advertising agencies and their functions why do i need their help?
TRANSCRIPT
Advertising Agencies and Advertising Agencies and their Functionstheir Functions
Why do I need their help?
Why Employ an Advertising Why Employ an Advertising Agency?Agency?
Specialized Services and Help i.e., professionals
Negotiation Skills with the Media
Coordination of Advertising and Marketing Efforts
What are the Negatives of What are the Negatives of Going Outside the Firm for Ad Going Outside the Firm for Ad Support?Support?
lack of control small company size may yield neglect agencies can be inefficient in buying
media agencies are often compensated through
a commission system the rewards high cost purchases
Role of the Advertising Role of the Advertising AgencyAgency
creative services media services research services account management
Agency CompensationAgency Compensation
Commissions from Media Purchases 15% initially can be lowered to
10% after first $10 million is spent
Hourly Fees Markups on Cost of
Services and Media
Media FunctionsMedia Functions Media Planners
perform strategic functions: when, where, frequency
Media Buyers negotiate best prices, keep up to date
info on audience profiles availability and costs researched
Vehicles vs. MediaVehicles vs. Media Media
general channels of communication
i.e., newspapers, magazines, TV, radio
Vehicles specific placement
choices i.e., Roseanne, ER,
Seinfeld, Vogue, NPR programming
Major Media CategoriesMajor Media Categories
TV Radio Newspapers Magazines Out-of-Home
The Print MediaThe Print Media
Why Should I Spend My Money Here?
What Are My Options?What Are My Options?
Magazines examples: Good Housekeeping, Time, Life
Newspapers Local: The Tennessean National: The Wall Street Journal
Magazines- AdvantagesMagazines- Advantages Flexibility in readership- regional, national
interest areas Color - excellent reproduction of high quality Authority and Credibility - can include alot of
information as well as glitter Permanence - longest shelf life of all outlets Prestige - image of the magazine rubs off on
the product!
More AdvantagesMore Advantages Audience Selectivity - most targeted option
available to marketers Selling Power - results have been
documented Cost Efficiency - minimized wasted coverage Reader Loyalty Pass-Along Circulation
Magazines - DisadvantagesMagazines - Disadvantages Inability to deliver
mass audiences Long Lead Times Clutter High CPM Declining Circulations Frequency Problems Shallow Geographic
Coverage
Circulation FactorsCirculation Factors
Guaranteed Circulation - number expect to circulate
Primary Circulation - number people buy through subscription or newsstand
Secondary or Pass along - give it away!
CirculationCirculation
Paid Circulation must pay the subscription price to receive
the magazine Controlled Circulation
receive if can have an influential role for the advertised products
Newspaper AdvertisingNewspaper Advertising
Pros Mass Medium Comprehensive Scope Geographic
Selectivity Timeliness Credibility Selective Attention Creative Flexibility Active Medium
Cons Lack of Selectivity Short Life Span Low Production
Quality Clutter Must pay for preferred
position to guarantee placement
Overlapping Circulation
Types of Newspaper AdsTypes of Newspaper Ads Display Advertising
includes copy, illustrations, photographs, graphics, etc.
Classified Ads copy only
Co-op Advertising share responsibility
between channel members
Public Notices Preprinted Inserts
sales promotions, coupons, contests, etc.
Out-of-HomeOut-of-Home
Oldest Form of Advertising - often referred to as ‘outdoor advertising’
Delivery Modes include: billboards, blimps, transit ads, etc.
Expenditures are approaching $1.7 billion
BillboardsBillboards Pros
Poster Panels vs. Painted Bulletins
Panels are silk screened - ranging in size from 6’2” by 12’’2” to 12’3” by 24’6”
Painteds- directly painted and leased for 1-3 years
broad reach/high frequency
Geographic Flexibility Low CPM Can be a last
reminder for products like fast food, shopping venues, etc.
product identification is easy!
Out-of-Home NegativesOut-of-Home Negatives
nonselectivity minimal exposure time difficulty in measuring audience environmental concerns limited use of copy
The Broadcast MediumsThe Broadcast Mediums
Television cable network National vs. Local
Radio FM AM National vs. Local
TelevisionTelevision Broadcast TV (Network) - 1100 Stations
UHF VHF
Cable TV Examples: BET, CNN, MTV, superstations
Who’s Advertising Here? Proctor and Gamble GM, Philip Morris
Television AdvantagesTelevision Advantages reach the masses can be both local or
national most dramatic form of
advertising best suited for
products that require demonstration or stimulation of emotion
More TV AdvantagesMore TV Advantages Prestige
highly visible firms use this medium Impact
immediacy, demos, sound and color interaction
Creativity Some Selectivity Low Cost
Disadvantages of TVDisadvantages of TV
Very High Cost of Production Media Time at a Premium Selectivity and targeting Difficult Brevity of Message Clutter Zipping and Zapping
Pros and Cons of Cable TVPros and Cons of Cable TV
Selectivity Younger, more
affluence audience, more innovative
Very low cost Flexibility
time for infomercials
Testability
Limited Reach Fragmentation Quality Zipping and
Zapping
Types of TV Types of TV AdvertisementsAdvertisements Network Advertising
4 major networks, erosion of audiences convenient and efficient coverage can buy spots , participations or sponsor
Cable Advertising interconnect for regional coverage syndicated programs, infomercials
Local TV Spots
How Do I Buy TV?How Do I Buy TV?
Dayparts decide on the time of day to air commercial viewing highest during primetime must choose vehicle
Dayparts Daytime 9 a.m. - 4 p.m.. Late Fringe 11:00p.m. - 1:00 a.m. Remainder Early Fringe
RadioRadio Who Listens? 96% of
U.S. population Youth the greatest
audience! Often a distraction or
background noise
FM or AM AM audiences growing
faster than FM Talk Radio!
Pros and Cons of RadioPros and Cons of Radio Image Transfer Selectivity Cost Efficient Timely Medium Geographically
Flexible Reach and Frequency
listen average 3x a day
No Visuals! Segmented
Audiences over Stations with Similar Formats
Distraction Clutter Push Button!
Buying Radio TimeBuying Radio Time
Networks lack of flexibility and choice of stations national coverage
Local Radio spots: live or taped local personalities can assist in credibility Dayparts: Morning and Evening Drive
Time Desirable (6-10 a.m.; 3-7 p.m.)
Interactive Advertising MediaInteractive Advertising Media
Entails reciprocal behavior
CD-Rom Virtual Reality The Internet Interactive 800
numbers Kiosks
Alternatives for the Alternatives for the Interactive SoulInteractive Soul CD-Rom - limited by households with the
PC capability great for tourism Virtual Reality - can visualize the
product and its demonstration in 3D Internet - growing access to the WEB -
can promote products, catalogs, firms here to catch surfers