Marketing Essentials: Advertising and Paid Media

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This session provides attendees with an opportunity to gain an understanding of the components of effective advertising and paid media campaigns; how to evaluate various types of media; learn advertising industry terminology; examine emerging advertising issues in traditional and new media, plus examples and rationales of common practices. All types of media will be explored and analyzed including, but not limited to, television, radio, magazine, newspaper, outdoor and the Internet.

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Marketing Essentials: Advertising and Paid Media

  1. 1. Marketing Essentials WEEK 2 Advertising
  2. 2. 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, Ad Industry Pioneer, 1891-1971
  3. 3. AdvertisingExpand your Definition of Media Paid Owned Earned
  4. 4. AdvertisingExpand your Definition of Media Paid Owned Earned Advertising Blog Public Relations Email Reviews Packaging Word of Mouth Social Media
  5. 5. AdvertisingPaid Media / Advertising Formats• Print – Magazines / Newspapers• Broadcast – TV / Radio• Digital – Web / Mobile• Out Of Home (OOH) - Billboards / Transit• Other – Free Standing Insert (FSI) / Direct
  6. 6. AdvertisingAdvertising Terminology• CPM• CPA/CPC• CPP• CTR• Impression• Frequency vs. Reach• Avails• Roadblock• GeoFencing
  7. 7. AdvertisingAdvertising Terminology• CPM - Cost per Thousand (Impressions)• CPA - Cost per Action• CPC - Cost per Click• CPP - Cost per Point (Gross Ratings Point)• CTR - Click Thru Rate• Impression - Ad viewed once by a visitor ordisplayed once on a web page
  8. 8. AdvertisingAdvertising Terminology Frequency vs. Reach• Frequency - the number of times an ad unitoccurs in a specific amount of time (how often?)• Reach - the total number of different people orhouseholds exposed, at least once, to an admedium during a given period of time(how many?)
  9. 9. AdvertisingAdvertising Terminology• Avails - An ad availability spot; a time periodthat is available for the insertion of a mediasegment such as an available 30 secondadvertising spot.
  10. 10. AdvertisingAdvertising Terminology• Roadblock - buying all of the ad impressionsfor a specific web page or section of a site forspecific period of time, providing a form ofexclusivity to the advertiser. The Roadblock guarantees an advertisers branding exposure for that page/section and also prevents competitors from sharing the content space.
  11. 11. AdvertisingAdvertising Terminology
  12. 12. AdvertisingAdvertising Terminology• Geo-Fencing - a virtual boundary around aphysical geographical space(i.e. - event, retail store, booth) Commonly used in mobile advertising to trigger the delivery or eligibility to receive notifications or ads based on the location of a device.
  13. 13. AdvertisingAdvertising ObjectiveDefine exactly what you want the advertising toaccomplish… Do you want the advertising to get people to: Think? Feel? Do something? A combination of the three?
  14. 14. AdvertisingAdvertising Objective What’s the most important task for your advertising?Is it to encourage an emotional connection withthe brand?To challenge or offer an incentive to re-appraisethe brand, give the product another try?
  15. 15. AdvertisingAdvertising Objective What’s the most important task for your advertising?Is it to convince an audience that yourproduct/service delivers better value for themoney?To get consumers to change their usagepatterns, to try your product instead of whatthey always buy?
  16. 16. AdvertisingAdvertising ObjectiveYou will get the best return on your advertisingspend by getting your message in front of yourcustomers during the decision-making andbuying cycle.
  17. 17. AdvertisingIdentify the Proper Media Channels• Define your Audience• Review your Competitors• Set your Budget
  18. 18. AdvertisingDefine Your Audience
  19. 19. AdvertisingDefine Your AudienceDemographics • Age • Gender • Location • Education Level • Marital Status • Income • Ethnicity
  20. 20. AdvertisingDefine Your Audience• What are their media consumption habits?• What are their expectations and aspirations?• What are their priorities?• How much disposable income do they have?• What are their buying habits?• Are they likely to have children?• How many vacations do they take each year?• How much money do they give to charity?• How can you help them?
  21. 21. AdvertisingDefine Your AudienceCommonly used market research methods:• Sales analysis and buying patterns• Questionnaires• Web/Social Media statistics• Focus Groups• Face-to-face interviews• Specialist Market Research Companies
  22. 22. AdvertisingDefine Your AudiencePsychographics: Attitudes / Values / Lifestyles / Opinions• How will the customer approach the purchasedecision?• Is it high or low involvement?• Rational or Emotional?• Are they looking for security? A thrill?
  23. 23. AdvertisingIdentify the Proper Media Channels• Define your Audience• Review your Competitors• Set your Budget
  24. 24. AdvertisingReview Your Competitors’ Media Strategy• What channels do they use?• How often? (Frequency)• What message are they delivering?• What new outlets are emerging?• How will your company/brand be positioned inthe marketplace?
  25. 25. AdvertisingCreate Your Positioning Statement• Who is your brand?• What is your business or industry?• Who is your target audience?• What are their needs and/or problems?• Who are your competitors?• What is your key/unique benefit ordifferentiator over your competitors?• Why should your target audience believe youcan deliver the benefits?
  26. 26. AdvertisingCreate Your Positioning Statement• What is your key/unique benefit ordifferentiator over your competitors? Your position defines your competitors. Your competitors define your position.
  27. 27. AdvertisingCreate Your Positioning Statement - TemplateFor (target audience), (brand) is the (category)that delivers (benefit/point of difference) by(reason to believe).
  28. 28. AdvertisingCreate Your Positioning Statement - ExampleFor upscale American families, Volvo is thefamily automobile that offers maximum safety.
  29. 29. AdvertisingDefine Your Positioning Statement - ExampleFor healthy, proactive preventers, 25-40, whowant to do as much for the health of theirmouth as possible, Listerine is the germ killingmouthwash brand that gives you the confidence of a cleaner, healthier mouth, because Listerinehas been clinically proven to kill the germs thatcause gingivitis.
  30. 30. AdvertisingIdentify the Proper Media Channels• Define your Audience• Review your Competitors• Set your Budget
  31. 31. AdvertisingSetting your Advertising Budget• Fixed Percentage of Sales• Competition Based• Objective/Task Based• Maximum Amount Available
  32. 32. AdvertisingSetting your Advertising Budget Fixed Percentage of Sales• LY gross sales (or avg. sales for the past fewyears), then allocate a specific percentage• Common is 2% to 5% of annual revenues. $300,000 sales = $6,000 - $15,000 ad budget
  33. 33. AdvertisingSetting your Advertising Budget Fixed Percentage of SalesPROS: Easy to understand and safe; keeps yourbudget in relation to sales volume -- the verything advertising is attempting to drive.CONS: Based on past performance -- can’tcapitalize on shifts in the business climate orcustomer trends; assumes that sales aredirectly related to advertising -- other factorsaffect your sales.
  34. 34. AdvertisingSetting your Advertising Budget Competition Based• Adopt an “Industry Average” for ad budgets Auto = less than 1% Retail = 2.5% Service = 3.5% CPG = 8% - 10% Pharmaceutical = 20%• Trade Associations / Publications
  35. 35. AdvertisingSetting your Advertising Budget Competition BasedPROS: Easy for companies with predictable salespatterns.CONS: assumes the industry average applies toALL businesses in the marketplace; ignores localmarket forces -- missed opportunities toincrease market share.
  36. 36. AdvertisingSetting your Advertising Budget Objective/Task Based• Set specific marketing objectives and decideon the tasks required to meet those objectives.(Ex: Increase out-of-state clients by 5%)• Determine your budget by estimating the costsof carrying out those tasks; prioritize if youcan’t afford to fund all of your ideas.
  37. 37. AdvertisingSetting your Advertising Budget Objective/Task BasedPROS: Accurate -- ties the use of funds directlyto the tasks you want to accomplish; if properlyexecuted, advertising becomes an investment,not an expense. By spending whatever isneeded, the company may grow at a faster rate.CONS: If your advertising campaign fails, it canbe costly -- very difficult to recoup expenses ona bad promotion.
  38. 38. AdvertisingSetting your Advertising Budget Maximum Amount Available• Set aside just enough money to sustain thebusiness (and yourself) and spend the rest onadvertising• Common with start-ups and fast growthbusinesses
  39. 39. AdvertisingSetting your Advertising Budget Maximum Amount AvailablePROS: Rapid growthCONS: Risky, unless you have deep pockets
  40. 40. AdvertisingMedia BuyingFirms: OMD, Carat, Zenith, Tempus, InitiativeAd Sales Reps: Print, TV, Radio, Online
  41. 41. AdvertisingEvaluation• How will you track sales?• How will you link sales to advertising?• Who in your company will do that? Branding focused campaigns are not easy to directly link to sales
  42. 42. AdvertisingConclusion
  43. 43. Advertising “Doing business without advertising is like winking at a girl in the dark. You know what you’re doing, but nobody else does.” ~ Stuart Henderson Britt
  44. 44. AdvertisingResourceswww.Adweek.comwww.AdAge.comwww.Clickz.com (online)www.MarketingProfs.com (online)www.MediaPost.comwww.ThinkLA.com (Southern California)www.DOmedia.com (OOH Marketplace)

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