1. +
Marketing
Communications
and Media
Management
Advertising
Tom Chapman
www.marketing101.co.uk
Twitter @idlehans

2. +
What is Advertising ?
“Any paid form of non-personal presentation and promotion of
ideas, goods or services” Kotler (1999, pg 793)
“Advertising is paid non-personal communication from an
identified sponsor using mass media to persuade of influence
an audience” Wells et al (1992, pg 10)
“communication via a recognisable advertisement placed in a
definable advertising medium, guaranteeing delivery of an
unmodified message to a specified audience in return for an
agreed rate for the space or time used” Crossier (1999, pg 266)
Definitions cited by Picton & Broderick (2005, pg 594)

3. + Truong & Simmons (2010, p.240) 3
“Harker (2008, p. 296) defines online or Internet advertising as,
‘any form of commercial content available on the internet,
delivered by any channel, in any form, designed to inform
customers about a product or service at any degree of depth’.
Jensen (2008) states that internet advertising consists of three
primary constituents: display advertising – which includes
banners, pop-ups and interstitials; search engine optimization
(SEO) and search engine marketing (SEM) – including paid
and unpaid SEO and SEM (e.g. Google Adwords); and, affiliate
programs, where a marketer’s link (e.g. Amazon) is provided
on a host’s website. A further constituent is email, paid for
advertising in that most firms utilize email marketing
hardware/software, and customer lists that are bought in
(Merisavo & Raulas, 2004).”
Tom Chapman 2011

4. +
Definitions of Advertising
Points to consider
 What about the Media?
 What is Mass Media?
 Define “non-personal”
 Can delivery be guaranteed?
 How do you define, specify and target an audience through
mass messaging and communication?

5. +
Benefits and Role of Advertising
 Mass audience / Large coverage
 Targeting
 Low unit / Marginal Costs
 Useful for Brand maintenance
 Useful for raising awareness
 Balance of adverting spend can be related to maturity of
product of market

6. +
Advertising - Purpose
“It has generally been accepted for a long time that consumers
are rarely loyal to a single brand. They tend to have a ‘portfolio’
of brands (also know as a repertoire or consideration set) to
which they are loyal, switching between them as they desire.
This applies even to brand leaders. Under these
circumstances, the task of advertising becomes more one of
maintaining a brand’s position within consumers’ consideration
sets.” Pickton & Broderick (2005, pg 602)

7. +
How Advertising Works
Vakratsas and Ambler (1999)
“For most products, and especially the frequently purchased
packaged goods in which much research is interested, the
consumer’s mind is not a blank sheet awaiting advertising but
rather already contains conscious and unconscious memories of
product purchasing and usage.” Vakratsas and Ambler (1999, pg
27)
Does advertising persuade people to buy? Strong Theory
 A process of: cognition – affect – behaviour
Product Trial or Experience – Weak Thoery
 Advertising raises awareness

8. +
Advertising Models
Vakratsas and Ambler (1999)
 Market Response Models
 Typically relate advertising, price, and promotion measures
directly to purchasing behaviour measures such as sales and
market share.
 Cognitive Information Models
 assumes that consumer preferences are not changed by
advertising and that consumer decisions are only rational.
 Pure Affect Models
 focus on affective responses, the familiarity and feelings
advertisements may evoke

9. +
Advertising Models
Vakratsas and Ambler (1999)
 Persuasive Hierarchy Models
 introduced the concept of a hierarchy of effects, that is, an order in
which things happen, with the implication that the earlier effects,
being necessary preconditions, are more important
 Low Involvement Hierarchy Models
 The main alternative to the persuasive approach is cognition ~
experience ~ affect (CEA), though "cognition" may mean no more
than passing awareness in categories in which the consumer has low
involvement.
 Integrative Models
 different hierarchies of C, A, and E are assumed, depending on the
context in which advertising operates.
 Hierarchy Free Models
 generally presents a more person-centered view of advertising, which
can be thought of as an extension of a basic reinforcement model

10. +
Media Types
“A marketing communications medium is anything
that is capable of transmitting a marketing
communications message to one or more people.”
Pickton & Broderick (2005, pg 104)
The identification of
media is probably only as
limited as our
imaginations allow.

11. +
Media Selection
GAS
 Goals
 Developer Goals
 User Goals
 Audience
 Scope
 Physical Context
 User / Sender / Receiver Context

12. +
Goals
 These are the “why” of the whole project
 Developers have to define these goals so that the system
developed meets these needs – for example a training
system has a totally different set of goals from a system
which is advertising a product or an interactive game

13. +
Developer Goals
 Branding
 Increasing traffic to a site
 Real advertising
 Accompanying service
 Entertainment
 Mixing it up

14. +
User Goals
 Getting entertainment
 Physically getting something
 Getting information
 Communicating

15. +
Audience
 Who is your audience – works in the same way as
segmentation.. A very different approach is needed
depending upon the characteristics of the audience e/g
young versus senior citizens
 Define user group needs
 What is the technological experience of the target audience?

16. +
Scope
 What is the subject?
 Setting boundaries smaller
 Setting boundaries larger
 Choosing a topic
 Communicating the topic to the user

17. +
The physical context
 Public areas
 Other information sources
 Environment
 Audio content

18. +
The users context
 Cultural context
 The user group context
 Different levels of experience
 Different user groups
 Users with accessibility problems
 Existing users

19. +
Types of Advertisement
List Some?

20. + Internet Ad Terms
Ad Clicks  Aggregate number of user clicks on a banner ad.
Ad Views (Impressions)  Number of times a banner ad is downloaded to a user’s browser and presumably looked at.
Click-Through  Percentage of ad views that are clicked upon; also called “Ad Click Rate.”
CPC  Formula used to calculate what an advertiser will pay to an Internet publisher based on
(Cost-per-click) number of click-throughs that a banner generates.
 Cost per thousand impressions of a banner ad. A publisher that charges £10,000 per banner
CPM
and guarantees 500,000 impressions has a CPM of £20 (£10,000 divided by 500).
 Measurement recorded in server log files that represents each file downloaded to a browser.
Hit Since page design can include multiple files, hits are not a good guide for measuring traffic at a
website.
 Number of individuals who visit a website in a specified period of time. Requires the use of
Unique Users
registration or cookies to verify and identify unique users.
 A series of requests made by an individual at one site. If no information is requested for a
Visits certain period of time, a “time-out” occurs and the next request made counts as a new visit.
A 30 minute time-out is now standard.

21. + Six Steps of the Communication
Process
Step 1 Identify Target Audience
Step 2 Determine
Communication Objective
Step 3 Develop Media Plan
Step 4 Create the Message
Step 5 Execute the Campaign
Evaluate the Effectiveness
Step 6 of the Campaign

22. + Segmentation and Prioritization
E-Music Segmentation Example Actionable Variables
18–29 30–44 45 and Older
Male Female Male Female <50K 50K+
Top 40 Segment A Segment E
Listener
High Priority
Meaningful
Classic Seg-
Variables Segment ment
Segment Segment Segment
Rock
B G I J K Medium
Listener
Seg- Priority
Segment
ment
C F Low
Rap Seg- Segment Priority
Segment
Listener ment
L
D H
Does not
exist

23. + A Process for Defining Media
Choice and Mix
Tie Back To
Communication Media Choose Allocate
Overall
Criteria Criteria Media Mix Spending
Plan
 Behavioral  Ability to further  Direct mail,  Allocation of  Come back 360 and tie
objectives behavioral objectives Internet, broadcast, spending across media plan back to
print, point-of-sale, media mix elements communications plan
 Available spending  CPM
etc. and time periods (e.g., will this media plan
 Customer  Ability to reach target based on relative drive the trial or
segments segments priority awareness required to
deliver your bottom
line)

24. + Media Scheduling Patterns
Ads may run through-out Year
the year or at selected
times:
Constant
Periodic
Within an ad period,
different media schedules
may be used:
Continuous, same
intensity
Continuous, varying intensity
Intermittent, same intensity
Intermittent, varying intensity
Advertising period

25. + Exploring the Levers Across the
Relationship Stages
Exploratory /
Awareness Commitment Dissolution
Expansion
 Television, iTV  Television, iTV  Terminate marketing
 Magazines and newspapers  Magazines and newspapers
 Radio  Radio
 Yellow pages
 Billboards / outdoor
 Rich media ads and dynamic ad
placement
 Banner ads  Website
 Search engines
 Website
 Listings
 Personalized pages
 Classifieds
 E-mail
 E-mail  Permission e-mail
 Direct mail  Direct mail  Permission direct mail
 Telemarketing  Telemarketing
 Public relations
 Customer service  Customer service
 Sales force  Sales force  Sales force

26. + 26
UK Digital Media Mix (IAB)
Tom Chapman 2011

27. + 27
Advertising UK (IAB)
Tom Chapman 2011

28. Adspend by country forecast at current prices, 2011
year-on-year % change
otes: Local currency, current prices
ource: Warc
xtracted from International Ad Forecast 2011/12 (July). Media forecasts
o click through to article, use Slide Show view

29. Adspend Forecast by Main Media: 2010 vs 2009
Year-on-year change (%), top 5 markets
Source: Warc
Extracted from Adstats: Adspend in 2010. Media forecasts
To click through to article, use Slide Show view

30. Consensus Forecast: Internet Advertising Expenditure
Current prices, y/y % change
2010 2011
Australia 13.3 12.0
Brazil 23.4 20.2
Canada 18.3 17.7
China 28.6 39.9
France 9.7 9.9
Germany 9.3 10.0
India 28.6 18.1
Italy 12.7 15.9
Japan 6.5 8.1
Russia 22.1 23.4
Spain 11.5 13.4
UK 6.6 5.6
US 10.2 13.5
Source: Warc
xtracted from Consensus Adspend Forecast – May 2010. Media forecasts
o click through to article, use Slide Show view

31. Predicted US online ad spend by format, 2015
% share
Source: eMarketer, April 2011
Extracted from Adstats: Online video. Media forecasts
To click through to article, use Slide Show view