GLOBAL ADVERTISING

Top Global Advertisers

Top Global Advertising Agencies

• To coordinate with the global advertiser in terms of final message creation & media selection

• To effectively construct a media schedule for the various local markets within its global network

• To communicate the global advertisements effectively into various smaller local markets

• To account for across-country variability in financial arrangements & payments

The Global Ad Agency Job

GLOBAL ADVERTISING – media advertising that is more or less uniform across many countries, often, but

not necessarily in media vehicles with global reach

Global Advertising Defined

ADVANTAGES

DISADVANTAGES

• CONSISTENCY OF BRAND COMMUNICATIONS• MEDIA SPILLOVER• COST SAVINGS• IMPROVED PRODUCTION• LEVERAGING A GREAT IDEA

• IMAGES AND SYMBOLS MIGHT NOT BE LOCALLY ACCEPTABLE • APPROPRIATE MEDIA MIGHT NOT BE AVAILABLE• PRODUCT USAGE IS NOT THE SAME• LOCAL CREATIVITY IS STIFLED

Pros and Cons of Global Advertising

SUPPLY SIDE

1) GLOBAL AD AGENCIES

2) GLOBAL MEDIA

DEMAND SIDE

3) GLOBAL CUSTOMERS

4) PREFERENCE CONVERGENCE

5) GLOBAL COMPETITORS

Drivers of Global Advertising

1. STRATEGY – Global ads involve products &services that are positioned similarly across markets, wherein the product’s appeal is consistent

2. ORGANIZATION – global ads are typically directed from headquarters with the help of advertising agencies with a global network

3. MEDIA – with global reach are used, creating spillover that crosses borders to reach customers in different countries & follows traveling customers around the globe

4. MESSAGE & CREATIVE – copy & visualization may be uniform across markets, uniformity decreases based on how different each local market is from another

Four Components of Global Advertising

• IDENTICAL ADS – ads are identical, usually with localization only in terms of language voice-over changes & simple copy translations (e.g. the Marlboro cowboy ads)

• PROTOTYPE ADVERTISING – the same ads, but the voice-over may be changed to avoid language & cultural problems, & the ad may be re-shot with local celebrities (e.g. Drakkar Noir)

• PATTERN STANDARDIZATION – similar but less structured global approach, wherein the positioning theme is unified & some alternative creative concepts are planned, but execution differs between markets (e.g. Xerox)

Global Ad Categories

• Brand Name same

• Theme same

• Visual same

• Positioning same

• Actors same

• Words same

• Language (local)

• Media same

• Materials same

• Slogan same

• Brand Name same

• Theme same

• Visual same

• Positioning same

• Actors not same

• Words not same

• Language (local)

• Media not same

• Materials not all same

• Slogan same

PROTOTYPE ADVERTISING PATTERN STANDARDIZATION

Global Ads: Same everywhere?

WEB ADS are those boxed inserts on the screen that appear as you surf the web. They are interactive in the sense that you can click on them to get more

information about the product/service.

Types of Web ads:

• Banner ads – most common, measured in pixels

• Tickers – banner ads that move across the screen

• Interstitial ads – ads that flash while a request is being handled, filling up idle loading time.

• Pop-up ads – ads that appear once a site has been loaded prior to webpage access

• Transactional ads – let you order/request something without leaving the current webpage

• Roadblocks – full screen ads that users must pass through to get to other screens

• Rich media ads – the web version of a TV commercial, with audio and motion

Web Ads Are Naturally Global

Producer/marketer/advertiser

Sets objectives and advertising budget

Mass Media

Carriesthemessage

Advertisingagency

Developsmessage(encoding)and selectsmedia

Opinionleaders,individuals

Receive themessage andinterpret(decoding)

Individuals

Think, feeland act(hierarchyof effects)

Coordinationandcontrol

Generatefeedbackon effects

Sender’s cultural setting Receiver’s cultural setting

The International Mass Communication Process

VISUAL PROCESSING

Low literacy

Younger Segments

Low Involvement products

High context societies

VERBAL PROCESSING

High Literacy

Older segments

High involvement products

Low context societies

TV commercials Magazines Newspapers Radio Ads

Cultures and Visual vs Verbal Processing

ADVERTISING EXPOSURE

AWARENESS

KNOWLEDGE

LIKING/ATTITUDE

PREFERENCE

TRIAL

REPEAT PURCHASE/LOYALTY

The Hierarchy of Effects

AWARENESS

KNOWLEDGE

ATTITUDE CHANGE & IMAGE BUILDING

INFLUENCE BEHAVIOR

TV, Radio

Words (spoken/written), Print, TV/Radio

TV, Magazines, Cinema, Outdoor Ads

Media must be timely, newspapers, TV

Matching Ad Objectives and Media

Global Advertising is Most Powerful When…

• the image communicated can be identical across countries

• the symbols used carry the same meaning across countries

• the product features desired are the same

• the usage conditions are similar across markets

Goodyear’s Latin-Am. Campaign Planning

CAUCHOS

CUBIERTAS

GOMAS

LLANTAS

NEUMATICOS

Venezuela

Argentina

Puerto Rico

Mexico, Peru, Guatemala, Colombia

Chile

What to say Where to say it

Global Tire Ads: Language pitfalls

How do you say “tire” in Latin America’s Spanish?

1. By focusing on regions, it may be possible to reap the scale benefits & cost efficiencies of global advertising without sacrificing too much on the side of local adaptation.

2. The early involvement of country subsidiaries & agency professionals not only facilitates later acceptance of unified themes but also helps broaden the sources of powerful campaign concepts.

3. The process by which pattern standardization is arrived at needs to allow open & free exchange.

4. Even when the company has operated for years in a market, research is still necessary, especially when conditions are changing.

Goodyear: Lessons for Global Advertisers

As the affluence of countries grows, new products/services appear, & customers need more information.

Advertising becomes more important and advertising expenditures as a percentage of GDP increase.

Takeaway

As markets integrate, global communications expand, & customers become more similar, pan-regional advertising campaigns will become increasingly cost-efficient & more

effective than multi-domestic advertising.

Takeaway

Instead of complete uniformity, global advertising tends to follow a pattern standardization approach with unified slogan,

visualization, & image but with local execution in terms of language, spokespersons, & copy.

This helps avoid the pitfalls of standardized & translated messages.

Takeaway

The global advertising agency is often at an advantage over local rivals when it comes to global /regional advertising.

But independent local advertising agencies have combined with others to form multinational networks & can sometimes

offer stronger local talent.

Takeaway

Developing a global campaign takes time, effort, & planning. The process should involve headquarters and ad agency

managers & local representatives whose knowledge will help formulate the global communication strategy.

Takeaway