Module I: Introduction to Advertising

• Advertising: Concept, types and objectives of advertising, social, ethical and

economic aspects of advertising.

• Advertising budgets: Factors influencing budgeting decisions, methods of

budgeting

• Advertising Agencies: types, services of Ad Agencies

• Agencies Trends in Advertising: Social media, Mobile, Banner & Video,

Search and Display Advertising
 Advertising

Concept, types and objectives of advertising, social, ethical and

economic aspects of advertising
Introduction to Advertising

“It is a paid form of non-personal presentation and promotion of ideas,

goods and services by an identified sponsor” - American Marketing
Association
FEATURES OF ADVERTISING
1. Communication
2. Information
3. Persuasion
4. Profit Maximization
5. Non-Personal Presentation
6. Identified Sponsor
7. Consumer Choice
8. Art, Science and Profession
9. Element of Marking Mix
10. Element of Creativity
Objectives of Advertising

• To Inform: Create awareness about new products or services.

• To Persuade: Influence consumer attitudes and drive purchase
decisions.
• To Remind: Keep the brand or product at the forefront of consumer
minds.
• To Build Brand Loyalty: Establish a strong emotional connection
with the audience.
• To Increase Sales: Drive direct sales and revenue growth.
IMPORTANCE OF ADVERTISING

1. Promotion of Sales
2. Introduction of New Product
3. Creation of Good Public Image
4. Mass Production
5. Research
6. Education of People
7. Support to Press
ACTIVE PARTICIPANTS IN ADVERTISING

• Advertiser
• Target audience ((Readers, Listeners, Viewers and Present and Future
Buyers)
• Advertising agencies
• Advertising production people
• Mass Media (Print Media, Electronic Media, and Outdoor Media)
• Government Authorities: ASCI (Advertising standards council of
India) and ABC (Audit Bureau of circulation)
Process
1.Identify Target Audience: Understand demographics, preferences, and behaviors.
2.Define Brand Message: Craft a clear and compelling message that resonates with
the audience.
3.Select Media Channels: Choose platforms like TV, radio, digital, print, or outdoor
media.
4.Create Content: Develop engaging visuals and messaging tailored to the medium
and audience.
5.Measure Effectiveness: Use metrics like reach, engagement, and ROI to evaluate
campaign success.
Advertising types
Social advertising Public Relations advertising
Political advertising Institutional Advertising
Advocacy advertising Internet advertising
Advertising by Google Primary Demand Advertising
Retail advertising Selective Demand Advertising
Financial advertising Product advertising
Corporate Image advertising Service advertising
Public Relations advertising National advertising
Social, Ethical and Economic Aspects of Advertising

• Social Aspects of Advertising

• Positive Impacts:
• Spreads awareness about social issues (e.g., health campaigns).
• Encourages cultural diversity.
• Economic Growth.

• Negative Impacts:
• Promotes materialism.
• Reinforces stereotypes.
• Influences children negatively.
Ethical Aspects of Advertising

• Ethical Advertising Practices:

• Honesty and truthfulness.
• Respect for consumer privacy.
• Avoidance of false claims.
• Common Ethical Issues:
• Misleading claims.
• Over-sexualization.
• Targeting vulnerable groups (children, elderly).
Economic Aspects of Advertising

Positive Impacts:
Boosts economic growth by increasing demand.
Creates employment opportunities in creative industries.
Encourages competition and innovation.
Negative Impacts:
Increases costs for businesses and consumers.
Sometimes leads to unnecessary consumption.
Advertising budgets
• Advertising budgets: The amount of money that a company allocates for
advertising its products or services to its target audience.

• Before finalizing the advertising budget of an organization or a company, one has

to take a look on the favorable and unfavorable market conditions which will have
an impact on the advertising budget. The market conditions to watch out for are as
follows:
• Frequency of the advertisement
• Competition and Clutter
• Market Share of the Product
• Product Life Cycle Stage
1. Frequency of the Advertisement: The number of times an advertise has been
shown with the description of the product or service, in the granted time slots.
2. Competition and Clutter: Increase the advertising budget based on the
competition and clutter.
3. Market Share: To get a good market share in comparison to their competitors,
the company should have a better product in terms of quality, uniqueness,
demand and catchy advertisements with resultant response of the customers. All
this is possible if the advertisement budget is high.
4. Product Life Cycle Stage: If the company is a newcomer or if the product is on
its introduction stage, then the company has to keep the budget high to make
place in the market with the existing players and to have frequent
advertisements. As the time goes on and product becomes older, the advertising
budget can come down as then the product doesn’t need frequent advertising.
 Advertising Budget Types
• Percentage of Sales Budget: This type of advertising budget allocates a certain percentage of the
company’s sales revenue to advertising. For example, a company may allocate 5% of its sales
revenue to advertising.
• Objective and Task Budget: This type of advertising budget is based on the specific marketing
objectives that the company wants to achieve through advertising. The company determines the
tasks required to achieve the objectives and the associated costs, and then allocates a budget
accordingly.
• Competitive Parity Budget: This type of advertising budget is based on the level of advertising
spending by the company’s competitors. The company matches its advertising spending to that of
its competitors to remain competitive in the market.
• Affordable Budget: This type of advertising budget allocates a fixed amount of money for
advertising, based on what the company can afford. This approach may also not be effective as it
does not consider the company’s marketing objectives and may not be sufficient to achieve desired
results.
• Payout Budget: This type of advertising budget is based on the expected return on investment
(ROI) of the advertising campaign. The company allocates a budget based on the expected revenue
generated from the campaign.
Advertising Agencies: Types, Services of Ad Agencies
Advertising agency
• It is a company that offers services related to creating, planning, and executing
advertising campaigns and promotions for its clients.
• The agency typically employs a team of professionals, including account managers,
creatives, media planners, and researchers, who work together to develop effective
marketing strategies to help clients reach their target audience.
• The primary goal of it is to help clients promote their products or services, increase brand
awareness, and ultimately boost sales.
• This involves conducting market research, developing a creative concept, designing and
producing advertising materials such as print ads, TV commercials, and online banner
ads, and placing these ads in media outlets that will reach the intended audience.
• Advertising agencies work with a wide range of clients, including businesses, non-profit
organizations, government agencies, and political campaigns.
• They can provide a full range of services from creating a new brand identity to executing
a specific campaign.
Types of Advertising Agencies
• Full-Service Agency: A full-service agency provides a comprehensive range of
advertising services, including strategy, creative development, media planning and
buying, campaign execution, analytics, and branding.
• Creative Agency: A creative agency specializes in developing unique and
innovative creative concepts, messaging, and visual designs for advertising
campaigns across different media channels.
• Media Agency: A media agency specializes in media planning and buying,
identifying the best media channels to reach the target audience and negotiating
advertising rates and purchasing ad space.
• Digital Agency: A digital agency specializes in developing and implementing
online advertising campaigns, including search engine optimization, social media
marketing, email marketing, and display advertising.
Cont.

• Social Media Agency: A social media agency specializes in social media

marketing, including creating and managing social media accounts, developing
content, and running social media advertising campaigns.
• Public Relations Agency: A public relations agency specializes in developing
and implementing public relations campaigns to promote the client’s brand and
manage their reputation.
• Boutique Agency: A boutique agency is a small agency that specializes in a
specific area of advertising or serves a specific niche market.
• In-House Agency: An in-house agency is an advertising agency that is owned and
operated by the client, providing advertising services exclusively for the client’s
brand.
Services of Ad Agencies

• Market Research: Conducting research on the market and target audience to

determine consumer preferences, market trends, and competition. This helps in
developing effective advertising strategies.
• Creative Development: Developing creative concepts, messaging, and visual
designs for advertising campaigns, including television, print, radio, online, and
outdoor media.
• Media Planning and Buying: Determining the best media channels to reach the
target audience, negotiating advertising rates, and purchasing ad space.
• Campaign Management: Managing the execution of advertising campaigns,
including coordinating with suppliers, tracking progress, and making adjustments
as needed.
Cont..

• Public Relations: Developing and implementing public relations campaigns to

promote the client’s brand and manage their reputation.
• Branding and Identity: Developing the brand identity, including logos, taglines,
and brand guidelines, to ensure consistency across all advertising and marketing
materials.
• Digital Marketing: Developing and implementing online advertising campaigns,
including search engine optimization, social media marketing, email marketing,
and display advertising.
• Analytics and Reporting: Measuring the success of advertising campaigns
through analytics and reporting, and making recommendations for future
campaigns based on the data
Agencies Trends in Advertising: Social media, Mobile, Banner &
Video, Search and Display Advertising
Social Media Advertising Trends

• Growth of Influencer Marketing: Social media influencers are key drivers of brand
awareness due to their personal connection with followers.

• Targeted Ads: Agencies leverage user data to create highly targeted campaigns that reach
specific demographics.

• Popular Platforms: Instagram, TikTok, and Facebook are hotspots for engaging audiences
through creative and interactive content.

• Case Study: Example of a brand achieving success through influencer partnerships or

viral social campaigns.
Mobile Advertising Trends
• In-App Advertising: Apps provide direct access to users, integrating ads seamlessly
into the user experience.

• Geotargeting: Delivers personalized ads based on user locations, increasing

relevance and impact.

• Benefits: Mobile-first strategies cater to the growing number of users who primarily
use their smartphones for online activities.

• Example: A notable campaign using location-based ads to drive foot traffic to stores.
Banner & Video Advertising Trends

• Interactive Banner Ads: Ads are becoming more engaging with animations, click-to-
reveal features, and gamification.

• Video Marketing: Short-form videos (e.g., TikToks, Instagram Reels) are dominating,
offering bite-sized, digestible content.

• Platforms: YouTube remains the top platform, while OTT services are growing in
popularity for video ads.

• Metrics: Discuss effectiveness through metrics like engagement rates, click-through rates,
and view duration.
Search Advertising Trends

• Paid Search Growth: Advertisers are increasing their budgets for search ads as they
directly target high-intent users.

• Platforms: Google Ads leads the market, with Bing Ads also serving niche audiences.

• Voice Search: Optimization for voice commands as smart speakers and voice assistants
grow in use.AI in Search: Algorithms analyze user behavior to refine ad delivery for
maximum impact.

• Metrics: Highlight ROI benefits and conversion rates.

Display Advertising Trends

• Personalization: Ads are tailored based on user behavior, enhancing relevance and engagement.

• Retargeting Techniques: Ads follow users who previously visited a website but didn’t convert,
reminding them of their interest.

• Programmatic Advertising: Automated systems buy ad space, streamlining placement and

targeting across devices.

• Cross-Device Targeting: Ensures ad consistency across smartphones, tablets, and desktops.

• Example: A successful display ad campaign in e-commerce, such as Amazon’s product

recommendations.
Challenges in Modern Advertising

• Ad Fatigue: Overexposure to ads leads to disengagement; marketers need to innovate to

capture attention.

• Consumer Skepticism: Users are more aware and critical of ad motives, requiring
authenticity in messaging.

• Privacy Concerns: Stricter regulations like GDPR and CCPA demand transparency and
data protection.

• Balancing Creativity and Analytics: Successful campaigns require both compelling

visuals and data-driven strategies.
The Future of Advertising

• AR/VR Integration: Augmented and virtual reality offer immersive ad experiences

that are memorable and engaging.

• Omnichannel Marketing: Integrates all platforms (online, offline) to provide a

seamless customer journey.

• Ethical Considerations: Agencies focus on inclusivity, cultural sensitivity, and

sustainability to align with consumer values.
 Deceptive or expedient

1. What, if anything, is ethically problematic about this case?

2. Who, if anyone, is potentially affected by this approach and how?

•Survey Respondents
•Agency
•Client
•Industry Professionals

3. What ethical guidelines apply in this case?

•Professional ethics
•Informed Consent.
•Fair Competition
•Professional Responsibility

4. What options are available to Bradley?

1.Express Concerns Diplomatically
2.Propose Alternative Methods
3.Consult Ethical Guidelines
4.Document and Report (if necessary)
5.Seek Mentorship from senior
 DECEPTIVE ADVERTISING
1.Is this a true public service announcement? A drink is a drink is a drink

The message can be considered a true public service announcement (Yes) because it
provides factual information about the equivalent alcohol content in different drinks,
which could promote responsible drinking behavior, but it is not a true PSA (No)
because it appears to be motivated by the liquor company’s vested interest in
promoting distilled spirits under the guise of public awareness.
2.Is this a message in the public interest?
While the message has elements that could be argued as public interest—educating
consumers on the equivalence of alcohol content across different drinks—the context
reveals a commercial motive. The primary goal appears to be increasing acceptance of
distilled spirits rather than genuinely prioritizing public welfare.
 DECEPTIVE ADVERTISING
3.Is this an advertisement? If so, for what exactly? A drink is a drink is a drink
Yes, this is an advertisement because it promotes the idea that distilled spirits are comparable to beer and
wine in alcohol content, indirectly encouraging their acceptance and consumption; however, no, it is not a
traditional advertisement as it is framed as a public service announcement, focusing on raising awareness
about alcohol equivalency rather than directly marketing a product.
5.What ethical justification, if any, can you cite for running beer and wine ads but not ads for "hard"
liquor? If there is no ethical justification for this, what (ethically) is wrong with this differentiation?
The differentiation between beer, wine, and hard liquor ads reflects cultural norms where beer and wine
are seen as more socially acceptable. It is partly justified by public health concerns, as hard liquor has
higher alcohol content, potentially promoting overconsumption. Additionally, target audience impact and
a need to avoid glamorizing heavy drinking play a role. Historically, the informal agreement not to
advertise hard liquor avoids controversy, maintaining social harmony. However, this differentiation may
lack fairness, as all alcohol poses similar risks, raising questions about ethical consistency.