COM 5401Advertising Production and ManagementAdvertisi.docx

COM 5401
Advertising Production and
Management
Advertising Theories: Computational advertising
Semester A 2018
© Fei Shen, City University of Hong Kong
Recap of Last Lecture
• Four empirical theories
• Balance theory (celebrity endorsement)
• Theory of planned behavior (norm pressure)
• EPPM (fear appeal)
• Elaboration Likelihood Model (detailed information vs.
shortcut)
• A Hybrid Model – FCB Grid (involvement – thinking/feeling)
• Three practical theories:
• Unique selling proposition (USP)
• Emotional selling proposition (ESP)
• Credo selling proposition (SCP)

Which theories are applied here?
The advertising industry has been
changing…
The core competitive skill sets are changing…
Our jobs are taken away bit by bit…
Changing media technology
and waning traditional media
Changing media technology
and waning traditional media
You are losing your job:
manual based editing vs. algorithm based editing

Computational advertising vs. traditional ads
Computational advertising vs. traditional ads
From promoting need arousal
to matching
Advertising is information
• “I do not regard advertising
as entertainment or an art
form, but as a medium of
information….” [David
Ogilvy, 1985]
• The transformation of
information incurs a cost.
Advertisers purchase
“attention” from audience.
Information needs matching!
From mass media to new media
• Traditional

advertising
paradigm: branding
image, spread the
message, foster
likeness.
• New media
paradigm: finding
the most matching
information for an
individual.
Quantitative perspective of
advertising research
Not all attention has
value.
“Half the money I spend
on advertising is wasted;
the trouble is I don‘t
know which half.”
John Wanamaker, 1875
• “The time has come when
advertising has in some hands
reached the status of a science.
It is based on fixed principles
and is reasonably exact. The
causes and effects have been
analyzed until they are well
understood. The correct
method of procedure have
been proved and established.

We know what is most effective,
and we act on basic law.”
Claude Hopkins, 1923
advertiser
audience
media
Mediator
Third party matcher
Matcher optimizer
Data and advertising
New skill sets needed for
ad industry
• information retrieval
• large scale textual analysis
• statistical modeling
• machine learning
• microeconomics
• game theory

• optimization
• recommendation systems
Computational Advertising
• An approach of advertising to serve the right ad in a right
context to
the right consumers on the basis of the users’ response that is
enabled by computational methods.
Computational Advertising
• Computational creative
• For example, the use of an automated design system based on
genetic algorithm to
design banner advertising (Gatarski, 2002)
• Computational Placement
• Deals with innovative applications of embedding ads in
various kinds of digital
content on the real-time user response or use information
• Contextual and behavioral placement
• User profiling through data mining
• Computational Evaluation
• Focuses on new metrics of measuring the effectiveness of
digital media advertising

• It is possible to enable real-time response, maximize the
precision, and
speed up the process.
How many online advertising
types you have seen?
Display ads
History: the oldest banner ads
• More than 20 years ago, on 27 October 27, 1994, the first
banner
went live on hotwired.com. For over four months, 44% of those
who
saw it clicked on it.
From static banners to dynamic banners – ad server
Basic terms
• Impression
• Every occurrence of an ad within the page
• CPM= cost per mille = cost per thousand impressions
• Banner ads
• Guaranteed delivery

• CPC = cost per click
• Search ads
• CPT/CPA= cost per transaction/action (advertiser perspective)
• purchasing, join membership
• Driving traffic, business model similar to ebates.com
Display ad purchasing
• Direct purchasing
• Buying ad space from media owner directly
• There is no need of programmed displaying, fast speed of
showing the ad.
• This is exactly traditional media space purchasing, no accurate
targeting.
• Guaranteed delivery
• From buying a particular space, to buying individual audience.
Targeting individual
with demographics.
• e.g., male, 20-40, interested in sports, living in California
• Usually order within a specific time range; if the target
audience size is not reached,
then could ask for compensation
• Non-Guaranteed delivery
• Usually buying from Ad networks (think about real estate
brokers)
• Optimization

Contextual matching
• Main product: Google Adsense, Microsoft: ContentAds
• Main problem: relatively low CTR (Click-Through Rate),
between
0.001-0.1%, unclear motivation of visiting the page
Display ad purchasing
Demand side platform
Ad network and Ad Exchange
• Ad network: Companies that
aggregate supply from multiple
publishers or other
intermediaries and matches it
with advertiser demand.
• Ad Exchange: Marketplace for
trading impressions between ad
networks and some large
advertisers or agencies. Think
about stock exchange.
DSP and Data Supplier
• Demand Side Platforms (DSP): technology driven optimization
for the demand providers. Help advertiser to solve the bidding

problem.
• Data Supply and aggregation: BlueKai, eXelate, Experian,
Comscore, Nielsen
Audience targeting:
Where do the data come from?
• Types of data
• Meta data: operation system
• Behavioral data: purchasing, searching, browsing, clicking
• Social network data: social media
• Targeting audience:
• Demographics
• Geographical
• Behavior
• Retargeting
• Social network
Demographics
• If we want to promote a 50k USD sports car, who do we want
to

target?
• Age, gender, income, location, interest
• Challenge: where do the data come from?
• Data provided by users: privacy concern, data error (unless
you have credit
card and logistics data)
• Model prediction based on behavioral data
Bipartite graph: help filling the blank
information when demo data is not available
Retargeting
Retargeting and cookies
• Realized through
third party cookie.
• More accurate
information from:
• Searched product
• Browsed product

• Product in your
basket but not
checked out.
Privacy issue
• algorithm privacy
• Algorithm could release personal
information and personal habit
Social network targeting
• Two types of data
• Profile attributes
• Network graph data
• Social network graph data
could be used to predict user
behavior or identity. This is
based on the concept of
homophily.
Sponsored search advertising/paid search

Search engine’s job
• Organic search results: (information driven – main products)
• Mechanism/algorithm: PageRank, Randex
• Advertising platform: (money driven)
• Mechanism: matching content, matching users, profit
maximum
Search engine ad flow
• Advertiser:
• Define keyword
• Bid keyword
• Pay
• Audience:
• Search keyword in search engine
• Search engine:
• Matching keyword with webpages
• Matching keyword with advertising
• Display webpage and advertising information
Google “travel agent”

Yahoo “travel agent”
Display URL
(destination URL)
headline
Description
Ad extentions
(location, call, etc.)
Bid phrase:
Travel agent
How search engine make decisions?
• Keyword matching
• Behavioral data matching
(bipartite graph)
Pricing
• Early period (1994): CPM based, high price, individual
negotiation, no
keyword targeting, slow update speed
• Later (1997): generalized first-price auctions, e.g., goto.com,

unstable
price
• Now: generalized second-price auctions, Google & Yahoo,
using
multiple factors for ranking ads
How much does it cost?
Intro to Bidding
Shawn Lam
related to search engine
Shawn Lam
公开竞价�
Shawn Lam
从高到低报价�
Shawn Lam
从低到高报价�

Second price auction (Vickrey)
• The highest bidder wins but the price paid is the second-
highest bid.
• For example
• Auctioning an ad space
• Bids are $50, $20, $40, and $90
• $90 bidder wins but pays $50
• This game has equilibrium: all players bid their value for the
good!
• WHY?
Proof
• Imagine you are a loser:
• Decrease your bid? Still lose and receiving nothing (no need
to change)
• Increase your bid?
• Still lose and receive nothing (no need to change)
• Win … but pay more than you value the good (no need to
change)
• Imagine your you are a winner:
• Increase bid? Still win and pay the same price (no need to
change)

• Decrease bid?
• Still win and pay second price (no need to change)
• Lose and receive nothing (no need to change)
Second price auction features
• Use dominant strategies: your honest price
• Work with incomplete information
• Compared with first price auction
• The highest bidder pays the price they submitted.
• First price auction has no pure strategy equilibrium. Bidders
need to revise
bidding price multiple times to get best output.
Do all these mean that creative
is useless and you are going to
lose your job?
Media technologies change;
the basic rules of persuasion do not.
Paradigm Shift
• Broader Integration
• Advertising, sales promotion, direct marketing, and public
relations all

integrated in online promotion
• Shifted Orientation
• Consumers prefer to initiate a brand communication process
whenever and
wherever needed – a pull approach
• Brand communications have shifted from a largely “push”
approach to a
mixed “push” and “pull” approach
• Deeper Engagement
• More than involvement; mixing cognitive, affective and
conative elements
• Consumer insights
• Sobbing marketing to happy marketing
Throw us a bone campaign
Volkswagen – the fun theory
Platform integration: Let it ring campaign
首先用戶在一個網站（上圖），介紹駕駛安全
的知識，然後提醒你可以轉發給好友。如果你

選擇給好友轉發，那麼你必須留下朋友的手機
以及Email信息。
好友會收到一封如上圖的一封EMAIL，
點擊鏈接，會跳轉到一個視頻網站的
頁面。可以看到一段駕車行進的視頻
隨著視頻進行，好友
的手機會響
當好友接起電話的時候，視頻畫面（駕車）就會撞上一個
人！緊接著畫面提醒你開車不要接手機，let it ring.
如果始終沒有接起手機，畫面結束時會恭
喜你避免了一場車禍。
Reminder
• Decide on which category for your group to develop a new
brand
• Select your two ads for the critique
COM 5401

Management
Creative method
Semester A 2018
Fei Shen, City University of Hong Kong
What we have covered
• Advertising theory
• Branding
• Creative paradigms
Today
• Rules of brainstorming
• Generic processes: how to brew ideas
• Method: Context Creation Strategy for advertising creative
(from
Dentsu)
• Practice and sharing
Group work: Rules of brainstorming

• Withhold your judgment of ideas, no idea is stupid
• Encourage wild and exaggerated ideas
• Quantity counts at this stage, not quality
• Build on the ideas put forward by others, encourage cross-
fertilization
• Every person and every idea has equal worth
• Do individual brainstorming before and after group
discussions
Getting Creative Input
Ask everyone
involved for
information!
Listen to what
people are talking
about!
Use the product
to become
familiar with it!

Read anything
related to the
product or
market!
When get stuck,
think about
“theories”.
How we organize knowledge?
• Associative Memory Network: No concept exists in vacuum.
• The more concepts attached to one single node, the more
memorable
that single node is going to be.
To reverse-engineer some ads:
How to build associations?

Context Creative Strategy
• Context branding – a method of thinking and practicing
advertising
creativity.
• Based on logic connections and meaning extension (e.g., A is
similar to B, A is
the antecedent of B, A leads to B, etc.).
• To connect brand identity with core elements (visual, audio
etc.) in
campaigns.
• To visualize ideas and concepts.
“为使能够使成为沟通上的文脉的品牌知识可视化,就需要确定品牌知识的拥有者,
将这种知识以明晰的语言
表达出来。文脉品牌构筑需要以语言化的概念作为联想的网络节点使之相联接。
这样来形容语言化概念的作
用可能被认为有夸张的嫌疑,实际上就是将联想的关键词串联在一起。”
Why Context Branding?
Product
Feature
Benefits
Value
concepts

element
s
concepts
element
s
connections
element
s
Campaign
Methodology – How?
Exercise 1 – meaning extension
Tofu
?
?
?
?
?
?

?
?
Exercise 2 – meaning extension
Juicy/Good
Smell
?
?
?
?
?
?
?
?
Exercise 3 – Multi-layered
? ?
?
Dizzy

?
?
?
?
?
?
?
?
?
?
?
?
?
1. Central concept(s) to be placed at the center of your
canvass.
2. Expand your thoughts and ideas.
3. Highlight and Visualize key breakthroughs.
4. Organize your keywords.

5. Connect selected elements and develop them
into a creative idea.
Practicing time
• A creative TVC for the following products (pick one)
• Chocolate bar
• Banking/Postal service
• Treadmill/exercise machine
• Gas station/Fuel company
• Chinese tea
• Perfume
• Steps:
• 1. Setting up a core concept
• 2. Contextual branding method – concept map
• 3. Formulating a story
• 4. Share and discuss

COM 5401
Management
Creative strategy
Semester A 2018
Housekeeping
• Topics due today; email your TAs about your topics; multiple
groups
choosing the same topic is okay.
Recapitulation
• Keys to branding
• Intangible: identity, value, image
• Need hierarchy: from functional benefits to “intangible”
satisfaction
• Coherence
• Long-term planning
From strategy to execution
• We are getting down from big pictures to concrete operations.

• Brand (big idea) first; creativity follows
Final project
• Erroneous tendencies:
• Focusing on creative tricks
• Focusing on technical details
• How to avoid it? -- image yourself to be a brand manager, not
a product
designer, or a short film director.
• Work flow:
• Branding system: the “need triangle” of your brand (we will
discuss and confirm)
• Your creative: story (we will discuss and confirm)
• Production
• Let me emphasize this again: do not start from story. You will
get a low or
even failing grade for this.
Awards
• Advertising creative awards
• Clio http://www.clioawards.com/
• Cannes http://www.canneslions.com/
• New York http://www.newyorkfestivals.com/

• London http://www.liaawards.com/
• Hong Kong Kam Fan
http://www.aaaa.com.hk/en/awards/creativeAwards/index2014.p
hp
http://www.clioawards.com/
http://www.canneslions.com/
http://www.newyorkfestivals.com/
http://www.liaawards.com/
http://www.aaaa.com.hk/en/awards/creativeAwards/index2014.p
hp
Creative Strategies? Part I
• The BASIC strategies – being employed long time ago, but
still usable today, and
effective, if well used.
• Two traditional routes: rational vs. emotional
• Sex
• Humor
• Fear
• Celebrity
• Three Bs – attention catcher (not Bach, Beethoven, and
Brahms)
Two traditional routes to take

• Ration/functional benefits – too many examples
• Emotional
• Thai insurance company
• True Move – telecommunication
• Macintosh - Crazy ones, and Apple computer advertising from
1997 to 2001
• Musashino Bank
Sex
• Gender difference: sensual and innuendo for female; graphic
for male
Sex
• Wacoal
• Toyota
• Sony PS
• Fertilizer
Humor

• People react positively to humor, welcomed, get away from
stress;
Humor peeks up interest
• The got milk campaign
• South West: Wanna get away?
• McDonald’s
• Burger King
Fear
• Successful fear appeal relate to the severity of the problem:
good match
• We have seen many examples when talking about fear appeal
theory –
EPPM.
Celebrity
• Be careful with celebrity endorsement: some times it backfires
• Not necessarily to use explicit endorsement
Testimony is reserved for unsophisticated consumers
Beauty, beast, and baby

• Evian water
• Low fat tuna – beauty and beast?
• Benz 2009
Creative Strategies Part II
• Some popular tricks of story telling – for more sophisticated
audiences
• Metaphor/Simile
• You don’t need to tell the whole story
• Unexpected/Exotic/only existing in imagination – attention
catcher
• Symbol - Simple, low cost, but powerful
• Reverse thinking/going against the trend…
• Seeking resonance from pop culture / current social situation
Metaphor/Simile
• What is a metaphor/simile?
• Tango
• Ford C-max
• Quit smoking

• DVD player
• Magic body control
You don’t need to tell the whole story
• Use implied meaning, let the audience to guess
• La Senza
Unexpected/Exotic/Strange
• Pepsi Monk
• Evian
• Pepsi ‘girl’
• Support Child Foundation
• Big Cat
The power of symbol
• Volkswagen –double-checked
• Audio- Identity

Reverse thinking
• Volkswagon Beetle – think small, DDB, 1959
Reverse thinking
• Avis – ‘we try harder’, DDB, 1963
Inspiration from culture/social ethos
• Apple 1984
• Budweiser: Wassup! 1999-2000, Grand Clio Award
Creative Strategies Part III
• Trendy tricks – with the development of technology
• Long story - not necessarily TVC
• Less thinking, more relying upon visual impacts
• Make it eventful (related to viral marketing/interactive
campaign - we will discuss
this in future lectures)
• Johnnie Walker –Fishman
• “The bouncy ball ad” – San Francisco – make an event!

Long story/short film
• Lenovo – Always online, Dentsu， 2008
• 星展银行《成就未来》， 2013
• Wechat 香港， 2013
• 益达酸甜苦辣， 2010
Long story/short film
• 益达酸甜苦辣， 2010
• BBDO Guangzhou
• Background:
• chewing gum declining
• “good for teeth” no longer works
• Consumer insights: food culture in China
• Emphasis on “necessity after meal”
• HTC strategy (habit+trust+care)
Three things to watch out for

• Culture
• Regulation
• Ethics
Next time
• Creative methods
COM 5401
Management
Branding theories
Semester A 2018
Brand stands for…?
Brand
• Burning marks onto products
• More than a name or logo now

• People start to recognize the way in which consumers were
developing relationships with their brands in a social,
psychological,
anthropological sense.
• A noun vs. a verb
From 4P to branding
• 4P - Product, price, place, promotion
• Marketers should consider how these tangible aspects of
production
and service delivery translate into the long term asset of
intangible
brand value.
• Speaking of “intangible”, think of different ad theories, and
Maslow’s
hierarchy.
Branding & Advertising
• Long term vs. Short term
• Strategy vs. Creative implementation
• Core values vs. Incarnation of values
Shawn Lam

one campaign
Shawn Lam
价值的化身�
Branding
• Process: Adding layers of meaning on a product or a series of
products.
• product/brand – (association) – meanings
• Consequence: Products reflects the essence of brand promise
or
brand vision.
Shawn Lam
把一层一层的意义赋予你的产品�
Orange is Not Orange
Think in terms of Maslow’s pyramid
Diamond is Not Diamond
Think in terms of Maslow’s pyramid
Mouse is Not Mouse

What kind of Meaning?
• Adding layers of meaning on a product or a series of products
.
• Meanings that:
• Well summarize the spirit of your product.
• Are at an abstract level.
• Could touch your audience’s heart.
• Leave room for imagination.
Brand slogan examples
• Acura: The True Definition of Luxury. Yours.
• American Airlines: Fly the American way
• American Telephone & Telegraph: Reach out and touch
someone
• Apple: Think different
• Budweiser Beer: Where there's life, there's Bud
• Esso: Put a Tiger in Your Tank
• Honda Civic: Better gas mileage. A Civic responsibility
• Kentucky Fried Chicken: Buy a bucket of chicken and have a
barrel of fun

• Martini: The right one. Any time, any place, any where
Brand Identity
• A person’s identity?
• How do I dress? How do I speak? What are my core values?
What do I
stand for? How do I want to be perceived? What personality
traits do I
want to project? What are the important relationships in my
life? e.g.,
WASP, Hippe, Yuppie, etc.
• A brand identity provides direction, purpose and meaning for
the brand.
• Heart and soul of the brand.
• “Brand identity is a unique set of brand associations that the
brand
strategist aspires to create or maintain. These associations
represent what
the brand stands for and imply a promise to customers from the
organization members.” –David A. Aaker
Brand Identity
• A classic example in the history of marketing and advertising:
• Phillip Morris, 1924, slogan “Mild as May”

• 1950s, scientists link smoking to lung cancer
• Repositioning: used images of sea captains, weightlifters, war
correspondents, construction workers and cowboy…
• “man always remember love because of romance only”
• ultimate American cowboy, masculine, macho, rough-and-
tumble
• In 1972, Marlboro became the No. 1 tobacco brand in the
world.
General Principles of Branding
• A key to developing a strong brand identity is to broaden the
brand
concept to include other dimensions and perspectives with
consistency.
• Four identity perspectives
• Brand as a product -- lower levels of needs
• Brand as organization -- intermediate levels of needs
• Brand as person: brand personality – higher levels of needs
• The brand as symbol – higher levels of needs
Brand as Product

• Association with product related attributes
• Quality/value: many brands use quality as a core identity
element
• Gillette – “the best man can get”
• Starbucks’ brand identity is based on its reputation for
providing the finest coffee in
the world with integrity.
• Associations with use occasion
• Some brands successfully attempt to own a particular use or
application,
forcing competitors to work around this reality
• Gatorade, owns the use context of athletes looking to sustain
a high level of
performance.
• Association with users
• Another tack is to position a brand by a type of user
• Harley Davison – believers in freedom, ruggedness, rebellion
• Wrangler Jeans – tough, rebellion
Shawn Lam
使用场景�
Shawn Lam
产品属性�
Shawn Lam
用户�

Brand as Organization
• The brand as organization perspective focuses on attributes of
the
organization rather than those of the product or service.
• Such organizational attributes as innovation, a drive for
quality, and
concern for the environment are created by the people, culture,
values,
and programs of the company.
• Corporate image commercial
• Cisco – connecting the world
• Toyota – silence, movement, simplicity
Brand as Organization
• It is much easier to copy a product than to duplicate an
organization with
unique people, values, and programs.
• Organizational attributes usually apply to a set of product
classes, and a
competitor in only one product class may find it difficult to
compete.
• Associations such as customer focus, environmental concern,
technological commitment, or a local orientation can involve
emotional
and self-expressive benefits based on admiration, respect, or
simple
liking.

Brand as Person
• Like a person, a brand can be perceived as being upscale,
competent,
impressive, trustworthy, fun, active, humorous, casual, formal,
youthful, or
intellectual.
• A brand personality can help create a self-expressive benefit
that becomes
a vehicle for the customer to express his or her own personality.
• Just as human personalities affect relationships between
people, brand
personality can be the basis of a relationship between the
customer and
the brand
• Apple user: casual, anti-corporate, and creative.
• Dell computer: a professional who helps with the tough jobs;
• Mercedes-Benz: upscale, admired person;
• Hallmark: a warm, emotional relative. Product
User
Brand as Person
• A brand personality may help communicate a product attribute
thus contribute to
a functional benefit.
• Mascot: the Michelin man’s strong, energetic personality

suggests that Michelin tires are also
strong and energetic
Shawn Lam
Shawn Lam
吉祥物�
Branding: Myth Construction
• Compare brand with religion
• Lower level: functions of products vs. church or Bible
(visible)
• Mid level: feelings of satisfaction through consumption vs.
satisfaction
derived from Sunday worship activities (invisible)
• Higher level: identity expression vs. seeking meanings of life
(invisible,
ontological, and teleological)
THREE Take-away Messages
• Consumer understanding
• Extension of meaning
• Coherence implementation

The WORD to remember
• COHERENCE
• Feature – Benefit – value/identity – image coherence
• Coherence across different products under the same brand
• Coherence between your product/service identity and potential
consumer’s
identity
• Coherence across TIME … i.e., consistency
Chang your image first
Danone Cuts Out the Cookies
The BBK empire
A Case from Hong Kong:
Wellcome
• McCann Erickson
• Price haggling? vs. Parknshop
• Cheap?

• Being frugal?
• Save money?
A more recent case
Mentholatum HK
A Case from Mainland China:
Safeguard
• Personal hygiene?
• Kill germs?
• Skin care?
• Story structure?
Shawn Lam
一层一层的产品特质�
A Case from Thailand:
Pantene
• Unique Selling Point: Shine (compare this to Rejoice and
Head &
Shoulders)
• Shine on different levels:
• shining hair (function) – lower level

• shining life (self actualization)– higher level
• Consistency?
• Extension of meanings from lower level to higher level
Branding: Maslow’s Hierarchy
Product
Feature
Benefits
Value
Audience
Demographic
Psychographic
Value
Branding Consumer
Resonance
Brand building in Chinese context
• Watch the video clip on “brand building in
China”

• Tom Doctoroff: J. W. Thompson North
East Asia Director Greater China CEO,
based in Shanghai
next time
• Creative strategy
Readings
Branding Strategy of JWT
Changing involvement
改变沟通方式
from passive exposure to active engagement
从被动的展示变成主动的吸引
ENGAGE
摄众
3 Engagement Idea
摄众意念

1 Consumer Insight
消费者洞察
2 Brand Vision
品牌远景
4 Connection Plan
联通计划
Only Four Key Points
只有四个主要的突破点
1. The Consumer Insight 消费者洞察
“Why”? The fundamental motivations that explain behavior and
preference
“为什么”? 解释人类消费行为和喜好的最根本动机
Find the conflict! 发现冲突！
Consumer Insight 消费者洞察
I want to indulge
我想要沉溺于美食

But 但是
I don’t want to get fat
我不想变胖
2. Brand Vision 品牌远景
Brand Vision
品牌远景
Consumer Insight
消费者洞察
Unique Brand Offer
品牌独特利益点
Make everyday exciting
精彩每一天
Consumer Insight
消费者洞察
Real life can be
routine
真实生活是枯燥的
Driving dynamics
动感驾驶

Unique Brand Offer
品牌独特利益点
2. Brand Vision 品牌远景
A seamless, unexpected fusion of product point of difference
and
consumer insight
一种无缝的，未预料的产品特点和消费者洞察的融合
欧洲风格
“活得精彩”
“外观很棒…驾驶又很激动人心的好车”
精力充沛, 冒险精神, 积极向上, 充满活力
德国工艺动感驾驶
Focus 4D Focus 5D S-Max CD345
“随时, 随地, 意料之外的精彩”
按照自己的意
愿随心驾驶,享
受动感的乐趣
按照自己的意愿
创造出自我天地

游刃有余, 无所
不达
重新定义”精
彩”
3. Engagement Idea 摄众意念
A creative expression of the brand vision that extends cross the
media
品牌远景的创意表达，并可延展到不同媒介
The Ultimate Goal:
最终的目标:
Creative ideas that buy time
能够买消费者时间的创意
Our role 我们的角色:
To ensure more people spend more time with our client’s brands
保证更多的人会将更多的时间花在我们客户的品牌上
Our purpose 我们的目标:
To create ideas that people want to spend more time with
创造出人们愿意花时间看的创意

Our belief 我们的信仰:
The better the idea the more time people will spend with it
创意越好，人们愿意花在上面的时间就越多
It all starts with
Strategic Planning
• Sharpens insights
提炼准确的洞察
•Helps clients understand linkage
between insights and profits
帮助客户理解洞察和利润的关系
这都从
策略策划开始
In-depth analysis on various
consumer segments…
对各种不同类别的消费者的深度分析…
Branding Strategy of OM

“Not so much about information as about insight.”
Shane Weaver-Executive Creative Director, Ogilvy & Mather
Hong Kong
“I think it is really ‘a fresh understanding that forms the basis
of a winning strategy”
John Shaw —Regional Planning Director, Ogilvy & Mather
Asia/Pacific
“大家都同意的一件事,但没有人讲出来”
Sharon Chen – 上海奥美策略部总监
“Fact overlooked by most people”
Michael Lee—Managing Director/Chief Operating Officer
Ogilvy Shanghai
& Southern China
“Deep understanding of human nature relate to the role of
advertising or
communication”
Yeh Minguay—Vice Chairman & Chief Strategy, Ogilvy &
Mather Advertising
Taiwan
Insight(洞察)是什么？

Facts 现象
Understanding 了解
Insight 洞悉
真相
Consumer
Behavior
Human
Truth
The truth is more important
than the facts
－Frank Lloyd Wright
(1868-1959)
请问年轻人为何不烹调?
• 他们没空做家事
• 他们不喜欢煮饭
• 他们不知道如何做菜
• 他们被宠坏了
• 他们担心害怕
Insight是心理层次,不是行为表现
请问:当你老时,你开始在乎你的健康,因为…

• 你觉悟到你快到生命的尽头,你应该珍惜
• 你知道如果严重生病,你可能负担不起昂贵的医疗费
• 你反正已经没有其他更重要的事要如此关切
• 你怕失去独立自主的能力
Insight 是感性共鸣,不是理性判断
请问:女性为何偏好较大油箱的汽车? 因为…
• 她可以无虑地行驶
• 加油站可不是她喜欢的购物场所
• 减少加油次数,可以省时做其他更有意义的事
• 大油箱让她在危险四伏的路上更有安全感
Insight是一种剖析,不是一项描述
大油箱讓她在危險四伏的路上更有安全感
哪里找???
品牌
产品
市场消费者

文化
产品特性
新闻、话题
使用者特性
与竞争对手
的比较
产品使用方法
产品的生产
使用者/
使用方法
的特别之处
价格特点
被满足的心理、
生理需要
品牌/产品的历史和
承传的特性
社会现象/
趋势
品牌名字
Logo和包装

没有固定的法则，
洞察很有可能就在身边的某个角落
请努力思考，再思考
工具1: 利益阶梯
Hierarchy of Interest
USP
利益阶梯
品牌最终利益
end benefit
产品感性利益
emotional benefit
产品理性利益-
Functional benefit
产品特点 – Feature
所以
因为
所以
因为
所以
因为

工具2: 区隔营销
Market Segmentation
USP
消费者的特质产品的特点
分别运用产品不同的面向
来吸引不同区隔的消费者
工具3: 生意来源的消费区隔
Consumer Segmentation
巩固现有使用者
开发其它
用途
转移竞争者
现有使用者多用
不使用者开始用
生意来源的消费区隔
Branding Strategy of Denstu

What You Do and How You Say is Defined by
Who You Are
Brand
Brand Identity Strategy
Business-level Strategy Communication Strategy
Copyright 2008 DENTSU INC. All rights reserved
How
you say
What
you do
Who
you are
Order of Branding
Brand
How

you say
What
you do
Who
you are
The Okazaki-Model
Brand Symbol & Slogan
Brand Promise
Essential Values you deliver to customers
Brand Personality
Attributes that help bring your brand
Closer to customers
Vision
Envisage what you wish to achieve:
(1) Business goals
(2) Brand image goals

Resources
(1) Your current core competence
(2) Resources to be added in
(3) future
Challenges in changing society,
Market, technology, competition, and
customer.
Future Environment
(1) Who will love your brand?
(2) How will you delight them?
Customers
A Little Secret of Visionary Branding
The first step to successful long-term brand-building is to
look into future and envisage what you wish to achieve
with your brand.
In parallel with mission and domain of your business,

create a simple phrase that captures the essential value
of your brand in future.
This will serve as a driver of your business.
Secret of long-lasting brand: LV
Core Value
Extended
Value
Refreshes
& Energizes
Inspires
& Empowers
Built-in brand recharge mechanism
Brand Energizers
Access Points Messages Relationship

Promotion
Product
Program
Symbol
Sponsorship
Unity
Relevance
World-of-Mouth
CEO
Experience
Brand Energizers
Product Innovation
Amazon Kindle
Brand Energizers
Product Co-Branding

Brand Energizers
Promotion Product Placement
Brand Energizers
Promotion Creative contact point
78
Brand Energizers
Symbol Color Association
Brand Energizers
Program CSR program

Brand Energizers
Experience Experiential space
Logo
DesignSeating
Graphic
Color
Location
Lighting
Art
Books Barista
ServiceTumbler mugs
Product
Music
Brand Energizers

Experience Experiential space
“ Starbucks could very well operate without even selling coffee.
They could charge an entrance fee and offer nothing else but a
room
and mellow Bob Marley music softly playing in the background,
and people would still come.
Devin Page, Customer
COM 5401
Management
Advertising Theories: The Traditional Approach
Semester A 2019
Housekeeping
• Grouping decision due today (email your TA)
• Three things to deals with today
• ad industry
• advertising theory and applications

• intro to Admango
Advertising Agencies
Groups, Agencies, and Media Companies
New York 1923
New York 1864
New York 1917
New York 1948
New York 1940
New York, 1970
Chicago 1935
Paris 1926
New York
1902
Chicago

1873
India 1899
New York 1891
New York 1949
Paris, 1970
1970
1946 Boston
Theories of Advertising
• Empirical theory is a model to understand the process that
advertising creates certain results on the receiver.
• Empirical theory: Psychology/persuasion research
• Practical theory makes assertions about the ways of doing
advertising.
• Practical theory: advertising industry
Think about it
• We have mentioned before that the micro-level outcome of

advertising is to change individual’s attitude and behavior
(product
perception, brand preference, buying habit, etc.)
• So how to change people’s attitude or behavior?
• What are the mechanisms of human attitudinal/behaviorial
change?
• Strategies of persuasion?
Balance Theory
• A theory of attitude change
• Includes 3 parts:
• P = Person
• O = Another Person
• X = Object (person, idea, product, etc)
• Balance requires all (+), or 2 (-) and 1 (+)
• All other situations: unbalanced
For further reading, see Heider, F. (1958). The psychology of
interpersonal relations. New York: John Wiley & Sons.
Balanced/Unbalanced Triangle

Application: celebrity endorsement
Theory of Planned Behavior
Application of TPB
• Subjective Norm Pressure: to suggest collective behavior or
social
NORM so that the audience will feel the pressure to conform.
But at
least you should frame the behavior as “desirable”.
• Cleaning up Hong Kong 1987/2009
Extended Parallel Process Model
Perceived
Efficacy
Perceived
Threat
Message
Components
Self-efficacy

Response-efficacy
Susceptibility
Severity
No threat perceived
No response
FEAR
Adaptive
Changes
Maladaptive
Changes
Defense
Motivation
Protection
Motivation
Danger Control Process
Fear Control Process
Witte, K. (1992) Communication Monographs, 59, 329-349.
Shawn Lam

扩展并行处理模型�
Application of Fear Appeal
Application of Fear Appeal
• Two elements must be included: Fear trigger and solution
efficacy.
• The fear appeal examples also tell us that persuasion includes
two
major paradigm: the “what if you have it” story mode and the
“what
if you don’t have it” story mode
Elaboration Likelihood Model
Focuses on the way consumers respond to persuasive messages
based on
the amount and nature of elaboration or processing of
information
Peripheral route to
persuasion – ability and
motivation to process a
message is low and receiver
focuses more on peripheral
cues rather than message
content

Central route to persuasion –
ability and motivation to
process a message is high
and close attention is paid to
message content
Routes to attitude change
Shawn Lam
Shawn Lam
外围�
Shawn Lam
Shawn Lam
阐述�
Heavy Repetition vs. Lengthy, Detailed
Messages
A quick summary
• So far you have been introduced to four persuasion theories
with
implications on advertising.
• To rely upon entities recognized and liked by your audience.
• To create social or peer pressure.

• To arouse fear and to effective provide solution.
• To provide information tailored to products of different
nature.
Foote, Cone & Belding Grid – An Extension of
ELM
• 1980, Richard Vaughn From FCB
• Created a grid based on level of involvement and whether the
decision making concerns mainly thinking (rational motives) or
feeling
(emotional motives).
Foote, Cone & Belding Grid – An Extension of
ELM
Foote, Cone & Belding Grid
Dimension 1 – Thinker
Dimension 2 – Feeler

Dimension 3 – Doer
Dimension 4 – Reactor
The Weakness of FCB
• The weakness of the FCB grid is the forcing of the divide
between
rational and emotional decision making.
• The FCB grid’s general rules are wrong and are widely broken
by
successful brands:
• A computer brand called Apple that has the power to generate
real passion
among its many devotees.
Why the Importance of Rational Appeal is

Waning?
More Practical Theories of Advertising
• The unique selling proposition (Bates)
• The emotional selling proposition (DDB)
• The credo selling proposition
The Unique Selling Proposition
• 1950s, developed by Rosser Reeves of the Ted Bates agency.
• Products and services were scrutinized in order to discover
their most
competitive and distinctive functional consumer benefit – their
USP.
The milk chocolate melts in your mouth,
not in your hand
只溶在口，不溶在手/只溶系口
唔溶系手
You get rid of dandruff
頭屑去無蹤，秀髮更出眾
Contrasting with Rejoice

When your package absolutely, positively
has to get there overnight
使命必达
How/When to Apply?
• When your product/service has a unique feature that no other
products
could imitate.
• When your brand image/brand value/corporate culture is
unique.
• Weakness of USP
• By the 1970s, competition became much more cut throat and
technological
advances rendered functional differences more fleeting. Brands
that just relied on
a functional point of difference soon found that competitors
had copied it.
The Emotional Selling Proposition
• Building upon Freud’s ideas about the subconscious mind
during the
1960s and 1970s, the new science of behavioral psychology
inspired
marketers and advertisers to add a whole new dimension to their

brands.
• Most buying decisions are far from rational, and began to
overlay the
functional benefits of their products and services with powerful
emotional and psychological appeals.
The Emotional Selling Proposition
• Doyle Dane Bernbach, DDB, was pre-eminent in its effective
use of the
‘soft sell’ and humor in advertising.
• A few examples here:
• Volkswagen, 1969
• Hallmark
• US Marine
• What elements needed to be included in emotional sell?
How/When to apply?
• When the product or service has an inherently emotional
dimension:
perfume, fashion, cosmetics.
• When the product category is crowded, and especially when
there are no
practical or functional differences with your product and
competitors:

shampoo, soap, banking services.
The Credo Selling Proposition
• The ‘credo’ is now much more widespread as a way of
responding to
consumers’ ‘self-actualization’ needs. In this model, brands
seek to be
noticed, trusted and followed for the beliefs they espouse.
• Beliefs in the sense of powerful human higher order
motivations or
aspirations that the brand can credibly claim to espouse
Shawn Lam
Shawn Lam
belief
The Credo Selling Proposition
• The classic Apple commercial
• Apple, 1984, anti-IBM mood of the times; positioned Apple
as a personal
computer for the independent and creative individual.
• The Wendy’s Ad that mimics the Mac 1984
• Choose fresh, choose Wendy’s

Maslow’s Hierarchy of Needs
Shawn Lam
自我实现�
Shawn Lam
需求层次理论�
Shawn Lam
ESP
Shawn Lam
USP
Shawn Lam
CSP
Maslow’s Hierarchy of Needs
• It proposes a hierarchy of human needs, from basic survival
through to
spiritual enlightenment.
• Ingelhart’s theory of Post-industrial society:
• From materialistic needs
• To post-materialistic needs
• In the past decade or two
• Combining the two theories, the general trend of
advertisement strategy
is…

Admango
Next Time
• Advertising theories: computational advertising
Running head: HONG KONG ADVERT ANALYSIS
1
HONG KONG ADVERT ANALYSIS 8
Hong Kong Advert Analysis
Introduction
Hong Kong has been found to experience a high rate of ads from
the numerous companies operating in the country and other
from china. Hong Kong people are basically affected in such
aspect as they get to undertake their activities with numerous
ads getting in between their operations. It has been noted that
ads come in different versions, others get to the consumers
through their online activities, others are relayed via TVs and
other media that consumers are likely to be reached. To
understand the nature and operation of the various ads,
empirical theories, practical theories can be suitable to bring
about the significant application. The adverts that are analysed

in this essay are 2019 Prudential "We DO" TV Commercial 60"
and AIA New “Love is in Every Moment” TV Commercial.
Balance theory touches on the three basic components of a
person with regard to liking and disliking. As proposed by Fritz
Heider, balance theory is about attitude change. Therefore when
focusing on the two ads as mentioned above, it can be noted that
balance theory plays a great role in influencing the targeted
people. The information from the TV ad showing the family
experiencing great challenges due to their sick father, the
mother appears much worried and concerned with what the child
has bought with the money (AIA New “Love is in Every
Moment” TV Commercial. 2019). Basically, this draws much
attention from the balance theory where one member of the
family is ill and does cripple the activities for the rest of the
family members. This concept affects the celebrity endorsement
of the ad products shown. The other theory of planned
behaviour also has an impact on the customers. The insurance
company AIA presents a challenging situation that affects most
families. Through its display, it exerts the norm pressure on
them so that they consider the importance of such medical
cover. The extended parallel process model (EPPM) is suitable
for advocating healthy ways. As seen from the TV commercial
ad, the theory has been applied to persuade the audiences to
consider their healthy ways such as taking an insurance cover.
The fourth model that emerges from the ads is the Elaboration
likelihood model. Under this model, it can be seen that the issue
of terminal disease affecting the family brings a certain fear.
The detailed information provided summarizes the challenges a
family experiencing such would undergo.
The second ad that is analyzed in this essay is about the 2019
Prudential. The information has shown the ad is detailed and
clear offering detailed information (2019 Prudential "We DO"
TV Commercial 60". 2019). Considering the first theory, the
balance theory, it is clear that the ad meets the specifications.
Most viewers of the information would be satisfied with what

has been displayed as clear and precise information to their
needs. Theory of planned behaviour has been reflected in the
ad. The aspect of norm pressure does not seem to be clear given
the ad offers comfort to the viewers or users of the information.
The EPPM model does not seem to have been used in the ad.
Elaboration likelihood model has been presented as used to
advance the needs of the ad. Basically, information seen is
detailed and more elaborate for any person to use effectively.
The ads have also been designed based on three practical
theories the unique selling proposition, the emotional selling
proposition and the credo selling proposition. As seen from the
way these two ads have been designed, each has a completely
different appearance from the other but championing related
products of insurance. Their unique selling proposition helps
them to meet their desired marketing goals as well as their
business objectives. With respect to the second theory, it is
evident from both TV commercial ads that emotional selling
proposition has been used. The family used to champion the ad
message is shown portraying an emotional aspect. The second
ad about prudential has shown how unity can present a great
success to many. This clearly conveys the intended message
about the product. AIA insurance targets the people by
indicating the critical challenges that they would likely face
when an unfortunate occurrence faces them. In this
consideration, they are drawn to the emotional concept that is
adapted to present the contribution of their policy to them. The
third practical theory credo selling proposition is designed to
facilitate better customer acceptance of the product. The
targeted people are attracted by the approach that has been
adapted to display and communicate the various aspects of the
products being marketed.
The two adverts also show a great consideration of the 4ps of
marketing. These are product, price, promotion and place. For a
product to be appreciated in the market, it needs to be meeting
the targeted customers’ needs with regards to the 4ps of

marketing. Basically, the ads have ensured that these branding
strategies have specifically been set within the customers’
expectations of the products. Price has been significantly
reduced in the insurance ad targeting to attract more people to
be covered. The ad champions the aspect of health costs in
relation to the medical condition such as cancer. With the huge
cost associated with the condition, people are likely to be drawn
to the insurance product. Branding is also a significant aspect
with regards to such aspects of the medical cover that various
people are drawn to by the insurance companies. The ad serves
as a suitable support agent to people who are likely to face such
challenges with regards to the unforeseen medical costs.
Therefore the branding and advertising is an appeal to offer the
required support to the affected when the occurrence comes to
happen.
Emotional selling proposition is where the ads employed seek to
appeal to the targeted customer’s needs over the product. Both
ads have employed emotional selling proposition to appeal to
the customers’ desires. In the prudence ad, we can see the
emotional aspect when all family members are together happily.
On the other hand, the AIA ad has shown how the challenges of
cancer can cause to a family by using the three family members.
Humour is another technique that has been applied in both ads
covered in this article. Humour makes people interested in the
product being advertised. Regarding the AIA ad, humour can be
seen when the mother tries to inquire from her daughter why she
spent money without her knowledge. The young girl then is
shown walking while smiling. The second ad on prudence has
also employed humour to appeal to the targeted people.
Celebrity endorsement is another significant approach that is
used to point out the importance of the product. The ads on
prudential video has covered basketball players as a way to
make the product appear celebrity. AIA ads, on the other hand,
have not used celebrity endorsement. However, it has tried to
provide its links to social sites.
Gender difference factors are an important approach that can be

used to communicate various aspects of the product. From both
ads, it is clear that both genders have been employed to
communicate the message.
The two advertisements are meant to advocate for better
services to the people through their insurance services. Those
seeking to have medical insurances would be offered the
services by following the indicated process. For those seeking
to understand the operations of the visual basics, also would be
directed to the right channels to understanding them. It,
therefore, makes it clear that with an important value drawn
from such ads, people get to be informed of the available
services. The goal of such advertising agencies is to inform the
people who are potential customers to understand and to also
know the availability of such services. It makes an important
aspect when noting the value that such ads bring to the people
as an important value in their lives.
It has been noted that each of the two ads analyzed present
unique aspects basically from their structures despite their focus
on similar product fields. They offer information to the targeted
consumer with one giving detailed information and the other
giving summarized information. However, their strength of
information is well structured to relay all required information
regarding the products advertised. Theories have been tapped on
to communicate the significant aspects of the ads in the study.
Each of the theories has given an in-depth analysis of the ad in
question to justify their appearances. It has also been presented
in a clear way how each ad has capitalized on the theories to
meet the desired goals regarding their targeted customers. As
such, the theories are basic aspects that design how an ad would
appear to the targeted people. Therefore it has made a critical
consideration on how each of these aspects contributed to the
success of the ads in communicating their message to the
intended persons. The insurance policy communicated serves to
draw potential customers to purchase it given the attached
benefits that would eventually accrue.

References
AIA New “Love is in Every Moment” TV Commercial.
(2019). YouTube. Retrieved 17 October 2019, from
https://www.youtube.com/watch?v=f0DQ_koqlf0&feature=yout
u.be
2019 Prudential "We DO" TV Commercial 60".
(2019). YouTube. Retrieved 17 October 2019, from
https://www.youtube.com/watch?v=udR5ieEA1sY&feature=yout
u.be
COM 5401 Advertising Production and Management
Semester A 2019
Case Study Assignment
You will easily be a target of advertisement bombardment. Look
around; pay a little bit attention to some of them. You then
notice the advertisements you see are not of equal quality. In
this assignment, you need to select two advertisements you
recently get exposed to, critically examine them, and write up a
report. There are no restrictions placed upon the format of the
advertisements. In other words, they could be in any forms, for
instance, television commercials, print ads, outdoor ads (e.g.,
MTR stations, bus body, etc), online ads, and interactive
promotions, etc. Ideally, the two advertisements you selected
should be comparable: a) they are promoting same or similar
products/services, and b) one should serve as a good example
and the other less successful example. Based on the theories we
have mentioned in class, ruminate over the two ads of your
choice, and point out their weaknesses and shining-points.
What to do? –Workflow specifications
1. Identify the advertisement you want to analyze. As noted

earlier, it could be in any form. Nevertheless, the advertisement
you choose should not be too outdated.
2. If you pick a television commercial, then try to catch a few
frames of the commercial. If the ad is from online, save the
graphic file or printscreen the website.
3. Now that you have the raw material to work with, think back
about the theories/cases/strategies you have learned from the
first half of this course, and come up with a fine analysis of the
two ads.
4. Write up a report of 3-4 pages in the form of an essay (double
spaced, excluding attached pictures).
5. Turn in your essay in class.
What to think about? – Analysis specifications
Listed below are some of the questions you could think about.
You could use them as a guide map. You do not need to answer
all of them. But they could stimulate your thoughts and help
you formulate your own critiques toward the advertisements.
Descriptive information:
What is the product/service? What are the features of the
product/service? What are the benefits to be communicated?
What’s the unique selling point, if any? What is the brand
image to be constructed, if any? Who is the potential target
audience? What’s the media format? Where is the commercial
placed (if outdoors, specify the location. If tvc, specify
channels and time slots.)? What visual elements and techniques
are used?

Subjective assessment:
Do you like/dislike the ad? Are you persuaded by the ad?
Chance given, are you willing to try out the product/service?
What is your first feeling toward the ad? Is there anything
attractive in the commercial? Is there anything repulsive? And
per your answers to all previous questions, why? Why do you
feel so?
Analytic critique:
Is there any attention catcher in the ad? What kind of
appeal is used in the ad? What’s the creative strategy adopted in
the ad? What are the values conveyed in the ad? Do the values
match with the local culture? Does the content of the ad
communicate the identity of the brand, or they are inconsistent?
Is there any unnecessary message in the ad? How about the
copy? Is the copy clear enough? Are the visual elements
consistent with the value system of the brand? What would you
do to improve the ad?
Grading Rubrics
Written reports
Choice of ads

1%
Analysis
Description
clarity
Theory application
Analytical insights
24%
6%
9%
9%
Writing
10%

Grand total
35%
Additional Notes
1. You are welcome to drop by my office to discuss any
questions related to the project.
2. No procrastination and start early
3. This assignment is due on week 8 in class. Turn in a
hardcopy.

COM 5401Advertising Production and ManagementAdvertisi.docx

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