Term ppr for broadcast

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Term ppr for broadcast

  1. 1. TERM PAPER “FUTURE OF ONLINE ADVERTISING” BROADCAST MEDIA GROUP MEMBERS: AMINAH JAHANGIR KHAN FATIMA ZAHID SIDRA ARSHAD ZAREEN KHAN HURIYA KHALID BUTT MUSHAYADA ABDUL RAUF BS-SS (UMT)
  2. 2. Advertising is the act or practice of calling public attention to one's product, service, need, etc., especially by paid announcements in newspapers and magazines, over radio or television, on billboards, etc.: t o get more cust omers by advert ising. However, the effectiveness of an internet advertising campaign is only as good as the ads. A powerful ad is one of the most important aspects of your success. And, the secret to a successful ad is your HEADLINE. You only have a split second to grab your targets attention. Your potential customer will most likely scan the ads and only read one if it catches their attention. Write your ads with passion, excitement, and benefits. Use this powerful approach when creating your ad copy. A -Attention -Grab your targets attention I -Interest -Create curiosity D -Detail -Provide details A -Action -Call for action Create an urgency to act now. Creating a successful ad will take a great deal of time and effort. You'll need to write it and re-write it over and over again before you come up with a great ad. For instance, we all know the importance of a powerful headline. However, writing a great headline isn't as easy as it sounds. An effective headline will literally force your potential customers to learn more. It will instantly ignite a certain emotion and intrigue them to read on. In order to write an effective headline, you must learn how to use specific words to achieve a specific reaction. Before writing your headline, you must first learn a little bit about the basic human motivators. According to psychologist Abraham Maslow, human behavior is always the result of one or more of five basic needs. He listed these needs in a sequence that he refers to as "the hierarchy of human needs." Until a less important need is met there won't be any desire to pursue a more important need. Below are the five human motivators, beginning with the basic needs and continuing to the most important needs. Physiological - Basic human needs include hunger, thirst, shelter, clothing and sex. Safety (Security) - Human need for physical, emotional and financial security. Social (Affiliation)- Human need for love, affection, companionship and acceptance. Esteem (Self Esteem) - Human need for achievement, recognition, attention and respect.
  3. 3. Self-actualization - Human need to reach their full potential. When you are aware of the basic human needs, you can incorporate these needs into your writing. A great headline will appeal to your potential customers' emotions. You must feel their needs, wants and desires and write your headlines with passion and emotion. When writing your headlines, keep in mind, you only have a few seconds to grab your potential customers' attention. If your headline doesn't immediately catch their attention, they'll simply move on and never return. Below are several different formulas used by professional copywriters to write compelling headlines. The term online advertising is simply a term that relates to advertising over the Internet. In practice if you can find the best terms and phrases that people search for who are interested in your goods and services that is what online advertising is all about. Once you have done that online advertising works best if the pages that these people go to have action areas highlighted so that your visitors know exactly how to purchase the products or services that you are offering. Simple isn't it? Of course at all times your website should be all about helping your prospective customers find what they are looking for, so put yourself in their shoes when you look at your site and imagine if you have met their desires. If you make your site easy to navigate and full of exactly what your prospective customers want then, and only then, will they have any interest in what you are selling. The facts remain that in order consider online advertising for your web or non web business you have to be ready to figure out how much you are ready and happy to pay for each lead. For those of you who are unsure if online advertising programs even work just open a pay per click account with Google, or Bing (they handle Yahoo ads too) and see what that does for your business. This is the only way to see how valuable keyword based search engine traffic can be. You will not be sorry! Online advertising works! Online Advertising will exceed $242 billion dollars by 2014. That may seem like a lot but keep in mind that total advertising is forecasted to hit $564 billion by the year 2014. That means that online advertising will represent just over 40% of total advertising, up from about 14% of total advertising this year. This trend is undeniable as more and more people get their information, entertain themselves, and buy goods and services online. This is great news for Google and Yahoo and Bing, not so great news for your less and less favorite television stations, particularly these mega cable news networks who are having a hard time selling their ad space. If I told you your revenues would increase by 42% per year for the next three years what would you think? Well that is exactly what will happen in the online advertising space over the next three years for our friends over at Google. How can online advertising help my small business?
  4. 4. Online advertising is so flexible that even small businesses can afford to look into it. Where else can you track leads per advertising keyword? Where else can you track the cost per lead? Where else can you track the dollar cost per sale? Only online advertising allows you to select the keywords for your online advertising campaign and track the effectiveness of each and every keyword in terms of sales and revenues. Send us an email to info @ onlineadvertising.net and we will help you get started asap. Having your web site advertised on a search engine is important when you know recent findings on the habits of search engine users. Researchers at Pennsylvania State University found that: 1) 80% of users typically visit only the first three results from a search query. 2) 54% of the users views only one page of results in each keyword search session. 3) 19% of the users view the second page of search engine results, and less than. 4) 10% looked at the third page of search engine results. How can we be sure that online advertising works? According to market research sources, search engines outperform all other online advertising media in driving visitors to web sites. Moreover, consumers are five times more likely to purchase products after seeing search listings versus banner advertising. In fact, statistics show the following: 1) 77% of Internet users employ search engines more frequently than any other online advertising media, surpassing banner ads, Web links, and e-mail links as the leading tool for discovering information about a product or service. 2) 84% of Internet users who are online four or more hours each day reported they use search engines frequently to discover Web sites and find products or services. 3) 55% of Internet users are more likely to purchase online after seeing search listings versus 9% for banner advertising. Is the Online Advertising industry shrinking, or is it growing at a reduced rate? Growth in online advertising is back and getting stronger every day -- the recession in online advertising is over, according to e Marketer. Search engine keyword based marketing, like Google Ad Words, is still growing at double digit growth rates,
  5. 5. and per click revenues are increasing too. More and more business people understand the power and simplicity of search engine marketing and how online advertising benefits their business (in terms of sales). So yes the world economy is growing again, ever so slightly, however online advertising (specifically search) continues to grow at a healthy pace. The world of online advertising can be divided into a several different advertising options. These options are not exclusively the only areas from which to choose, however they represent the most popular areas within the online advertising menu. And they are: 1. search engine advertising: more than 60% of the total spent last year in online advertising. This relates to keyword based search engine optimization and paid advertising via pay per click campaigns. The three biggest sources of this type of advertising are Google, Yahoo, and Bing (MSN). There are plenty of additional smaller online search advertising options but these three are the best of the best and each one has a pay per click advertising interface that is simple to use. Just in case you are wondering the big three search engines represent 98% of the entire search advertising market. Get it correct with the big three search engines and you are getting it right with 98% of your keyword based search audience. The great thing about search engines is that they make it so easy to purchase traffic. In fact online advertising has now become as easy as click, setup, and pay. All you need to do is select the appropriate keyword(s) for your service offerings, select the geographic region you want to represent, and away you go. Note that search advertising is paid per visitor so if your ad is not clicked on you pay nothing. How would you like to buy a billboard on the road that you only pay for when someone calls you. Experts refer to this type of online advertising as an outstanding deal. Even Google will give you free credit card processing for all the goods you sell online providing you are purchasing traffic from them and providing your ROI (return on investment)is less than or equal to 1,000 percent. Even Google thinks you should be able to make ten times your online advertising spend in total revenues. That speaks volumes about online advertising right there. 2. display ads: 21% of the total online advertising last year and falling fast. Banner or contextual advertising is less popular, but still working well. Here you rent space on a web site and if you get lots of visitors to your site great since you pay for the space and not for the visitors. This is a great way to advertise. 3. classified advertising: 17% of all spending last year or just over $4 billion dollars spent on classified advertising. So next time you say classifieds are not for your company or service offering you better think again. In terms of dollars spent last year classifieds came in at roughly one third of the amount spent on keyword based search. Classified ads run at a cost per space and not for visitors directed to
  6. 6. your website so again you are paying per thousand page impressions whether people click on your ad or not. 4. lead generation: 6% of all advertising spending last year, or over $1.4 billion dollars. It is interesting to see Google use lead generation in some cases since we all know Google is getting short end of the stick on their paid keyword based advertising (per click). How do we know that? Well if I am a company and I spend $1 to make $3 from traditional advertising (TV, radio, newspaper) and now I am spending money with Google to the tune of $1 for each $9 in revenues then it stands to reason that Google is getting the sorry end of the stick compared to the cost of traditional advertising. Some argue this is exactly why keyword based search advertising is destined to grow. 5. rich media: 4% of all spending last year or almost $1 billion dollars. This sort of relates to display ads, except that these ads are video targeted and most networks know that the targeting aspect alone will improve conversion rates. In advertising the better the targeting the higher value and the greater the advertising revenues. Could this be why Google bought you tube for over $1.5 billion dollars? 6. email: holding on at 2% of total online advertising last year. Hard to believe email advertising accounted for $500 million dollars in revenues last year. That is a lot of money spent on email advertising. Why is search online advertising valuable to you? Search online advertising brings keyword based search traffic to your door. Keyword based search brings exactly your targeted audience to your ad message. Technology experts predict that more and more people will access the Internet at a higher speed than ever before and this added speed makes getting audio or video news and information simple and fast. Keyword based video advertising will get increasingly popular as the cost of broadcasting that video over the Internet falls and as more and more people can see that video clearly (as a result of increasing access speeds). How neat would that be if we could see a video of the product or service before we actually bought it, or see the people behind the company that sell us that "catalytic converter". Online advertising via video feeds to your cell phone from live or recorded messages are only a moment away. Technology is moving so fast even the online advertising industry can barely come up with applications that meet the changing (and better)Internet technologies. The future of online advertising looks bright and very exciting to be sure. It is up to you to make sure you understand the changes that are taking place and up to you to become part of the online advertising boom.
  7. 7. How can you make online advertising easy to understand? Online advertising is made easy by the search engines. Put it this way, if you can read then you can get your product or service on any of the big three search engines in less than ten minutes. All you have to do is open an account at Google or MSN and away you go. It doesn't get any easier than that. They have experts who help you every step of the way, and quite frankly their advert ising programs are so user friendly it is incredible. Online advertising has never been so easy. You are the key to your own Internet Advertising success. Just head over to Google Ad words or Microsoft Advertising and away you go. You and your business will not regret your efforts to understand and apply search engine marketing. Advertising Agency An advertising agency or ad agency is a service business dedicated to creating, planning and handling advertising (and sometimes other forms of promotion) for its clients. An ad agency is independent from the client and provides an outside point of view to the effort of selling the client's products or services. An agency can also handle overall marketing and branding strategies and sales promotions for its clients. Typical ad agency clients include businesses and corporations, non-profit organizations and government agencies. Agencies may be hired to produce an advertising campaign. Types of advertising agencies Ad agencies come in all sizes and include everything from one or two-person shops (which rely mostly on freelance talent to perform most functions), small to medium sized agencies, large independents such as SMART and multi-national, multi- agency conglomeratesLimited-Service Advertising Agencies Some advertising agencies limit the amount and kind of service they offer. Such agencies usually offer only one or two of the basic services. For example, although some agencies that specialize in "creative" also offer strategic advertising planning service, their basic interest is in the creation of advertising. Similarly, some "media- buying services" offer media planning service but concentrate on media buying, placement, and billing. When the advertiser chooses to use limited-service advertising agencies, it must assume some of the advertising planning and coordination activities that are routinely handled by the full-service advertising agency. Thus, the advertiser who uses limited-service agencies usually takes greater responsibility for the strategic planning function, gives greater strategic direction to specialist creative or media
  8. 8. agencies, and exercises greater control over the product of these specialized agencies, ensuring that their separate activities are well-ordered and -coordinated. Specialist Advertising Agencies In addition to the full-service, general-line advertising agencies, there are also agencies that specialize in particular kinds of advertising: recruitment, help-wanted, medical, classified, industrial, financial, direct-response, retail, yellow pages, theatrical/entertainment, investment, travel, and so on. Specialization occurs in such fields for a variety of reasons. Often, as in recruitment advertising, for example, specialized media or media uses are involved that require knowledge and expertise not ordinarily found in a general-line agency. In other cases, such as medical or industrial advertising, the subject is technical and requires that writers and artists have training in order to write meaningful advertising messages about it. Such specialist advertising agencies are also usually "full-service," in that they offer all the basic advertising agency services in their area of specialization plus other, peripheral advertising services related to their area of specialization. In-House Advertising Agencies Some advertisers believe that they can provide such advertising services to themselves at a lower cost than would be charged by an outside agency. Interactive agencies Int eractive agencies may differentiate themselves by offering a mix of web design/development, search engine marketing, internet advertising/marketing, or e-business/e-commerce consulting. Interactive agencies rose to prominence before the traditional advertising agencies fully embraced the Internet. Offering a wide range of services, some of the interactive agencies grew very rapidly, although some have downsized just as rapidly due to changing market conditions. Today, the most successful interactive agencies are defined as companies that provide specialized advertising and marketing services for the digital space. The digital space is defined as any multimedia-enabled electronic channel that an advertiser's message can be seen or heard from. The 'digital space' translates to the Internet, kiosks, CD-ROMs, DVDs, and lifestyle devices (iPod, PSP, and mobile). Interactive agencies function similarly to advertising agencies, although they focus solely on interactive advertising services. They deliver services such as strategy, creative, design, video, development, programming (Flash and otherwise), deployment, management, and fulfillment reporting. Often, interactive agencies
  9. 9. provide: digital lead generation, digital brand development, interactive marketing and communications strategy, rich media campaigns, interactive video brand experiences, Web 2.0 website design and development, e-learning Tools, email marketing, SEO/SEM services, PPC campaign management, content management services, web application development, and overall dat a mining & ROI assessment. The recent boost in the interactive agencies can also be attributed to the rising popularity of web-based social networking and community sites. The creation of sites such as MySpace, Facebook and YouTube have sparked market interest, as some interactive agencies have started offering personal and corporate community site development as one of their service offerings. It still may be too early to tell how agencies will use this type of marketing to monetize client ROI, but all signs point to online networking as the future of brand marketing and Interactive being the core of Brand's Communication and Marketing Strategy. Due to the social networking explosion, new types of companies are doing reputation management. This type of agency is especially important if a company needs online damage control. For example, disgruntled customers can quickly and easily damage a company's reputation via social networking sites. Reputation management companies help stem the negative information or misinformation that might proliferate in their absence. Search engine agencies Lately, pay per click (PPC) and search engine optimization (SEO)firms have been classified by some as 'agencies' because they create media and implement media purchases of text based (or image based, in some instances of search marketing) ads. This relatively young industry has been slow to adopt the term 'agency', however with the creation of ads (either text or image) and media purchases; they do technically qualify as 'advertising agencies'. Social media agencies Social media agencies specialize in promotion of brands in the various social media platforms like blogs, social networking sites, Q&A sites, discussion forums, microblogs etc. The two key services of social media agencies are:  social media marketing  online reputation management Healthcare communicationsagencies Healthcare communications agencies specialize in strategic communications and marketing services for the Healthcare and Life Science industries. These agencies
  10. 10. distinguish themselves through an understanding of the strict labeling and marketing guidelines mandated by the U.S. Food and Drug Administration (FDA) and industry group guidelines, most notably ADVAMED and PHARMA. Medical education agencies Medical education agencies specialize in creating educational content for the Healthcare and Life Science industries. These agencies typically specialize in one of two areas:  Promotional education - education and training materials tied to the promotion of a given product or therapy  Continuing medical education - accredited education and training materials created for continuing physician and medical professional education. Other agencies While not advertising agencies, ent erprise t echnologyagencies often work in tandem with advertising agencies to provide a specialized subset of services offered by some interactive agencies: Web 2.0 website design and development, Content management systems, web application development, and other intuitive technology solutions for the web, mobile devices and emerging digital platforms. The student-run advertising agency model, which mainly operates out of university classrooms or as a student groups, provides free advertising services to clients in exchange for the educational opportunity. Agency departments Creative department The people who create the actual ads form the core of an advertising agency. Modern advertising agencies usually form their copywriters and art directors into creative teams. Creative teams may be permanent partnerships or formed on a project-by-project basis. The art director and copywriter report to a creative director, usually a creative employee with several years of experience. Although copywriters have the word "write" in their job title, and art directors have the word "art", one does not necessarily write the words and the other draw the pictures; they both generate creative ideas to represent the proposition (the advertisement or campaign's key message). Once they receive the creative brief from their account team, the creative team will concept ideas to take to their creative director for feedback. This can often be a back and forth process, occurring several times before several ads are set to present to the client. Creative departments frequently work with outside design or production studios to develop and implement their
  11. 11. ideas. Creative departments may employ production artists as entry-level positions, as well as for operations and maintenance. The creative process forms the most crucial part of the advertising process. Account services Agencies appoint account executive to liase with the clients. The account executives need to be sufficiently aware of the client’s needs and desires that can be instructed to the agency’s personnel and should get approval from the clients on the agency’s recommendations to the clients. Creativity and marketing acumen are the needed area of the client service people. They work closely with the specialists in each field. The account manager will develop a creative brief, usually about a page that gives direction to the creative team. The creative brief often includes information about the target audience and their attitudes and behaviors. The creative team will take the brief and, aware of their parameters, develop original copy and graphics depending on media strategy. Media services The media services department may not be so well known, but its employees are the people who have contacts with the suppliers of various creative media. For example, they will be able to advise upon and negotiate with printers if an agency is producing flyers for a client. However, when dealing with the major media (broadcast media, outdoor, and the press), this work is usually outsourced to a media agency which can advise on media planning and is normally large enough to negotiate prices down further than a single agency or client can. They can often be restrained by the client's budget, in which, the media strategy will inform the creative team what media platform they'll be developing the ad for. Modern agencies might also have a media planning department integrated, which does all the spot's planning and placements Production Without the product ion department, the ads created by the copywriter and art director would be nothing more than words and pictures on paper. The production department, in essence, ensures the TV commercial or print ad, etc., gets produced. They are responsible for contracting external vendors (directors and production companies in the case of TV commercials; photographers and design studios in the case of the print advertising or direct mailers). Producers are involved in every aspect of a project, from the initial creative briefing through execution and delivery. In some agencies, senior producers are known as "executive producers" or "content architects".
  12. 12. Other departments and personnel In small agencies, employees may do both creative and account service work. Larger agencies attract people who specialize in one or the other, and indeed include a number of people in specialized positions: production work, Internet advertising, planning, or research, for example. An often forgotten, but integral, department within an advertising agency is traffic. The traffic department regulates the flow of work in the agency. It is typically headed by a traffic manager (or system administrator). Traffic increases an agency's efficiency and profitability through the reduction of false job starts, inappropriate job initiation, incomplete information sharing, over- and under-cost estimation and the need for media extensions. In small agencies without a dedicated traffic manager, one employee may be responsible for managing workflow, gathering cost estimates and answering the phone, for example. Large agencies may have a traffic department of five or more employees. Advertising interns are typically university juniors and seniors who are genuinely interested in and have an aptitude for advertising. Internships at advertising agencies most commonly fall into one of five areas of expertise: account services, interactive, media, public relations and traffic. University students working on the creative side can find internships as a assistant art director or assistant copywriter. An internship program in account services usually involves fundamental work within account management as well as offering exposure to other facets of the agency. The primary responsibility of this position is to assist account managers. Functions of the account management intern may include: • Research and analysis: Gathering information regarding industry, competition, customer product or service; as well as presenting findings in verbal/written form with recommendations • Involvement in internal meetings and, when appropriate, client meetings • Assisting account services in the management of creative projects Interns often take part in the internal creative process, where they may be charged with creating and managing a website as well as developing an advertising campaign. Hands on projects such as these help interns learn how strategy and well-developed marketing are essential to a sound advertising and communications plan. During their internship, the intern will experience the development of an ad, brochure and broadcast or communications project from beginning to end. During
  13. 13. the internship, the intern should be exposed to as much as possible within the agency and advertising process. ADVERTISING AGENCIES IN PAKISTAN Pak Advertising Club it would seem the top score in exposure professional working for the majority of advertising practitioners all over Pakistan http://www.pakadvertisingclub.com Location: Pakistan Ads Advertising agency AdsPlus is an advertisement and marketing company which offers among others mobile advertising http://www.adsplusonline.com Location: Karachi 4th Dimension agency 4th Dimension (Pvt)Limited is a top research based advertising and public relations consultancy in Pakistan http://www.4thdpk.com Location: Karachi Pakistan Advertising Pakistan Advertising situated in Karachi and it is the first web portal for advertising and media agencies
  14. 14. http://www.pakistanadvertising.com Location: Karachi Arrows Advertising agency Arrows Advertising (Pvt)Limited is in Lahore. it has individual advertising rights Lahore- Islamabad Motorway http://www.arrows.com.pk Location: Lahore Advertising Media Planning: A Primer 1. Introduction The two basic tasks of marketing communications are message creation and message dissemination. Media planning supports message dissemination. Media planning helps you determine which media to use--be it television programs, newspapers, bus-stop posters, in-store displays, banner ads on the Web, or a flyer on Facebook. It also tells you when and where to use media in order to reach your desired audience. Simply put, media planning refers to the process of selecting media time and space to disseminate advertising messages in order to accomplish marketing objectives. When advertisers run commercials during the Super Bowl game at more than $2.5 million per thirty-second spot, for example, media planners are involved in the negotiation and placement. Media planners often see their role from a brand contact perspective. Instead of focusing solely on what medium is used for message dissemination, media planners also pay attention to how to create and manage brand contact. Brand contact is any planned and unplanned form of exposure to and interaction with a product or service. For example, when you see an ad for Volkswagen on TV, hear a Mazda's "zoom zoom" slogan on the radio, are told by a friend that her iPod is the greatest invention, or sample a a new flavor of Piranha energy drink at the grocery store, you are having a brand contact. Television commercials, radio ads, and product sampling are planned forms of brand contact. Word of mouth is an unplanned brand contact -- advertisers normally do not plan for word of mouth. From the consumer's perspective, however, unplanned forms of brand contact may be more influential because they are less suspicious compared to advertising.
  15. 15. The brand contact perspective shows how the role of media planners has expanded. First, media planners have moved from focusing only on traditional media to integrating traditional media and new media. New media -- cable and satellite television, satellite radio, business-to-business e-media, consumer Internet, movie screen advertising and videogame advertising -- is playing an increasingly significant role. Spending on new advertising media is forecast to grow at a compound annual rate of 16.9 percent from 2005-2009, reaching $68.62 billion by 2009, while traditional media advertising is expected to rise only 4.2 percent on a compound annual basis during the same period to $192.28 billion. Second, media planners are making more use of product placements now, in lieu of advertising insertions. Advertising insertions, like print ads or television commercials, are made separately from the content and are inserted into it. The ads are distinct from the articles or TV programs, not a part of them. As a result, the ads seem intrusive. In contrast, product placement (also called brand placement or branded entertainment)blends product information with the content itself. Whether content is a television program, movie, video game or other form of entertainment, product placement puts the brand message into the entertainment content. For example, in the movie E.T., the extraterrestrial eats Reese's Pieces candy. The candy was authentically integrated into the movie ?and sales of Reese's Pieces soared 80% after the movie, catapulting the new product to mainstream status. On the other hand, inappropriate or excessive product placements may do more harm than good to the brand. Finally, the role of media planners has expanded as media planners have moved beyond planned messages to take advantage of unplanned messages as well. Whereas planned messages are what advertisers initiate -- like an ad, press release or sales promotion -- unplanned messages are often initiated by people and organizations other than advertisers themselves. Word of mouth, both online and offline, is one form of unplanned message. Although advertisers have little direct control over the flow of unplanned messages, they can facilitate such a flow. For example, advertising agency Crispin Porter + Bogusky (CP+B) created a viral marketing mascot, the Subservient Chicken, for Burger King to illustrate its slogan "Have It Your Way." Visitors to the www.subservientchicken.com site can ask the chicken to make a move, such as jump, dance or lay an egg. In the first two weeks after the site's launch, the Subservient Chicken story appeared on 63 broadcast segments, including five separate segments in television shows unplanned success.Within months, the site had generated 426 million hits from 15 million unique visitors averaging six minutes per session. Many visitors learned about the site through word of mouth, both online and offline. More recently, specialized agencies have started to hire word of mouth agents to work for advertisers on a fee basis. Initial research suggests that many consumers react positively to this kind of word of mouth communication. For example, Rock Bottom brew pub chain,
  16. 16. reported a 76% jump in 2003 revenues after hired gun Bzz-Agent launched a 13- week word of mouth campaign employing 1,073 of its "agents" to get the word out. These new approaches have altered how media planning works in the advertising process. "Seven years ago media was the last five minutes of the presentation. Now it's reversed," said Rishad Tobaccowala of Publicis Groupe Media, whose fast - growing Starcom division helps clients buy and measure interactive, mobile, and gaming ads.Media planners are playing an increasingly important role in today's advertising industry because of the continuing proliferation of new media options and the increased complexity of media and audience research. 2. Media Objectives How is a media plan developed? Media planning is a four-step process which consists of 1) setting media objectives in light of marketing and advertising objectives, 2) developing a media strategy for implementing media objectives, 3) designing media tactics for realizing media strategy, and 4) proposing procedures for evaluating the effectiveness of the media plan. Let's take a look at the planning process through an example: P&G's launch of the Gillette Fusion shaving system for men in early 2006. First, P&G's media objectives called for a $200 million media blitz to reach men in the U.S. Second, P&G's strategy included a mix of national media to introduce the brands. For example, television advertising, such as a $5 million Super Bowl ad campaign, portrayed Fusion as an advanced technology found in a secret government UFO lab. The TV ads also established the brand's signature orange and blue color scheme. In store aisles, 180,000 display units promoted Fusion, using the brand's colors to catch consumers' attention. "We're trying to put the product wherever men shop," said Pauline Munroe, marketing director for blades and razors in P&G's Gillette business unit. Third, P&G's media tactics -- such as a Father's Day sweepstakes, an episode of NBC's The Apprent ice in which the show's teams competed to promote the razor, and sponsorship of competitive surfing -- helped the company reach men of all ages. "Fusion will get so much attention that it will drive a lot of men to try these grooming products," said Gary Stibel of New England Consulting Group. Finally, P&G used sales and market share targets to assess the effectiveness of the media plan. P&G expects sales of Fusion to reach $1 billion in sales by year three.[ P&G knows that the brand has already achieved 25% market share in the U.S. Thus, although $200 million seems like a lot to spend on advertising a new product, it represents a sound financial investment toward the tremendous future profit that P&G will gain from the new shaving system.
  17. 17. Now, let's take a deeper look into the media planning process. Media planning, such as planning the marketing communications for the launch of the Fusion new shaving system, starts with setting media objectives. Media objectives usually consist of two key components: target audience and communication goals. The target audience component of the media objectives defines who is the intended target of the campaign. For example, P&G's target audience objective for its Fusion shaving system was men 18-40 years old. The communications goals component of the media objectives defines how many of the audience the campaign intends to reach and how many times it will reach them. In short, media objectives are a series of statements that specify what exactly the media plan intends to accomplish. The objectives represent the most important goals of brand message dissemination, and they are the concrete steps to accomplish marketing objectives. The next two sections (2.1. and 2.2.) provide details on target audience and communication goals. You'll learn about sources of data to use to identify your target audience. You'll also learn how to quantifycommunication plans. 2.1. Target Audience The first objective of a media plan is to select the target audience: the people whom the media plan attempts to influence through various forms of brand contact. Because media objectives are subordinate to marketing and advertising objectives, it is essential to understand how the target audience is defined in the marketing and advertising objectives. The definition may or may not be exactly the same, depending on the marketing and advertising objectives and strategies. A common marketing objective is to increase sales by a specific amount. But this marketing objective does not specify a target audience, which is why the media objective is needed. Consider Kellogg's Corn Flakes and all the different strategies the advertiser could use to increase sales among different target audiences. For example, one target audience might be current customers -- encouraging people who eat one bowl a day to also "munch" the cereal as a snack. Or, the advertiser might target competitors' customers, encouraging them to switch brands. Or, the advertiser might target young adults who are shifting from high sugar "kids cereals" to more adult breakfast fare. Finally, the advertiser could target a broader lower- income demographic. The point is that each campaign could increase sales via a different target audience. Marketers analyze the market situation to identifythe potential avenues for boosting sales increase and consider how advertising might achieve those aims. If the advertiser chooses to attract competitors' customers -- like what Sprint does to attract users of other wireless services -- the media plan will need to define the target audience to be brand switchers and will then identify reasons to give those
  18. 18. potential switchers to switch, such as greater convenience, lower cost, or additional plan features. For example, in 2006 Sprint Nextel ran an ad campaign urging consumers to switch to Sprint because "no one has a more powerful network." 2.1.1 Demographics and Psychographics The target audience is often defined in terms of demographics and psychographics. Syndicated research services such as Simmons Market Research Bureau (SMRB or Simmons) and Mediamark Research Inc. (MRI)provide national data on a number of demographicsof U.S. consumers, including gender, age, education, household income, marital status, employment status, type of residence, and number of children in the household. Using demographic variables, for example, the target audience of a media plan could be "individuals who are 26-to-45 years old with yearly household income of $50,000 or more" or "all households with children age 3 years or younger." Some advertisers believe that demographic definitions of a target audience are too ambiguous, because individual consumers that fit such definitions can be quite different in terms of their brand preference and purchase behavior. For example, think about the students in a media planning class. Even though some of them are the same age and gender, they may like different brands of toothpaste, shampoo, cereal, clothing, and other products. Therefore, media planners use psychographics to refine the definition of the target audience. Psychographics is a generic term for consumers' personality traits (serious, funny, conservative), beliefs and attitudes about social issues (opinions about abortion, environment, globalization), personal interests (music, sports, movie going), and shopping orientations (recreational shoppers, price-sensitive shoppers, convenience shoppers). Mazda, for example, doesn't define its target audience by age, income or gender, but by psychographic principles. Mazda targets people who have a need for self-expression, are young at heart, and love to drive. One psychographic system which media planners often use is called VALS (short for Values And LifestyleS), which was developed by SRI in the 1980s. VALS places U.S. adult consumers into one of eight segments based on their responses to the VALS questionnaire. The eight segments are: Innovators, Thinkers, Achievers, Experiencers, Believers, Strivers, Makers and Survivors. Each segment has a unique set of psychological characteristics. For example, Innovators are "successful, sophisticated, take-charge people with high self-esteem. Because they have such abundant resources, they exhibit all three primary motivations in varying degrees. They are change leaders and are the most receptive to new ideas and technologies. Innovators are very active consumers, and their purchases reflect cultivated tastes for upscale, niche products and services’’. Defining a target
  19. 19. audience by psychographic variables helps not only creative directors with the development of advertising appeals but also media planners with the selection of effective media channels. If a psychographic group of consumers likes playing golf, for example, they are likely to read golf-related magazines and visit golf-related Web sites. 2.1.2. Generational Cohorts In addition to demographics and psychographics, generational cohort is another useful concept for selecting the target audience. Because the members of a particular generational cohort are likely to have had similar experiences during their formative years, they maintain analogous social views, attitudes, and values. Generational cohorts in the U.S. are the Baby Boomers (about 70 million people born 1945-1964), Generation X (about 17 million people born in 1965-1978), and Generation Y (about 60 million people born between 1979 and 1994). Each of the cohorts possesses distinct characteristics in their lifestyles and often serves as a reference group from which finer segments of the target audiences can be selected for specific advertising campaigns. An interesting example of a generational cohort is "kogals" in Japan. Originating from the world for "high school," kogals are a unique segment of young women in urban Japan who conspicuously display their disposable incomes through unique tastes in fashion, music, and social activity. They have the leisure time to invent new ways of using electronic gadgets. For example, they started changing mobile phones' ring tones from boring beeps to various popular songs and changing screen savers from dull defaults to cute pictures. Manufacturers observe kogals and listen to what they say is unsatisfactory about the products. In some cases, manufacturers simply imitate the new usages that kogals spontaneously invented and incorporate these usages part of their own new commercial services, thereby increasing sales. 2.1.3. Product and Brand Usage Target audiences can also be more precisely defined by their consumption behavior. Product usage includes both brand usage (the use of a specific brand such as Special K cereal or Dove soap) and cat egory usage (the use of a product category such as facial tissue or chewing gum). Product use commonly has four levels: heavy users, medium users, light users and non-users. The levels of use depend on the type of product. For example, Simmons defines heavy domestic beer users as those who consume five or more cans in the past 30 days, medium beer users as those who consumer two to four cans, and light users as those who consume one can in 30 days. For travel, Simmons' definitions are: three foreign trips per year indicate heavy travel users, 2 foreign trips per year are medium travel
  20. 20. users, and 1 trip per year are light travel users. There is a popular saying in the industry: "the twenty percent who are heavy users account for eighty percent of the sales of a product." This highlights the importance of heavy users for a brand's performance. Examples of defining a target audience by product usage can be "individuals who dine out at least four times in a month" or "individuals who made domestic trips twice or more last year." Similarly, brand usage has several categories. Brand loyals are those who use the same brand all the time. Primary users use a brand most of the time but occasionally also use other brands in the same category; they are secondary users for these competing brands. Brand switchers are those who have no brand preference for a given product category but choose a brand on the basis of situational factors. An analysis of the brand usage pattern is helpful for the identification of the appropriate target audience. Simmons and MRI offer brand usage data for many national brands. 2.1.4. Primary and Secondary Target Audience The target audience in a media plan can be either primary or secondary. A primary target audience is one that plays a major role in purchase decisions, while a secondary target audience plays a less decisive role. In the case of video game players, for example, children's requests often initiate a purchase process; parents often respect their children's brand selection. Thus, it is reasonable to consider children as the primary target audience and their parents as the secondary target audience. If the parents are aware of the advertised brand, it will be easier for children to convince them of the purchase. Media planners need to examine and identify the role of consumers in shopping, buying and consuming a product or service to target the right groups of consumers effectively. 2.1.5. The Size of Target Audiences In the process of defining a target audience, media planners often examine and specify the actual size of a target audience -- how many people or households fit the definition. Knowing the actual size helps advertisers to estimate the potential buying power of the target audience. For example, if the target audience of a campaign is defined as working women 26-to-44 years old who are interested in receiving daily news updates on their mobile phones, media planners should estimate the number of these women in the U.S. to quantifythe sales potential. As another example, if the target audience consists of 2,000,000 households in the U.S. and each household purchases the brand two times a month, the monthly sales would be 4,000,000 units. The U.S. Census Bureau provides the most authoritative data about demographics of the U.S. population by state. Whereas the U.S. Census provides demographic data, market research services such as
  21. 21. Simmons and MRI provide demographic data that is linked to product data. This means that media planners can get information about consumers of hundreds of product types. 2.2. Communication Goals After media planners define the target audience for a media plan, they set communication goals: to what degree the target audience must be exposed to (and interact with)brand messages in order to achieve advertising and marketing objectives. For example, one communication goal can be that 75 percent of the target audience will see the brand in television commercials at least once during a period of three months. Another communication goal is that 25 percent of the target audience will form a preference for a new brand in the first month of the brand launch. The different communication goals can be better understood in a hierarchy of advertising objectives, such as Bill Harvey's expansion of an earlier model of Advertising Research Foundation (ARF). The expanded ARF model has ten levels, as shown in Figure 1. The first three levels of goals from the bottom -- vehicle distribution, vehicle exposure, and advertising exposure -- are particularly relevant for media planning. Vehicle dist ribution refers to the coverage of a media vehicle, such as the number of copies that a magazine or newspaper issue has, or the number of households that can tune in to a given television channel. Vehicle exposure refers to the number of individuals exposed to the media vehicle, such as the number of people who read a magazine or watched a television program. Advert ising exposure refers to the number of individuals exposed an ad or a commercial itself. It is important to note the difference between vehicle exposure and advertising exposure for many media with editorial content. For example, not all audience members of a television program will watch all the commercials interspersed in the program. A study shows that only 68 percent of television audiences watch the commercials in television programs.Vehicle exposure represents only an opportunity to see an ad, not necessarily that the ad has actually been seen. In reality, advertising exposure is rarely measured, and media planners use vehicle exposure as a proxy measure of advertising exposure. Another group of communication goals is advertising recall, advertising persuasion, leads and sales. Advert ising recall represents the cognitive effect of the ad, advert ising persuasion represents the emotional effect of the ad, and leads and sales are the behavioral effects of the ad. Each can be specified in a media plan as a communication goal. For example, a communication goal can specify that 50% of the target audience will recall the radio ad during the month of the campaign, or that a campaign will generate 3000 leads.
  22. 22. Challenges in Measuring Online Advertising Systems Online advertising supports many Internet services, such as search, email, and social networks. At the same time, there are widespread concerns about the privacy loss associated with user targeting. Yet, very little is publicly known about how ad networks operate, especially with regard to how they use user information to target users. This paper takes a first principled look at measurement methodologies for ad networks. It proposes new metrics that are robust to the high levels of noise inherent in ad distribution, identifies measurement pitfalls and artifacts, and provides mitigation strategies. It also presents an analysis of how three different classes of advertising — search, contextual, and social networks. Online advertising is a key economic driver in the Internet economy, funding a wide variety of websites and services. At the same time, ad networks gather a great deal of user information, for instance users’ search histories, web browsing behaviors, online social networking profiles, and mobile locations. As a result, there are widespread concerns about loss of user privacy. In spite of all this, very little is publicly known about how ad networks use user information. to target ads to users. For instance, Google recently started allowing advertisers to target ads based not just on keywords and demographics, but on user interests as well Knowing how well Google and others are able to determine user characteristics is an important consideration in the ongoing public debate about user privacy. If an ad network is able to accurately target users, we can deduce that the ad network is able to determine user characteristics (though the inverse does not follow). Given then the goal of determining how well ad networks can target users, the high-level methodology is straightforward. Create two clients that emulate different values of a given user characteristic (i.e. location or gender), and then measure whether the two clients receive different sets of ads as a result. If the ads are identical, we can trivially conclude the ad network doesn’t use that user characteristic for targeting (although it might still be storing the data). But the outcome is unclearif the two sets are different: the difference may genuinely be due to the difference in characteristic, or it may be due to noise. As it turns out, the level of noise in measuring ads isextremely high. Even queries launched simultaneously from two identically configured clients on the same subnet can produce wildly different ads over multiple timescales. As we show later, some of this noise is systemic (e.g. DNS loadbalancing), and can therefore be eliminated through proper experiment design. Other noise has a temporal component, which likely reflects ad churn, the constant process of old ads being deactivated and new ads being activated. We design a metric that mitigates the noise from churn.
  23. 23. Overall this paper makes two contributions. First, we present the detailed design of a measurement methodology for measuring online advertising that is robust to the high levels of noise inherent in today’s systems. We present a set of guidelines for researchers that wish to study advertising systems. Second, we present an analysis of the key factors that determine ad targeting on Google and on Facebook. MEASUREMENTMETHODOLOGY In this section we present the detailed design of our measurement methodology. We face four key challenges: 1) comparing individual ads, 2) collecting a representative snapshot of ads, 3) quantifying differences between snapshots while being robust to noise, and 4) avoiding measurement artifacts. The methodology we design applies to text-ads in any context including ads in search results, contextual ads on webpages and webmail systems, and ads on online social networking pages; additionally, many qualitative aspects of our design may also apply to banner ads. The problem is hard because ad networks typically do not reveal the unique ID for the ad (except for Facebook), and some (like Bing) even go so far as to obfuscate or encrypt parameters in the click URL denying scraping based measurement approaches any visibility into internal parameters. The only data available consistently across ad networks is the content of the ad, and even there the extensive abilities to customize it (e.g. for Google), makes it hard to identify different instances of the same ad. Since slight variations of the same ad defeat simple equality tests, heuristics must be used and their false positive and false negative behavior must be understood. False negatives have the effect of over-counting the number of unique ads and in the process, increasing noise. False positives, on the other hand do not increase noise, but undercount the number of unique ads. In this paper we perform all analysis relative to a control experiment (affected equally by false positives or negatives)to mitigate the effect of overcounting or under-counting. This leaves added noise (for false negatives)as the only ifferentiating factor. In this paper we therefore use the display URL, which has significantly lower false negatives and slightly higher false positives, to compute uniqueness of ads. Website ads have typically been based on the context of the page and are hence also known as contextual advertising. We ask here to what extent the user’s location affects the choice of ads, and to what extent the user’s behavior (browsing behavior, recent searches, and recent clicks on products) affects website ads. We measure a set of 15 websites that show Google ads; the websites are picked randomly from the set of websites visited by CoDeeN users. While we are able to answer the location question, we are able to present only weak evidence towards the lack of use of behavioral data due to noise.
  24. 24. We have presented the first principled and robust methodology for measurement - based studies of online ad networks. We also inform the ongoing privacy debate regarding what user data is used today for targeting search ads, contextual ads, and ads on online social networks. Like most measurement studies, however, this analysis is a snapshot in time. Moving forwards, we hope that the methodology we have developed can continue to be used to broaden our knowledge of online advertising as well as to track trends in the future. However, online advertising might fail due to several reasons, The problem is not the medium, the problem is the message, and the fact that it is not trusted, not wanted, and not needed. The internet is the most liberating of all mass media developed to date. It is participatory, like swapping stories around a campfire or attending a renaissance fair. It is not meant solely to push content, in one direction, to a captive audience, the way movies or traditional network television did. It provides the greatest array of entertainment and information, on any subject, with any degree of formality, on demand. And it is the best and the most trusted source of commercial product information on cost, selection, availability, and suitability, using community content, professional reviews and peer reviews.  Consumers do not trust advertising. Dan Ariely has demonstrated that messages attributed to a commercial source have much lower credibility and much lower impact on the perception of product quality than the same message attributed to a rating service.Forrester Research has completed studies that show that advertising and company sponsored blogs are the least -trusted source of information on products and services, while recommendations from friends and online reviews from customers are the highest.  Consumers do not want to view advertising. Think of watching network TV news and remember that the commercials on all the major networks are as closely synchronized as possible. Why? If network executives believed we all wanted to see the ads they would be staggered, so that users could channel surf to view the ads; ads are synchronized so that users cannot channel surf to avoid the ads.  And mostly consumers do not need advertising. My own research suggests that consumers behave as if they get much of their information about product offerings from the internet, through independent professional rating sites like dpreview.com or community content rating services like Ratebeer.com or TripAdvisor. Most brands and their media agencies have missed the trend of online video and social media marketing completely. They keep discussing the fragmented media
  25. 25. landscape and how difficult it is to reach modern consumers. If they would simply look at consumers behavior they would just switch their media mixes towards online and the problem would be solved. The sheer volume of Web sites has grown so overwhelming that an increasing number of consumers—not just those in their 20s—are adopting multipurpose tools to help them manage and personalize the vast amount of data thrown at them every day. The mainstream adoption of online social networks such as Facebook and MySpace and personalized home pages such as iGoogle and Netvibes reflects attempts by consumers to make the Web more manageable. This new mindset, not surprisingly, also holds for the way in which the audience is willing to engage with ads. Advertisers, many of which have only just begun shoveling more of their marketing dollars into promotional banners and boxes on Web sites, had better heed this shift sooner than later. Some Web trends prove to be fads, of course. But when hordes of consumers start shifting from one technology to another, it's a good bet "old" marketing strategies will grow less effective. Until recently, the whole thesis of online marketing has been that ads need to be propagated across thousands of Web sites so that users see them, click on them, and visit advertisers' sites. But nowadays, there are several problems with this approach. One is that users are not as willing to leave the site they're using to visit an advertiser's site. Although the economic downturn may be playing a role, it's worth noting that Google and Yahoo! (YHOO)both recently reported drop-offs in their click-through rates. Advertisers and consumers have played a game of cat and mouse for years. As we've learned from the ongoing upheaval in the entertainment industry, online advertisers have to adapt their approach to match consumer behavior, or risk irrelevance. They need to move beyond glorified billboards and deliver useful, engaging applications people will want to use and share.

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