When business is good it pays to

advertise;

when business is bad you got to

advertise.

ADVERTISING

Advertising says to people,

'Here's what we've got.

Here's what it will do for you.

Here's how to get it.

-Leo Burnett

Meaning

Advertising is any paid form of non personal

presentation and promotion of ideas, goods or

services by an identified sponsor.

It is our job to make women unhappy

with what they have.

B. Earl Puckett

Advertising

• Mass communication tool

• Essentially paid by identified sponsor

• Key strategic input in brand building & image creation

• Significant role in awareness creation & attitude

formation

• Various organisation set ups

• Institutional set up

Institutional set up

Government

Industry Structure

Competition

Advertiser

Research agencies

Advertising Agency

Media

Advertising Spends & Trends

Advertising Spends

• 32% growth in the 1st quarter of 2010 (TV, Newspaper, Magazine together)

• Highest in 12 major markets in Asia Pacific region

• April 09- March 10 – 26% growth (YOY)

– Newspapers : 30%

– TV : 26%

– Magazines : 7%

– Others (radio, outdoor, cinema) : 28%

Source – A C Nielson Study cited in www.afaqs.com

Major categories (advertisers)

2009• Services• Food & beverages• Personal care/ hygiene• Banking / finance/

investment• Education

2010 • Telecom• Insurance • Social issues

Ad spends in India

21380

22758

20500

21000

21500

22000

22500

23000

Ad Spends2008 2009 EstimatedIn Cr.

Source - Zenithoptimedia Annual Media Report

TV41%

Outdoor7%

Newspapers

40%

Internet2%

Magazines6%

Cinema1%

Radio3%

Source - Zenithoptimedia Annual Media Report

Across

Various

media

Across Various Media

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

2009 Estimated

In Cr.

Source - Zenithoptimedia Annual Media Report

The Five Ms of Advertising

• Mission

– What are the advertising objectives

• Money

– How much can be spent?

• Message

– what message should be sent?

• Media

– What media should be used?

• Measurement

– How should the results be evaluated?

Developing & Managing

Advertising Program

Setting the advertising objectives

An advertising goal/ objective is a specific communication task

and achievement level to be accomplished with a specific

audience in a specific period of time.

Can be classified according to their aim is to-

– Inform

– Persuade

– Remind

– Reinforce

•DAGMAR (Defining Advertising Goals for Measured Advertising Results)

I know half the money I spend on advertising is

wasted, but I can never find out which half.

John Wanamaker

Deciding on the advertising budget

Methods

• Percent of sales

• Affordability

• Competitive Parity

• Objectives and Task

Factors to be considered

• Stage in PLC

• Markets share and consumer base

• Competition and clutter

• Advertising frequency

• Product substitutability

What you say in advertising is more

important than how you say it.

-David Ogilvy

Choosing the advertising message

• Message Generation

• Message evaluation ad

selection

• Message execution

• Social responsibility review

The truth isn't the truth until people believe you, and

they can't believe you if they don't know what you're

saying, and they can't know what you're saying if they

don't listen to you, and they won't listen to you if you're

not interesting, and

you won't be interesting unless

you say things imaginatively, originally, freshly.

-Leo Burnett

Media Selection

Media selection is finding the most cost-effective media to deliver the desired number and type of exposures to the target audience

•Media Class

•Media vehicle

•Media option

•Scheduling & timing• Flighting

• Continuous

• Pulsing

– Road block

Nobody counts the number of ads you run;

they just remember the impression you make.

William Bernbach

Media Selection

• Reach (R)

– the number of different persons or households exposed to a particular media schedule at least once during a specified time period

• Frequency (F)

– the number of times within the specified time period that an average person or household is exposed to the message

• Impact (I)

– This is the qualitative value of an exposure through a given medium.

• Total number of exposure (E) = Reach X Frequency

– GRP – TV

– OTS - Print

Choosing among various media types

• Target audience media habits

• Product characteristics

• Message characteristics

• Cost

Allocating Budgets

Selecting specific vehicles

Deciding on media timing

Deciding on geographical allocation

Evaluating advertising effectiveness

• Communication effect research

– Seeks to determine whether an ad is

communicating effectively

– Called copy testing

• Sales effect research

The philosophy behind much advertising is based on

the old observation

that every man is really two men

- the man he is

and

the man he wants to be

.- William Feather