3 Chapter three
Advertising Management
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Advertising Management
5 Chapter Overview
• Advertising campaign management
• Communications market analysis
• Advertising goals
• Advertising budget
• Media selection
• Creative brief
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Overview of Advertising Management
1. Review the company’s activities in light of
advertising management.
2. Select in-house or external advertising
agency.
3. Develop an advertising campaign
management strategy.
4. Develop a Creative Brief.
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Advertising and IMC Process
.
• Advertising still major component of integrated
marketing
• advertising represents about 41% of the total
• Role of advertising varies
• Business-to-business sector
• Supporting role
• Consumer sector
• Primary communication vehicle
Dr. Nariman Ammar 5-4
Advertising and IMC Process
• Advertising is still a major component of
integrated marketing. In terms of total marketing
expenditures, advertising represents about 41%
of the total. But, the role of advertising varies. In
consumer marketing, advertising tends to be an
important component. In business-to-business
markets, it often serves the supporting role.
There will also be variance within major sectors.
For instance, some consumer product
companies will place a greater emphasis on
other forms of marketing and use very little
advertising. For others, it may be just the
opposite.
Dr. Nariman Ammar 5-5
In-House vs. Advertising Agency
Decision Variables
• The size of the account
• The media budget
• Objectivity
• Product complexity
• Creative ability
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Cost Considerations
In-House vs. Advertising Agency
Size of account should match size of agency
75-15-10 Rule
75% - Media buys
15% - Creative work (agency)
10% - Ad production
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In-House vs. Advertising Agency
Decision Variables
• Costs are a major consideration in selecting an
outside agency. The size of the account should
match the size of the agency. Smaller accounts may
be lost with a large agency and a large account
would overwhelm a small agency. The 75-15-10 is a
good guide to use. When looking at the total cost of
an advertising campaign, 75% of the money should
be spent on media buys, 15% on creative work by
the agency, and 10% on product
• ion of the ads.
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FIGURE 5.4
Advantages of In-House versus Outside Agency
Advantages of In-House Advantages of Outside Agency
• Lower costs • Reduce costs
• Consistent brand message • Greater expertise
• Better understanding of • Outsider’s perspective
product and mission • Access to top talent
• Faster ad production
• Works closer with CEO
• Lower turnover rate in the
creative team
Source: Adapted from Rupal Parekh, “Thinking of Pulling a CareerBuilder? Pros and Cons of Bringing an Account In-House,”
Advertising Age, [Link] May 18, 2009
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FIGURE 5.5
Steps in Selecting an Advertising Agency
Set goals
Select process and criteria
Screen initial list of applicants
Request client references
Reduce list to 2 or 3 viable agencies
Request creative pitch
Select agency
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5-10
Choosing an Agency
1-Goal Setting
• Goal setting should occur before
contacting any agencies. Doing so will
prevent any biases towards a particular
agency. Also, the goals provide direction.
It will help the company understand what
it wants from an agency and where the
company wants to
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2-Select process and criteria
Evaluation Criteria in Choosing an Ad Agency
• Size of the agency
• Relevant experience of the agency
• Conflicts of interest
• Creative reputation and capabilities
• Production capabilities
• Media purchasing capabilities
• Other services available
• Client retention rates
• Personal chemistry
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Choosing an Agency
Once criteria have been set, it is time to contact agencies or send out
a request for proposals (RFP). The company should next screen the
initial list of agencies and delete any that do not meet the criteria set
forth. From the list that remains, references should be requested.
Other information that might be obtained is retention rates and reasons
for switching. Most agencies post a list of clients on their websites so it
is easy to contact some of these companies to learn more about how
the agency works with them. Once the list has been narrowed down to
2 or 3, it is time to ask for a creative pitch (or shootout). Agencies are
given a specific problem to address. Creative pitches are expensive for
agencies, so companies need to be serious about an agency if it
requests a pitch. From the creative pitches, the company should select
the agency that offers the best plan.
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5-13
Steps in Advertising Campaign
Management
1. Review communications market analysis.
2. Establish advertising portion of IMC
objectives.
3. Review advertising budget.
4. Select media.
5. Prepare creative brief
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5-14
Promotions Opportunity Analysis
(From Chapter 5)
Communication Market Analysis
• Competitors
• Opportunities
• Target markets
• Customers
• Product positioning
•Media usage habits of the target market.
•Media used by the competition
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5-15
Advertising Goals
• To build brand image
• “Top of mind”
• “First choice”
• To inform
• To persuade
• To support other marketing efforts
• To encourage action
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5-16
Advertising Budget
Manner of Distribution
• Continuous schedule:
• Flighting schedule: Companies
• present ads only during specific times and
not at all during off-seasons.
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5-17
Advertising Budget
Manner of Distribution
• Pulsating schedule:
• Continuous advertising with bursts of
higher intensity
• During the course of the year, most notably
during peak seasons.
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5-18
The Advertising Budget
After the total dollars allocated to advertising have been established, account managers and company
leaders need to agree on how to use the funds. This includes the media to be utilized (television versus
newspaper versus billboards). The manner of distribution must be arranged.
Three basic tactics include:
Advertising the most when sales are at peak seasons
Advertising the most during low sales seasons
Level amounts
Advertising during peak seasons can be accomplished in two ways:
A pulsating schedule of advertisements with continuous advertising and bursts of higher intensity during
peak seasons.
A flighting approach or schedule means ads are presented only during peak times, and not at all during off
seasons.
A continuous campaign schedule involves advertising in more level amounts throughout the year.
Budgetary constraints must also be incorporated into the strategies and tactics used in the advertising
program.
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5-19
The Creative Brief
• The objective
• The target audience
• The message theme
• The support
• The constraints
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5-20
The Objectives
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5-21
the objective
The first step in preparing the creative strategy is to
identify the objective of the advertisement. Some
possible objectives may include:
Increase brand awareness
Build brand image
Increase customer traffic
Increase retailer or wholesaler orders
Increase inquiries from end-users and channel
members
Provide information
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The Target Audience
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The Target Audience
A creative should know the target
audience. The more detail that is known
about the target audience, the easier it is
for a creative to design an advertisement
that will be effective.
Target market profiles that are too general
are not very helpful.
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5-24
The Message Theme
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5-25
The Message Theme
• It is an outline of key idea(s) that the
advertising program is supposed to
convey.
• It is the benefit or promise the
advertiser wants to use to reach
consumers or businesses.
• The promise, or unique selling point,
should describe the major benefit the good
or service offers customers.
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5-26
The Message Theme
• “Left brain” advertisement
• Logical, rational side of brain
• Manages numbers, letters, words,
and concepts
• Use rational appeal
• “Right-brain” advertisement
• Emotional side of brain
• Manages abstract ideas, images,
and feelings
• Use emotional appeal
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5-27
The Support
Support takes the form of the facts, which
substantiate the message them
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The constraints
Constraints deal with legal and mandatory restrictions for
ads, or company imposed requirements. They include:
Legal protection for trademarks, logos, and copy
registrations
Disclaimers about warranties, in which the disclaimer
specifies the conditions under which they will be honored
Disclaimers about offers spell out the terms of financing
agreements, as well as when bonuses or discounts apply
Disclaimers about claims identify the exact nature of the
statement made in the advertisement
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5-29
The Support
The support claims highlighted
in this advertisement is that
MicroThins are:
•30% thinner
• 40% lighter
• 4 times more scratch resistant
• 10 times more impact resistant
• 99.9% UV protection
• Anti-reflective
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