Term
| The Business of Advertising |
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Definition
| Agencies get all the credit. The ad iceberg. Above the water = the agencies (all people see). Below the water = the suppliers, media, and advertisers. |
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| Those that contribute specialized services to get advertising produced. Includes printers, film/video production houses, market research firms, web designers, photographers, etc. (Behind the scenes.) |
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Definition
Based on our modern definition of advertising, advertisers need media channels.
- Print (newspapers, magazines)
- Electronic ( TV, cable, radio)
- Digital Interactive (Internet, mobile)
- Out-of-the-Home (outdoor, transit)
- Direct mail
- Promotional Products |
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Definition
| Local, regional, national, multinational, global. Advertising done In-house, outsourced, or hybrid. |
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Definition
| Company might have a marketing department, but still hires an advertising agency |
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| Who spends the most on advertising? |
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Definition
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| Top Advertising Categories |
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Definition
- Automotive
- Personal Care (+ 13.9 %)
- Food (+ 14.1 %)
- Entertainment & Media
- Drugs
- Computers & Electronics
- Retail (+ 16.9 %)
- Restaurants
- Soft-Drinks
- Cleaners (+ 20.9 %) |
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Term
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Definition
| A glamour business? The advertising agency is an independent organization of creative types and business folks who specialize in developing and preparing marketing and advertising plans, ads, and promotional tools. |
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Term
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Definition
- There are hundreds of agencies in the U.S. Most are large holding agencies owned by 6 large holding companies
- Range from local – international
- Range from full-service – specialized (boutique agencies specialize in 1 area.)
- Range from 1 to many product types. |
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Definition
- Offer outside, objective perspective
- Have close connections with suppliers
- Media expertise saves client time and $.
- Advertisers only use agencies out of self interest – agencies pay for themselves. |
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Definition
One of the most important aspects of Agency life.
- Pitch = a “new business” presentation
- Clients put their accounts into “review”
- They invite agencies to bid for the account
- Agencies invest a lot of time and $ into the Pitch. |
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- McCann Erickson (holding company – Interpublic)
- BBDO (Holding Company – Omnicom)
- J. Walter Thompson (Holding company – WPP)
- Young & Republican
- DDB (Omnicom)
- Ogilvy & Mather (WWP) |
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Definition
- Omnicom
- WPP
- Interpublic (started in 1960)
- Publicis Groupe
- Dentsu
- Havas |
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Term
| Advantages of Holding Companies |
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Definition
- One stop shop (PR, sports marketing, branding, event marketing, multicultural, stand-alone agencies)
- Can handle a lot of competing accounts
- More creative talent.
- All sources to draw from |
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Term
| Top U.S. Independent Agencies |
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Definition
| Doner, Richards Group, Wieden & Kennedy |
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Term
| The top 3 minorities have ____% of total US buying power |
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Definition
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| Hispanic buying power growth |
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| _____% of US population are minorities. Ad empoyment (IS/IS NOT) representative |
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Term
| Typical Jobs within the Agency |
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Definition
| Account executives, Account planners & researchers, creatives, and Media planners & buyers. |
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Term
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Definition
- Often referred to as the “AE”
- Also known as “suits”
- Link agency & Client-need to present the most professional face
- Draw up objective and goals.-strategy oriented
- Pitch new business |
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Term
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Definition
- Relatively new function (U.K. import)
- Researchers
- Very consumer focused
- Use surveys, focus groups, etc
- Usually good at strategy, research, and listening
- Conduct/analyze research to find out what the consumer wants. Makes sure it shows up in the advertising
- Involved in the whole process |
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Definition
- People who take the goals/research and turn it into creative messages (Art, music, etc)
- Typical jobs include copywriters, art directors, and creative directors.
- Win the awards-associated with glamour
- Focus on the concept rater than actually putting the ad together |
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Term
| Media Planners and Buyers |
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Definition
- Decide how best to reach the target market.
- Bulk (80 %) of ad campaign $ go to media purchases.
- Connect the agency to the media outlets |
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Term
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Definition
| Systematic gathering and analysis of information to help evaluate strategies, individual ads, and whole campaigns |
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Term
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Definition
Primary – information from another source, typically collected for another purpose (syndicated research: less expensive but less precise.)
Secondary – Information we collect to our specific question (eg: surveys, focus groups, test markets. More expensive but more precise.) |
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| Ad reaction, beliefs, persuasive interest, and behavior. |
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| Immediate feelings, credibility and meaningfulness of ads. Linked to persuasion (good/bad, meaningful/meaningless, fresh/stale.) |
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| Perceptions about the product or service in question. Were your perceptions changed? |
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Definition
| Openness to the product or service. A good predictor of behavior. Gets people wanting to heard/see more. |
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Definition
| Measured as likelihood to purchase/commit. “I’m likely to join the navy / buy this product.” |
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Neuromarketing
Measuring "engagement" |
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Term
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Definition
Does the message get across? Can you remember it afterwards? What was the main idea? What was the brand?
- Test 1: man sliding around the bases, main idea was that the deodorant protects against odor and is hardy.
- Test 2: Hairy dude in locker-room. Main idea was that it is a Manly deodorant.
- Test 3: Hair and Body wash being used by all typed of men. Main idea was that is can be used by anyone. |
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Definition
color=firing synapses
there is a direct relationship wth recall
not an easy method |
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Term
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Definition
| Tobii technology, measures what the eye is attracted to and what part of the ad people focus on by studying the movement of the eye. People tend to notice faces and people the most |
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Definition
| : Goal is to test things. Uses statistics. Tells use how much and how many. (Surveys, experimental studies, and observation. Online surveys are hot right now.) Many interviews, structured position. |
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Definition
| Goal is to get people to share thoughts and feelings with open-ended responses. Mostly focus groups and in-depth interviews. |
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Definition
- Common method of qualitative discovery
- Fewer interviews (6-12 people)
- Focus on one issue, but approached in different ways
- Lots of open-ended questions
- Moderator plays an important role
- Data is more descriptive and in depth
- Allows researchers to gain insights
- Tells us why, and in what way |
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| Problems with Focus Groups |
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Definition
| People can’t always articulate why we choose products. Anthropologists are used to better understand the consumer. Wanted to study a person for 12 hours. |
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Definition
| Must know as much as possible about target audience. Knowledge is power. Research and segmentation help you know who is most open to your persuasive message. |
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Term
| Real Estate: Location, Location, Location OR Advertising: Target Market, Target Market, Target Market |
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Definition
- Focus on those most likely to benefit from what you have to offer
- We must determine who those people are and then match them with the media they use.
- Segmentation is a tool used to determine our target market.
- 3 common ways to segment consumers (Demos, Psychos, and Usage.) |
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Definition
demographics
psychographics
usage |
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Term
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Definition
| External descriptors = ways to classify people. People are similar to those in their group. Trade off between too many descriptors an too few. |
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Term
| How to reach college students |
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Definition
Neilson: 1st time ever measured college viewers. Previously lumped into 18-24 segments.
- Cable TV is biggest winner (MTV, TBS, ESPN, Comedy Central)
- Watch a lot of TV after 11 pm / up to 30 hours a week. |
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Term
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Definition
Differentiating people based on attitudes, interests, and personality (several branches of psychology.)
- Vals: one popular psych-segmenting tool
- Based on psychological traits (motivation) and resources ($)
- Predicts preferences
- Helps us know what people do during their leisure time, what they do for entertainment, and how they express themselves.
- Rule of Thumb: don’t overemphasize psychos
- Most useful for distinctive products, not toothpaste. |
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Term
| Overall Consideration of Segmentation (demos&usage) |
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Definition
- Demographics and usage = most important
- Can have more than one target audience / influencer (Ex: Who do you target for children’s cereal? Teenager cologne?)
- Focus efforts on those who want what you have to offer. |
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Term
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Definition
| We can identify targets based on usage. High, moderate, light, no usage. Low-High to High light target. Moderate ideal. 80 % of sales come from 20 % of target audience |
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Term
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Definition
- Brand Loyal
- Primary Users (switchers)
- Secondary Users (switchers)
- Non-Users
- Emergers (newbies) |
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Term
| Marketing and Advertising Plans (minor and major benefits) |
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Definition
The plan is the Road map.
- Major Benefit: companies that use plans reach their goals make more money. When people make personal goals – they set them, achieve them, create plans, and work them. They become more successful.
- Minor Benefit: Better communication, keep focused, measurable. |
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Term
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Definition
| Come from marketing goals. Advertising objectives stem from marketing objectives. Typical Marketing objectives = increase market share, increase sales, maintain national coverage, increase sales in certain region, introduce a new product, increase revenue, reduce losses. Organizational goals → marketing goals → advertising goals. |
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Term
| 3 main parts of the advertising plan |
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Definition
- Situation Analysis: A snapshot of where we’ve been and where we are today.
- Advertising Objectives: The goals we want to achieve with media
- Strategy and Tactics: Specifies on how we are going to achieve our goals. What specific short-term actions are to be taken by whom. |
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| Common Advertising Objectives |
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Definition
- To establish 70 % top-of-mind awareness
- To maintain positive brand image
- To show how the brand solves problems
- To increase traffic to website |
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Term
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Definition
- Reach / Frequency
- Geography
- Scheduling & Timing
- Sales Promotion
- Budget |
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Definition
| is associated with each objective: informed arguments for a course of action based on research, not simple options. |
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Term
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Definition
Return on Investment.
Measuring the success of your campaign
- Old days: run ads with no accountability “I know half my advertising is wasted, I just don’t know which half.
- Today: accountability. Tight budgets, dot-com tracking, more media options. |
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Definition
- Follow-up research: surveys, interviews etc. Awareness levels, knowledge change, brand identity
- Impressions: ad in the AJC generates 500,000 each time it runs
- Ad on super-bowl generates 97 million impressions.
- Online efforts: hits, page-views, click-thru rates, # registered, posting, forwarding.
- Sales data: look at sales changes during campaign period. |
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