Advertising:
Paid mass non-person commu
Product Advertisements
Product advertisements: are
advertisements that focus on
selling a good or service and
which take three forms:
(1) pioneering (or informational),
(2) competitive (or persuasive),
and (3) reminder.
15-3
Dial Soap
What is the type and purpose of this advertisement?
15-4
Institutional Advertisements
Institutional advertisements:
are advertisements designed to
build goodwill or an image for an
organization rather than promote
a specific good or service.
15-5

Institutional Advertisements
• Advocacy
• Pioneering Institutional
• Competitive Institutional
• Reminder Institutional
15-6
Chevron and Bridgestone
What is the type and purpose of each advertisement?
https://www.facebook.com/photo.php?v=461220498290&set=vb.431744650466&type=3&theater
http://www.bridgestonetire.com/about/news/tv-commercials#
15-7
Got Milk? and U.S. Army
What is the type and purpose of each advertisement?
http://milkdelivers.org/got-milk-campaign/
15-8
World Wide Fund, Candie’s, and Geico
What is the appeal and purpose of each advertisement?
http://www.youtube.com/watch?v=kWBhP0EQ1lA
http://www.geico.com/about/commercials/#.UozzWcSfjfs
15-9
“Use facts, not fantasy. Don’t sermonize; advertise.”
“If an ad doesn’t sell, if it doesn’t ultimately ring the cash
register, it is a waste of money.”
Jeffrey Fox
Advantages:
1. Cost/contact
CPM = (cost/unit)/reach X 1000
Example:
Jay Leno: $51,000/ 30 sec
reaches 5 million
Super Bowl: $3.5 mill/ 30 sec
reaches 111 million
CPM for Leno
CPM for SB
= $ 10.20
= $ 31.50
Advantages:
1. Cost/contact
2. Repetition
Two-Factor Theory
+
Valence
-
Advantages:
1. Cost/contact
2. Repetition
3. Versatility
Advantages:
1. Cost/contact
2. Repetition
3. Versatility
4. Atmosphere
http://www.livingroomcandidate.org/commercials/1964
http://www.livingroomcandidate.org/commercials/1984
Advantages:
1. Cost/contact
2. Repetition
3. Versatility
4. Atmosphere
5. Prestige
Prestige factor is very odd:
Disadvantages:
1. Cost
Super Bowl is still $6-7 mill/ minute!!
Disadvantages:
1. Cost
2. Flexibility
Disadvantages:
1. Cost
2. Flexibility
3. Clutter
Disadvantages:
1. Cost
2. Flexibility
3. Clutter
Also a problem with repetition
Disadvantages:
1. Cost
2. Flexibility
3. Clutter
4. Credibility “Alternative Explanation”
Disadvantages:
1. Cost
2. Flexibility
3. Clutter
4. Credibility “Alternative Explanation”
5. High Waste
Disadvantages:
1. Cost
2. Flexibility
3. Clutter
4. Credibility “Alternative Explanation”
5. High Waste
6. Lack of Action
Disadvantages:
1. Cost
2. Flexibility
3. Clutter
4. Credibility “Alternative Explanation”
5. High Waste
6. Lack of Action
7. Problem measuring effectiveness
DEVELOPING THE
ADVERTISING PROGRAM
1. Identifying the
Target Audience
2. Specifying the
Advertising Objectives
3. Setting the
Advertising Budget
15-26
DEVELOPING THE
ADVERTISING PROGRAM
4. Designing the ads
Humorous appeals
Increases credibility
Increases memory
Increases likability
15-27
DEVELOPING THE
ADVERTISING PROGRAM
4. Designing the ads
Fear appeals
Protection racket
http://www.youtube.com/watch?v=ivAx1zgdWoM
15-28
DEVELOPING THE
ADVERTISING PROGRAM
4. Designing the ads
Sex appeals
Careful!
http://smallbusiness.chron.com/examplessex-appeal-advertising-works-60861.html
15-29
DEVELOPING THE
ADVERTISING PROGRAM
5. Selecting the right media
15-30
SELECTING THE RIGHT MEDIA

Basic Terms
• Reach
• Rating
• Frequency
• Gross Rating Points (GRPs)
= Reach × Frequency
• Cost per Thousand (CPM)
15-31

Factors to Consider
• Buyer Turnover
• Purchase Frequency
• Forgetting Rate
15-32
FIGURE 15-1 Television, direct mail, and
newspapers account for more than 65% of
all advertising expenditures (in $millions)
15-33
FIGURE 15-2 Advertisers must consider the
advantages and disadvantages of the many
media alternatives
15-34

Television
• Out-of-Home TV
• Online TV (OTV)
15-35

Television
• Wasted Coverage
• Cable and Satellite TV
• Infomercials
15-36

Magazines
• Regional Issues
15-37

Radio
• Satellite Radio
• Drive Times
15-38

Newspapers
• Falling Circulation & Ad Revenue
• Online and Mobile
• New Types of News Organizations
15-39

Yellow Pages
15-40

Internet
• Rich Media
• Paid Search
• Banner/Display Ads
15-41

Outdoor
• Billboards
• Transit
Advertising
15-42
FIGURE 15-A Alternative structures of
advertising agencies used to carry out the
advertising program
15-43
EXECUTING THE
ADVERTISING PROGRAM
PRETESTING THE ADVERTISING

Pretests
• Portfolio Tests
• Jury Tests
• Theater Tests
15-44

Posttests

Aided Recall

Unaided Recall

Attitude Tests

Sales Tests
15-45