Creative Strategy and advertising budget

Creative Strategy &
Advertising Budget
Module 3
- Dr. Anupama S. Kotur

What is Copy?
 Advertising copy is the sum of all the elements of a creative work.
These are elements annex to produce a ready-to-disseminate
advertising message.
 An advertisement copy is the text used in the advertisement, be it
print, radio, television or other form of advertisement. The text so
used can be in the form of dialogs, some catchy phrase, a company’s
motto or slogan or any word.
 The elements that make up a copy include: Headlines, sub-headline,
text, pictures, sounds, and every other thing that would make the
success of the advertising campaign; be it, electronics, print or social
media.

What is Copy?
 We all have at some point or the other have come across
advertisements, be it print media, radio ad, television ad or any
other form of advertisement. The thing which helps us remember
the advertisement may be different like a distinct music, some
specific art, the celebrity or its text. Advertising copy is one of the
peculiar aspects of the advertisement which helps us remember the
advertisement and helps us gauge what the advertisement wants to
communicate.
 For an advertising copy to appeal to its audience, it must stimulate
the five sense organs of man, hence, our actions and reactions are
predetermined by these organs. These are the vital questions that
must be answered by a copy writer before displaying his creative
work or copy. These include:
a. Can this copy attract attention?
b. Can it arouse desire
c. Is it capable of creating interest?
d. Can it provoke purchases action?

Essentials of a Good Copy
a) Can this copy attract attention?: The first purpose of a copy is to
catch attention, if it fails here, it would fail in other stages of the
campaign process. Attracting consumer’s attention is the best bet
of a copywriter. So every creative measure to enable this should
not be compromised.
b) Can it arouse desire?:If a copy succeed to attract attention, the
next is to determine whether it stirs interest in the audience. To
arouse desire is to make one long for something or someone. This
stage of the copy is crucial and should not be jeopardise by non-
availability of the brand as promised in the advertisement. The
desire of consumers to purchase a product is the key to achieve
an advertising objective.

c) Is it capable of creating interest?:Desire gives birth to interest, if
the desire to have a product or service is there, automatically, the
interest to purchase would follow. If a copy moved to create an
interest in the brand, it is almost successful. It is a different
scenario, if interest persist and will to purchase the brand is not
there, hence, that does not mean the goal of the copy is defeated.
This lead us to the last question that need to be self-asked by a
copy writer before showing or displaying his creative work.
d) Can it provoke purchasing action?: the bottom line of an
advertising copy is to encourage the sales of a brand. A copy
should above all other vital question be able to provoke buying
attitude of consumers toward the brand displayed to them, by so
doing, the advertiser would do more to advertise his brands in
the agency.
Essentials of a Good Copy

Copy Writing – Useful terms
 Advertising strategy describes a means to achieve advertising
objectives through creative executions and media plans
 Creative strategy guides those responsible for creating advertising
Creative brief
Work plan
Copy strategy
Copy platform
 Copywriter
The person who shapes and sculpts the words in an ad.
 Copy
The text of an ad.
Words people say in a radio or TV commercial.
 Display copy
Elements readers see in their initial scanning
Headlines, subheads, call-outs, taglines, and slogans
 Body copy
Elements that are designed to be read and absorbed
Text of the ad message, captions, call to action

The 6 key elements of copywriting to be aware of as outlined in
the advertising copy, are as follows:
1. Audience: Who will read the copy? What are their likes,
priorities, worries and dreams? What situation will they be in
when they read the copy?
2. Features: What does the product or service do? How does it
work? What is new, different or unique about it?
3. Aim: What do we want to achieve with this copy?
4. Benefits: How do the features relate to the audience’s needs and
desires? How will the product or service help them?
5. Strategy: How are we going to present the features in order to
achieve our aim? Which features/benefits are most important?
6. Desired customer reaction: What do we want people to do,
think or feel when they read the copy?

Elements of an Advertising Copy
There are Seven (7) basic elements of an advertising copy. Some
advertisement may contain almost all or while some may contain two
or three elements, the most important to the copy, is its ability to
deliver and get desired result. No rules guide the application or usage
of copy elements; it is solely the creative responsibility of the copy
writer to determine that. The followings are the basic elements of an
advertising copy, these are:
1. The headline
2. The sub-head
3. The body copy
4. The caption
5. The blurb of balloon
6. The box and panels
7. Slogans, logotype and signature

1. The Headline: This is the first copy interface which anyone
would come in contact with, it is usually written in large type
face. Also referred to as caption, the headline is designed
alongside a catchy illustration to capture and attract attention
to the advertisement. It drives prospective buyers to further
investigate the brand.
2. The Sub-Head: This goes after the headlines often, sometimes
some copy writers, display the subhead first before the
headlines, this is basically for a purpose which they deemed
would drive in audience to the entire copy. The subhead is
written in a smaller type face lesser than headlines but larger
than the body text.
3. The Body Copy: This is the illustration text, always in the
smallest type face in the copy than the headline and the
subhead. The body copy explains a brand in a few and concise
but creative words that stick faster in the mind of the audience.
It explains a brand in the best possible ways.

4. Captions: These are written in a smaller type face than the
body copy to represent sales points by illustrating and
explaining them at the same time. Captions are less important
to the main selling points in the advertisement than the body
copy
5. The Blurb or Balloon: This is term used in advertising to
represent that the illustration of an advertising copy is coming
out from mouth of one of the characters used in the advertising
campaign. At times they are used as headlines and displayed
in large size.
6. Box and Panels: These are elements in a copy which display
unique and special information other than those already
displayed by the advertisement. They are use in such features
as coupons, special offers and contest rules

7. Slogan, Logotypes, Trade – Mark and Signatures: These
elements often show themselves in every advertisement. They
are companies identifying tags; they differentiate one
organization from another especially when they offer
competitive brands. For instance: MTNL, BSNL, VODAFONE,
and AIRTEL, all these organizations offer telecommunication
services, if they have none of these elements, they might just
confuse customers in a bid to identify with their preferred
brand.

The Art of Writing Advertising Copy
Positions The Product
What is shown is just as important as what
is said… sometimes more
Creates Brand Personality
Sets The Mood
Flavors The Message (Copy)

Stages of Advertising development
STAGES
COPYWRITING
PRINT BROADCAST
ILLUSTRATION LAYOUT

Creation Stage Encompasses
A. Idea Generation
B. Copywriting
C. Illustrating
D. Layout
Fact finding :
• Problem finding
• Preparation
Idea finding :
• Idea production
• Idea development

Principles of Copy Writing for Various
Media Tools
1. General copy principles
2. Print copy principles
3. Television copy principles
4. Radio copy principles
5. Outdoor copy principles
6. Retail copy principles
7. Business to business ads
8. Advertising on the internet

Checklist Of Important Guidelines For
Copywriting Given By John Caples
1. Cash in on your personal experience
2. Organize your experience
3. Write from the heart
4. Learn from the experience of others
5. Talk with the manufacturer / service provider
6. Study the product
7. Review previous advertising for the product
8. Study competitors ads
9. Study testimonials from customers
10. Solve the prospects problem
11. Put your subconscious mind to work
12. Ring the changes on a successful idea

Advertising Success Stories
https://blog.hubspot.com/blog/tabid/6307/bid/32763/The-10-
Greatest-Marketing-Campaigns-of-All-
Time.aspx#sm.00001brpfmqqj5d95v1kwiqyctznd

Art of creating Print Ads
Design
How the art director and graphic artist
choose and structure the artistic elements of the ad
Layout
How chosen ad format elements are arranged
Visuals, headline,
subheads, body copy, slogan,
seal, logo, signature

Principles of Effective Print Advertising
1. Establishing an Objective
2. Sell to the Objective
3. Designing the Ad
4. Evaluate the Ad

Establishing the Objective
i. Main selling idea should be aimed at the objective; resist
the temptation to add more
ii. Support the main selling idea with all elements of the ad
 Headlines
 Visuals
 Copy
Sell to the Objective
i. Sell the merits of the Product or Service
 What’s in it for me?
ii. Emphasize benefits, not facts
 Fact: Birdie Drivers are made of solid unobtanium with a unique
plasticized hydroid alloy core.
 Ad Content: Birdie Drivers are lighter, faster, harder, and
cheaper than our competitor Bogie Drivers.

Designing the Ad
 Design for Easy Reading
 KISS - "Keep it simple, stupid" as a design principle noted by the
U.S. Navy in 1960 / Keep in Short and Simple
 Solve a problem
 Call to action
 Don’t try to cram everything in
 Don’t overfancify the design
Avoid:
 Dark backgrounds
 Small headlines
 Difficult to read fonts
 Unrelated images
 Atypical layouts

Designing the Ad
i. Illustrate your product in use
 Show what the product can do for the reader
 Avoid static graphics showing whole lines of products
ii. Use Humor and Shock value only when necessary
 Creative is probably not as funny as one might think
 Humor or shock almost never works toward the objective
Evaluate the Ad
i. Repeat a Successful Ad; Drop an Unsuccessful One
 Repetition is good, to a point
 Good ads wear out a lot slower than you think
 Because you are tired of it doesn’t mean your audience
is
ii. Don’t Blame Ad Placement for Poor Performance
 Design has far more to do with the success than getting
it on cover 4.

What do you
think of this
print ad?
MAC Cosmetics’
Spring 2013
“Strength Collection”

Headline is
The Most
Important
Display
Element and
Should..
Attract Only Those Who Are Prospects
Work in Conjunction With the Visual to
Stop and Grab the Reader’s Attention
Involve the Reader
Lead Readers Into the Body Copy; 20%
Who Read Headlines to go Copy
Include the Selling Premise
Headlines

Headlines Can be Grouped Into Two General Categories
Direct Action Indirect Action
Puzzles
Associations
Assertion
Command
How-to
Statements
News
Announcements
Types of Headlines

Other Display Copy
 Captions (copy under illustrations) have the second highest
priority in copy.
 Copywriters also craft subheads that continue to help lure the
reader into the body copy.
 Taglines, which are short catchy phrases, are particularly
memorable phrases used at the end of an ad to complete or wrap
up the idea.
 Slogans, which are repeated from ad to ad as part of a campaign,
also may be used as taglines.
Practical Tips Writing Catchy Phrases:
The repetition of structure and sounds contributes to memorability.
i. A startling or unexpected phrase. Think back to Nike’s “Just Do
It” tagline.
ii. Rhyme, rhythm, alliteration. Use repetition of sounds, as in the
Wall Street Journal’s “The daily diary of the American dream.”
iii. Parallel construction. Use repetition of the structure of a sentence
or phrase Eg: She likes singing, dancing and to cook Vs She likes
singing, dancing and cooking

Radio Advertising
 Radio Ads help to define a particular audience that listens to a
program. “Selecting a radio station is much like choosing a list of
potential customers”.
 However, radio advertising is more expensive than newer forms of
advertising out there such as search engine advertising on Google or
Bing and ads on social media platforms such as Facebook.
 Benefits of Radio Ads include
a) Reach a large amount of people.
b) Radio is a local medium.
c) Target your advertising.
d) Reach people who can spend.
e) Send your message through multiple mediums.
f) People need to hear about your business multiple times before they
are familiar with it, and radio offers a good way to get your message
out there.

Radio Advertising
 Demerits include
a) People are distracted. Someone who is listening to the radio is
probably doing something else at the same time (whether it be
driving, working, etc). This means it can be hard to capture
someone’s attention with your radio ad.
b) People can easily switch radio stations. There are hundreds of
AM/FM radio stations that users can choose between while
listening to the radio. Therefore, when a commercial comes on,
they can easily switch to a different station.
c) People are not spending as much time listening to the radio. To
reach the entire audience of a radio station requires more spots
than television. Television is sometimes called appointment
viewing.

Radio Advertising
 Traditionally, radio spots are sold and priced based on 60 second
commercial spots. However, you can buy 30 second or even 15
second spots.
 Frequency is the number of times your ad is heard by an individual
person, while reach is the amount of people that hear your ad. In
other words, frequency is talking to someone a lot, and reach is
talking to a lot of people.
 Pricing ultimately comes down to the following equation:
Number Of People Listening x Cost To Reach 1,000 listeners
(CPM) = Cost of Advertising Per Spot
 Factors Influencing Radio Ad Cost
a) Number of people listening to your ad
b) Demographic of the radio station’s audience
c) Demand for an ad spot amongst advertisers

Radio Advertising
Case Study on Effectiveness of Radio Advertising
http://blog.releasemyad.com/2016/01/chumbak-creates-waves-
among-the-youth-with-its-quirky-desi-appeal/

How to design a Radio Ad
Step 1: Decide the Ad
Length

Step 2: Selecting a Style
for your Ad
 Problem –
Solution
 Real Life
Situations
 Testimonials

Step 3: Writing Creative
and Engaging Copy

How to Design a Billboard Copy
Creative &
Innovative
Style

Shock &
Humour Style

Right and Creative
Vantage Points

How to design a Billboard Copy
Simple
Layout and
Informative

Things to keep in mind while designing a
Billboard
1. Simple Layout – LESS IS MORE – KEEP IT SIMPLE. The most
effective messages are always the most simple. Your billboard should
be a clear and brief expression of one idea.
2. Short Copy – Use short simple words with quick and easy
comprehension. Limit or eliminate punctuation and edit down to the
bare bones of your message. RULE OF THUMB: 7 WORDS OR LESS.
3. Viewing Time – Does your message communicate effectively within 5-
10 seconds? REMEMBER: Your target audience is travelling past
your billboard at 60 to 70 kms per hour.
4. Large fonts and text – Your goal is for people to read your message
from as far away as possible. Be sure the words are large and the type
is clear and easy to read. Bold, straight fonts work best. Avoid thin,
ornate fonts. Sans Serif fonts work best. Adequate spacing between
letters, words and lines improves visibility. Drop shadows can help
readability.

Billboard
5. Contrasting Colours – High colour contrast is the key to good
readability. Colours that work best: black, white and bold, primary
colours like red, yellow and blue. Black text on yellow rates the
highest in readability. Colours to avoid: brown, earth tones, pastels.
6. Single Image – Use one large image to attract the reader’s eye to the
billboard. For example, a single image of a bottle works better than
having 6. Take a small object and make it large (like jewellery) rather
than making a large object small (like a house).
7. Simple Background – Use a simple background that does not interfere
with your image, copy or logo. Too much blank space isn’t a good
thing. Blank space doesn’t translate well from magazine ads to
billboards. Use the blank space and make your fonts, image and logo
bigger.
8. 8. Call to Action – Is the call to action clearly found in the ad? Does
your target audience have the necessary information to respond to
your ad?

Billboard
9. Balanced Logo – There has to be balance between the image and
the logo. The logo is typically not as big as the image. About 1/8
of the board size is a pretty good guideline for the smallest the
logo should be.

Television Advertising
 A television advertisement (variously called a television
commercial, commercial or ad in American English, and known in
British English as an advert) is a span of television programming
produced and paid for by an organization, which conveys a
message, typically to market a product or service. Advertisers and
marketers may refer to television commercials as TVCs.
 A television commercial is not the powerhouse advertising medium
it used to be. Once upon a time one could throw TV ads on the
schedule and know it would be reaching millions of people.
 These days, with the ability to skip commercials, or fast-forward
through them, it has become incredibly difficult to catch the
viewer's attention.
 It should, however, be thought of much more strategically. How
will you attract viewers’ attention? How will you avoid the skip
button? How will you stand out in a sea of other commercials all
vying for attention?

Television Advertising - What Works
 Storytelling: Great advertising almost always tells us a good story. Great ads
have cogent, understandable and entertaining storylines that engage the
audience and pull them into the world of the advertised brand. If your brand
isn’t telling a good story, it should be.
 Simplicity: Simpler is generally better, and this applies to advertising too. A
simple story well told is easily remembered. Too many cuts and complex stories
create confusion and obscure your storyline. It’s that simple.
 Relatable situations: Ads that are “for people like me” are more effective. They
speak directly to the consumer and what they care about. Including situations
and characters that viewers can relate to make it easier for viewers to engage and
care about your advertising.
 Humour: Audience-appropriate humour is another hallmark of great ads. What
an 18-year-old guy attending high school and a 65-year-old retired schoolteacher
find funny is probably not the same.
 Branding: The best ads have strong branding by definition. An ad can’t be a
strong ad if no one remembers that it’s for your brand. Well-branded ads
communicate their brand through both audio and video, and they use brand
cues early and often. Often, they use mnemonic devices—iconic characters or
music that immediately identify the brand.

Television Advertising - Steps
1. New and
Innovative
Ideas
2. Script
(Copy) is the
Key
3. Selecting the
Right
Characters
4. Selecting the
Production
Company
5. Planning the
Shots, Audio &
Video
6. Sticking to
Time
7. Always use
Call to Action
8. Scheduling
the Ad
Strategically
9. Frequency is
the Key

Television Advertising - Pricing
The cost of advertising on Television depends on the following
factors:
1. Timing of advertisement: Timing of the advertisement is critical
and varies from one Television Channel to another. For a Movie
or Entertainment Channel Evening slots may be preferred for
advertising therefore making that time expensive. For a News
channel Morning and Evening Prime Times may be preferable.
2. Weekends Vs Weekdays: The cost of advertising during
Weekends goes as high as 45% when compared during a
weekday. The cost depends based on the channel. Surprisingly
movie channels charge you lower on a Sunday. The cost drops
by almost 45% during weekends.
3. Viewership: The cost of advertising differs from channel to
channel based on the number of viewers they attract. For
instance, average amount spent per customer for an
advertisement of 30 seconds could be as low as about INR 0.007
for a TV channel with high viewership.

Television Advertising - Pricing
Source: http://www.themediaant.com/television

Online Advertising - Meaning
 Online advertising is a marketing strategy that involves the use of
the Internet as a medium to obtain website traffic and target and
deliver marketing messages to the right customers. Online
advertising is geared toward defining markets through unique and
useful applications.
 A major advantage of online advertising is the quick promotion of
product information without geographical boundary limits. A
major challenge is the evolving field of interactive advertising,
which poses new challenges for online advertisers. Online
advertisements are purchased through one of the following
common vehicles:
 Cost per Thousand (CPM): Advertisers pay when their messages
are exposed to specific audiences.
 Cost per Click (CPC): Advertisers pay every time a user clicks on
their ads.
 Cost per Action (CPA): Advertisers only pay when a specific action
(generally a purchase) is performed.

Online Advertising – Forms / Types
The Difference Between Organic And Paid Search Engine Results
When a search engine returns its search results, it gives you two types:
organic and paid. Organic search results are the Web page listings that
most closely match the user’s search query based on relevance. Also
called “natural” search results, ranking high in the organic results is
what SEO is all about.
Paid results are basically advertisements — the Web site owners have
paid to have their Web pages display for certain keywords, so these
listings show up when someone runs a search query containing those
keywords.
On a search results page, you can tell paid results from organic ones
because search engines set apart the paid listings, putting them above
or to the right of the organic results, or giving them a shaded
background, border lines, or other visual clues.

Online Advertising - Pricing
 PPC stands for pay-per-click, a model of internet marketing in which
advertisers pay a fee each time one of their ads is clicked. Essentially,
it’s a way of buying visits to your site, rather than attempting to
“earn” those visits organically. Search engine advertising is one of
the most popular forms of PPC. It allows advertisers to bid for ad
placement in a search engine's sponsored links when someone
searches on a keyword that is related to their business offering.
(Traffic centric)
 Cost Per Click (CPC) refers to the actual price you pay for each click
in your pay-per-click (PPC) marketing campaigns. A "click" on one of
your PPC text ads represents a visit, or an interaction with your
company's product or service offering. Every click in a PPC
campaign represents attention from a person who is searching for
something that you offer. This attention is what you're buying, as an
advertiser, so it's important to note two factors:
i. What type of attention you’re going after, and
ii. How much you’re paying for it. (Cost Centric)

Online Advertising - Pricing
 The CPM price means that every time an ad is shown 1,000 times, it
will cost/earn you that price. Typically you would buy/sell a
specific amount of ad impressions at this set price. So for example if
you purchase 1,000,000 ad impressions at Rupees 3 CPM, as a result
you would pay Rupees 3,000. This is because for every 3 Rs you
spend, you are getting 1,000 ad impressions.
 Cost per acquisition (CPA), also known as pay per acquisition
(PPA) and cost per conversion, is an online advertising pricing
model where the advertiser pays for each specified acquisition - for
example, an impression, click, form submit (e.g., contact request,
newsletter sign up, registration etc.), double opt-in or sale.

Online Advertising – Forms / Types
 Examples of online advertising include banner ads, search engine
results pages, social networking ads, email spam, online classified
ads, pop-ups, contextual ads and spyware.

Online Advertising: Paid Social

 Social networking remains the most popular online pastime for
adults all over the world, and advertisers have evolved their
strategies to target consumers where they spend their time, namely
on social networks such as Facebook and Twitter.
 Paid social advertising functions similarly to paid search, with the
notable exception that advertisers, not users, take the initiative –
advertisers must “search” for users, rather than the other way
around.
 One of the greatest strengths of paid social advertising is the
granularity with which advertisers can target prospective
customers, and this principle underpins many social advertising
platforms and products.
 Advertisers can target users with hundreds of parameters, from
demographic data (such as age, gender, income, level of education,
and marital status) to browsing preferences and social behaviour.

• Advertisers can also target users based on the types of pages and
profiles they follow, the things they buy, and the news they read.
These custom audiences can be created from existing customer data
(to create “lookalike” audiences of similar users) to email lists,
which Facebook and Twitter can pair with their data about these
users to reveal greater insights about their behaviour.

Online Advertising: Campaign
Elements
1. Text and Visual Ads: Google AdWords and Bing Ads offer
advertisers the choice of either text-based ads or more visual
advertisements, such as banners. Text-based ads are often referred
to simply as PPC ads, whereas banners and similar ad formats are
commonly referred to as display ads.

Elements
2. Landing Pages: Landing pages are specialized, optimized web
pages that visitors are taken to upon clicking an ad. Landing pages
can feature specific products featured in the advertisements
themselves, or they may include prompts for users to provide the
advertiser with more information, such as web forms.
3. Call Tracking: To many advertisers, phone calls are the most
valuable source of leads. For this reason, advertisers can choose to
track phone calls generated from online advertising campaigns.
4. Sponsored Content: Many advertisers choose to utilize sponsored
content as an element of their online advertising campaigns.
Sponsored content can take many forms, from advertorial-style
editorial content featured on websites (commonly known as native
advertising), to sponsored updates on social media platforms.
5. Analytics: Advertisers do not simply publish ads to the web and
hope for the best – they must know exactly how well their ads are
performing, and from where their traffic is coming.

Elements
6. Email Marketing: Email marketing is one of the most common
elements in an online advertising campaign. Some advertisers
launch email-only campaigns to highlight time-specific offers or
content downloads, whereas others use email to complement their
other digital marketing channels. Email marketing can be highly
effective, making it a popular choice for today’s advertisers.
7. Remarketing: Consumers rarely discover a website and decide to
make a purchase immediately. The customer journey can be
lengthy and complex, and take place across multiple devices and
websites over prolonged periods of time. For this reason,
remarketing has become one of the most important tools in a digital
marketer’s toolbox. Remarketing allows you to track users who
have visited your website – but failed to convert or take action –
once they leave your site, and serve ads to them on other websites.

Elements

Advertising Budget Plan
 An advertising budget reflects the importance given to the
function of advertising within a company.
 The budgeting process is the responsibility of the top management
along with the marketing manager.
 The advertising budget is both a planning and control device.
There are many managerial functions that are performed
through the process of budgeting. Managerial goals are
discussed and are synchronized with marketing and
advertising objectives.
 An advertising budget is a plan
a) that sets a limitation on advertising expenditures,
b) states how expenditure will be allocated and
c) controls the disbursement of expenditure over a designated
period of time.

 The process of budgeting is therefore a decision making process
that divides the total appropriation under different expenses
heads. For example if the total advertising budget for launching
a new product is rupees two-three crores Rupees, then deciding
that 1.5 crores rupees will be spent on the national media, is a
budgeting decision.
Who Decides The Advertising Budget?
 It is the primary responsibility of the advertising manger to prepare
draft budget proposals. It is his duty to access the needs of the
company with respect to the challenges posed by the market.
 He also takes into account the cost of the media, creative and actual
production, while preparing the proposals. This draft budget then
becomes the basis of discussion between the marketing
manager and advertising manager and sometimes, even the
advertising agency (especially when the agency has a long term
relationship with the company.

 This result in final budget plan that is then recommended to the top
management for approval. Though this is the most scientific
process of arriving at the advertising budget, it is sometimes not
followed, especially by small advertisers.
 In such circumstances the top management may decide upon the
amount to be spent (budget appropriation) and the advertising
manager will then plan how to allocate this sum between different
expenditure heads.
Methods Of Setting The Advertising Budget
 One of the most difficult tasks facing advertisers and ad agencies is
the decision on the optimum money to be spent on advertising.
Advertisers want to minimize expenditure and maximize the
returns. Though advertising expenditure is considered to be an
investment, its utilization has to be intelligent and profitable.
 Though there are several accepted methods of arriving at the
budget, the individual brand budget will depend upon several
factors such as profitability, marketing objective and competitor’s
position.

Advertising Budget - MethodsMethodsOfSettingThe
AdvertisingBudget
1. Percentage of Sales Method
2. Unit of Sales Method
3. Task and Objective Method
4. The Competitive Parity Method
5. Brand History Method
6. All You Can Afford Method
7. The Break Even Method / Marginal Analysis Method
(Highest additional Gross profits)
8. The Quantitative Method / Models
9. Share of Voice Method (Brand Space)

Advertising Budget Considerations
Before finalizing the advertising budget of an organization or a
company, one has to take a look on the favorable and unfavorable
market conditions which will have an impact on the advertising budget.
The market conditions to watch out for are as follows:
1. Frequency of the advertisement
2. Competition and Clutter
3. Market Share of the Product
4. Product Life Cycle Stage
Frequency of the Advertisement
This means the number of times advertise has been shown with the
description of the product or service, in the granted time slots. So here,
if any company needs more advertising frequency for its product, then
the company will have to increase its advertising budget.

Advertising Budget Considerations
Competition and Clutter
The companies may have many competitors for its product. And also
there are plenty of advertisements shown which is called clutter. The
company has to then increase their advertising budget.
Market Share
To get a good market share in comparison to their competitors, the
company should have a better product in terms of quality, uniqueness,
demand and catchy advertisements with resultant response of the
customers. All this is possible if the advertisement budget is high.
Product Life Cycle Stage
If the company is a newcomer or if the product is on its introduction
stage, then the company has to keep the budget high to make place in
the market with the existing players and to have frequent
advertisements. As the time goes on and product becomes older, the
advertising budget can come down as then the product doesn’t need
frequent advertising.

Advertising Budgeting Process
Defining the
Advertising
Objectives
Preparing the
Advertising
Budget
Approval of the
Top Management
Media Strategy
Decisions
Estimating the
cost of various
media elements
Allocating the
Budget to Various
Media
Monitor and
Control
Evaluation of the
Media
performance
Any Changes to
exiting budgeting
strategy

Maslow’s Hierarchy of Needs
and Advertisements
This ad demonstrates the
physiological need of
Maslow’s hierarchy of needs.
The strategy of this need is
expressing that water is very
important and it is
impossible to survive
without it. This ad fits the
physiological need because
water is something that
people will always need and
thirst is something that
people will always have.

and Advertisements
This ad is an example of the
Safety need of Maslow’s
hierarchy of needs. The
strategy of this ad is
conveying that if you rent a
home or an apartment and
do not have insurance it is
equivalent to doing the
most dangerous activities
in your home. This ad fits
the safety need because
people feel secure and safe
when they have insurance.

and Advertisements
This ad is an example of the love
and belongingness need of
The strategy of this ad is
expressing that the Salvation
Army is always looking out to
help people in need. This ad
conveys the love and
belongingness need because it is
expressing that there are people
who will help anybody in need
and those people will feel like
they belong.

and Advertisements
This ad demonstrates the
esteem need of Maslow’s
hierarchy of needs. The
strategy of this ad is
suggesting that the design
of this car is so much like a
plane and it is hard to
differentiate between the
two. This ad expresses the
esteem need because
people will feel very
prestigious. They will also
feel as if they have a very
high status because their
car is compared to a plane.

and Advertisements
This ad expresses the self-
actualization need of
The strategy of this ad is
conveying that the U.S.
Marines only wants people
who are able to live up to
their highest potential and
push others to do the same.
This ad fits the self-
actualization ad because it is
expressing people to be the
best they can be and then
they will feel self-fulfilment.

Advertising Appeals
Advertising appeals aim to influence the way
consumers view themselves and how buying certain
products can prove to be beneficial for them.
The message conveyed through advertising appeals
influences the purchasing decisions of consumers.
Advertising uses appeals as a way of persuading people
to buy certain products.
Advertising appeals are designed in a way so as to
create a positive image of the individuals who use
certain products.

Types of Advertising Appeals
1. Emotional Appeal
a) Personal Appeal
b) Social Appeal
c) Fear Appeal
d) Humor Appeal
2. Sex Appeal
3. Music Appeal
4. Scarcity Appeal
5. Rational Appeal
6. Masculine Feminine Appeal
7. Brand Appeal
8. Snob Appeal
9. Adventure Appeal
10. Less than Perfect Appeal
11. Romance Appeal
12. Youth Appeal
13. Endorsement
14. Play on Words
15. Statistics
16. Plain Appeal
17. Bandwagon Appeal
18. Sensitivity Appeal

Emotional Appeal
 Related to an individual’s psychological and social needs for
purchasing certain products and services.
 Personal Appeal
Some personal emotions that can drive individuals to
purchase products include safety, fear, love, humour,
joy, happiness, sentiment, stimulation, pride, self esteem,
pleasure, comfort, ambition, nostalgia etc.
 Social Appeal
Social factors cause people to make purchases and
include such aspects as recognition, respect,
involvement, affiliation, rejection, acceptance, status and
approval.

Emotional Appeal
 Fear Appeal
Fear is also an important factor that can have incredible
influence on individuals. Fear is often used to good effect
in advertising and marketing campaigns of beauty and
health products including insurance. Advertising experts
indicate that using moderate levels of fear in advertising
can prove to be effective.
 Humour Appeal
Humour is an element that is used in around 30% of the
advertisements. Humour can be an excellent tool to catch
the viewer’s attention and help in achieving instant recall
which can work well for the sale of the product. Humour
can be used effectively when it is related to some benefit
that the customer can derive without which the joke might
overpower the message.

Advertising Appeal
Sex Appeal
 Sex and nudity have always sold well.
 Sexuality, sexual suggestiveness, over sexuality or
sensuality raises curiosity of the audience and can result
in strong feelings about the advertisement.
 It can also result in the product appearing interesting.
Music Appeal
 Music can be used as types of advertising appeals as it
has a certain intrinsic value and can help in increasing the
persuasiveness of the advertisement.
 It can also help capture attention and increase customer
recall.

Advertising Appeal
Scarcity Appeal
 Scarcity appeals are based on limited supplies or limited
time period for purchase of products and are often used
while employing promotional tools including
sweepstakes, contests etc.
Rational Appeal
 Aims to focus on the individual’s functional, utilitarian or
practical needs for particular products and services.
 Emphasize the characteristics and features of the product
and the service and how it would be beneficial to own or
use the particular brand.

Scarcity Appeal
Rational Appeal

Advertising Appeal
Masculine Feminine Appeal
 Used in cosmetic or beauty products.
 This type of appeal aims at creating the impression of the
perfect person.
Brand Appeal
 Is directed towards people who are brand conscious and
wish to choose particular products to make a brand
statement.
Snob Appeal
 Appeal is directed towards creating feeling of desire or
envy for products that are termed top of the line or that
have considerable qualities of luxury, elegance associated
with them.

96
Masculine Feminine Appeal
Brand Appeal

Advertising Appeal
Adventure Appeal
 Is directed towards giving the impression that
purchasing a product will change the individual’s life
radically and fill it with fun, adventure and action.
Less than Perfect Appeal
 Advertisements often try to influence people to make
certain purchases by pointing out their inadequacies or
making them feel less perfect and more dissatisfied with
their present condition.
 These types of advertising appeals are used in cosmetic
and health industries.

Advertising Appeal
Romance Appeal
 These advertisements display the attraction between the
sexes.
 The appeal is used to signify that buying certain
products will have a positive impact on the opposite sex
and improve your romantic or love life.
 Fragrances, automobiles and other products use these
types of advertising appeals.
Sensitivity Appeal
 These advertisements are used to drive at and influence
the sensitivities of consumers.

Romance Appeal
Sensitivity Appeal

Advertising Appeal
Youth Appeal
 Advertisements that reflect youth giving aspects or
ingredients of products use these types of appeals.
Cosmetic products in particular make use of these
appeals.
Endorsement
 Celebrities and well known personalities often endorse
certain products and their pitching can help drive the
sales.
Play on Words
 Advertisements also make effective use of catch phrases
to convey the message. Such appeals help in brand
recognition and recall and can be quite popular with the
youth in particular.

Advertising Appeal
Statistics
 Advertisements also use statistics and figures to display
aspects of the product and its popularity in particular.
Plain Appeal
 These advertisements use every day aspects of life and
appeal to ordinary people regarding the use of a product
or service.
Bandwagon Appeal
 This type of advertising appeal is meant to signify that
since everybody is doing something you should be a part
of the crowd as well.
 It appeals towards the popularity aspect or coolness
aspect of a person using a particular product or service

107
Statistics
Plain Appeal
Bandwagon Appeal

Another important area in advertising research is copy testing.
The word copy is used to denote an entire advertisement,
including the message, pictures, colors etc., regardless of the
medium in which the advertisement has appeared.
Copy Testing
Methods of copy testing can be divided into 2 categories:
1. Before tests
2. After tests
Before tests includes all those tests that are used in
ascertaining the suitability of an advertisement before it is
finally released.
After tests includes tests to measure the effectiveness of an
advertisement after it has been formally released.

1. Consumer jury:
In this method, a sizeable number of consumers from the target audience
are shown a set of rough and unfinished advertisements. With respect to
these advertisements they are asked such questions as:
 Which copy would you prefer to read?
 Which one would induce you to buy the product?
 Which headline is the most interesting?
 The assumption in this method is that at least one of the
advertisements shown will be liked by them.
2. Rating Scale:
 This method involves the use of certain standards against which a copy is
tested.
 It may be added that weights may be assigned to different factors or items
on the basis of which a copy is to be tested, depending on their relative
importance or relevance.
 This method is generally used by professional advertising agencies which
are able to rate advertisements without any difficulty.
Copy Testing - BEFORE METHODS

3. Portfolio tests
 According to this method, a number of alternative copies that are to be
tested are placed in a portfolio. At times, the copies are placed in
dummy copies of magazines or newspapers.
 Respondents are given the portfolio and asked to go through it. After
they have done so, they are asked to recall the copies from memory.
 The interviewer may facilitate recall by asking about specific
advertisements.
 The extent of recall will indicate the strength of the copy.
4. Psychological tests
 This method uses a number of psychological techniques to find out the
reactions of the respondents to a given advertisement.
 Techniques such as word association, sentence completion, depth
interviewing and story telling are used by trained psychologists to find
out what respondents see in a given advertisement and the influence it
has on them.
 As it is extremely difficult to interpret the information obtained on the
basis of psychological tests, only trained persons should be appointed to
carry out this task.

5. Laboratory testing
 This method uses mechanical devices to measure the respondents psychological
responses to a given advertisement.
 The commonly used tests are the galvanic skin response and the eye movement.
 In galvanic skin response, a device is used to measure changes in the amount of
perspiration in the hands. This may be taken as a measure of emotional change
as a response to an advertisement.
 However, the test is unable to indicate whether such an emotional change is
favourable or unfavourable to an advertisement.
6. Inquiry tests
 Some advertisements may invite several inquiries from the readers about a given
product or service.
 However, it is questionable whether a large number of inquiries can be regarded
as a good yardstick for a successful advertisement.

7. Simulated sales test
 These tests expose prospective consumers to different pieces of copy through
point-of- purchase displays or direct mail.
 Thus one may select two groups of similar stores where two alternative pieces of
copy or displayed at the entrance or at some other place in the store.
 Sales of the product in question are measured both before and after the display
of copy in the two groups of store.
 The copy in those stores which have registered a higher increase in the sale of
the product over time is regarded as a better copy.
8. Day after recall tests
 These tests are generally undertaken for television commercials.
 The test involves an on – air exposure of a commercial in a couple of cities.
 This is followed by a telephonic enquiry of the respondents to find out if they
can recall the message.
 The aggregate recall score that is arrived is compared with a standard score
based on similar studies.
 If the score given by the commercial is higher than the standard score, it is
inferred that the advertisement is useful and should be telecast on a larger
television network.
 The main advantage of this test is that it is performed in a natural setting.

 There are three methods that are frequently used to test an advertisement
after it is formally released.
 They are 1. Recognition tests
2. Recall tests
3. Sales test
1. Recognition tests
These tests are carried out with respect to a printed advertisement and
commonly referred to as a readership study. Here, the respondents are asked if
they have read a particular issue of a magazine. They are further asked as to
what they saw and read. Generally, the respondent is shown a particular page
of the magazine and then the following measures of recognition are taken:
 1. Noted: the percentage of readers who have seen the advertisement earlier.
 2. Seen – Associated: the percentage of readers who read a part of the
advertisement which indicates the brand of advertiser.
 3. Read most: the percentage of readers who read a major part of the
advertisement.
Scores are assigned to these three measures and overall scores are determined
for all the advertisements contained in a particular issue of the magazine.
These scores are then related to the expenditure incurred on the
advertisements. In this way cost ratios can be determined.
Copy Testing - AFTER METHODS

2. Recall tests
In this method respondents are asked to recall specifics of the advertisement.
In the foreign countries, there are some advertising agencies that offer a post-
testing readership service. To begin with, copies of test magazines are sent to a
sample of respondents who are asked to read them in a normal manner.
Telephone interviews are held on the following day. Respondents are read out
a list of advertisements and asked to identify those they remember and the
extent to which they are able to recall. Thus, score are assigned to the ability of
the respondent to remember the name of the product, the underlying message
contained in the advertisement and their favourable attitude regarding the
advertisement.
3. Sales tests
This method measures the effect of an advertisement on the sale of the
product. The assumption is that changes in sales are as a result of the
advertisement. However, as there are several factors influencing sales, one has
to be extremely careful in establishing a relationship between advertisement
and sales. It is desirable to isolate the influence of other factors while
determining the impact of an advertisement on the sale of the product.
Copy Testing - AFTER METHODS

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