NAME – ANIKESH ANAND TOPIC – EFFECTS OF ADVERTISING ON CONSUMERS 2 TOPIC TheEffectofAdvertisementon ConsumerPreferenceandBehavior 3 TABLE OF CONTEN TS 0 1 02 INTRODUCTION TO ADVERTISEMENT 03 DETAIL STUDIES 04 HISTORY OF ADVERTISEMENTS 05 EFFECTS OF ADVERTISEMETS 06 PROS AND CONS OF ADVERTISING 07 CASE STUDY ADVERTISEMETAND ITS KINDS WHAT IS AN ADVERTISEMENT •An advertisement (often shortened to advert or ad) is the promotion of a product, brand or service to a viewership in order to attract interest, management and sales. ADVERTISEMENTS •Advertisement come in many forms, from copy to interactive video, and have evolved to become a crucial feature of the app marketplace. ADVERTISEMENT AND ITS KINDS Banner ads With banner ads, the aim is to display an image and wait for users to view, click and convert – making quality graphics and a compelling call to action (CTA) essential components. Interstitial ads Interstitial ads offer a full-screen experience. These can be used to avoid ‘banner blindness’, when users become so accustomed to seeing banner ads that they no longer take notice. Interstitial ads can also be expandable (known as expandable ads), which start out as regular banner ads before taking up the whole screen. Native ads Native advertising is when ads are designed to match the environment in which they are placed. For example, when you see a ‘sponsored’ tag attached to a YouTube video, this is native advertising on that particular platform. Video ads As their name suggests, video ads are advertisements in video format. By their nature, video ads are a popular advertising method because they can be highly engaging with high click-through rates (CTRs).Playable ads By giving users access to interactive gameplay, playable ads let you try before you buy. This gives users a limited look at an app, offering highlights that should push users to install. Because users can gauge their interest before purchasing the app, playable ads can be used to reduce app uninstall rates. To learn more about the pros and cons for each format, take a look at this blog post. 6 DETAIL STUDIES •Banner Ads – With banner ads the aim is to display an image and wait for users to view, click and convert-making quality graphics and a compelling call to action (CTA) essential components. •Interstitial Ads – Interstitial ads offer a full-screen experience. These can be used to avoid ‘banner blindness’, when users become so accustomed to seeing banner ads that they no longer take notice. Interstitial ads can also be expandable (known as expandable ads), which start out as regular banner ads before taking up the whole screen. • Native Ads – Native advertising is when ads are designed to match the environment in which they are placed . For example, when you see a ‘sponsored’ tag attached to a YouTube video, this is a native advertising on that particular platform. •Video Ads – As their name suggests, video ads are advertisements in video format. By their nature, video ads are popular advertising method because they can be highly engaging with high click-through rates (CTRs). •Playable Ads – By giving users access to interactive game play, playable ads let you try before you buy. This gives users a limited look at an app, offering highlights that should push users to install. Because users can gauge their interest before purchasing the app, playable ads can be used to7reduce app uninstall rates. HISTORY OF ADVERTISEMENTS •Advertising as a profession dates back to ancient civilisations and has rich history, although the forms of advertising may have changed over centuries. HISTORY OF ADVERTISEMENTS •As languages and written forms of communication developed with invention of paper in china and papyrus in Egypt, sales messages began to be displayed as posters. •By the 1930s, several Indian as well as foreign advertising agencies had been set up in India. EFFCTS OF ADVERTISING Positive Effects of Advertising:- D • An effective way to sell your products • Social Benefits • Economic Advantages • Educates people • Increase Awareness C B A Negative Effects of Advertising:• Adversely Influences young generation • Misrepresentation • Creates a materialistic world • Creates irresistible desire to buy unessential things PROS AND CONS OF IAt’sDofVteEnsRaidTtIhSatI“NittGakesmoney to make money.” This D often refers to the fact that a business must advertise in order to create an awareness. The Pros of Advertising:- C B • • A • • • • • It’s an easy way to create a value proposition. It creates a way to set brands and products apart from the competition. It reaches multiple demographics simultaneously. One single target demographics can also be emphasized. It provides consumers information about choice. Advertising creates jobs. It inspires people. The Cons of Advertising:• It costs time and money. • Results are never guaranteed. • It is difficult to stay unique with today’s information-sharing world. • Advertising is often associated with media. • It’s a general nuisance • Product placements can ruin personal enjoyment. CASE STUDIES •Based on advertisement affects on consumer are discussed henceforth keeping an eye on the two great brands namely PEPSI and NIKE. Who through their advertisement won hearts of many and changed the perception of human taste, and today ruling in many hearts. 11 Casestudy 1:Pepsi 12 Casestudy on Pepsiand its advertisementstrategies ➢ ➢ ➢ ➢ Its an American Multinational Food snack and beverage corporation headquartered in Harrison, New York. Founded –1965 CEO –Ramon Laguarta Pepsi has official sponsorship deals with National Football League, National Hockey League and National Basketball Association. ➢ Pepsi Company Entered in India 1989 Founded –1995 Key people –Ravi Jaipuria (Founder Chairman) Headquarter –Gurgaon, Haryana How Pepsi advertisements affects the consumer's preferences Brief Introduction about company and advertisement Pepsi take 33%of profits from soft drink industry and that and that is very high ratio in comparison of coca cola .Pepsi always believe in new innovated advertisement advertisement and always came up new attracting ads focusing yougester.so they can capture the youth of country(that is there target audience).Pepsi recently lanched the renew campaign for 2008 February featuring featuring three brand ambassadors Shah Rukh khan ,Ranbir Kapoor and Deepika Padukone in a refreshing new light. Developed by jet thecampaign is dubbed “yougistan”, this according to the company “its an attitude”. Clearly targeting the youth, thecampaign will being a dialogue with its consumers by unbottling their their imagination of what “yougistaan” means to them. 13 14 VIDEOCLIPONPEPSI'SADVERTISEMENT Casestudy 2:Nike 15 Casestudy on Nikeand its advertisingstrategies • Two visionaries, Bill Bowerman and his University of Oregon runner Phill Knight, thought they could do a better job of designing and selling shoes to runners. They found NIKE in 1964, in UNITED STATES. • Tagline –Just Do It • The Nike’s slogan is based on a murderer’s last words. • Nike’s mission statement is, “To bring inspiration and innovation to every athlete in the world.” • From a sleepy little own in Oregon, Nike has grown into the world’s largest athletic footwear and apparel company. We started with a shoe and a t-shirt. Today we’re a diversified and complex global organization: I. We sell our products in 170 countries. II. We have more than 30,000 worldwide employees. III. We have a dozen brands that serve more than 30 major sports and consumer lifestyles. IV. We work with 600+factory partners. V. We serve millions of consumers with thousands of products. • It’s one of the most recognized symbols in the world. The brand it represents is our strongest asset. We’ve been very strategic in adding dimension to the Nike Brand, making it a powerful and flexible engine for growth. • Connecting with consumers is so important at Nike that we reorganized the Nike Brand around seven categories that we believe represent the largest growth opportunities: action sports, basketball, football(soccer), men’s training, running, sportswear, and women’s training. • As Phil Knight, our co-founder and Chairman, once said, “It’s not a single product model, or a single manager, or one ad, or a single celebrity, not even a single innovation that is key to Nike. It is the people of Nike, and their unique and creative way of working together that makes Nike special.” 16 17 Hownike Advertisements affects the consumer's preferences Nike didn’t build its loyal fan base by harping on its iconic waffle shoes. In fact, Nike’s ads rarely, if ever, mention their products at all. What their ads do, and do well, is induce emotion in the consumer through ‘emotional branding’. Each ad is carefully crafted to evoke particular feelings and needs in the consumer that can only be satisfied with Nike products. It does this by playing up the traditional narrative of a hero who works hard to overcome adversity, ultimately emerging victorious against a terrible for. But it isn’t a literal enemy being fought in this case. Nike takes the analogy to a level far more relatable: the ‘terrible foe’ is the voice in your head that tells you, “You can’t”. To that, the organization says: “Just do it.” 18 VIDEOCLIPONNIKE'SADVERTISEMENT 19 THANK YOU