chapter
Advertising
What is Advertising?
 Impersonal, one-way
communication about a product
that is paid for.
 Campaign: A series of related
advertisements focusing on a
common theme, slogan, and set
of advertising appeals.
Prius Campaign
Top Ten Leaders by U.S.
Advertising Spending
Major Types of Advertising
Institutional
Advertising
Product
Advertising:
Focuses on
benefits of a
specific product
or service
Enhance
corporation’s identity
Advocacy
advertising
Pioneering
Competitive
Comparative
Trunk Monkey
http://www.suburbanautogroup.com
Dow Human Element (Institutional)
Bud Designated Driver
Product Advertising
Pioneering
Competitive
Comparative
 Stimulates primary demand for
Prius
new product or category
 Used in the PLC introductory stage
 Influences demand for brand in the
iPhone 3G
growth phase of the PLC
 Often uses emotional appeal
 Compares two or more competing
brands’ product attributes
 Used if growth is sluggish, or if
Dunkin/Starbucks
competition is strong
McCafe Intervention
Schwab
Reminder: FedEx
Advertising and the PLC
Online
http://absolutads.com
Advertising Campaign
A series of related advertisements
focusing on a common theme,
slogan, and set of advertising
appeals
Developing a Campaign
1.
Set Objectives
–
–
2.
3.
Determine your budget
Make your creative choices
–
–
4.
What are you going to say?
How are you going to say it?
Make your media choices
–
5.
Inform, persuade, remind?
Awareness, interest, desire, action?
Where and how often are you going to advertise?
Evaluate: Did you do what you set out to do?
Did you meet your objectives?
Determining Advertising Budgets
 Companies use a variety of criteria
for setting advertising budgets:
–
–
–
–
What the company can afford
Percentage of sales
Advertising as much as the competition
Establishing particular objectives,
developing a budget to meet objectives
Making Creative Decisions
Positioning Statement: Setting the personality
for the product in the minds of the consumer.
Value Proposition: Central message; single,
clear message why your product is better at
solving the consumer’s problem.
Attributes and Benefits (Appeal): Attribute that
resonates with customers, differentiates from
competition; Benefit explains why this is important
to you the consumer.
Execution Style: How the ad is put together;
humor, music, celebrities, style, etc. What does
this ad look like and feel like?
Attributes and Appeal (Benefits)
Attribute
APPEAL
(Benefit)
“Powerade’s new line has been reformulated to
combine the scientific benefits of sports drinks with B
vitamins and to speed up energy metabolism.” So?
“So, you’ll satisfy your thirst with a great-tasting drink
that will power you throughout the day.”
Common Appeals
 Health and
fitness Subway
 Love or romance
Allstate
 Fear
 Admiration
 Fun and pleasure
 Vanity
 Egoism
 Environmental
consciousness
 Social
responsibility
 Show the need or
problem Theraflu
 Others…
Execution Style
 Scientific
 Slice of life
 Demonstration
Samsonite
 Mood or image
 Lifestyle
 Testimonial
UPS-Explanation
 Humorous (most
popular execution style)
 Fantasy
 Musical
 Real or animated
product symbols
Career Builder
Bridgestone
Media Channels
Traditional Media
 Newspapers
 Magazines
 Radio
 TV
 Outdoor
 Internet
Alternative Media
 Shopping carts
 Screen savers
 DVDs/Video Games
 Mobile phone ads
 Blogs
 Tweets
 Stealth marketing
 Buzz marketing
www.bzzagent.com
Media Selection Considerations
Cost per
Contact
Reach
Impression
Frequency
Audience
Selectivity
The cost of reaching one
member of the target market. Usually
measured as CPM, or cost per 1000
contacts.
The percent of a potential audience
exposed to advertising one or more times
during a given period.
A single instance of an advertisement
being delivered to and seen by an audience
member. Usually expressed
as thousands (000).
The number of times an individual is
exposed to a message during a time
period.
The ability of an advertising medium to
reach a precisely defined market.
Example

Audience of kite boarders
– 1000 total in the country

Advertise in “Kite Boarders Today Magazine”
– Circulation= 750 paid subscriptions
– Monthly publication

New kite company places a one page ad for 12 months,
costs $1000 per ad
–
–
–
–
Reach (monthly) = 75%
Frequency = 12 x per year (or 1x per month)
Impressions = 750
If 200 subscribers passed the magazine along to someone
else, impressions would increase to 950
– CPM = ($1000/750) * 1000 = $1,333.00 to reach 1000 people
(see below)
Vogue Color Rates
1 pg
3 pg
6 pg
9 pg
12 pg
4-Color:
1 page
151,133
146,599
143,576
139,042
134,508
2/3 page
114,862
111,416
109,119
105,673
102,227
1/2 page
102,028
98,967
96,927
93,866
90,805
1/3 page
68,011
65,971
64,610
62,570
60,530
1/6 page
33,994
32,974
32,294
31,274
30,255
18 pg
24 pg
30 pg
36 pg
48 pg
131,486
128,463
126,952
125,440
122,418
2/3 page
99,930
97,633
96,484
95,335
93,038
1/2 page
88,764
86,724
85,704
84,683
82,643
1/3 page
59,170
57,809
57,129
56,449
4-Color:
1 page
55,089
A.B.C. 6-30-09 (6 mos. aver.)
Total
Subs
1,298,480
923,730
Average non-analyzed non-paid
circulation (not incl. above):
Paid Subs
871,470
Verif Subs
52,260
Single
374,750
…
Assoc
W.N.Cen.
62,865
Canada
70,390
S.Atl.
241,651
Foreign
56,304
E.S.Cen.
53,582
Other
3,073
Total 42,391
TERRITORIAL DISTRIBUTION Mar/09–1,481,975
N.Eng.
Mid.Atl.
80,904
251,446
W.S.Cen.
Mtn.St.
123,333
85,376
Paid Advertising Rate Base:
1,200,000.
E.N.Cen.
159,860
Pac.St.
293,191
People Color Rates
4-Color:
1 page
2/3 page
1/2 page
1/3 page
Regular
Issues
Special
Issues I
Special
Issues II
274,800
234,150
185,510
125,970
287,960
246,050
194,670
131,940
296,170
253,500
200,080
135,780
World's
Most
Beautiful
303,650
259,990
205,490
139,510
Regular Issues–Rate base: 1,725,000.
Special Issues I–Rate base: 1,800,000.
Special Issues II–Rate base: 1,850,000.
World's Most Beautiful–Rate base: 1,900,000.
Year End–Rate base: 2,100,000.
Year
End
335,050
286,600
226,580
153,570
2009 Upfront Ad Rates
Sports Illustrated Color Rates
1 ti
4-Color:
1 page
352,800
4 columns
472,300
2/3 page
294,000
1/2 page
247,000
1/2 page (h) spread
458,600
1/3 page
158,800
Rates include bleed.
7. COVERS
1 ti
4-Color:
2nd cover spread
811,400
3rd cover
388,100
4th cover
458,600
Comparing Magazines: Which is the better buy?
Time Magazine
Newsweek
Magazine
Per page cost
$156,000
$144,000
Circulation
4 million
3.1 million
Calculation of
CPM
(156,000/
4,000,000)x1000
(144,000/
3,100,000)x1000
CPM
$39.00
$46.45
CPM=Cost of ad per circulation x 1000
Media Scheduling
Continuous
Media Schedule
Advertising is run steadily
throughout the period.
Flighted
Media Schedule
Advertising is run heavily every
other month or every two weeks.
Pulsing
Media Schedule
Advertising combines continuous
scheduling with flighting.
Seasonal
Media Schedule
Advertising is run only when the
product is likely to be used.
Media Scheduling
continuous
Scheduling:
flighted
pulsing
seasonal
Winter
Spring
Summer
Fall
Sample Media Schedule for Video Game