Role Value Of Advertising

by Bernhard Adriaensens on Nov 02, 2009

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La publicité est un outil de l’économie. C’est celui qui est le plus souvent critiqué. Par les consommateurs qui prétendent assez facilement que la publicité n’exerce aucune influence sur leurs choix de consommation. Par les gouvernements et partis politiques qui désirent soit la contrôler, soit la taxer ou qui voudraient quelles soient très efficaces lorsqu’il s’agit de “vendre” leurs idées, leurs programmes ou leur image.
Oui, la publicité joue un rôle important dans l’économie. Et, ce plus particulièrement en temps de crise car elle est l’un des rares moteurs qui peuvent remettre en marché le système économique.
Pour ces raisons et pour bien d’autres, nous vous invitons à prendre connaissance du dossier Power Point réalisé par la Fédération Mondiale des Annonceurs.
Vous ne regarderez plus jamais la publicité comme vous l’avez fait jusqu’à présent.
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© 2009 - Best Of Marketing - http://www.bestofmarketing.com - Bernhard Adriaensens – Consultant et Conférencier International en Marketing et Management

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Role Value Of Advertising — Presentation Transcript

The role and value of advertising What advertising CANNOT do Why do companies advertise? What are the benefits to society? What is the consumer benefit? Contributions of the marketing industry What does advertising do? www.valueofadvertising.org

What does advertising do? The process Main Menu

Awareness

Knowledge Preference Purchase “ I remember that brand” “ I understand what they are offering me” “ I am going to try it out/buy it again” Main Menu The desired response: “ I choose this over the competitor” based on emotional/rational benefits

Why do companies advertise? The process Main Menu

Awareness

Knowledge Preference Purchase Establish our brand name Communicate proposition attributes Establish point of difference versus competition Advertiser objectives: Main Menu

What is the consumer benefit? Everyone advertises Better value proposition Accountability Consumer choice Main Menu

Advertising promotes choice Main Menu Cons. benefit menu Taste Preferences Price Quality Convenience

Accountability Main Menu Cons. benefit menu Ingersoll Rand’s Kryptonite brand replaced 380,000 bike-locks after impregnable promise was shattered by a man and his pen. Source: USA Today, 18 September 2004

Better value proposition Main Menu Cons. benefit menu When bans on advertising were lifted in some US states, prices of eyeglasses fell by 30% to 40% thanks to public awareness and competition. Source: D. Carlton and J. Perloff, Modern Industrial Organization , 1989

Everyone advertises! Main Menu Cons. benefit menu The top 100 marketers account for only 20% of all media ad expenditure. Source: AdAge, 21st Annual Global Marketers, 19 November 2007; WARC, World Advertising Trends 2007 Local businesses, not-for-profit organisations, even individuals use advertising…in the classifieds, when distributing fliers for an event, or when selling products on eBay.

What are the benefits to society? Creativity and creative values Sports and Culture Job Creation Media pluralism Innovation Intangible assets Economic growth Main Menu

Main Menu Societal benefits menu Economic Growth

Intangible Assets Main Menu Societal benefits menu On average, the brand constitutes 30% of the stock-market value of listed companies. Source: Milward Brown Optimor. BrandZ: Top 100 Most Powerful Brands, 2007, pp. 3 & 26

Job Creation Societal Benefits Menu Main Menu US advertising plays a key role in generating 18.2 million of the 126.7 million jobs. Source: Lawrence R. Klein, The Role of Advertising in America , 1999 Societal benefits menu

Innovation Main Menu Societal benefits menu MP3 technology was invented in Germany, but developed and brought to market in the US.

Media pluralism On average, newspapers and magazines rely on advertising revenue for over 50% of their earnings. Source: SEO Economisch Onderzoek-Univ of Amsterdam, Het economische belang van reclame , Centrum voor Merk en Communicatie, 2006, pp. iii & 52 Main Menu Societal benefits menu

Main Menu “ No advertising at the Olympic Games but no games without advertising” Michael Payne (IOC Marketing Director 1983-2004) Sports and culture Societal benefits menu

Creativity and creative values Main Menu Societal benefits menu Henri de Toulouse-Lautrec was an ad guy.

What advertising CANNOT do Main Menu

Convince citizens against their better judgment

Deliver success for an unwanted or poor quality proposition.

“ Research shows that 75% of new product launches fail”: nothing kills a bad product like good advertising. Source: AMR Research Report, 23 June 2005

Ignore societal expectations of responsible advertising reflected in self-regulation codes

Contributions of the marketing industry Sustainable development Social marketing Teaching A model of responsible self regulation Main Menu

Advertising is the agent of social marketing, which can raise awareness, inspire action and save lives. Many national governments are among the largest advertisers. For internal use only: do not reproduce For internal use only: do not reproduce

Procter & Gamble’s Ariel consumers in the UK are twice as likely as the average consumer to reduce their wash temperature to 30 ° since the launch of the Ariel Cool Clean UK Campaign. Sources: ‘P&G Urges Business Leaders to Follow Green Path’, Brand Republic, 26 February 2008; P&G information: www.scienceinthebox.com/en_UK/programs/Cool_savings.html For internal use only: do not reproduce For internal use only: do not reproduce

A model of effective and responsible industry self-regulation Contrib. of marketing menu

Recognised as a model system of self-regulation for other commercial sectors.

Main Menu

Teaching media literacy: Media Smart Contrib. of marketing menu Main Menu Materials are used in 20,000 schools across Europe, reaching 3 million students.

Role Value Of Advertising

by Bernhard Adriaensens on Nov 02, 2009

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Role Value Of Advertising — Presentation Transcript