Combined Sybcom - Advertising
Combined Sybcom - Advertising
Combined Sybcom - Advertising
� Review of performance
2. Main Objectives:
IMC is undertaken to achieve certain well defined objectives which may include:
� Creating awareness
� Developing attitudes
� Sales promotion
� Salesmanship
� Sponsorships
� Public Relations
� Packaging
� Participation in trade fairs and exhibitions
5. Creativity:
Creativity is vital in all the elements of IMC. For instance, a good deal of creativity is
required to create effective ads. Creative advertisers always make efforts to bring out
creative ads, something more exciting, entertaining and effective – different from the
existing ads.
6. Art and Science:
IMC is an art because it requires creative talents to produce effective commercial
messages. It is a science, because commercial messages are planned and prepared
after systematic study of target audience, product, competitors, etc.
7. Target Audience:
IMC is normally directed at select target audience. The marketer must select the
right target audience and direct the messages to create a positive impact on them so
that they buy and repeat the purchases of the marketer’s brands.
8. Influences Diverse Groups:
IMC is primarily directed at the present and potential customers. However, while
designing IMC, firms must also consider the various groups that IMC may have an
impact. The various groups include the intermediaries, employees, shareholders and
the society at large.
ELEMENTS OF IMC
There are various elements of IMC. The elements are to be coordinated in such a
way to get the maximum impact.
For instance, if a firm needs to create brand awareness of a newly introduced brand,
it has to undertake publicity, advertising, sponsorship, trade fairs participation, etc.,
so as to create the maximum impact. The number of elements to be integrated and
the money to be spent on each element depends on several factors such as nature
of the product, customers, area coverage, competition, availability of funds, etc.
1. Publicity:
Publicity is a form of mass communication that can be used to promote
products through news and articles carried by the mass media about a firm’s
products, actions, policies, awards, etc. Publicity can be favourable or
unfavourable. A firm may influence the media people to carry positive publicity, and
therefore, a firm needs to maintain good relations with media. Publicity has several
advantages over advertising and other elements of IMC:
� It may reach to people, who may not pay attention to advertising, sales promotion
and sales force.
� It is more believed as compared to advertising and other techniques, as it comes
from the desk of the media.
� It Is normally free of cost. The firm need not pay for the space or time of the media.
� It can provide more information than advertising, as it can provide detailed
information about the firm and its products.
2. Advertising :
It is any paid form of non-personal presentation and promotion of ideas, goods
and services by an identified sponsor. The advertising messages are
communicated through various media such as newspapers, magazines, radio,
television, direct mail, internet, and so on. Advertising plays important role in
integrated marketing communication mix:
� It helps to create top of mind awareness.
� Discounts,
� Exchange offers,
For instance, Rolex – the king of luxury watches – maintains its distinct image by
sponsoring Wimbeldon tennis tournament – the king of grand slams in tennis. (The
other three grand slams include: Australian Open, French Open, and US Open)
5. Personal Selling:
It involves face-to-face communication between the firm’s representative and
the prospect. It is the oldest form of promotional effort to sell products. The
basic objectives are:
� To find prospective customers.
9. Direct Marketing :
Direct marketing involves several techniques to sell product directly to the
customers, such as yellow pages, direct mail (sales letters, brochures,
catalogues), interest, and telemarketing. The main advantages are:
� It offers customer selectivity. The marketer can identify and address to the right
target audience of his choice.
� The message can be specially designed to appeal the target audience.
There are six key steps you need to keep in mind while creating your IMC strategy.
Here are the IMC process steps:
� Traffic numbers
� Number of sales
� Change in revenue
� Social media marketing metrics such as engagement rate and increase
in follower count.
The above definitions and several other authors define the term advertisement rather
than advertising. Advertising is a creative process, which involves among other
things, planning, preparing and placing advertisements in the media to
achieve desired objectives.
Features of Advertising
1. Process:
Advertising is a creative and systematic process. The process of advertising
involves:
In case of publicity, a Company may write a positive news story about its new
product or performance and send it to the media for publication or for transmission. If
no payment is made to the media; the published story is not advertising but publicity.
3. Non-personal Presentation:
Advertising is non-personal presentation of commercial messages through the media
like press, TV, radio, outdoor, digital, etc. Generally, advertising is not done face-to-
face on individual bases, except in the case of interactive advertising.
If there is personal presentation of ideas, goods and services, it is
salesmanship and not advertising.
5. Identified Sponsor:
In advertising, the sponsor is always identified, either by the firm’s name and /
or by brand name. In earlier days, there was more emphasis on brand name, but
now-a-days, a good deal of importance is placed on the corporate name as well, and
as such you come across the ads with both the brand name and the Company’s
name.
A strong corporate name often benefits the company to introduce new products, to
secure funds from the capital markets, to attract and retain competent personnel,
and so on.
7. Element of Promotion-Mix:
Advertising is an important element of promotion mix. The other elements of
promotion-mix include publicity, salesmanship, sales promotion, sponsorships, etc.
Advertising creates awareness, develops brand image, induces the people to
buy the products. Advertising also strengthens the efforts of other elements of
promotion-mix.
For instance, advertising strengthens the sales promotion efforts. Sales promotion
(discounts, exchange offers, free gifts, etc.) with the support of advertising creates
conviction in the minds of the customers, and therefore, the customers would be
induced to buy the products. Without the support of advertising, sales promotion by
itself may not find active support of the customers.
9. Objectives of Advertising:
Advertising is undertaken to achieve certain objectives such as:
� To create awareness
� To develop positive attitude towards the brand / firm.
� To enhance brand image.
� To develop brand loyalty.
� To improve corporate image
� To face competition, etc.
10.Universal Usage:
Advertising can be used by any individual or by any organisation. Advertising can be
used by Government authorities, NGOs, business firms and others. The
organisations may be operating at local level or even at international level. Business
organisations and non-business organisations can advertise to promote not only
goods and services but also ideas
11.Consumer Choice:
Advertising facilitates customer choice. It informs about the features, price, and other
aspects of goods and services. This enables the customers to make a proper choice
in their buying depending upon their budget, status, preferences, etc.
12.Builds image :
Advertising helps to build image of the Company and that of the brand. Creative
advertising, the personalities used in the advertisement, the programmes
sponsored by the advertiser, etc., helps to build goodwill (image) of the
organisation and that of its products and / or services.
13.Target Audience:
Advertising is normally directed at selected target audience. One cannot sell
everything to everyone. The advertiser has to select the right target audience
and direct messages to them. This is because; most of the times, a product is
meant for a particular class of people. For instance, one would not sell jeans to
elderly people (although they may use them), but to teenagers or young adults.
14.Creativity:
A good deal of creativity is required to create good ads. Every great ad has a big
idea that is creative and original, which makes the product or idea to sell.
Creative people always try to bring out creative ads, something more exciting,
entertaining, and effective – different from the existing ads. For example, Amul Butter
ads are highly creative effective and entertaining.
Importance of advertising :
Advertising is a powerful tool that can help you attract customers, inform them about
your products and build customer trust. Most companies use some type of
advertisement to help them promote their products or services. Understanding what
advertising is and why it's important for organizations to use it can help you develop
effective ads for your company
Increases sales
Advertising's main goal is to increase the number of people who buy your product.
You can achieve this by using advertisements to persuade customers that your
product is high-quality, useful or desirable. An effective advertisement can convince
customers to purchase your product, which may dramatically improve your overall
sales.
Informs customers
When your company introduces a new product or service, you can create an ad to
inform your customers about it. This allows you to show the new product to a large
number of people and create an interest for the release. Telling a larger amount of
people about your product release may increase the number of people who want to
buy it.
You can use advertisements to monitor your competition and learn about any
developments they make. When a competitor releases a new product or feature,
they may create an advertisement to inform their customers. This gives you the
opportunity to develop something new of your own or create a new advertisement
detailing the features of an existing product that addresses the same challenges.
Retains customers
Using advertising can help remind your customers about your brand and may
encourage them to continue buying your product. A customer who once used your
product may see an advertisement and remember their positive experience. This can
motivate them to purchase that product again or try other services from your
company.
An effective advertisement may improve the morale of co-workers who see or hear
about it. People may find it easier to talk to potential customers about new products
or services if the customer is already slightly aware of them. A quality advertisement
may also increase a person's pride in their workplace.
Because most products and services have multiple companies competing for
customers, your company may need to find ways to distinguish itself from
competitors. Advertising elements such as logos, colour schemes, fonts and taglines
are ways to establish a brand identity and create a difference between your product
and other companies. If a customer recognizes or likes your brand design, that may
increase the chances of them purchasing your product.
Advertisements can increase familiarity and trust between a company and its
customers. If a potential customer sees multiple ads about your product, they may
consider you a trusted brand. You can also use advertising to address any concerns,
which further builds trust between your company and your customers.
Using advertising can help you easily identify or market toward a particular target
audience. After researching a target audience, you can release an ad that may
appeal to them at locations they usually frequent. If you have more than one target
audience, you can create separate ads and market to both audiences in different
areas.
A company with powerful, visible values can reasonate with customers and may
encourage brand loyalty. Advertisement allows you to describe your company's core
traits or values to a wide audience and may encourage them to try your product.
Having clear company values can also increase customer trust and may strengthen
a brand's identity.
Understanding your target audience can help you create advertising that interests
them and may increase your overall sales. Identify your target audience by reviewing
sales history or demographic information about your customers or by distributing
customer surveys. Then design advertising that appeals to them using research and
focus groups
Evolution of advertising :
The history of advertising dates back to the early days of human civilisation. The
evolution or growth of advertising can be briefly stated as follows:
(b) Town Criers: Prior to 15th century, shopkeepers and other sellers appointed
town criers to popularize their stores and products.
The town crier wore clowny clothes and played a musical instrument such as
a drum or a flute and attracted the attention of the people at the village fairs,
bazaars, etc. The town crier used to offer samples and praise the shop and
the products sold by such shops.
Town criers were treated as a form of advertising as they attracted the
attention of the people, and also induced or persuaded the people to buy the
products popularized by them
(c) Sign Boards: Signs or sign boards have been in use for over 5000 years. In
the olden days, sellers used to paint signs of the goods on rocks or boards.
People were attracted by those signs and purchased the products popularized by
the signs or sign boards. For example, a sign of a cow was used for dairy
products, a row of ham for a butcher’s shop etc.
(b) Newspaper Advertising: The Gutenberg’s invention made possible the printing
of a newspaper. Initially, the newspapers were published monthly, followed by
weekly and later on daily.
In the 18th century, advertisements started to appear in weekly newspapers in
England. These early print advertisements were used mainly to promote books. In
USA, the first newspaper ad appeared in Boston Newsletter in 1704 for the sale of
estate.
(c) Magazine Advertising: Magazines were first published in the early 1700s.
However, advertising in magazines gained recognition only around 1870. In those
days, most of the advertisements were in the form of posters / handbills and in
newspapers.
4. Radio Advertising:
Marconi invented the radio around 1900. The radio was introduced to the public in
the early 1920s. WEAF of New York is credited with airing the first paid radio
commercial, on August 28, 1921, for the Queensboro Corporation, advertising an
apartment complex – “Hawthorne Court Apartments in Jackson Heights” in USA.
Because of the invention of radio, it was made possible to advertise to the illiterates.
The music and sound effects of radio advertising gave a new meaning to the field of
advertising
5. Television Advertising:
In 1930s John L. Baird invented the commercially viable television. It was the most
impressive medium of all times. The television advertising combined the effect of
voice and vision, music and motion. The first TV commercial appeared in USA on 1st
July, 1941 for Bulova Watches.
6. Other Forms:
In the 20th century several other forms of advertising came into existence. It includes
neon signs, sky writing, billboards, yellow pages, direct mail, digital, etc.
7. Growth of Advertising Organisations:
Several advertising organisations came into existence during the 20th century:
� In 1914, Audit Bureau of Circulation (ABC) was set up in America and later on
in other countries including India in 1948.
� Advertising agencies associations were also formed in major countries of the
world which include Advertising Agencies Association of America (AAAA) in 1917
and Advertising Agencies Association of India in 1945.
� In India, the Advertising Standards Council of India (ASCI) was set in 1985.
The advertising organisations gave an added impetus to the progress of
advertising throughout the world.
8. Internet:
An interesting form of advertising in the late 1990s is the internet. Internet can be
called as electronic yellow pages. Subscribers to internet open a web site where in
they provide information about the Company and the products. At present, Internet is
the fasters growing medium in the field of advertising.
Various forms of internet advertising include”
� Website advertising – banners and pop-up ads.
� Blog advertising
� Advertising on social networking sites such as Facebook, Twitter, etc.
4. Advertising Media:
The media are the channels of communication through which ad messages are
transmitted or communicated to the target audience. There are several media of
advertising. Each media has its own merits and limitations.
� The most frequently used media are newspapers, magazines, television, radio,
posters, billboards, and neon signs
� Each media has media vehicles. For instance in magazines there are business
magazines.
� In India newspapers account for a major share Of advertising revenue followed by
television and magazines.
5. Advertising Production Firms:
These include copywriters, artists, photographers, typographers, layout
designers, producers, editors and others. They may be the personnel from the ad
agencies or they may be hired from outside by the Agencies on job basis. These
are the people who transform the idea of an ad into a finished form.
6. Government Authorities:
The government authorities control the functioning of the entire advertising
industry. The government adopt laws and regulations which have a direct or an
indirect bearing on advertising. For instance, ads of liquor and tobacco products
are not allowed on television, and radio.
7. Research Firms:
The market research firms also play an important role in advertising, especially in
developed countries like USA, and Western Europe. In 2016, the top three
market research firms in the world include Nielsen, Kantar and IMS Health.
These three research firms have offices in more than 100 countries. In India, the
top three market research firms are IMRB International, RNB Research and
Majestic MRSS. These three market research firms operate in several global
markets.
8. Self-Regulatory Bodies:
There are various self-regulatory bodies which frame codes or standards to be
followed by advertisers, advertising agencies and the media. Through the codes,
these bodies regulate the content of advertising. They may also ban unethical
and advertising. In India, various authorities have laid down self-regulatory codes
relating to advertising. The authorities include:-
� Advertising Standards Council of India (ASCI)
� Indian Newspaper Society (INS)
� Doordarshan
� Advertising Agencies Association of India (AAAI)
BENEFITS OF ADVERTISING
Advertising works to the advantage of various parties. Advertising as a potent tool
of communication is highly useful to manufacturers, retailers, consumers and the
Society at large.
A. BENEFITS TO MANUFACTURER: (BUSINESS FIRMS)
Advertising benefits the manufacturer in a number of ways. The importance of
advertising to the manufacturer can be briefly explained as follows:
1. Introduction of Product:
Advertising helps a manufacturer at the introductory stage. Through effective
advertisements, the manufacturer can create awareness in the minds of the
target audience. Creative ads give a chance for a new product to face the
competition from the established brands in the market.
2. Modifies Attitude:
Advertising helps to modify attitude towards the brand. There are times when
people develop either negative attitude towards a particular brand or they may
have a neutral attitude towards the brand. Through special emphasis on the uses
or benefits of the brand, the manufacturer can advertise the brand and develop a
positive attitude towards the brand.
3. Builds Image:
Ads can develop the right image for the brand. The right image or goodwill can be
developed for the brand depending upon the choice of models or personalities
used in the ads, the type of programmes sponsored, the use of the right words or
language in the ads and so on.
4. Builds Loyalty:
Ads enable the manufacturer to develop brand loyalty. Brand loyalty results in
repeat purchases by the existing customers, and the existing customers may also
recommend the product to their neighbours, relatives and friends. The
manufacturer should make constant efforts through effective ads to develop and
retain brand loyalty of the customers.
5. Market Expansion:
Advertising enables market expansion for the manufacturer. Through effective
ads, the manufacturer can sell not only in the local area, but also enter in the
national market and even in the international market.
6. Corporate Image:
Advertising can develop corporate image for the manufacturer. The manufacturer
can develop corporate image through institutional advertising or public relations
advertising. Even if the manufacturer is wrongly reported in the media, it can be
corrected through advertising and the image of the organisation can be restored
and improved.
7. Economic of Scale:
Advertising enables the manufacturer to generate economies of scale. This is
because advertising generates more demand for the product. This requires more
production. More production results in economies of scale, and thus enables the
manufacturer to bring down the cost of production
8. Improvement in Quality:
Advertising facilitates improvement in the quality of the product. Advertising can
generate more sales. This brings in more sales revenue and profits. A part of the
profits can be utilised for R&D. Effective and efficient R&D will not only improve
the quality but also reduce the cost of production.
9. Avoids Seasonal Sales Fluctuations:
A manufacturer can reduce seasonal sales fluctuations through effective
advertising. For example, the demand for fans is more in the summer season.
However, the manufacturer can generate demand in the winter season for
fans by offering discounts or other offers during the winter season. Such
offers can be communicated effectively through advertisements.
10. Facilitates Distribution:
Advertising facilitates quick distribution of the products. This is because, the
dealers are willing to stock advertised brands as compared to unadvertised
brands.
11. Facilitates Promotion:
Advertising is an important element to promote the product in the markets. The
various promotional techniques such as sales promotion, packaging, etc. can be
effectively used by the manufacturer with the support of advertising.
12. Facing Competition:
Advertising enables the manufacturer to withstand the competition in the market.
The manufacturer can effectively face the claims made by the competitors
through effective advertising. For example, when Pepsodent states that it gives
complete protection to teeth, Colgate states that it provides total protection to
teeth and gums.
B. BENEFITS TO THE CONSUMERS:
1. Information: Advertising informs the consumers about the availability of
products and services in the market. The consumers can also get information in
respect of the features, price, operational instructions, etc. This helps them to
make a proper choice of goods and services.
2. Acts as Reminder: The ads remind the consumers of their requirements, so
that they can plan their purchases well in time. For instance, an ad of umbrella
may remind the buyers to purchase umbrella well before the rains. Again, the
arrival of a particular season such as Diwali or Christmas is often shown in the
ads. This reminds the consumers to make purchases for the festival season.
3. Lowers Product Prices: Consumers can get goods at reduced prices due to
economies of large scale production and distribution. The producers often pass
on some of the benefits of large scale production to the buyers. Again,
advertising encourages competition, as such the sellers cannot exploit the
consumers by charging high prices.
4. Better Quality Products: Since advertising stimulates competition, every
producer makes every possible effort to improve the quality of goods and
services. This results in improved quality of goods and services. The consumers
are at an advantage of higher quality of goods and services
5. Higher Standard of Living:
Consumers can improve their standard of living. This is because advertisements
makes possible a wide range of products and services. Consumers can select
those products and services which add to their satisfaction. This results in higher
standard of living of the consumers in the Society.
6. Guards against Substitutes:
Advertising warns against the cheap substitutes that are available in the market.
Reputed companies often insert advertisements for the benefit of consumers,
regarding the harmful effects of cheap substitutes. Thus, consumers are warned
against the purchase of cheap substitutes.
7. Education to Consumers:
Ads not only informs the consumers but also provides education. The ads
educate the consumers regarding the handling of the product, the uses of the
product side-effects of the product, if any, in case of drugs, etc.
8. Modifying Attitudes:
Ads try to change attitudes of the consumers towards certain products. For
example, many people in India have negative views on women’s menstrual cycle
(Period Taboos). However, social ads from brands like Whisper have broken
such taboos, celebrating womanhood and changing such negative attitude.
9. Consumer Satisfaction:
Advertising is responsible to a certain extent in respect of consumer satisfaction.
This is because the consumers can enjoy better quality of goods at a good price.
10. Saves Time in Shopping: Advertising informs the place / store s to where the
goods are available and as such the customers need not waste his time in
searching for the store.
10. Saves Time in Shopping:
Advertising informs the place / store s to where the goods are available and as
such the customers need not waste his time in searching for the store.
Mission
The marketing mission is what a department wants to complete with an ad. It can be
to sell a product, promote a service, develop a brand or more company objectives. It
could inform the customers of the delivery stages of a product, such as one that is
still in development. Even if a product is unreleased, advertisements can still
promote the product through a dual mission goal. Advertisements that both promote
and give details about a product accomplish two mission goals: to describe the
product to customers and to garner interest in the product for potential buyers.
Both of these goals serve similar objectives but complete different requirements. A
mission can also persuade customers to aim for a particular brand in the product.
This could be, for example, used in an advertisement for a popular brand, when it
mentions another brand within the same company. Companies can use one product
to advertise another to fulfill a specific mission. A mission can also be simply to keep
customers informed about the product, to keep them thinking about it in a repeated
pattern.
Money
Money in the five M's of advertising concerns all the budgets for collective
advertising. This can apply to the media used, the geography of the advertising and
the demographics the advertising targets. This can also concern how long the
advertisements run, and with what products they associate with. Depending on many
of these factors, an advertisement could be more or less expensive and effect the
overall budget.
Message
Media
Media is the medium through which advertising conveys. When choosing how to
convey an advertisement, members of the department focus on the reach, impact
and frequency of the media while considering the advertisement itself. They also
determine the mode of media by what is available to the company, including what
resources they have to develop and mass produce the media, if necessary. Once
they consider these factors, they choose the media vehicle and the media vehicle's
timing, or how long the media add projects to the audience.
Measurement
By
Bhoomika L. Rathod.
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Media in Advertising
2.1 Traditional Media: Print Media (Newspaper, Magazine advantages and
disadvantages) Broadcasting-(T.V ,Radio Advantages and Disadvantages) Out of
Home advertising- Posters, Bill boards, Hoarding, Transit- Advantages and
Disadvantages.
2.2 New age advertising : Out of Home Advertising: Blimps, Balloons, Drones,
Wraps, Event sponsorship, Merchandise, Digital media - types -advantages -
limitations Social Media advertising : You tube video advertising - Instagram ads and
Facebook ads. Immersive technology- Virtual reality and Augmented reality
2.3 Special Purpose advertising: Rural Advertising ,Financial Advertising,
Corporate Image Advertising, Institutional Advertising, Native Advertising, Green
Advertising, Advocacy Advertising, Surrogate Advertising, Covert Advertising
,Celebrity Advertising , Public Service Advertising.
Introduction :
Media refers to a platform or medium through which a message can be sent to a
large audience at a same time. It is a tool used widely to communicate to the
viewers, listeners and consumers. Advertising media refers to various advertising
vehicles or medium used to promote about product and services offered by
advertiser. When a combination of media is used to deliver the message to a target
audience it is called as media mix. The objectives of advertising media are as
follows:
1. To inform and educate the general public
2. To promote about goods and services offered
3. To capture the target audience by selecting appropriate media
4. To select the suitable media vehicle for promoting the goods
One key thing to understand about traditional media is that it generally requires more
financial resources to produce than other types of content.
For example, making a movie or TV show can be very expensive due to the cost of
sets, props, costumes, equipment, and location fees. Similarly, printing a newspaper
or magazine requires purchasing paper and ink, renting space in a printing press
facility, and paying for distribution.
These higher costs often mean that traditional media companies are large
corporations with significant financial resources.
Many businesses continue to rely on traditional media for their marketing and
advertising campaigns, which can be very effective if their target consumers
regularly engage with these forms of media.
PRINT MEDIA
Meaning
In print advertisements, the promotion of goods is done through print form i.e. on
paper. It includes advertisements published in newspaper, magazines, journals,
books etc. Among all print media newspaper is most popular one followed by
magazine, advertisement. The advertiser prefers print advertisement as it reaches
majority of the houses.
BROADCASTING MEDIA :
Broadcasting is the distribution of audio or video content to a dispersed audience via
any electronic mass communications medium which broadly includes Radio and TV.
Radio Advertising :
Radio advertising is a form of advertising that utilizes radio waves to promote a
product, service, or brand to a target audience. It involves the use of radio
broadcasts to communicate a message to potential customers.
Radio advertising can be targeted to specific audiences by choosing the right radio
stations that cater to the desired demographics.
In India, radio broadcasting was started in 1927 with two privately owned
transmitters at Bombay and Calcutta. Government took them over in 1930 and
started operating under the name Indian Broadcasting Service. In 1936, the Indian
Broadcasting Service was renamed as All India Radio. Commercial broadcasting
started only in 1967 on Bombay, Nagpur and Pune stations on experimental basis.
Advantages of Radio Advertising
1) Target audience: The most important advantage of radio offers is its ability to
reach specific audiences through specialized programming. In addition, radio can be
adapted for different parts of the country and can reach people at different times of
the day.
2) Affordability: Radio may be the least expensive of all media. The costs of
producing a radio commercial can be low, particularly if a local station announcer
reads the message. Radio’s low cost and high reach of selected target groups make
it an excellent supporting medium.
3) Frequency: Because radio is affordable, it’s easier to build frequency through
repetition. Media plans that use a lot of radio are designed to maximize high levels of
frequency. Reminder messages, particularly jingles and other musical forms are
easier to repeat without becoming irritating.
4) Mental imaginary: Radio allows the listener to imagine. Radio uses words, sound
effects, music and tone of voice to enable listeners to create their own pictures. For
this reason, radio is sometimes called the theatre of the mind.
5) Cost efficiency: Cost advantages are quite significant with radio as an
advertising medium. Radio time, cost is less than TV and the commercials are quite
inexpensive to produce. They require only a script of the commercial to be read by
the announcer, or a pre recorded message that the station can broadcast.
Advertisers can use different stations to broaden the reach and frequency within a
limited media budget.
6) Flexibility: Among all the other media radio is the most flexible one. Copy can be
submitted up to airtime. This flexibility allows advertisers to adjust to local market
conditions, current news events and even the weather. Radio’s flexibility is also
evident in the willingness of stations to participate in promotional tie ups such as
store openings, races and so on.
7) Exposure to illiterates: The radio advertisement can convey the message to
illiterates too. The radio channels are available in different languages therefore the
message can be easily pass on to illiterates.
8) Portability: Radio can be taken easily from one place to another and hence the
advertisement can be heard by many people at a same time. It gives advertiser an
opportunity to cover wider market to promote about the product.
Limitations / Disadvantages of Radio Advertising :
1) Poor attentiveness: A primary drawback is that people listening to it are often
engaged in other activities, such as driving, cooking etc. Therefore, the level of
attention and engagement towards ad will vary. It can take many impressions before
a listener actually hears the message.
2) Lack of visual appeal: Whereas television, the other prominent broadcast
medium, has multi-sensory appeal, radio can only impact audience through sound. It
takes very talented copywriters to instill theater of the mind with the listening
audience.
3) Clutter: With the increasing intensity of advertising, clutter has become a problem
in advertising media, and radio is no exception. Commercial channels carry many ad
messages every hour and it is becoming increasingly difficult for ad messages to
attract and retain audiences’ attention. Much depends on the precision of script
writing, accompanying sounds and level of distortion.
4) No priority: Listening to the radio is done when anyone is doing some work. This
reduces the amount of attention one can give. Whereas, in case of TV and
newspaper advertisement customers are fully focusing on the ad. Therefore, there
are chances that people may neglect or give less attention to ads on radio.
5) Clutter: Like other media, radio advertisement also suffers from the problem of
clutter. Nowadays, there are too many ads on radio and therefore many a times the
audience is also confused and boredom with same. Therefore, though radio ads are
attractive they may not hold the audience for long.
6) Less popular: As compared to other media, radio advertising is less popular as
nowadays all the songs are easily available at YouTube or on various songs app.
Therefore, listening to radio as declined up to larger extent. The introduction of news
channel has reduced the listening of radio.
7) Not suitable for all products: There are certain products which require visuals
and demonstration for such products radio advertisement is not suitable. It is
because there are no vide oeffects and thus it will not attract consumers to purchase
the product.
8) Cannot be referred: Once listened ad cannot be heard again till the time it is
played again by the channel. Hence radio advertisement do not have reference
value like print media advertisement. However, it becomes difficult to trace the
required ad.
Television Advertising :
Television advertising refers to the process of creating and airing commercials on
television with the aim to promote a product or service.TV advertising is one of the
most common and effective ways to reach consumers. This is because it offers a
wide reach, frequency, and impact.
Television provides the ability to communicate sight, sound, motion and emotion.
The viewer can instantly see the product, view it in a variety of situations, determine
how it can be of benefit to their application and leave them with a lasting impression
on the business.
Advantages of Television Advertising :
1) Creativity: The interaction of sight and sound offers tremendous creative flexibility
and makes possible dramatic, life like representations of production services. TV
commercials can be used to convey a mood or image for a brand as well as to
develop emotional or entertaining appeals that help make a dull product appear
interesting. Television is also an excellent medium for demonstrating a product or
service.
2) Wide coverage: Everyone, regardless of age, gender, income or educational
level, watches TV at least for some time. Marketers selling products and services
that appeal to broad target audience find that TV allows them to reach mass
markets. TV is popular medium among companies selling mass consumption
products. Companies with widespread distribution and availability of their products
and services use TV to reach the mass market and deliver their advertising.
3) Selectivity: Proper slot must be selected to telecast the ad and it is due to
variations in the composition of audiences as a result of programme content,
broadcast time and geographical coverage. For example, Sunday morning TV caters
to children, Saturday and Sunday afternoon programmes are geared to sports
oriented male and week daytime shows heavily to homemakers.
4) Demonstration: The demonstration of the product can be shown through
television advertisement. It will encourage viewers to purchase the product. Eg:
Maggi is shown how it is being made in 2 minutes. Easy to cook good to eat.
5) Ability to create humor: Television advertisement generates humor among
general audience. As it ads audio, video and jingles. It attracts the customer and
thus they may take a decision of purchasing the product.
6) Can reach illiterates: The ads shown on television are indifferent languages and
since it has audio effects the illiterates can also be attracted to see and understand
the ad. Many of the social advertisements are shown on television to generate
awareness among illiterates
7) Low per person cost: As lakhs of people watch the ad at a time the per person
cost is less. Eg: Door darshan National Channel is watched by lakhs of people
especially in rural areas
8) Captures international market: Certain channels are shown at international level
and thus the ad can be telecasted to other countries too. Therefore, Indian
companies may get the orders and popularity from other countries.
9) Repetition: The same ad can be repeatedly shown on television. It increases the
chances of people viewing the ad and hence the popularity of the product increases.
It can also create top of mind awareness.
Limitations / Disadvantages of Television Advertising:
1) Costs: Despite the efficiency of TV in reaching large audience, it is an
enormously expensive medium to advertisement. The high cost of TV ads stems not
only from the expense of buying air time, but also form the cost of producing a
quality commercial. More advertisers are using media driven creative strategies that
require production of a variety of commercials, which drive up their cost. Even local
ads can be expensive to produce and often are not of high quality.
2) Lack of selectivity: Advertiser who are seeking a very specific ,often small, target
audience find the coverage of TV often extending beyond their market, thus reducing
its cost effectiveness .Geographical selectivity can be a problem for local advertisers
such as retailers since it rates on the total market area it reaches. Audience
selectivity is difficult as advertisers target certain groups of consumers through the
type of programme or day and/or time they choose to advertisement.
3) Clutter: Like other media, television advertisement also suffers from the problem
of clutter. Nowadays, there are too many ads on television and therefore many a
times the audience is also confused and boredom with same. Therefore, though
television ads are attractive they may not hold the audience for long.
4) Lack of clarity of message: The ad message can be lost in the maelstrom
television. Viewers may change the channel or decrease the volume during
commercial breaks is a common habit, losing the reception of messages. So, the
idea may not be so clear and the objective is not reached.
5) Fleeting message: TV commercials usually last only 30seconds or less and
leave nothing tangible for the viewer to examine or consider. Commercials have
become considerably short as the demand for a limited amount of broadcast time
has intensified and advertisers to get more impressions from their media budgets.
6) Negative attitudes: Many consumers have negative attitude about TV
commercials. A number of filters negatively impact the ad, even if it reaches a large
audience. Leaving the room, talking to friends, texting, flipping channels, reading and
simply spacing off are all things that can distract viewers from watching and
absorbing commercial message.
7) Lacks flexibility: It's not as easy as editing your print ad. Most times, a TV ad will
need to be shot again, or at least that part of it will need to be re-shot, and it's difficult
to pick up action in the middle of an ad and to come away with the same feel of the
ad as the first time.
8) Time consuming process: Even a 30-second ad or the 10- and15-second clips
of recent years, require a lot of effort. Advertiser needs to hire a script writer or an ad
agency, actors and a director. Re-hearsing, shooting and retakes consume an entire
day or more. It's time-consuming and stressful process.
9) Placement of ads: The advertiser may not get the right placement of ads during
the TV programme. The ads of competitors may appear at the same time and in the
same programme. Therefore, the audience may not be responsive to TV advertising.
Social Media advertising : You tube video advertising - Instagram ads and Facebook
ads. Immersive technology- Virtual reality and Augmented reality
Digital media
Digital media is information shared through a digital device or screen. Essentially, it’s
any form of media that relies on an electronic device for its creation, distribution,
viewing, and storage. Companies often use this media to advertise their businesses
and brands. In fact, a majority of modern marketing involves some form of digital
content to create and display advertisements—including social media posts, video
advertisements, and blogs or research articles.
Digital media involves the creation of audio, video, websites, social media and
applications using technology such as the internet and electronics. Electronic
devices can help design, update and transmit digital media. Some examples of
digital media include:
11) Websites: Businesses generally use websites to describe what their company is
about and host an e-commerce store for their customers. Some companies also use
websites to display their content marketing materials, such as blog
posts and research articles.
Digital media is a growing field, from hand-written letters to messenger apps; that's
how digital media has shaped the human of this century. Now Digital media has an
immense role in almost everything from business to personal life. Also known as
electronic media, digital media has redefined how information is delivered and
consumed through different forms. From education to entertainment, the advantages
and disadvantages of Digital Media evaluate its pros and cons.
2)Digital Divide: Not everyone has equal access to digital media due to factors
like socio-economic disparities, geographical location, and technological
limitations. This digital divide can further exacerbate inequalities in access to
information, education, and opportunities.
3)Privacy and Security Concerns: Digital media raises concerns about privacy
and data security. User data is often collected, stored, and shared by online
platforms, which can lead to privacy breaches, data misuse, and targeted
advertising. Users need to be cautious about the information they share online
and the security measures taken by digital platforms.
5)Digital Fatigue: The fast-paced nature of digital media can lead to digital
fatigue and information overload. Continuous exposure to notifications, updates,
and online interactions can result in stress, reduced attention spans, and a
sense of being constantly connected.
Social media advertising is a type of social media marketing where you use paid media
to promote your business on any of its many channels. This media comes in many
formats and placements and supports a range of creative, from images and video to
immersive experiences.
It’s also referred to as paid social. Whereas with paid search where you target
keywords and terms, on social, you target audiences, interests, and behaviours. Social
media ads are also generally more visual and branded, and quite native to the
platform—so much so that they can sometimes be hard to identify as ads.
Facebook ads.
Facebook is the largest social media platform in the world, making Facebook
advertising a popular choice. With such a wide variety of age, gender, and location
demographics, brands can easily find their target markets on Facebook. Brands can
target consumers by locations, interests, past activities, occupations, and more. It is
also a very visual platform, making it one of the most reliable advertising options.
Facebook ad options include photo ads, video ads, Stories ads, carousel ads,
Messenger ads, and more. All of these can be used to build brand awareness, drive
traffic to your website or landing page, reach out to customers on a more personal
level, and increase conversion rates.
The price of Facebook ads varies depending on multiple factors, including the type of
audience you want to target and the budget you set. You can decide how much to
spend on Facebook ads but generally speaking, the more you spend on ads, the
better Facebook’s algorithm will use your money to increase ad performance.
Facebook currently supports the following ad formats:
Video: Brands can promote video ads up to 240 minutes in length. However, top-
performing video ads tend to be short.
Images/Photo: Brands can drive engagement through photo ads.
Immersive technology-
Immersive technology is an integration of virtual content with the physical
environment in a way that allows the user to engage naturally with the blended
reality. In an immersive experience, the user accepts virtual elements of their
environment as part of the whole, potentially becoming less conscious that those
elements are not part of physical reality.
Immersive technologies create distinct experiences by merging the physical
world with a digital or simulated reality. Augmented reality (AR) and virtual
reality (VR) are two principal types of immersive technologies. These
technologies share many of the same qualities. However, AR blends
computer-generated information onto the user’s real environment, while VR
uses computer-generated information to provide a full sense of immersion.
Immersive technologies include:
virtual reality (VR) – a digital environment that replaces the user’s physical
surroundings.
Augmented reality (AR) – digital content that is superimposed over a live stream of
the physical environment.
Augmented reality
Augmented Reality (AR) is a different type of Immersive Technology where digital
images are presented on top of the real world. This means that users who leverage
AR aren’t completely shut off from the world. Instead, AR extends their reality. AR
relies on processors, a display, sensors and input devices to create an
experience. There are four types of AR:
Marker-based AR uses a visual marker, like a QR code, to produce a result.
For example, Snapchat uses marker-based AR to help its users add people
to their contact lists.
Marker less AR uses GPS or a digital compass, velocity meter or
accelerometer to provide data. Google Maps Live View uses marker less AR
to navigate users to their destination.
Projection-based AR projects artificial light onto surfaces. For example,
researchers at the Digital Nature Group used lasers, mirrors and cameras to
create a hologram-like experience, which can be felt by the user.
Superimposition partially or fully replaces the original view of an object with
a new view. IKEA and GOAT are two companies taking advantage of this
technology. IKEA allows users to preview furniture in their house on their
smartphone, while GOAT enables users to use their smartphone to
superimpose the latest sneakers on their feet.
Virtual reality
VR systems use head-mounted displays and input devices to provide a
sense of immersion. Head-mounted displays cover the user’s field of view to
display computer-generated content. Input devices such as joysticks,
tracking balls, controller balls and data gloves allow the user to interact with
the virtual environment. Just like AR, there are different types of VR for
different use cases:
In non-immersive VR, only a subset of a user’s senses is stimulated,
allowing the user to maintain awareness of the physical environment outside
of the virtual reality. For example, the HP Reverb Pro headset allows
designers to create 3D models.
Semi-immersive VR leverages more senses than non-immersive VR, but still
does not take advantage of all senses. For example, flight simulation allows
pilots to learn how to fly different aircrafts through realistic displays that
simulate different in-flight experiences.
Finally, fully-immersive VR stimulates all of the user’s senses. For example,
Infinadeck has created an omnichannel treadmill that allows users to move
within a virtual environment.
2. Mass Media:
� Television, especially Door-darshan and regional channels.
� Press and other print media including local / regional magazines.
� Radio
� Cinema Halls
⑤
Strategies for Rural Advertising:
The marketers may use the following strategies to advertise in the rural areas:
1. Influencer Strategy: Advertising under this strategy actually depend on the
convincing power of influential people and / or events in the villages to communicate
the commercial messages to the rural customers. The marketers may utilise the
services of influential people in the village such as the local Panchayat leaders, local
priests or pujari’s, influential landlords, and even the school teachers.
2. Participatory Strategy: Events like different festivals and different games and
sports competitions actually have a high participation level in the rural India. The
local events and shows offer great opportunity to effectively reach to rural masses.
Firms can sponsor different events and shows in rural villages which is usually a
cost-effective way to advertise with the participatory strategy.
3. Show-N-Tell Strategy: Several firms are venturing into different ways to educate
the rural consumers about their brands and their usage through different shows and
events. This kind of initiatives actually creates huge awareness about the brand
among the interested people in the rural India.
4. Product Demonstration Strategy: Marketers may also use product
demonstration strategy to communicate the merits and features of the product. The
product is demonstrated by trained and tactful persons conversant with the local
language. The promotion team members demonstrate the process of using /
operating the product and highlight special benefits of using the product. The
promoters may also provide free samples to the villagers.
Green Advertising
The concept of green advertising has come into existence on account of green
marketing initiatives. Green marketing refers to marketing of eco-friendly products.
Thurs, green advertising refers to promotional campaigns relating to eco-friendly
products. It also includes the green initiatives undertaken by business and non-
business organisations to protect the environment.
Green advertising is a specific type of advertising that is centred around the
promotion of factors having to do with environment. It refers to advertising of eco-
friendly products. A specific type of advertising that is centred around the promotion
of factors having to do with the environment. Oftentimes the companies that use
green advertising also use very environmentally friendly operations and product
packaging as well.
An important point to note here is that the product is not required to do anything with
environment. It is more related to the psychological aspect of a customer that if a
product addresses the environmental concerns then it is better. We can even see the
companies which cause pollution advertising their product using green advertising to
create a positive image in front of customers and present themselves in a good light.
Green Advertising helps to attract consumer by highlighting green features and eco-
friendly products that are safe for environment as well as consumers. Green
Advertising has a positive impact on consumers purchase intentions and builds
strong trust between the two.
According to green environmentalists, a green advertising campaign has to inspire a
movement among buyers. Firms that produce green (eco-friendly) products need to
highlight the same in their promotional campaigns. They should make people aware
of the benefits of eco-friendly products. They need to highlight the fact that they
invest a good amount of money on R&D to design eco-friendly products.
Features
a. Purpose -It promotes environmentally friendly products.
b. Certificate displayed - The certificate or logo indicating environment friendly
product is displayed
c. Implied Claim-This is an implied of communicating about the product being
environment friendly.
d. social responsibility- Social objective of business is achieved.
Institutional Advertising
The objective of institutional advertising is to build manufacturers reputation in the
minds of the public in general. The advertising message is directed to tell about the
Company, its people, its contribution in promoting social welfare activities, in
promoting consumer satisfaction its achievements in technology its broad
philosophies, its share in economic progress of the Company etc. Such
advertisements do not bring benefits in the form of higher sales immediately. But
they create good footing for the company in the long run. The competitive strength of
the company goes up with the enhancement of corporate image. It is much easier for
a highly reputed company to launch a new product in the market. Basically the
institutional advertising aims at getting public support for raising the capital through
public subscription.
Institutional advertising is also referred to as corporate advertising or institutional promotion.
It does not attempt to sell anything directly. Institutional advertising just informs the public of
what the institution is doing for the society in terms of education, health, environment, etc.
The channels used for institutional advertising may be radio, television, print and
digital. Institutional advertising promotes a company while promotional advertising promotes
a company’s products & services.
Financial Advertising
When an advertising message is directed to attract for raising capital, it is called
financial advertising. The banks, insurance companies and commercial undertakings
collect required funds from the savings of the people by motivating them to post-
pone present expenditure to future-period. An investor considers two things before
investing his hard earned savings.
(1) Safety of investment (2) Return on investment
The safety of investment depends upon the reputation and goodwill of the
company and the properties possessed by it. The institutional advertising helps in
creating confidence in the minds of the investors. The financial advertisements
inform the investors about the past performance in declaring dividends and the
trend in declaring of dividend. The dividend depends upon the profitability of the
company. The company with the help of charts, diagrams etc. communicate the
rate of growth and rate at which profit is increasing. The financial advertising aims
at establishing financial, solvency of the company in the minds of the prospective
investors. It is because of financial advertising the company have succeeded in
floating of mega issue of shares arc in cores. The financial advertising aims a
establishing financial solvency of the company in the minds of the prospective
investors.
Essentials for the Success of Financial Ads:
No financial ad campaign, howsoever creative and persuasive it may be, can
produce the desired result, unless the following conditions are satisfied.
(a) The performance and image of the company and its future prospects must be
good.
(b) The premium, charged on the share price, must be fair and reasonable.
(c) The brokers and underwriters must extend unqualified support to the
company.
(d) The company should get wide publicity from the press through press
conferences.
(e) True statement of facts, made in the ads.
(f) Finally, financial climate of the country plays an important role.
Advantages of Financial Advertising:
Following are main advantages of financial advertising:
(g) Financial advertising transmits to target consumers all the material information
about new investment opportunities for investment of savings, or, surplus funds.
(h) It provides education and guidance to consumers in respect of their
investments in shares, debentures, and public funds, off companies.
(i) It serves as a reminder to consumers to take suitable follow up action on their
part.
(j) It helps to tap yet untapped rich areas in mini-metros, small towns, and even in
villages for financial institutions.
(k) As financial ads are required to give the required in formation about the aims,
objective business operation, for which additional funds are required by the
advertiser, the company gets wide publicity through such ads.
(l) Financial advertising serves as a backbone to brokers as well as underwriters,
who are the “intermediaries” between the advertiser and the clients.
(m)Finally, financial advertising indirectly aids and supports the economic and
industrial growth of the country by mobilizing public funds for expansion and
diversification of business.
Celebrity Advertising
Celebrity endorsement is a form of advertising campaign or marketing
strategy which uses a celebrity's fame or social status to promote a product, brand or
service, or to raise awareness about an issue.[1] Marketers use celebrity endorsers in
hopes that the positive image of the celebrity endorser will be passed on to the
product's or brand's image. Non-profit organizations also use celebrities since a
celebrity's frequent mass media coverage reaches a wider audience, thus making
celebrities an effective ingredient in fund raising
Using celebrities for advertising involves signing up celebrities for advertising
campaigns, which consists of all sorts of advertising including, television and print
advertisements. Though the audience are getting smarter and smarter and the
modern day consumers are getting immune to the exaggerated claims made in a
majority of advertisements, there still exist a section of advertisers who still bank
upon celebrities and their popularity for advertising their products.
Celebrity marketing has been used across all mediums. Print, television, radio,
film and various forms of new media have all been effective outlets for celebrity
endorsed products. The key is to match the right celebrity with the right product
and place them both in the right ad campaign. If the combination is done well, it
can lead to huge profits and an immediate change in the public perception of a
company. If it is done poorly, it can ruin a brand overnight.
� Builds credibility : People are attached to their favourite celebrity, and they
are generally well-trusted by their fans. If they use your product, it shows their
fans that it is a product worth using and builds trust in your brand. Seeing a
celebrity attach their name to a product also reassures consumers of the
quality of your product. The celebrity would be at risk for damaging their
reputation if they endorsed a product that’s quality was lacking.
� Makes your brand stand out : Using a celebrity to represent you helps to
differentiate your brand from competitors. It also can improve ad recall,
making consumers remember your ad and that your brand is connected to
their favourite celebrity.
� Opens up new markets : Choosing the right celebrity can open up your
brand to new markets. For example, when Nike wanted to expand from
primarily sponsoring tennis and track, they partnered with Michael Jordan –
and this partnership has been so successful it has expanded into its own
subsidiary company.
Disadvantages :
Covert Advertising
Covert Advertising also known as “guerrilla advertising” is a unique kind of
advertising in which a product or a particular brand is incorporated in some
entertainment and media channels like movies, television shows or even sports.
There is no commercial in the entertainment but the brand or the product is subtly (or
sometimes evidently) showcased in the entertainment show.
The phrase covert refers to anything that's hidden behind anything else. Have you
ever seen an actor drinking coca cola between movies? That is an example of
Covert advertising! The brand Coca-Cola is endorsing itself through the movie
without being the centre of attraction.
In today’s time with such competitive markets with extensive brand availability each
and every marketer needs to find a way in order to stand out from competitors. Thus
there is always a search for such new innovative ways of marketing. Covert
Advertising basically involves placing the products within the films or television
programs in such a manner that the audience will not realize that the brand is using it
as a medium of promoting their respective products.
Covert advertising occurs with the name of the brand and logo in any random shot of
the movie, at times the main protagonists are seen using the brand products in the
movie which is a way of covert advertising.
It is considered to be less costly as compared to other advertising techniques like
celebrity endorsements, some of the firms also provide their products or services to
the film producers.
For instance, Adidas does not pay any fees to be a part of the movies but often
provides shoes, clothes, bags etc as a medium of exchange. Covert Advertising
aims to pay audience attention to the communication which is quietly done by
advertisers.
The sponsorship will link the product directly to the movie or television programme.
Although it is costlier than product placement, it is an efficient way of advertising. Eg-
movie ‘Mere Dad Ki Maruti’ was sponsored by Maruti suzuki.
Viral Marketing: It includes any marketing done on the social media platforms that
allows users to pass on a marketing message to other sites or users in different
manner by creating potential growth in the message’s visibility and its impact on the
consumers mind. Viral marketing creates a platform for others to communicate the
marketing message through the internet.
Guerrilla Marketing: This type of covert advertising technique targets the audience
or consumers through specialized media. It involves greater investments in terms of
time, energy and creativity.
2. There is massive reach and promotion with the help of this type of advertising.
Thus reaches a greater number of target customers.
3. There are certain companies and organisations that only use covert
advertising in order to launch their products by celebrities resulting in greater
sales of the product.
4. Certain remote areas lack the facilities of television and cinema halls become
the last resort for their entertainment. During the movies if the products are
well placed, the marketer is able to spread across the message through these
remote areas as well.
2. The marketers may also fail to recognize where to place the products and
services for maximum possible exposure by the audience.
3. If there are too many product placements at very less intervals of time
consumers may feel exhausted and leads to a negative brand impact.
Surrogate Advertising
Surrogate Advertising is prominently seen in cases where advertising a particular
product is banned by law. Advertisements for products like cigarettes or alcohol
which are injurious to health are prohibited by law in several countries and hence
these companies have to come up with several other products that might have the
same brand name which indirectly remind people of the cigarettes or beer bottles
of the same brand. The intention is that when the brand name is mentioned, people
will associate it with its main product. In India a large number of companies have
used surrogate advertising, including Bacardi Blast music CD's, Bagpiper Club
Soda, and Officers Choice playing cards
What Are The Benefits And Limitations Of Surrogate Advertising?
Ever since advertising of tobacco and liquor products has been banned on Mass
Media, companies have resorted to surrogate advertising tactics to promote their
products. However, they come with several benefits and limitations of their own.
Therefore, given below is a list of the several benefits and limitations of surrogate
advertising.
Benefits:
� It helps companies to generate revenue from banned products
� It keeps on reminding consumers about the banned products indirectly
� If nobody can advertise, then the threat of competition from new players is
minimized
Limitations
� It can beat the purpose of ban on advertising of harmful products by
government
� the knowledge and awareness level on surrogate advertisements is very low
� It can impose a negative impact on society by promoting health-injurious
products
Native Advertising
Native advertising is a form of digital advertising in which ads appear within the flow
of regular content on a user’s mobile phone, tablet, or computer. In contrast to more
traditional advertising—like pop-ups or banner ads—native advertising focuses on
downplaying its very nature as an ad. Examples might include a sponsored post or
an article written by a company for an online publisher.
Native advertising is paid media designed to match the content of a media source.
An example of mobile native advertising would be paid video content on the Youtube
app. This media is designed to match the visual design and function of natural
content, appearing in your feed of recommended videos..
Benefits of Native Advertising
Native ads have become increasingly popular in recent years. Here are three
prominent benefits of this form of advertising:
1. Native advertising blends in. To the user, native ad placement feels like a
feature of the user experience rather than a distraction. When companies display
advertising within native content well, users will interact with it as if it were part of the
general feed of the website or platform.
2. Native advertising feels relevant. Companies focus this type of content
marketing around real-time experiences for users. For example, an advertiser might
pay a website centered around fixing computers to feature a native ad about why
their own brand of computers requires little upkeep. This sense of relevancy makes
users more likely to engage.
3. Native advertising is popular. More and more companies use a greater share of
their ad spend on this type of promotion because people engage with it. In short,
native advertising works precisely because it doesn’t feel like advertising. Due to
how well integrated these ads are, they are less invasive to many consumers than
traditional advertisements.
Examples of Native Advertising
There are many types of native ads suited to different needs and formats. Consider
these five native advertising examples:
1. Advertorials: This long-form type of advertising content often shows up as a
written article or video ad on an internet publisher’s website. In advertorial, marketers
and salespeople work to provide detailed content relevant to the user’s interests
while also connecting this content to their own product or service.
2. Promoted products: Companies can feed ads to various online retailers as
promoted products (relevant products on display for the user at the top of their
page). This can effectively turn nearly any consumer-facing website into a natural
native advertising platform. Recommendation widgets serve a similar function,
although they are usually less foregrounded.
3. Search engine ads: By combining search engine optimization (SEO) keywords
with a native ad campaign, companies can advertise relevant products and services
at the top of anyone’s search results. These display ads are nonintrusive branded
content recommendations pertinent to the user’s initial inquiry.
4. Social media posts: Build brand awareness by getting your ads directly into a
person’s social media platform content feed. These in-feed ads can be as simple as
a photo with sponsorship info or as ornate as a long-form native video that an
influencer hosts. Regardless, they’ll appear as branded content in the regular flow of
user content.
5. Sponsored content: This type of native advertising can morph depending on
where you see it online. The defining feature is some small designation saying it’s a
sponsored post or paid content no matter where it shows up
By
Bhoomika L. Rathod.
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Economics and Social aspects of advertising
3.1 Economic Aspects: Effect of advertising on consumer demand, monopoly and
competition, Price, Impact of advertising on the Indian Economy
3.2 Advertising and Society: Social issues in advertising, positive and negative
influence of advertising on Indian values and culture., Impact of advertising on Kids
and Women
3.3 Ethics in Advertising- Importance of Truth in advertising- Forms of unethical
advertising- Puffery, Shock ads, sublimal advertising, Weasel claims, comparative
advertising code of ethics. Self-Regulatory Bodies: ASCI – Meaning and Importance
Supporters of advertising:
On the other hand, economists like Philip Nelson believes that advertising increases
consumer knowledge of substitutes or of competing brands and that reduces
monopoly power so to say the more the consumer is informed as to the various
competing brands the less is the chance for a firm to exert monopoly power over the
market. Since advertising provides consumer information it can be said that it
promotes competition rather than creating monopolies.
Conclusion:
It is true that the high cost of using national media such as television network on a
large scale restricts the use of such media to a few advertisers who can afford them.
This supports the charge that advertising gives an unfair competitive advantage to
large firms. Their ability to bear the high cost of introducing new products and to
outspend small competitors is assumed to discourage would-be entrants and also
make it difficult for others to survive.
It is also true that some of the leading advertisers do enjoy the position of market
leaders. For instance, Colgate Palmolive in the toothpaste sector, Bata in the Shoe
sector, Cadbury in the chocolate sector and so on. But there are case where leading
advertisers in spite of their large advertising budget have poorly failed in the market
and some even have to withdraw their brands from the market. In 1980s a new
comer like Nirma have made good inroads in the washing powder sector and gave
the market leaders Hindustan Lever a run for their money…. thanks to their effective
advertising. Dominance of major mobile phone brands in India like Samsung, HTC,
Apple are challenged by many upcoming brands like Vivo, Oppo etc. The challenges
are possible through effective marketing and advertising.
This shows that advertising gives the small firm a chance to get started. If the firm
has a good product at good price, it can advertise and build market. Such firm may
not be able to match giant firms on a national scale but it can very well outspend
them in its local market area. As its business grows, it can use advertising to enter
new markets and expand its own competitive abilities.
Thus, it can be concluded that advertising need not develop monopolies, but it can
be used creatively to generate competition in the market, and that huge advertising
by existing firms need not act as an entry barrier for new players in the market.
EFFECT OF ADVERTISING ON CONSUMER PRICE
The Consumer price is the final price which the consumers pay for goods and
services. The consumer price is comprised of:
� Production Cost
� Distribution Cost
� Profit Margin of the Seller
Advertising may help to reduce the production cost and the distribution cost per unit
produced due to large scale production and distribution on account of increase in
demand on account of advertising. The consumer price can decrease provided the
seller passes on the benefits of large-scale production and distribution (either partly
or wholly) to the consumers, without increasing the profit margin.
The effect of advertising on consumer price can be studied by considering the effect
of advertising on advertising on production costs and distribution costs.
Impact of Advertising on Production Costs
The cost of production is comprised of three basic costs-
(a) Material Cost; (b) Labour Cost; and (c) Overhead Costs
Advertising is a selling and distribution cost and it does not form part of production
cost. As such it will not add to the cost of production and hence, it will never increase
the cost of production
However, advertising may indirectly reduce or bring down the cost of production per
unit produced (assuming that the firm is operating below optimum production
capacity). This is possible, provided advertising generates demand up to the firm’s
optimum production capacity. Following Table shows it very clearly how advertising
is resulting in economies of scale.
Explanation on Table -1
Before advertising total production was 1000 units and cost per unit was Rs. 180/-
After advertising the demand for the product started increasing and production cost
per unit started coming down. Thus, advertising indirectly brings down the production
cost from 180/- per unit to Rs. 95/- per unit. The gradual reduction I the cost of
production is the net result of various factors such as optimum utilization of
production capacity, large-scale purchase of raw material, introduction of labour-
saving devices and use of new technology.
Advertising can lower the cost of production per unit produced can be justified from
the fact that the overhead cost may remain the same up to the optimum point. The
same idea could even apply to material and labour costs. Increased demand could
make it feasible to install a labour-saving machine and bring down labour cost per
unit or it might enable buying raw materials in bulk instead of in smaller lots, thereby,
getting the benefit of large scale purchasing.
Impact of Advertising on Distribution Costs
Selling and Distribution costs generally includes –
(a) Advertising; (b) Sales Expenses; (c) Other Distribution Costs, etc.
Since advertising is a part of selling and distribution costs, it will naturally add to the
total selling and distribution costs. However, advertising may reduce the cost per unit
distributed, provided the benefit of large scale selling (due to advertising) is more
than the amount spent on advertising.
The above claim i.e., advertising can reduce the cost per unit distributed may be
justified from the fact that the sales force required may remain the same, since
advertising does the additional job of sales promotion. However, it may be noted that
incentives of the sales force and other selling expenses may increase to some
extent.
Explanation -After the advertising the sales volume has increased from 10,000 units
to 50,000 units per week resulting in reduction in cost per unit. Here it is from Rs.
1.00 to Rs. 0.50. Means there is benefits of Rs. 0.50 per unit.
It is to be noted that distribution cost per unit sold will go up when the advertising
costs are more than the benefits of large-scale distribution.
Impact of Advertising on Consumer Price
It is observed from the above two tables that advertising brings in economies of
large-scale production and distribution to the manufacturer-advertiser.
In case the advertiser transfers these benefits to the consumer either in part or in full,
then the consumer stands to gain as he has to pay a lower price than otherwise.
It is also to be noted that large scale production enables the manufacturer to go for
Research & Development, which not only brings in new and improved products but
also production takes place at reduced costs.
The seller partly transfers the benefits of economies of scale to the consumer.
It is to be noted that there will be no effect on consumer price, if the advertiser does
not pass on the benefit of large-scale production and distribution to the consumers.
The consumer price will also increase, if the advertiser increases the profit margin,
apart from enjoying the total benefit of large-scale production and distribution.
3.2 Advertising and Society: Social issues in advertising, positive and negative
influence of advertising on Indian values and culture., Impact of advertising on Kids
and Women
SOCIAL AND CULTURAL ISSUES IN ADVERTISING
Culture is a way of life of a particular society. It is a combination of tangible aspects
and intangible aspects of a Society. The tangible aspects include music,
architecture, buildings, literature, clothing, etc., and the intangible aspects include
ideas, knowledge, skills, morals, laws and customs.
Critics of Advertising
The critics of advertising point out that advertising degrade cultural values. They cite
the following instances to support their point of view:
1. Materialistic Values: Advertising finances and supports mass media. The mass
media such as magazines, television, etc., encourages what is popular rather than
what is good. This results in materialistic values rather than cultural values.
2. Violence: Advertising sponsors serials or programmes which depict scenes of
crime and acts of violence. This influences the audience, especially, the younger
generation and they too get involved in such crimes and violence.
3. Vulgarity: In advertising, there is a good deal of vulgarity. Some of the ads depict
nudity and use double meaning language. Such vulgarity is against the norms or
culture of the Society, especially, in India.
4. Surrogate Advertising: Ads promote the sale of harmful products such as
tobacco products, and alcoholic drinks in a good number of countries. The ads of
such products dramatize in a glamourous manner the use or consumption of such
products.
In India there is restriction on such ads. However, advertisers use unethical
surrogate advertising to promote such brands.
5. Undue Influence: Unethical and uncultured marketers take the advantage of
untruthful advertising and lure the people to buy the products or services offered by
them.
Ads try to create complexes among the people. They often show people using the
advertised product as superior as compared to the non-users. Such ads do affect
children and other members of the Society in a negative way.
Ads influence children and others to consume unhealthy foods such as fried potato
chips and other ready-to-eat snacks. Also unhealthy soft drinks are advertised in a
glamourous way with the help of unethical celebrities.
6. Unhealthy Competition: Ads create unhealth competition among the marketers.
The marketers get involved in unhealthy marketing practices to lure the customers to
buy their products.
7. Passive Role of Women: Ads depict woman in a passive role, as that of a mere
housekeeper or as a servant of the family. This further conforms to the belief of
some narrow-minded people that women are meant to play a passive role in the
family.
Supporters of Advertising
The supporters of advertising claim that advertising is not responsible to degrade
cultural values, but it upholds and improves cultural values. They cite the examples
of the following instances:
1. Concern for Girl Child: Some ads show the girl child in a positive role; such as in
the ads of Rasna, Complan, Nescafe, etc. This generates concern for the girl child in
an Indian society where more importance is given to boys.
2. Social Awareness: The public service ads such as family planning, literacy
campaigns, health and safety campaigns, etc., makes the people aware of the
importance of a healthy culture.
3. Sponsorships: Advertisers sponsor sports programmes, and variety of cultural
programmes. Without the support of advertising such programmes would not have
seen the light of the day. This helps the growth of culture and sports in a big way.
4. Customs and Traditions: Advertising highlights customs and traditions of India
such as strong family ties. For example, Ads develop family ties as a good number of
ads show family in a very happy environment, eating together, living together and
enjoying the life together. This definitely goes in a long way to strengthen the family
relations. Advertising also promotes festivals which enhances the cultural image of
India.
5. Respect for Women: Now-a-days, ads depict women in a positive and active
role. The good example is that of Havells Appliances. In 2014, Havells Appliances
came up with a series of ad films depicting ‘Respect for Women Empowerment’.
Such ads give a new meaning to the roles of women in our Society.
6. Caring Males: Ads depict males not only in macho roles, but that of a good father,
or a good husband. The best of the example, is that of Nivea (Cream for Men) which
depicts a man carrying a bay on his back indicating that men too care.
7. National Integration: There are ads on national integration, which brings people
of different castes, religions, culture, etc. together. This generates peace and
harmony in the society.
8. Advertising generates employment either directly or indirectly. This increases
the purchasing power of the people, and as such improves standard of living, not
only on the economic front but also on the education and cultural front.
Conclusion:
In conclusion, it can be said that advertising does affect culture of a society in a
negative way as it creates a craze for materialistic needs. However, there are
various social, religious, cultural and educational organisations to guide the people of
a particular society in their behaviour and it is up to the individual to accept or reject
certain values. Therefore, advertising cannot be held responsible for the degradation
of cultural values.
It is also true that advertising do upgrade the cultural values for the betterment of the
society as it tries to respect, maintain, and improve the positive aspects of the culture
in the society.
POSITIVE AND NEGATIVE INFLUENCE OF ADVERTISING ON
INDIAN VALUES AND CULTURE
Advertising can influence Indian values and cultures both in positive and negative
manner. The positive and negative effects of advertising on Indian values and culture
are explained as follows:
I. Positive Impact
Supporters of advertising advocate that advertising has positive effects on the
society, which can be economic and / or social.
(a)Economic Effects: Advertising can generate positive economic effects on the
society such as:
� Advertising may help to reduce consumer price due to the benefits of large-scale
production and distribution. The large-scale production and distribution takes place
due to increase in demand on account of advertising.
� Advertising promotes competition, and therefore, consumers can get quality
products at right prices.
� Advertising helps to expand business and therefore, consumers in different
markets get goods of their choice.
� Advertising generates higher economic growth due to increase in production of
goods and services, and therefore, employment level goes up.
(b)Social Effects: Advertising may also help to generate positive social effects on
the society such as:
� It raises higher standard of living due to availability of new and better type of goods
and services.
� Advertising can help to upgrade cultural values through dramatization of family ties,
respect for elders, etc.
� Advertising can promote communal harmony and other social issues such as
concern for girl child through public service advertising.
� Advertising helps to promote social welfare through various campaigns undertaken
by business organisations, NGOs, and Govt. Organisations, such as anti-drugs
campaigns, child immunization campaigns, etc
II. Negative Impact
Critics raise certain issues relating to negative economic and social effects of
advertising on the society such as:
(a) Economic effects
� Advertising may lead to concentration of economic power in the hands of large
firms.
� Advertising may increase consumer prices.
Advertising can have both positive as well as negative effects on children based on
the content, quality and the presentation of the advertisement.
1. Positive Impacts
Some of the positive effects of advertising on children are:
While there are a few positive influences of advertisements, they indeed fail to
outweigh the negatives. Some of the adverse effects of advertising on children are:
� What should and should not be the content and tone of the advertising message?
� Where should and should not be advertised?
The holder of a trademark has the exclusive right to use his trademark to identify the
products or services , which is used by advertiser in comparative advertising , in
order to identify the goods or services of a competitor by making reference to a trade
mark of the proprietor. This raises several concerns - on the one hand, the concern
of brand owners for their goodwill being harmed and, on the other, the benefits for
consumers that may result from the reduction in information asymmetry and the
stimulation of competition. As a result, it becomes incumbent to understand the law
relating to comparative advertising to better understand how it affects the various
parties - consumers, competitors, proprietary right holders and, ultimately the
general public.
# Concept And Definition
Comparative advertising is a widely used form of commercial advertising in many
countries. This type of advertising intends to influence consumer behavior by
comparing the features of the advertiser's product with that of the competitor's
product.
Comparative claims are variable in nature. They may explicitly name a competitor or
implicitly refer to him. They may emphasize the similarities (positive comparisons) or
the differences (negative comparisons) between the products. They may state that
the advertised product is "better than" (superiority claims) or "as good as" the
competitor's (equivalence or parity claims). The aim behind this concept is to allow
honest (i.e. not misleading) comparison of the factors of one trader's products with
those of another; such a comparison will inevitably involve the use of the trademarks
associated with the products in question. In the absence of provisions controlling
this, such use could constitute trade mark infringement.
No Indian statute defines the term, but the UK Regulation defines comparative
advertising as meaning any advertisement which "explicitly or by implication,
identifies a competitor or goods or services offered by a competitor".
In this backdrop, the Delhi High Court summarized the law on the subject in the case
of Reckitt & Colman v. Kiwi TTK , as follows:
1. A tradesman is entitled to declare his goods to be the best in the world, even
though the declaration is untrue.
2. He can also say that his goods are better than his competitor's, even though such
statement is untrue.
3. For the purpose of saying that his goods are the best in the world or his goods are
better than his competitor's he can even compare the advantages of his goods over
the goods of others.
4. He, however, cannot while saying his goods are better than his competitors', say
that his competitors' goods are bad. If he says so, he really slanders the goods of his
competitors. In other words he defames his competitors and their goods, which is not
permissible.
5. If there is no defamation to the goods or to the manufacturer of such goods no
action lies, but if there is such defamation an action lies and if an action lies for
recovery of damages for defamation, then the Court is also competent to grant an
order of injunction restraining repetition of such defamation.
# Statutory Provisions In India:
The Monopolies and Restrictive Trade Practices, 1984 (herein after "MRTP Act") and
the Trade Marks Act, 1999 work in tandem to provide the basic structure that govern
Comparative Advertising. The Trademarks Act, 1999 has incorporated the provisions
related to this concept in Ss. 29(8) and 30(1). According to the statute Comparative
Advertising is permissible, with certain limitations as to unfair trade practices.
The Trade Marks Act is an attempt to balance the conflicting interests of the rights of
registered trade mark owners and a compelling consumer interest in informative
advertising. Section 29(8) of the Trade Marks Act provides that a registered
trademark is infringed by any advertising of that trade mark if such advertising takes
unfair advantage and is contrary to honest practices in industrial or commercial
matters, is detrimental to its distinctive character, or is against the reputation of the
trade mark.
Section 30(1) has, however, provided an escape route for what would otherwise
have been an infringing act under Section 29, if the impugned use of the mark is in
accordance with "honest practices" in industrial or commercial matters.
# "Honest practices"- mandatory for CA:
Comparative advertising aims to objectively and truthfully inform the consumer, and
promotes market transparency, keeping down prices and improving products by
stimulating competition. Therefore, it is important to protect the interests of such
competitors by not allowing comparative advertising to cause confusion, mislead, or
discredit a competitor.
The object of this section is to bring honesty and truth in the relationship between the
provider of the services and the consumer, and when a problem, arises as to
whether a particular act can be condemned as an unfair trade practice or not, the
key to solution would be to examine whether it contains a false statement and is
misleading and further what is the effect of such representation on the common man.
From the above context it may be gathered that false representation would mean an
incorrect or untrue statement or expression which is designed to influence and
induce a consumer to buy or engage, or use such goods or services and make such
advertisements available to the members of the public
# Concept of Disparagement:
Section 36 A of the MRTP Act purports that unfair trade practices are those which
lead to disparagement of the goods, services or trade of another person. The term
"disparagement" has not been defined in any statute, but judicial pronouncements
have adopted its dictionary meaning. As per The New International Webster's'
Comprehensive Dictionary, disparagement means, to speak of Sligh tingly,
undervalue, to bring discredit or dishonour upon, the act of depreciating, derogation,
a condition of low estimation or valuation, a reproach, disgrace, an unjust classing or
comparison with that which is of less worth, and degradation. The Concise Oxford
Dictionary defines disparage as under, to bring dis-crediting or reproach upon;
dishonour; lower in esteem; speak on or treat slighting or vilify; undervalue, and
deprecate.
� Those who do not follow the code / standards are at a disadvantage. The member
publishers of INS lose their accreditation. The advertising agency has to withdraw
the campaign and so on.
� Consumers are protected against the misuse of untruthful ads. � Decency is
generated as offensive and vulgar ads are done away with.
� Generates health and fair competition in the market among different sellers.
� Advertisers cannot make statements directly or indirectly about competitors or their
products that may mislead of confuse consumers.
� Indiscrimate use of advertising for the promotion of products which are regarded as
hazardous to society are not accepted by media. For instance, DD does not allow to
advertise liquor and cigarettes on TV.
� Advertisements which might result in mental, physical or moral harm to children are
banned.
� Self-regulation laws make the advertisers, ad. Agencies and the media more
responsible in carrying out their duties in the field of advertising
ROLE OF ASCI
Advertising Standard Council of India (ASCI) is a professional body set up by
advertisers, advertising agencies, Newspapers, Magazines and other involved in
advertising. It was set up in 1985. The ASCI has been established to monitor and
discourage untruthful advertisements. It ensures that advertising follows the
principles of truth and social morality. The council has drawn up a code of self-
regulation to ensure the truth-fullness and honesty of representations and claim
made by advertisements and to safe guard consumers against misleading and
fraudulent advertising. And to ensure that advertisements are not offensive to
generally accepted standards of public decency.
The ASCI is not a Government body, but it is a voluntary self-regulatory council,
registered as a not-for-profit Company under section 25 of the India Companies Act.
Its main objective is to promote responsible advertising; thus, enhancing the public’s
confidence in Advertising. ASCI thus aim to achieve its overarching goal i.e., to
maintain and enhance the public’s confidence in advertising.
Objectives of ASCI
� To monitor, administer and promote standards of advertising practices in India.
� To codify, adopt and modify the code of advertising practices in India and
implement, administer and promote and publicize such a code.
� To give wide publicity to the Code and seek adherence to it of as many as possible
of those engaged in advertising.
� To print and publish pamphlets, leaflets, circulars or other literature or material, that
may be considered desirable for the promotion of or carrying out of the object of the
Company.
Importance of ASCI
The ASCI was set up to perform the following tasks:
1. Truthfulness in Advertising: ASCI perform its role through its Consumer
Complaints Council. The CCC ensures the truthfulness and honest of the claims
made by the advertisers in the advertisements. It safeguards the consumers against
misleading advertisements. The code framed by ASCI clearly states:
(a) Advertisements must be truthful. All descriptions, claims and comparisons which
relate to matters of objectively ascertainable fact, should be capable of
substantiation.
(b) Where advertising claims are expressly stated to be based on, or supported by
independent research or assessment, the source and date of this should be
indicated in the advertisement.
(c) Advertisements shall not be so framed as to abuse the trust of consumers or
exploit their lack of experience or knowledge. No advertisement shall be permitted to
contain any claim so exaggerated as to lead to grave or widespread disappointment
in the minds of consumers.
(d) Advertisements shall not distort facts nor mislead the consumer by means of
implications or omissions. Advertisements shall not contain statements or visual
presentations, which directly or by implication or by omission or by ambiguity or by
exaggeration are likely to mislead the consumer about the product advertised.
2. Non-Offensive Ads: The CCC ensures that advertisements are not offensive to
generally accepted standards of public decency. The ASCI Code clearly states
“Advertisements should contain nothing indecent, vulgar or repulsive, which is likely
in the light of generally prevailing standards of decency and property, to cause grave
or widespread offence.”
3. Safeguards Against Indiscriminate Use of Advertising: The ASCI safeguards
against indiscriminate use of advertising in situations or for the promotion of
products, which are regarded as hazardous to Society or to individuals. The ASCI
code clearly states:
� No advertisement shall be permitted which:
(a) Tends to incite people to crime or to promote disorder and violence or
intolerance.
(b) Derides any race, caste, colour, creed or nationality.
(c) Adversely affects friendly relations with a foreign country.
� Advertisements addressed to children shall not contain anything, whether in
illustration or otherwise, which might result in their physical, mental or moral harm or
which exploits their vulnerability.
� Advertisements shall not, without justifiable reason, show or refer to dangerous
practices or manifest a disregard for safety or encourage negligence.
� Advertisements should contain nothing, which is in breach of the law, or omit
anything which the law requires.
� Advertisements shall not propagate products, the use of which is banned under the
law.
4. Fairness in Competition: The ASCI ensure fairness in competition. The ASCI
ensures that the consumers are informed on the choices at the market place. IT also
ensures that business firms follow the canons of generally accepted competitive
behaviour and not adopt unfair practices.
5. Responsibility of the Advertisers: The ASCI has fixed responsibility of
advertisers to observe its code. As the advertiser initiates the advertising brief and
sanctioned its placement in the media, the advertiser carries full responsibility for the
observance of the ASCI Code. The advertiser is responsible for the entire content of
the ad. Therefore, the ASCI perform an important role to ensure that the advertisers
are held responsible if anything is misleading or unethical in their ads.
6. Responsibility of the AD agencies: The ASCI has fixed responsibility of the ad
agencies to observe its code. Ad agencies are made responsible to ensure the
observance of ASCI Code in as much as the facts are known to them, i.e., to advise
their clients in accordance with the code.
7. Responsibility of Media Owners: ASCI has fixed responsibility of the media
owners to observe its code. Media owners must view each ad offered to them for
publication from the viewpoint of the code. IF any ad is considered by the media
owners to be in contravention of the code, the media owner shall refer the matter to
CCC of ASCI. Ads found by the CCC to be in violation of the code shall be refused
for publication by media owners.
8. Responsibility of Celebrities: The Advertising Standards Council of India (ASCI)
issued a series of sweeping guidelines in April 2017 on celebrity advertising. The
guidelines are aimed to finally claim down on random or exaggerated claims made
by celebrity advertising. The guidelines must be strictly followed by actors, sports
people, doctors, authors, activists and educationists.
By
Bhoomika L. Rathod.
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Advertising Agency
4.1 Ad Agency -Features -Structures and Services offered – Types of Advertising
Agency-Agency Selection Criteria.
4.2Agency and client- Maintaining Agency -Client relationship, reasons and ways of
avoiding client turn over, creative pitch, Agency Compensation
4.3 Careers in advertising: Skills required for a career in advertising, various career
options, Free lancing career Options-Graphics, Animations, Modelling, Dubbing.
================================================================
4.1 Ad Agency -Features -Structures and Services offered – Types of Advertising
Agency-Agency Selection Criteria.
Ad Agency:
Advertising agency is one of the important components of the advertising industry.
Ad agency plays an important role in the success of client’s advertising efforts; as it
plans, prepares and places ads of its clients in the media.
The American Association of advertising Agencies (AAAA) has defined an
advertising agency as “An independent business organization, Composed of
creative and business people, Who develop, prepare and place advertising on
advertising media , For sellers seeking to find customers for their goods and
services.
Thus, an advertising agency is a service organization which performs the function of
preparing, planning and checking advertisements for its clients. It has its own
specialized & creative staff including visualizes, copywriters, artists, painters,
models, etc. It also places advertisements in media. Thus, an agency is a link
between the clients & media owners.
Features of Ad Agency:
1.Independent Organisation: An ad agency is an independent organisation
composed of creative people like art directors, copywriters, layout designers, media
planners, and so on. The ad agency performs three major tasks for its clients
(advertisers):
� Planning the ad campaign
� Creative Boutiques
� Specialist Agency
� Account Services
� Media Services
5. Meeting: Regular meetings between the client and agency representatives must
be held to chalk out plans and to resolve certain problematic issues. The ad agency
must take the initiative to hold regular meetings. Meetings may be held to discuss
the modification in the ad campaign, change in media-mix, revision in advertising
budget, etc.
CREATIVE PITCH
Creative pitch refers to presentation by ad agency to a client to secure ad account.
The creative pitch emphasizes on creative advertising strategy to be followed by
clients (advertisers) to achieve advertising objectives.
Nowadays, ad agencies undertake presentations with a creative pitch to get clients.
When the ad agency makes a creative pitch, it makes the advertiser to judge the
creative capabilities of the ad agency.
The steps in preparing and presenting creative pitch involve:
1. Identify Prospective Clients: The ad agency may locate the clients who are in
need of advertising services. Sometimes, the clients directly approach advertising
agencies for their advertising requirements. In case of large public-sector
undertakings, they may insert advertisements inviting ad agencies to make a
creative presentation.
2. Meeting with the Prospective Client: The ad agency may hold a preliminary
meeting with the client to discuss the client’s requirements in terms of creative
advertising services or any other services required in relation to integrated marketing
communication (publicity, public relations, sales promotions, etc.) At times, the client
may not be in a position to communicate clearly about his requirements.
3. Preparation of the Brief: The ad agency must prepare a brief. The brief can be
obtained from the client at the preliminary discussion. Even if the client hasn’t
provided the brief, it is always advisable to prepare a brief of the ad project. A brief
makes clear the client’s objectives. The advertising agency must list out the
objectives of advertising in order to make advertising effective. Depending upon the
product, competition, customer, an advertising agency may list out the advertising
objectives.
4. Selection of Pitch Team: The ad agency needs to select the pitch team to make
a presentation to the client representatives. Generally, two or more team members
must be present during a pitch. The pitch team may include creative director, media
director, account director.
5. Prepare an Outline of the Pitch: The advertising agency makes an outline of the
pitch like a story board for a film – series of frames. The creative person must write
the story to achieve objectives of advertising. The pitch may include the headline, the
slogan, and other elements of the ad.
6. Rehearsals: The rehearsals should be done before the final pitch. The rehearsal
team must focus on the keywords of the ad campaign such as the headline and the
tagline. After a few rehearsals, the pitch team will be able to create sentence
patterns and strings of words that best articulate the proposed ad campaign.
7. Presentation of the Pitch: The advertising agency makes the presentation with
special emphasis on the central idea of the campaign. The ad agency must make
sure that the ad campaign is creative, clear and convincing. The ad agency must
make the presentation as simple as it can be.
8. Follow-up: The advertising agency may follow-up the creative pitch to find out
whether it has bagged the client’s account or not. The ad agency must take the
initiative to contact the client to know the outcome of the presentation.
9. Additional Presentation: Now-a-days clients invite advertising agencies to make
creative pitches and the most effective or convincing pitch is selected. The client
may short list two or three ad agencies that have made the presentation. The client
may hold discussion with the short-listed ad agencies and may ask them to make an
additional presentation.
10. Signing the Ad-Contract: If the advertiser (client) is satisfied with the
presentation, the contract, of ad campaign will be assigned t the most effective ad
agency. Once the ad agency secures the account, both the parties (advertiser and
the ad agency) need to ink the ad contract. The contract must state clearly the terms
and conditions.
AGENCY COMPENSATION
Agencies can be compensated in the following ways:
1. Agency Commission: Traditionally advertising agencies have been paid a
percentage of the gross billing charged by media. The commission has been 15% of
gross billing. If the agency pays media bills on time say within 10 days after running
the ad, they are offered cash discount. The agency commission can be illustrated as
follows: The gross billing is Rs. 1,00,000; Agency commission 15%
2. Agency Charges: There are other out-of-pocket costs to the agency beside the
cost of space or time. An agency may have to buy finished artwork, comprehensive
layouts, television and radio storyboards, etc. The agency may also pay for printing
plates, filming TV / Radio Commercial etc.
3. Agency Fees: Agency income is also derived from the fees it charges. In a fee
system, the advertiser and its agency negotiate a flat sum to be paid to the agency
for all work done. The agency estimates the cost (including out of pocket expenses)
of serving the client plus a desired profit or service. This total is submitted to the
client who either accepts it or negotiates for a lesser amount. Negotiations continue
until an agreement is reached.
4. Cost-Plus System: Cost-plus system is mostly used when media billings are
relatively low and a great deal of agency service is required by the client. For
instance, the client may develop a new product for the market. In such a situation,
the client may require additional services of the agency, which were not agreed upon
earlier. This may include preparing brochures, catalogues and other non-
commissionable marketing activities.
5. Bonus / Incentives: The client may also give bonus or additional incentives to the
agency, which were not agreed upon earlier at the time of contract. This is especially
when the ad campaign has met with good success at the market place. Since, the
client earns a good profit due to the effectiveness of the ad campaign, the client may
reward the agency with additional incentives
===============================================================,
4.3 Careers in advertising: Skills required for a career in advertising, various career
options, Free lancing career Options-Graphics, Animations, Modelling, Dubbing
� When to communicate
� Whom to communicate
� How to communicate
Effective communication skills are required to make presentation for a creative pitch
to secure ad account, to do creative ads so that the ads create “top of mind”
awareness, and so on.
Communication skills also include listening skills. Active listening skills are a must for
anyone entering in the advertising field. Good listening skills are required to pay
attention to the views expressed by the client, to obtain feedback regarding as
effectiveness from the target audience etc.
3. Human (People) Skills: It refers to interpersonal skills. Human skills are required
to lead, to communicate, to motivate, to develop team spirit, and most of all to work
with people in a team.
Many experts consider that personal chemistry between the client’s and the agency’s
personnel is the most crucial factor in the success of the ad campaign.
4. Stress Resilience Skills: There are deadlines and work pressures. The
advertising people have to work for long hours even during the weekends. Clients
want the advertising to be completed ‘day before yesterday’. There is no tomorrow in
advertising. This means there are deadly deadliness which generate a lot of stress o
advertising people.
Resilience is the process of adapting well in the face of adversity, trauma, tragedy,
threats or significant sources of stress. Building resilience at work may be the most
important thing one should do for long-term career success and personal happiness.
5. Time Management Skills: Every professional requires effective time
management skills. Time management skills enable the advertising people in timely
completion of ad campaign, and other related activities. Advertising people must give
priority to certain activities depending upon the urgency and importance of the issues
or matter:
� What is important and urgent must be given the first priority.
� What is important but not urgent must be planned and executed at a later date.
Graphics
Meaning: Graphic Design is the skill of creating visual communication. Visual
communication takes many forms and includes logos, posters, brochures, books,
websites, animations, motion graphics and even film and video.
Typical Career Options
Creative, perceptive and energetic individuals may find career in advertising
agencies, design studios, printing industry, publishing, packaging, display and
exhibition-related design. Lately, opportunities exist in digital media and web design,
whilst enterprising graduates practice freelance or open their own studios.
The following is a list of typical Graphic Design related career directions:
1. Graphic Design: One can work as a Graphic Designer in a design studio
developing logos, stationery, posters, brochures, catalogues and more. Good
technical skills, creativity, and knowledge of Graphic Design processes are
requirements for working in this field.
2. Advertising: Work of an Art Director involves generating creative ideas and to
oversee execution of these for television, radio, billboards and magazines. The
emphasis lies on creative ability to come up with ideas. Further, skill is required to
direct teams of people including photographers and film directors.
3. Publishing: One can work as an Art Director in the magazine industry where one
will be involved in layout, photography and production of publications. The candidate
must possess a good mix of technical skills, design knowledge and have a good eye
for photography and styling of photo shoots.
4. Web Design: One can also work as a Web Designer in a design/web design
agency/studio. Strong technical understanding and creative solutions to technical
restrictions are required in this field.
5. Packaging: Work of a Packaging Designer involves creating effective packaging
which may promote the brand and help ensure product positioning in the market
place. They must have a strong understanding of package-oriented production and
printing processes.
6. Multimedia: Work as a Multimedia artist/ designer designing title sequences for
TV shows and graphics for adverts. A Multimedia Artist uses computers to create the
art, graphic design, animated images, or special effects seen in a variety of media
productions, including movies, television, and computer games. A Multimedia
Designer often works as part of a team to create rich web sites, CD-Roms, DVDs or
exhibition materials.
7. Print: Work as a Prepress Specialist determining preparedness of documents
before going to printing. It includes checking colours, gathering fonts, colour finishes,
as well as other print industry foundations.
8. Illustration: Work as an Illustrator involves conceptualising, painting and drawing
new images used for a variety of materials and publications. Artistic talent and
knowledge of design programs such as Illustrator and Photoshop are prerequisites.
9. Typography: Work as a Type Designer involves creating unique fonts so that
words will have a strong visual impact in addition to their implied meanings
Animation:
A career in animation requires strong artistic skills and a solid familiarity with the
latest in computer animation technologies. It also requires the ability to turn creative
thoughts into compelling images, using them to effectively communicate an idea.
There are a number of different career paths for animators:
� Many animators are employed creating animated graphics for a variety of projects.
This can include websites, online advertisements and video games.
� Animators can find full-time employment with movie or television production
companies, with advertisers, web design firms, video game companies or with
animation firms.
� Freelance work is another option for animators, particularly those specializing in
web animation.
Most entry-level positions will require an animator to have a bachelor's degree in a
related field such as fine arts or media. There are a number of Computer Animation
Schools that offer course work specifically in computer animation and associated
technologies.
Modelling
It is one of the most fascinating career options and extremely popular among
youngsters. Good earnings and instant popularity are the main advantages that a
career in modelling can offer. As modelling is also considered as a gateway for entry
to the film industry the competition in the modelling career is also very high.
Qualification & Qualities:
No specific qualification, course or age limit is required to enter into modelling field.
However, physical attributes are more important. The first and foremost step is to
prepare a portfolio. This consists of a series of photographs taken by a professional
photographer. The portfolio can then be shown to an advertising agency or to a
model coordinating agency.
Types:
Modelling in India is mainly categorized into print modelling, television modelling, still
modelling, showroom modelling, ramp/live modelling, advertising modelling etc. The
job opportunities are available in product advertising, live fashion shows, music
videos, in garment fairs and acting in television programs or films.
Besides models having wide experience in this industry can open school/institution
for imparting training to aspiring models. Experienced models also can set up model
coordinating agency for providing opportunities to aspiring models.
Institutes
There are several modelling agencies in India that can give a good break to start the
career in modelling. Some of the popular modelling agencies in India are Face 1,
Mumbai; Ozone Models Management, Mumbai; Mayors’ Management Services,
Mumbai; Catwalk, New Delhi; Platinum Models, New Delhi; Glitz, New Delhi.
Dubbing:
Dubbing is the post-production process of recording and replacing voices on a
motion picture or television soundtrack subsequent to the original shooting. The term
most commonly refers to the substitution of the voices of the actors shown on the
screen by those of different performers, who may be speaking a different language.
Not only can dubbing be used to perfect audio sounds, but it is also used as one of
the two major forms of "language transfer" In this case, dubbing becomes the
replacement of the dialogue and narration of the foreign language, into the language
of the viewing audience
By
Bhoomika L. Rathod.
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