Advertising

Peeping Inside
What we mean?
 Means of creative
communication.
 Means to exercise the right to
choose.
 It connects an identified
sponsor with the target
audience.
 Uses mass media to reach
broad audiences
Development of Advertising
 Signets were used.
 Signets were replaced by written words or messages.
 In 17th century Newspaper advertising came
 Main source of revenue generation for newspaper and
space selling came into existence.
 In 1888, Coca cola registered its trademark.
1886
 1905

1920 1907
1961 - 1962
1964 - 1969
Advertising in India
I AM THE MEDIA

76% of consumers don’t

believe that companies tell
the truth in advertisements
 ONLY 14% TRUST ADS
CREATING BUZZ

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 69 % INTERESTED IN AD
BLOCKING TECHNOLOGIES
CREATING BUZZ

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LAW OF FEW
10% INFLUENCE
PURCHASING BEHAVIOR OF
OTHER 90%
CREATING BUZZ

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Key Findings
(Jan- June 2010)
 ‘Coca Cola India Ltd' ,'Pepsi Co' and 'Cadburys India Ltd' were the top
three advertisers of 'Food & Beverages' sector on TV.
 'Aerated Soft Drinks' category had the maximum share of 'Food &
Beverages' sector TV ad pie.
 ‘HUL’ had the highest share i.e. 28% of 'Personal Care/Personal
Hygiene' sector TV ad pie followed by 'Reckitt Benckiser (India) Ltd' and
'Colgate Palmolive India Ltd' with 11% and 9% share respectively.
 'Toilet Soaps‘ have 37% share followed be ‘Tooth Pastes’ and
‘Fairness Creams’ category at 13% & 11% respectively.
How advertising is
useful?
Reach Target Audience
 Advertising is used to "reach" and communicate with
the target audience for the promotion.
Eg - If a daycare center conducts a
promotion to offer a week of free
childcare for new customers, it
might use magazine advertising to
reach working moms with children
under age 5.
Close attention would be paid
to how many readers the magazine
reaches who meet the target
audience criteria. Readership
statistics from several magazines
would then be compared to make
the final selection of where to place
the advertisement about the
promotion.
Generate Awareness
 Advertising media should be used strategically and
effectively to achieve awareness of the promotion
and gain a Return on Investment (ROI).

Eg - A newly opened fitness club in a city

might develop a promotional campaign to
target higher society members. The fitness
club could strategically purchase radio
advertising time to air commercials during
morning and evening commute hours (also
referred to as "drive time"), to reach the
target audience. The club could then track
new members and revenue gained as a
result of airing the radio commercials.
Drive Traffic
 Marketers and advertisers often set a goal to "drive traffic"
during a promotion.
 This term can encompass driving traffic to all stores in a
chain, specific retail locations or perhaps a website.

Eg - A tax preparation software company

might place a banner ad on the website
for an office supply store.
The banner ad could promote a discount
or free use of the program for a limited
time. When people click on the banner
ad they are driven (or redirected) to the
website for the software company to get
the free trial or purchase the software
during the promotional period.
 Communicate the Call to
Action
The "call to action" is a major element of the advertising
message. In a promotions campaign, it is used to tell the
target audience what to do to participate in the promotion and
gain the benefits or advantages offered.
Eg – 1. A banner ad on a website will say, "click here" for more
information.
2. A TV commercial promoting a special sale at a department
store will say "shop this weekend only."
3. A newspaper ad promoting a free oil change might say, "bring
in this ad" in order to get the free service.
In each case, the advertising serves to tell the target audience to
take an action that qualifies them to take advantage of the
promotion.
Measure Response and
Effectiveness
 Advertising provides a means to measure the
overall response and results of the promotion
campaign.
Eg – 1. In an online advertising campaign, the number of
clicks on banner ads and number of website visitors can
be tracked.
2. Polling customers at check-out or at promotional events
is also a useful technique to gather data to compare
results when different forms of advertising are used
(such as print, online banners and commercials).
The Functions of
Advertising
 Builds awareness of products and brands
 Creates a brand image
 Provides product information
 Persuades people
 Provides incentives to take action
 Provides product reminders
 Reinforces past purchases and brand
experiences
Benefits of Advertising
 Information – reach to large base in shortest
possible time.
 Building Brand Image – promise of consistent
quality, service, warranty
 Innovation – new product development. Encourages
competition and offer new choices to consumers
 Growth of Media – revenue generation. 60% cost of
magazines, more than 70% of the cost of
newspapers and nearly 100% of the cost of TV and
radio.
What Makes an Ad Effective?
1. Gets your attention
2. Delivers the message
3. Creates an impression for a product or brand
4. Influences people to respond
5. Separates the product or brand from the
competition
 Key Players
 Advertiser

 Agency

 Media

 Supplier/Vendor

 Target Audiences

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How Agencies Make Money?

 Commission

 Negotiated Fee

 Hourly Rate

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Agency Evaluation
 Sales increases
 Percentage share of the market the brand
holds
 Return on Investment (ROI)
Thank You!