Advertising

Linked presentation

Advertising Agency
The 4 holding marketing communications companies
Omnicom:
BBDO, DDB, TBWA (ad agencies)
Omicom media group (media specialist)
Diversified Agency Services (specialised communication outfit Direct
response, Sales promotion, PR, Interactive agencies)
WPP:
JWT, O&M, Grey, Rediffusion, (ad agencies)
Group M, Mindshare (Media specialist)
IMRB International, Grassroots ( specialised outfit)
Interpublic:
McCann Erikson, Lowe Lintas, Future brand, Draftfcb (ad agencies)
Initiative Media, UM (Media specialist)
Kaleidoscope (Specialised communication outfit)
Publicis:
Leo Burnett, Saatchi&Saatchi, Starcom (ad agencies)
Publicis Groupe Media (media specialist)
Pembroke communications, Publicis D (specialised communicationSP,DM,BTL)

Advertising Agency -Types

Full service agencies follow departmental &
group system. Two types of FS agencies are:
General Consumer Agencies
Industrial Agencies (B2B agencies)
A La Carte Service agencies (Creative HotShops)
Strategy development, Creatives, Media
Planning
House Agencies
Eg: Lintas (HUL) now LOWE Lintas, Mudra
(Reliance)

Agency -Department
Functions

Account Planning:
Link between agency and client (contact department)
Explain the clients demands to specialist departments
Get client approval at each stage of work
Supervise work to ensure quality and timeliness
Creative Services:
Most visible input in advertising
Two areas Copy writing and Art direction
Media Services:
Match the target customers profile with the profile of
media audience
Evaluate media in terms of efficiency, cost, reach
Research department:
Study the effects of previous promotional activities of the
product
Use information to win clients

Communication as Advertising
Objective
Conative

Purchase

Point-of-purchase
Retail store ads

Conviction

Affective

Preference
Liking

Cognitive

Knowledge
Awareness

Competitive ads
Argumentative
copy
Image copy
Glamour
appeals
Descriptive copy
Classified ads
Slogans, Jingles
Teaser
campaigns

Communication as Advertising
Objective
5%
regular
use
20%
Trial
25%
Preference
40%
Liking
70%
Knowledge
90% Awareness

Establishing the Budget

Critical question how much to spend
on promotions
Communication budget expense v/s
investment
Budget revisions Every year, With
new product introductions, changes in
external or internal factors
Sales response models
Concave-downward function
S-shaped response function

Establishing the Budget

Budgeting Approaches are of two
types:
Promotion objectives
Top-Down
Build-Up
Top management sets
set
spending limit

Promotion budget stays

within spending limit

Judgemental approaches
Pre-determined budget allocation
Not linked to advertising
objectives, tasks

Activities to achieve
objectives are planned

Costs
of promotion
Objective
setting
and budgeting
activities
accounted for
go hand-in-hand
Budget such that promotion
strategies
Promotion
can deliver
budget
objectives
approved by top
management

Establishing the Budget

Top-Down approaches
Affordable method
Allocates amount left after allocation to other areas to promotion.
Likelihood of under/over-spending high as task not assessed
Arbitrary allocation
No obvious advantages, budget determined based on judgement
No objectives set, Purpose of advertising ignored
Percentage of sales
Most commonly used, but not most effective
Advertising budget based on sales of product
Amount fixed percentage of rupee sales, amt of unit product cost allocated to
promotion * number of units sold
Financially safe, keeps ad spending under control
Difficult to implement for new products lack of sales history, Low sales cut in budgets
Competitive parity
Establishing budgets basis competitors promo expenditure to tap collective industry
wisdom
Minimises marketing warfare, unrealistic ad expenditure
Ignores competitive advantage, market adaptation realised only after competitor
advantage
Return on Investment method
Because advertising causes sales
Promotions seen as investments, therefore expected to earn certain return
Difficult to employ due to difficulty in assessing returns on promotion

Establishing the Budget

Build-Up approach
Objective and Task method has 3
Establish
objectives
steps:

(Create awareness
of product among
20 % of target
Re-evaluate
market)
Determine specific
objectives
tasks
(consumer
(Advertise in
awareness created,
television, radio and
newspapers)
Estimate costs fornow induce trial)
different tasks
Trade shows: Rs.1
cr
Trade journals: Rs.
25 lakh

Allocating the Budget

After establishing budget, time to allocate
Involves deciding how this budget is divided between
markets/products/promotional elements
Factors based on which Allocation done:
Shift to IMC
Increased target selectivity, new media
Decrease find
More impact with same budget
Increase to
defensible
niche
Individual
defend
company/ad
policy
Competitors
SOV agency
Agency/client favour certain promotional program
Market size
Maintain modest
with
Smaller markets easier Attack
to cover, less expensive
spending
large SOV
Larger markets target dispersed, more expensive
premium
Market potential
Market share goal
Market share

aDVErtising
CoMmuniCatioN
pRocEss
Advertising strategy(Game plan) : Outlines

what advertiser will do to solve the communicationsrelated problem (depicts the benefit of using the
product)
Fevikwik problem: Show adhesive nature of product
Big idea: The idea that advertisers select to
represent the message.
Use of metaphoric way to show bonding power
Creative strategy: Deals with the physical form of
advertising story, script, copy, art, layout and
illustration, music, words, phrases, colour,
production
Creative tagline, use of wit/humor, storyline
Advertising tactics: Short-term decisions about
specific, tangible tasks related to advertising process
High spend on television advertising.

Target customer for i-phone

Age:25 40 yrs
Sex: Male and Female (more males 70%)
Family income: Rs.8 lakh + per annum
Education: Graduate, PG or above
Occupation: Businessmen, middle or senior level
managers
Family size: Single, dual income families, small in size
(0-1 child)
Lifestyle: Basic technical knowledge, Brand conscious,
Socially active in parties and get togethers, active net
users
Personality: Openness to try new things, Opinion
leader of sorts, Independent and rebellious
Hobbies: Travel, Net surfing, blogging,online shopping
Reading Habits: Read computer magazines, Archies
comics etc

Creative Process
Preparation:
Learn general trends and conditions in
marketplace
Product specific research: About product ,
competition, target audience
Eg: Taj Groups Budget Hotels (Ginger)
Incubation: Getting away
Illumination: Solution in sight
Verification: Evaluates ideas, rejects
inappropriate ones, refines the selected ones
eg: Portfolio tests and other forms of pretesting

Advertising appeals

Rational
Focus on consumers practical or functional need for product
Emphasis on features of product, logic of persuasion
Features, Competitive advantage, favourable price, news,
popularity appeal
Emotional
Connect with consumers social or psychological need for buying
the product
Use of fear (HDFC), humor, sex, Agony(Itchguard), Moral
appeal(Havells) can put customers in a favourable frame of mind
Eg: Heinz Housewife ad (emphasises viscosity of product)
Rational+Emotional:
Because functional product may offer an emotional benefit
Eg:MasterCard priceless campaign/ Womens Horlicks
Other appeals:
Teaser advertising (Eg: Frootis Digen Verma ads)

Creative Execution styles

Factual (eg: SCMS)
Often used with rational appeals, where focus is on
product features
Scientific (eg: Lifebuoy)
Scientific evidence presented in ad
Demonstration (eg: Vivel ActivFair, vim drop)
Illustrates the advantage of product by showing it in use
Comparison (eg: Pepsodent )
Directly communicating a brands advantage over
competition
Testimonial (eg: Ayucare, Vanishmax )
Person praises product on basis of personal experience
from use
Slice of life (eg: Yellow pages/FedEx)
Based on problem/solution approach
Depict daily life problem and how product can resolve it
Helps register the product benefit in the consumer mind

Creative Execution styles

Spokesperson (Eg: Colgate uses Dental Association)

Lifestyle (Eg: Raymond The complete Man)
Animation (eg: Boomer Bubble Gum)
Animated scenes or fictional characters are created to attract
attention
Personality symbol (eg: , Appy Fizz The cool drink to hang out
with)
Creating a central character capable of delivering the message and
with which product can be identified.
Fantasy (eg: DeBeers )
Suitable for image advertising- Escaping into another world, lifestyle
Dramatisation (eg: Sunlight washing powder, Nestle Munch Ramus
shop)
Focus on telling story with product/service as star
Slice-of-life with Use of drama is highlight
Musical (eg: Airtel jingle or Kingfisher jingle centered ad)
Vignette: (eg: Max New York)
Series of short incidents tied together to make the point
Combination

Creative Strategy
Print(Headline)
Headline
Leading position of ad often set apart
from rest of message
Put forward the main theme or proposition
in few words, communicate advertising
message along with illustration
Aids in further segmentation of customers
by addressing specific needs or wants
Research Statistics: 20% read the body
copy
Types: Direct and Indirect headlines
Subheads: Enhance readability,skimming
by highlighting key point

Creative Strategy
Print(Headline)
Functions of Headlines:
Grab readers attention
Summarise selling proposition: Reader should know big idea after
reading it
Select the prime prospect (Eg: Single?)
Offer a benefit (Eg: Fairness in 7 days)
Emphasise brand wherever possible
Eg: Introducing seduction on wheels..The Hyundai Verna
Synergise with visual

Types of Headlines:
Benefit
Questions
News
Challenge
Factual
Associations
Curiosity Claim
Advice
Command

Creative Strategy
Print(Copy)
Body Copy
Main text portion of a print ad
Must be long enough to
communicate message, short enough
to retain interest
Matter depends on advertising
appeal and execution style used (eg:
ad )

Creative StrategyPrint(Copy)

Types of BodyCopy/ Styles of Body copywriting

Customary approach:
Opening and closing paragraphs-max attention
Factual nature - Written as anonymous source
Open idea develop it give call for action
Story approach:
If story gripping, readers enticed to read more
Preferably in first or third person
Dialogue approach:
Makes copy more enticing. Use direct speech
Bulleted approach:
Driving home plentifulness of benefits/features
Poetic approach

Creative Strategy Print

(Visual)
Illustration/Visual elements:
Must attract attention, synergise
with headline and body copy to be
effective
Decisions: Brand marks to use,
Colours to use, type of visual to use

Creative Strategy Print

(Visual)

Types of Visuals:
Snapshot of product (eg: Hotel)
Product-in-use (Eg: 1-2-3 ads)
Close-up of critical part (Eg: Cars)
The target customer (Eg: Longines and Ash)
Benefit of using product (Eg: Pampers Happy
Babies,Garnier)
Ills of not using product (Eg: DCold)
Before and after (Eg: VLCC)
Metaphor for product (Eg: Strepsil)
Comparison (Eg: Dove)
Visual alone

Class activity
Visual imaginary?
Product: Asian Paints
Headline: Youll find every colour imaginable
Product: Malayala Manorama
Headline: Let your brand go Places, this
Onam
Product: Nissan Micra
Headline: Shift the way you move
Product: Maruti Ritz
Headline: Live the moment
Product: Post-it-Notes
Headline: Dont forget

Creative Strategy
Print(Layout)
Layout
Layout shows where each part of
the ad will be placed
Blends each element into a finished
advertisment
Layouts are presented to clients for
visualising final appearance before
print production

Creative Strategy
Print(Layout)
Types of layout
Picture Window: Visual covers most of ad
Silhouette: Shape non-linear outline for copy
Frame: Visual used to border copy
Comic strip: Elements linearly arranged in strip
Rebus: Visual and copy chained one after
another
Copy Heavy: Accentuates type , all copy ad
Type specimen: Distinct type or font selection
Circus: Random, jumbled up arrangement
Mondrian: Visuals, headline, copy in boxy format
Grid: Visuals in evenly divided grids
Axial: Visual in centre, copy floats around it

Activity Assignment 1
Picture perfect
Choose any 3 print ads.
Convert them into three different
layout formats of your choice
Evaluate the ads on:
The headline type
Is tagline effective? Why?
What type of visual is used?
Which copywriting style is used?
How Can u improve the ad?

Creative Strategy Television

TVCs combines sight, sound and
motion to create right impact
Video:
Attracts viewer attention,
communicate message
Focus areas: Product, presenter,
settings, actors, acting skills, lighting,
graphics, colours, brand marks

Creative Strategy Television

Audio
Use of voice-over (message narrated by
invisible announcer)
Music provides pleasant background
and mood (needle-drop) or music helps
selling point (Eg: Airtel )
Jingles are catchy songs that carry
advertising theme (Eg: Sunlight)
Focus areas: Voice, music, sound effects

Creative Strategy Television

Planning :
Decide the appeal and execution style to be
used
Script a written version of the ad that
describes audio and video content
Audio voices, music, sound effects
Video camera angles, scenes, transitions
Storyboard Series of drawings that present
visual scenes along with description of audio
Gives production team and advertiser look
and feel of commercial

Creative Strategy Television

Production:
Preproduction
Selecting director
Choose production
Co.
Cost estimation
Production timetable
- Set construction
- Location, Length
- Agency/client
approval
- Casting, Costumes
- Art decisions
Preproduction

Post
production
Product
ionshoots
Location
Night/weekend
shoots

Editing
Recording SFX
Audio/video mixing
Client/agency
approval
Release

Source factor
Source credibility
Direct source & Indirect source
Expertise and trustworthiness of source
Persuasion by Internalization integration into belief system ( forever)
Eg: Hairomax (Padmanabha Vaidyar)
Use of corporate leaders as spokesperson(Eg: ATLAS)
Credibility more effective when claim questionable.
Beauty of source?
Source attractiveness
Ash in Longines
Similarity, familiarity, likability (Eg: UNINOR)
Persuasion by Identification creates attitude (temporary)
Use of celebrities: avoid overshadowing,
Multiple
celebrity
overexposure,
risk to
advertiser, celebrity-product mismatch Clinic All Clear
Source Power
Source has perceived control, concern and scrutiny
Persuasion by Compliance - superficial compliance (temporary or
permanent)
More usable in personal channels only

Message Factor

Order of presentation
Primacy and recency effects (Eg: Asli Nimboo)
Strong weak Strong selling points
Display brand name/brandmarks at beginning repeat at end to
enhance recall
Conclusion drawing
Open-ended or close-ended message? basis target audience,
immediacy of impact (Eg: Indian Army Do you have it in you?,
Political campaign)
Message sidedness
One-sided or two-sided message (Eg: Sprite Sprite quenches
thirst..everything else is nonsense )
Refutation
Presents both sides of issue and refutes opposing viewpoint(eg: CocaCola)
Verbal and visual messages
Verbal appeal + support of visual image = compelling message
Incongruent visual and verbal appeal (greater recall) Eg:

Channel factors
Personal v/s Non-personal communication channels:
Personal channels more persuasive
Inter-media information processing: Self paced v/s
externally paced
Eg: Draw attention redirect ( Eg: Bajaj Allianz)
Effects of context and environment:
The image of media vehicle influences audience
reaction (Eg: Coca-Colas policy on new channels)
Content advertising and feel good programming (Eg:
Pre-selling movies to broadcasters)
Clutter Eg: Vanitha mag
Too many messages competing for attention annoys
customer
Pressure from advertisers for top-rated shows (Eg: Big
boss, KBC)
Trend towards shorter commercials- Growth of 15 sec
30 sec spots use creativity to break through clutter

Testing @ Concept
generation
Concept testing
Modes used? Focus groups, mall
intercepts
Items under scrutiny?

Rough, prefinished
commercial testing
Animatics or photoboards are
usually shown
Popular tests used : Consumer
juries, comprehension tests, reaction
tests
Personal interviews, focus groups
(sample sizes 50 200)
Disadvantages

Pretesting of Finished Ads

Finished ad is used , still scope for
modifications exist
Methods used for print: Dummy
advertising vehicles, Portfolio tests
Methods used for Broadcast media:
Theatre tests, On-Air tests
Methods used for both: Physiological
tests (pupilometrics, electrodermal
response)

Market Testing of Ads

Finding out how the ad is doing in
the field.
Day-after-recall tests
Inquiry tests