MEDIA AND ADVERTISING
#2

MARKETING MIX
• Advertising
• PR/ Direct Marketing
• Sales promotion
• ….
Product Promotion
PlacementPrice
“A form of marketing communication used to persuade an
audience to take or continue some action, usually with
respect to a commercial offering, or political or ideological
support”
Aric Rindfleisch
“Any paid form of non-personal presentation and promotion
of ideas, goods, or services by an identified sponsor”
Philip Kotler
“Advertising involves the creation of messages, the delivery
of them, and the measurement of their effects”
Irwin Gotlieb

“In fact, the history of modern advertising is a story about continually changing media technologies and the creation of
messages for and adapted to these modes of communication.”

Source: The Joins Hopkins University
A SCHEMATIC HISTORY OF ADVERTISING MEDIA
Sender Medium Receiver
Seller Interpersonal One, a few
Client + Agency Mass Many, all at one
Client + Agency Mass Many, all at one
Client + Agency Mass Many, all at one
Client + Agency Mass
Fragmented and able to shift
viewing time
Client + Agency + Consumer Personalized Atomized
Salesmanship
Print
Radio
TV
Narrowcasting
Internet

Source: Google
HOW MARKETING ACTIVITY HAS EVOLVED
“Now it's not simply two-way - I speak and you speak back. it's multi-
way: I speak and you might take the message and give it to a friend or
you might decide to speak to me before I even started to speak.” Rishad
Tobaccowala, CEO of Denuo

DISTRIBUTION OF ADVERTISING SPENDING WORLDWIDE IN 2013 AND 2018

• Around the world, advertisers will spend $578 billion in 2015, an increase of 6.0% over 2014.
• Digital’s share of total advertising will reach 29.6%, $171 billion.
• Mobile advertising is the key driver of growth around the world, and advertisers will spend $68.7 billion worldwide on mobile in 2015, an
increase of nearly 60% over 2014
Source: eMarketer.com
SHARE OF ADVERTISING SPENDING, BY CHANNEL, 2014

SHARE OF ADVERTISING SPENDING, BY CHANNEL, VIET NAM 2013

COMMUNICATION
PROCESS#3

COMMUNICATION PROCESS
SENDER ENCODING MESSAGE DECODING RECEIVER
RESPONSEFEEDBACK
NOISE
MEDIA
Identify the
Target
Audience
Determining the
Communication
Objective
Source: Principles of Marketing

ADVERTISING RESPONSE MODELS
Source: Principles of Marketing
Cognition Attention
Awareness
Knowledge
Affect
Interest
Desire
Liking
Preference
Conviction
Behavior Action Purchase
Stages AIDA (1898) Hierarchy of Effects (1999)
Advertising communication may not lead to immediate behavioral response or purchase; rather, a series of effects
must occur, with each step fulfilled before the consumer can move to the next stage in the hierarchy.

ADVERTISING OBJECTIVES
Source: Principles of Marketing

CASE STUDY: PEPSI REFRESH 2010
Source: Illinois Edu
The Pepsi Refresh Project was launched in January 2010.
Pepsi decided to take the money ($1.3M) budgeted for its
annual Super Bowl ad, and instead of running an ad,
devote this money to social causes.
To do this, it created a website in which anyone could
submit a proposal for a social project such as sending
care packages to soldiers or building a new playground.
These proposals were voted on by visitors to the website
and based on these votes, Pepsi picked a few winning
submissions each month.
In total, this website had over 18 million unique visitors,
obtained about 80 million votes, and generated nearly
150,000 tweets. The project attracted nearly 3 billion
earned media impressions. Pepsi jumped from number 16
to number 5 on the Forbes list of the country's most
reputable brands.
2010, Pepsi sales fell 6 percent, a sharper decline than the
4.3 percent decline overall in carbonated sales beverages.

COMMUNICATION PROCESS
SENDER ENCODING MESSAGE DECODING RECEIVER
RESPONSEFEEDBACK
NOISE
MEDIA
Identify the
Target
Audience
Determining the
Communication
Objective
Choosing
Media
Selecting the
Message
Format
Source: Principles of Marketing

MESSAGE FORMATS & COMMUNICATION CHANNEL
Base on IAB Ad Format definition
• Banner advertising & Rich media
• Sponsorship
• Digital Video advertising
• Email & Classifieds
• Search & Social media ads
• Mobile advertising
Base on WHAT the message is served
• Text
• Image
• Video
• Rich media
Base on HOW the message is served
• Standard ad
• Floating ad
• Pop-up/pop-under
• Wallpaper
• Expandable
Base on WHERE the message is served
• Display & PR
• Search & Portals
• Mobile (+wifi) & Map
• In Game
• Email (Spam & Opt-in)
• Viral marketing
• Online Partnerships
Base on Philip Kotler definition
• Personal communication channels
– Word-of-mouth
– Buzz marketing
• Non-personal communication
channels
– Mass media
– Atmospheres
– Event
Base on WHO the message is served
• Owned Media
• Paid Media
• Earned Media
Formats
Channel

MESSAGE FORMATS & COMMUNICATION CHANNEL
Base on IAB Ad Format definition
• Banner advertising & Rich media
• Sponsorship
• Digital Video advertising
• Email & Classifieds
• Search & Social media ads
• Mobile advertising
Base on WHAT the message is served
• Text
• Image
• Video
• Rich media
Base on HOW the message is served
• Standard ad
• Floating ad
• Pop-up/pop-under
• Wallpaper
• Expandable
Base on WHERE the message is served
• Display & PR
• Search & Portals
• Mobile (+wifi) & Map
• In Game
• Email (Spam & Opt-in)
• Viral marketing
• Online Partnerships
Base on Philip Kotler definition
• Personal communication channels
– Word-of-mouth
– Buzz marketing
• Non-personal communication
channels
– Mass media
– Atmospheres
– Event
Base on WHO the message is served
• Owned Media
• Paid Media
• Earned Media
Formats
Channel

Big 3 = TV ads + Print ads + Out of Home ads (OOH – DOOH)
Big 3 Display Search CRMSocial Store/Site
Consideration
Evaluate
Purchase
Enjoy
Advocate
Bond
CHOOSING MEDIA CHANNEL

COMMUNICATION PROCESS
SENDER ENCODING MESSAGE DECODING RECEIVER
RESPONSEFEEDBACK
NOISE
MEDIA
Identify the
Target
Audience
Determining the
Communication
Objective
Choosing
Media
Selecting the
Message
Format
Source: Principles of Marketing

REVENUE BY AD FORMAT
Internet advertising revenue by ad format: 1998 – 2013, US
(Percent)
1998 1999 2000 2001 2002 2004
Banner ads 56 56 48 36 29 21
Sponsorships 33 27 28 26 18 10
Interstitials 5 4 4 3 5 2
Email 0 2 3 3 4 3
Classifieds 0 0 7 16 15 17
Rich media 0 0 2 2 5 8
Keyword search 0 0 1 4 15 35
Rreferrals 0 0 4 2 1 1
Slotting fees 0 0 0 8 8 3
Other 6 11 3 0 0 0
Source: IAB
56%
21%

REVENUE BY AD FORMAT
Internet advertising revenue by ad format: 1998 – 2013, US
(Percent)
2008 2009 2010 2011 2012 2013
Keyword search 46 47 46 47 46 43
Banner ads 21 23 24 21 21 19
Classifieds 13 9 10 8 7 6
Rich media 7 7 6 4 3 3
Lead generation 7 6 5 5 5 4
Digital Video 3 5 5 6 6 7
Email 2 1 1 1 0 0
Sponsorships 1 2 3 4 2 2
Mobile 0 0 0 5 9 17
Source: IAB
~ 20%

SEARCH ADVERTISING

CLASSIFIEDS ADVERTISING

IN-ONLINE GAME ADVERTISING

BANNER & RICH MEDIA ADVERTISING

DIGITAL VIDEO

EMAIL ADVERTISING

EMAIL ADVERTISING

SOCIAL MEDIA ADVERTISING
Facebook.com Webtretho.com

MOBILE ADVERTISING
Medium Banner Pop-up Inpage

SPONSORSHIP
Adpage Sponsored post

SPONSORSHIP
Sponsored Topic Sponsored Contest

COMMUNICATION PROCESS
SENDER ENCODING MESSAGE DECODING RECEIVER
RESPONSEFEEDBACK
NOISE
MEDIA
Identify the
Target
Audience
Determining the
Communication
Objective
Collecting
Feedback
Selecting the
Message
Format
Source: Principles of Marketing
Advertising
Evaluation
Choosing
Media
Designing a
Message

ELEMENT OF AN EFFECTIVE COMMUNICATION CAMPAIGN
Source: Communication Campaign Best Practives, Glaad & Map, 2008
Campaign Element The question you need to answer If You only remember one thing, remember this
Campaign objective or goal What are you trying to accomplish? If you try to do too much, you won’t do anything well.
Target audience Who are you trying to reach? If you try to reach everyone, you’ll end up reaching no
one.
Messages and research What are you going to say to your audience
so they’ll take notice,
listen, and hopefully become supportive?
The difference between messaging that you like and
messaging that is effective can be huge.
Media communications plan How are you going to reach your audience? People generally need three exposures to a message
before they hear it.
Messengers or spokespeople Who’s going to say it? There’s often a big difference between who you like
and trust, and who your target audience likes and
trusts.
Budget How much money do you have to make it
happen?
If you don’t have enough money to launch an effective
campaign that’s based on research, you’re better off
not doing it.
Campaign evaluation How will you know what worked and
what didn’t?
Investing in campaign evaluation is worthwhile. It helps
you gain credibility with funders and ensures that
money is well spent in the future.

BENEFITS OF
DIGITAL ADVERTISING#3

BENEFITS OF DIGITAL ADVERTISING
Source: Digital Data Opportunitiews/Ey.com
Customer Signals
Targeting
Tailor promotion offer
Budget control

BENEFITS OF DIGITAL ADVERTISING
Source: Digital Data Opportunitiews/Ey.com
Customer Signals
Targeting
Tailor promotion offer
Budget control

BENEFITS OF DIGITAL ADVERTISING
Customer Signals
Targeting
Tailor promotion offer
Budget control
What Data-Driven Marketing Looks Like in 2015
Source: Adweek.com

Customer Signals
Targeting
Tailor promotion offer
Budget control
BENEFITS OF DIGITAL ADVERTISING
Source: Illinois Edu
User Generated Content

Customer Signals
Targeting
Tailor promotion offer
Budget control
BENEFITS OF DIGITAL ADVERTISING
Source: Illinois Edu
User Generated Content
Low cost promotion
Product sales
Keep content fresh

Customer Signals
Targeting
Tailor promotion offer
Budget control
BENEFITS OF DIGITAL ADVERTISING
Low cost promotion
Product sales
Keep content fresh
Source: Illinois Edu
Warby Parker is a manufacture and retailer of eye glasses that has a few physical
retail locations but does the majority of its online business. This company offers
a service called home try on.
User Generated Content

Customer Signals
Targeting
Tailor promotion offer
Budget control
BENEFITS OF DIGITAL ADVERTISING
Low cost promotion
Product sales
Keep content fresh
User Generated Content
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Online banner ads
Display ads on mobile devices
Ads served in search engine results
Online video ads
Ads on social networks
Billboards and other outdoor advertising
Ads on radio
Ads in magazines
Ads in newspapers
Ads on TV
Editorial content such as newspaper articles
Consumer opinions posted online
Branded websites
Recommendations from people I know
2007
2013
Source: Nielsen 2013
GLOBAL TRUST IN ADVERTISING

Targeting
Tailor promotion offer
Budget control
BENEFITS OF DIGITAL ADVERTISING
User Generated Content
Low cost promotion
Product sales
Keep content fresh
Real-time
Optimization
Sense & response
Customer Signals

Targeting
Tailor promotion offer
Budget control
BENEFITS OF DIGITAL ADVERTISING
User Generated Content
Low cost promotion
Product sales
Keep content fresh
Real-time
Optimization
Sense & response
Customer Signals

RESEARCH FIDING: DIGITAL VIDEO ADS & TIVI ADS
Source: BrightRoll, 3/2013

RESEARCH FIDING: DIGITAL VIDEO ADS & TIVI ADS
Source: Nielsen & IAB 2012

CHALLENGES OF
DIGITAL ADVERTISING#4

FURTHER READING
#5

Source: Cohn & Wolfe
“In a world of ‘digital everything’, there is no privacy and
nowhere to bury bad news, the truth will emerge.”
“This is an insight which global brands must understand:
embrace the Age of Authenticity or risk being left behind.”
Bphone scandal (2015)
Lumia 920 scandal (2012)

Proportion of global respondents who would be extremely angry if a company were to:
Source: Cohn & Wolfe
Global consumers would buy from a
company they consider to be authentic,
over and above competitors.
Global consumers would
recommend an authentic
organization to family and friends
63% 59%
“In a world of ‘digital everything’, there is no privacy and
nowhere to bury bad news, the truth will emerge.”
“This is an insight which global brands must understand:
embrace the Age of Authenticity or risk being left behind.”