 228.443: Advertising
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1 Seminar 228.443: Advertising Dr. Teri Shaffer
description
Seminar 228.443: Advertising. Dr. Teri Shaffer. Introduction to Advertising. Types of advertising Advertising industry Advertising trends. What Is Advertising?. Paid, nonpersonal communication Identified sponsor Using mass media To inform, persuade, or remind An audience. - PowerPoint PPT Presentation
Transcript of Seminar 228.443: Advertising
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Seminar 228.443:AdvertisingDr. Teri Shaffer
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Introduction to Advertising Types of advertising Advertising industry Advertising trends
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What Is Advertising?
Paid, nonpersonal communication Identified sponsor Using mass media To inform, persuade, or remind An audience
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InteractiveAdvertising
Public ServiceAdvertising
InstitutionalAdvertising
Business-to-Business
Advertising
Brand Advertising
Retail or LocalAdvertising
PoliticalAdvertising
Direct-ResponseAdvertising
DirectoryAdvertising
Types of Advertising
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Brand Advertising
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Brand Advertising
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Brand Advertising
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Retail Advertising
&
Institutional Advertising
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Retail Advertising
&
Brand Advertising
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Retail Advertising
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Retail Advertising
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Political Advertising
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Directory Advertising
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Direct-Response Advertising
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B2B
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Institutional Advertising
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Institutional Advertising
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Public Service
Advertising
(PSA)
or
AdvocacyAdvertising
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Public Service Advertising
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Interactive Advertising
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Comparative Advertising
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Advertising & Demand
Competitive brand advertising Comparative advertising Build secondary demand Pioneering advertising Build primary demand
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Pioneering Advertising
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Pioneering Advertising
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Advertising Industry
US Government StatisticsUs Bureau of Labor Statistics
395,200 people employed in US $300 billion globally
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Five “Players” of Advertising
– Advertiser– Advertising Agency– Media– Vendors– Target Audience
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1st Player
The Advertiser
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Advertising Age
http://www.adage.com Leading National Advertisers Major brands with ad spending
> $94.4 million in 1998
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Leading National Advertisers (1998) General Motors Corp. Proctor & Gamble Co. Phillip Morris Cos. DaimlerChrysler Sears, Roebuck, & Co. Ford Motor Co. AT&T Corp. Walt Disney Co. PepsiCo Diageo
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Domestic Spending by Category (1999) Automotive Retail Movies & media Financial Medicines & pharmaceuticals Telecommunications Food Restaurants & fast-food Airline & ship travel; hotels & resorts Direct response companies
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Top Advertisers in Austria (1998) Proctor & Gamble Co. Unilever BML-Konzern SPAR Mobilkom Austria AG Mars Inc. Henkel Volkswagen Max. MobilTelekom Service Ost. Lotterien
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Top Global Marketers (1999) Proctor & Gamble Co. Unilever Nestle Volkswagen Ford Motor Co. General Motors Corp. Toyota Motor Co. Coca-Cola Co. Peugeot Citroen L’Oreal
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2nd Player
The Advertising Agency
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Advertising Agency
Account management Creative department Media Research & strategic planning
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Account Management Represents agency to client Client relationship Knowledge of client’s business
– Competitive actions– Consumer trends
Helps set goals & budget Coordinates day to day work
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Creative Department Creates ideas, images, & words make
up commercials and ads Copywriters Art directors Oversee print or broadcast production
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Media Department Planning
– Plan media schedule Buying
– Execute media plan
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Research Strategic planning Consumer research How does consumer interact with
brand? How does brand fit into consumer
lifestyle? Pretest and posttests
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Example
1995 campaign for California Milk Processors Advisory Board
Declining sales from 1980 to 1993
Result? Increased sales
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Paying the Agency
Commission system Fees
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Commission
Rebates offered by media advertising agencies (15%)
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Commission System Agency creates commercial for
advertiser Agency contacts TV station for air time TV station bills ad agency
Cost of air time $ 10,000Less 15% (1,500)Due $ 8,500
Agency bills advertiser $10,000
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Fee-based Compensation
May vary according to departments or levels of salary
Or flat hourly rate Charges for out-of-pocket expenses,
travel, etc. Media charges are net of commissions
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Advertising Age (1998)Charges Over Time 1982 71% commissions 8% fees 21% combination
1997 35% commissions 58% fees 7% combination
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Full Service Agencies Four major staff functions
– Account management– Creative– Media planning and buying– Research
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Top Ten Agency Brands (1999)
Grey Advertising (NY) J.Walter Thompson Co. (NY) McCann-Erickson Worldwide (NY) FCB Worldwide (NY) Leo Burnett USA (Chicago) Euro RSCG Worldwide (NY) Young & Rubicam Inc. (NY)
BBDO Worldwide (NY) DDB Worldwide Communications (NY) Ogilvy & Mather Worldwide (NY)
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World Top Advertising Organizations (1999) Omnicom (NY) Interpublic Group of Cos. (NY) WPP Group (London) Havas Advertising (France) Dentsu (Tokyo) B Com3 Group (Chicago) Young & Rubicam Inc. (NY) Grey Advertising (NY) True North (Chicago) Publicis SA (Paris)
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Agencies on the Internet
TBWA/Chiat/Day– http://www.chiatday.com/
Fallon McElligott– http://www.fallon.com/
Bozell Worldwide– http://www.bozell.com/
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Agencies On The Internet
A comprehensive list of ad agencies can be found at the following address– http://www.digitaldirectory.com/
adagencies.html
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Limited Service Agencies or Specialized AgenciesFunctions
– Creative, media buying, etc. Audiences
– Minority, youth, etc. Industries
– Healthcare, computers, B2B, etc. Communication Tool
– Direct marketing, interactive, etc.
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Top 100 US Interactive Agencies (1999) MarchFirst Digitas iXL Grey Interactive Sapient Corp. Modern Media Aspen Interactive OglivyInteractive Luminant Worldwide Corp. AppNet
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In-House Agencies Perform most of the functions of outside
agency Example: Large retailers
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Why an In-House Agency? Savings Faster response Specialization Control
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Problems with In-House?
Lack of initiative due to noncompetitive environment
Inability to keep up with marketplace Less objective
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From The Internet
The Advertising Agency Contract--http://www.smartbiz.com/ sbs/arts/cwa4.htm
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3rd Player
The Media
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The Media
Channels of communication that carry message from advertiser to audience
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Media Organizations
Sell space in print media Sell time in broadcast media Sell space/time in electronic media Assist in media selection and analysis Help w/ad production
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Top Leading Media Co. (1998) Time Warner (NY)
AT&T Corp. (NY) CBS Corp. (NY) Walt Disney Co. (NY)
NBC TV (General Electric, Fairfield, Conn)
News Corp. (Sydney)
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4th Player
Vendors
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Vendors Freelancers/consultants Market researchers Freelance copywriters and graphic artists Photographers Songwriters Printers Direct-mail production houses Telemarketers Public relations consultants
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5th Player
The Target Audience
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Target Audience
Kellogg cereal?
Consumer Purchaser
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Current Issues
Interactive advertising Integrated marketing communications Globalization Consumer power, relationship
marketing, permission marketing, and customization
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Examples Peapod Mass customization
– Levi’s Original Spin
