Chapter FourteenChapter Fourteen

Advertising, Sponsorships, Advertising, Sponsorships, and Public Relationsand Public Relations

Chapter ObjectivesChapter Objectives

Identify various types of advertising.Identify various types of advertising. Discuss advertising agency responsibilities and trends.Discuss advertising agency responsibilities and trends. Describe the appeals used in designing an advertisement.Describe the appeals used in designing an advertisement. Differentiate the types of message strategies.Differentiate the types of message strategies. Describe the various ad executions that are available.Describe the various ad executions that are available. Discuss the advantages and the disadvantages of the Discuss the advantages and the disadvantages of the

primary media.primary media. Describe the use of sponsorshipsDescribe the use of sponsorships Identify the role of public relations in IMCIdentify the role of public relations in IMC

Dell $50.64IBM $39.16Hewlett-Packard $32.49Intel $19.41Microsoft $19.26

Revenue per Ad DollarRevenue per Ad DollarComputers and SoftwareComputers and Software

Amusement parks 9.6%Beverages 9.0%Dolls and stuffed toys 11.2%Eating places 3.2%Food products 11.1%Grocery stores 1.0%Men’s clothing 3.3%Motion pictures, videotapes 12.5%Perfume and cosmetics 7.2%Real Estate Agents 14.0%Women’s clothing 2.7%

Consumer Goods Advertising-to-Sales RatiosConsumer Goods Advertising-to-Sales Ratios

Milk gains sex appeal in this advertisement— the product is differentiated from hard liquor, which cannot boast the same health benefit.Source: Courtesy of Bozell Worldwide, Inc. as agent for the National Fluid Milk Processor Promotion Board.

AdvertisingAdvertising

Types of AdvertisingTypes of Advertising

Product advertisingProduct advertising Brand Brand Informative Informative Persuasive Persuasive PioneerPioneer ComparativeComparative

Institutional advertisingInstitutional advertisingDesigned to build the corporate reputation or Designed to build the corporate reputation or

develop goodwill for the corporationdevelop goodwill for the corporation

MacIntosh "1984" Commercial

Advertising AgenciesAdvertising Agencies Provide the following services:Provide the following services:

Identification and development Identification and development of a brand’s target marketof a brand’s target market

Business-to-business marketing expertiseBusiness-to-business marketing expertise Brand and image developmentBrand and image development Planning, preparing, and production of adsPlanning, preparing, and production of ads Planning and purchasing of media time and spacePlanning and purchasing of media time and space Integration of ads with other components of the Integration of ads with other components of the

IMC, along with assistance in the overall IMC planIMC, along with assistance in the overall IMC plan Trends*Trends*

In-House, Full-Service Agency, Limited ServiceIn-House, Full-Service Agency, Limited Service DecentralizationDecentralization

Creative DesignCreative Design Begins with development of advertising Begins with development of advertising

objectives, target audiences, and objectives, target audiences, and message themesmessage themes Advertising appealAdvertising appeal: what the creative designer will use to : what the creative designer will use to

attract attention and interest in an ad.attract attention and interest in an ad. Emotional:Emotional: Builds a bond between brand and consumer Builds a bond between brand and consumer Fear:Fear: Focuses on what happens without the product Focuses on what happens without the product Humor:Humor: Grabs attention and keeps the audience’s interest Grabs attention and keeps the audience’s interest Sex:Sex: Increases viewer attention, but can be controversial Increases viewer attention, but can be controversial Music:Music: Links person emotionally to the product and has strong Links person emotionally to the product and has strong

intrusion valueintrusion value Rational:Rational: Effective with high involvement products and with Effective with high involvement products and with

consumers already interested in the productconsumers already interested in the product

Message StrategyMessage Strategy ExecutionExecution Media SelectionMedia Selection

Emotion

Impa

ct

Mean Joe Green

Message StrategiesMessage Strategies

Used to deliver the messageUsed to deliver the messageMessage strategy is what is being said, Message strategy is what is being said,

while the appeal is how it is being said.while the appeal is how it is being said.Types of message strategies:Types of message strategies:

CognitiveCognitive AffectiveAffective ConativeConative

Adcontent

Attitude towardthe brand

Emotionalresponse

Attitude towardthe ad

““Affect Transference*”Affect Transference*”

ExecutionExecution

The manner in which the The manner in which the advertisement will be presentedadvertisement will be presented

The setting in the movie scene The setting in the movie scene (Message strategy is what the actor (Message strategy is what the actor says, while appeal is how he says it.)says, while appeal is how he says it.)

Types of advertising execution:Types of advertising execution:AnimationAnimationSlice-of-LifeSlice-of-LifeDramatizationDramatization

LifestyleLifestyle TestimonialTestimonial FantasyFantasy PresentationPresentation

Kellogg's

Brynner Ad

Media ChoicesMedia Choices Advertising Expenditures by MediumAdvertising Expenditures by Medium

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

North America 22.2% 7.2% 26.6% 9.0% 2.2% 2.5% 7.0% 23.3%

Europe 29.7% 14.1% 26.4% 4.1% 4.8% 0.8% 3.6% 16.6%

Japan 23.2% 8.8% 39.6% 3.9% 10.9% 1.7% 3.7% 8.2%

Newspapers Magazines Television Radio Outdoor Internet Directories Direct mail

Source: “Global Adspend Trends: Global TV Advertising,” International Journal of Advertising, Vol. 22, No. 4 (2003), 567–568.

Broadcast MediaBroadcast Media

Television Television Incorporates both visual images and soundsIncorporates both visual images and sounds Has high reachHas high reach Has a relatively low cost per thousand Has a relatively low cost per thousand Is cluttered with adsIs cluttered with ads Commercials have short life spansCommercials have short life spans

Network Show Advertising Cost

NBC Friends $473,500Will & Grace $414,500ER $404,814Scrubs $360,950Coupling $316,400Good Morning Miami $279,813Law & Order $266,220

CBS Survivor $390,367CSI $310,324

Fox 24 $292,200The Simpsons $249,067

ABC Monday Night Football $272,867The Bachelor $253,940

Prime-Time Advertising Cost Prime-Time Advertising Cost for a 30-Second Adfor a 30-Second Ad

RadioRadio More intimateMore intimate MobileMobile Definable target marketDefinable target market FlexibleFlexible Can be done on a short lead-timeCan be done on a short lead-time Short exposure time Short exposure time Few national networks availableFew national networks available

Print MediaPrint Media Primary print media: Newspapers, magazines, Primary print media: Newspapers, magazines,

the Yellow Pages, outdoor, and direct mail account the Yellow Pages, outdoor, and direct mail account for 51.4% of the total advertising expenditures.for 51.4% of the total advertising expenditures.

Largest percentages: direct mail-19.3% and newspapers-19.2%Largest percentages: direct mail-19.3% and newspapers-19.2%

NewspapersNewspapers High credibilityHigh credibility Short lead timesShort lead times FlexibilityFlexibility Geographic selectivityGeographic selectivity Short life spanShort life span Poor production qualityPoor production quality Lack of freedom in creation of adsLack of freedom in creation of ads

MagazinesMagazines Well targetedWell targeted High-quality adsHigh-quality ads Long advertising lifeLong advertising life Losing ground to the Internet and tvLosing ground to the Internet and tv Require long lead timesRequire long lead times

Yellow PagesYellow Pages Essential for local businesses, especially Essential for local businesses, especially

service and specialtyservice and specialty Lack flexibility and creative freedomLack flexibility and creative freedom Has limited exposureHas limited exposure

Outdoor advertisingOutdoor advertising Involves billboards, public signs, and blimpsInvolves billboards, public signs, and blimps Excellent for local adsExcellent for local ads Low cost Low cost Short exposure time Short exposure time Limited audience segmentationLimited audience segmentation

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

1967 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003

Media Schedules and Costs*Media Schedules and Costs*

Advertising on the Super Bowl: Advertising on the Super Bowl: In 2005, the cost of a Super Bowl ad was $2,400,000In 2005, the cost of a Super Bowl ad was $2,400,000

SchedulingScheduling

• CoverageCoverage• Reach X Frequency (GRP)Reach X Frequency (GRP)

• TimingTiming• Steady, PulseSteady, Pulse

• Advertising CalendarAdvertising Calendar

CostsCosts

• CPM (Cost Per Thousand)CPM (Cost Per Thousand)

• Total (Advertisement, Campaign)Total (Advertisement, Campaign)

SponsorshipsSponsorships Involves a company paying a fee to an event, Involves a company paying a fee to an event,

person, or organization in exchange for a direct person, or organization in exchange for a direct association with that event, person, or organizationassociation with that event, person, or organization Has been very effectively used by a few companiesHas been very effectively used by a few companies To be successful, there needs to be a visible link with the sponsored To be successful, there needs to be a visible link with the sponsored

event to maximize the effect through advertisingevent to maximize the effect through advertising

Sports, 68.8%

Causes, 8.9%

Entertainment, tours, and attractions, 9.8%

Festivals, fairs and annual events, 7.1%

Arts, 5.4%

Breakdown of North American SponsorshipsBreakdown of North American Sponsorships

Source: “Events & Sponsorships,” Marketing News, 38 (July 15, 2004), 18

Public RelationsPublic Relations

Responsible for overseeing publicity Responsible for overseeing publicity and communications with society and communications with society and organizationsand organizations

Key functions are:Key functions are: Monitoring external and internal publicsMonitoring external and internal publics Providing IMC-relevant information to each publicProviding IMC-relevant information to each public Promoting image building activitiesPromoting image building activities Reacting to any news or emergencies that may Reacting to any news or emergencies that may

occuroccur Examples*: news release, press conference,Examples*: news release, press conference,

PSA (public service announcement), “buzz”PSA (public service announcement), “buzz”