role value of advertising
DESCRIPTION
La publicité est un outil de l’économie. C’est celui qui est le plus souvent critiqué. Par les consommateurs qui prétendent assez facilement que la publicité n’exerce aucune influence sur leurs choix de consommation. Par les gouvernements et partis politiques qui désirent soit la contrôler, soit la taxer ou qui voudraient quelles soient très efficaces lorsqu’il s’agit de “vendre” leurs idées, leurs programmes ou leur image. Oui, la publicité joue un rôle important dans l’économie. Et, ce plus particulièrement en temps de crise car elle est l’un des rares moteurs qui peuvent remettre en marché le système économique. Pour ces raisons et pour bien d’autres, nous vous invitons à prendre connaissance du dossier Power Point réalisé par la Fédération Mondiale des Annonceurs. Vous ne regarderez plus jamais la publicité comme vous l’avez fait jusqu’à présent. -------------------------------------- © 2009 - Best Of Marketing - http://www.bestofmarketing.com - Bernhard Adriaensens – Consultant et Conférencier International en Marketing et ManagementTRANSCRIPT
What What advertising advertising CANNOT doCANNOT do
Why do Why do companies companies advertise?advertise?
What are What are the the
benefits benefits to to
society?society?
What is What is the the
consumer consumer benefit?benefit?
The role and value of advertising
ContributioContributions of the ns of the marketing marketing industry industry
What does What does advertising advertising
do?do?
www.valueofadvertising.org
What does advertising do?
The The procesproces
ssMain Main MenuMenu
Awareness
Knowledge
Preference
Purchase
“I remember that
brand”“I understand what they are offering me”
“I am going to try it out/buy
it again” Main Main MenuMenu
The desired response:
“I choose this over the
competitor” based on
emotional/rational benefits
Why do companies advertise?
The The procesproces
ssMain Main MenuMenu
Awareness
Knowledge
Preference
Purchase
Establish our brand name
Communicate proposition attributes
Establish point of difference versus
competition
Advertiser objectives:
Main Main MenuMenu
Everyone Everyone advertisesadvertises
Better Better value value
propositiopropositionn
AccountabiliAccountabilityty
Consumer Consumer choicechoice
What is the consumer benefit?
Main Main MenuMenu
Advertising promotes choice
Main Main MenuMenu
Cons. Cons. benefibenefit menut menu
Taste Preferences
Price
Quality Convenience
Accountability
Main Main MenuMenu
Cons. Cons. benefibenefit menut menu
Ingersoll Rand’s Kryptonite brand replaced 380,000 bike-locks after
impregnable promise was
shattered by a man and his pen.
Source: USA Today, 18 September 2004
Better value proposition
Main Main MenuMenu
Cons. Cons. benefibenefit menut menu
When bans on advertising were lifted in some US states, prices of
eyeglasses fell by 30% to 40% thanks to public awareness and competition.
Source: D. Carlton and J. Perloff, Modern Industrial Organization, 1989
Everyone advertises!
Main Main MenuMenu
Cons. Cons. benefibenefit menut menu
The top 100 marketers account for only 20% of all media ad expenditure.
Source: AdAge, 21st Annual Global Marketers, 19 November 2007; WARC, World Advertising Trends 2007
Local businesses, not-for-profit organisations, even individuals use advertising…in the classifieds, when distributing fliers for an event, or when selling products on eBay.
CreativitCreativity and y and
creative creative valuesvalues
Sports Sports and and
CultureCulture
Job Job CreationCreation
Media Media pluralismpluralism
InnovatioInnovationn
IntangiblIntangible assetse assets
Economic Economic growthgrowth
What are the benefits to society?
Main Main MenuMenu
Main Main MenuMenu
Societal Societal benefits benefits menumenu
Economic Growth
Main Main MenuMenu
Intangible Assets
SocietSocietal al
benefibenefits ts
menu menu
On average, the brand constitutes 30% of the stock-market value of listed companies.
Source: Milward Brown Optimor. BrandZ: Top 100 Most Powerful Brands, 2007, pp. 3 & 26
SocietaSocietal l
BenefitBenefits Menus Menu
Main Main MenuMenu
Job Creation
US advertising plays a key role in generating 18.2 million of the
126.7 million jobs. Source: Lawrence R. Klein, The Role of Advertising in America, 1999
SocietSocietal al
benefibenefits ts
menu menu
Innovation
Main Main MenMen
uu
SocietaSocietal l
benefitbenefits menus menu
MP3 technology was invented in Germany, but developed and
brought to market in the US.
Media pluralism
On average, newspapers and magazines rely on advertising revenue for over
50% of their earnings. Source: SEO Economisch Onderzoek-Univ of Amsterdam, Het economische belang van reclame, Centrum voor Merk en Communicatie, 2006,
pp. iii & 52
Main Main MenuMenu
SocietaSocietal l
benefitbenefits menus menu
Main Main MenuMenu
“No advertising at the Olympic Games but no
games without advertising”
Michael Payne (IOC Marketing Director 1983-2004)
Sports and culture
SocietaSocietal l
benefitbenefits menus menu
Creativity and creative values
Main Main MenuMenu
SocietaSocietal l
benefitbenefits menus menu
Henri de Toulouse-Lautrec was an ad guy.
Main Main MenuMenu
Convince citizens against their better judgment Deliver success for an unwanted or poor
quality proposition. “Research shows that 75% of new product
launches fail”: nothing kills a bad product like good advertising. Source: AMR Research Report, 23 June 2005
Ignore societal expectations of responsible advertising reflected in self-regulation codes
What advertising CANNOT do
SustainablSustainable e
developmendevelopmentt
Contributions of the marketing industry
Social Social marketingmarketing
TeachingTeachingA model of A model of responsiblresponsibl
e self e self regulationregulation
Main Main MenuMenu
Advertising is the agent of social marketing, which can raise awareness, inspire action and save lives.
Many national governments are among the largest
advertisers.
Procter & Gamble’s Ariel consumers in the UK are twice as likely as the
average consumer to reduce their wash temperature to 30° since the launch of the Ariel Cool Clean UK Campaign.
Sources: ‘P&G Urges Business Leaders to Follow Green Path’, Brand Republic, 26 February 2008; P&G information: www.scienceinthebox.com/en_UK/programs/Cool_savings.html
Contrib. Contrib.
of of marketinmarketing menug menu
A model of effective and responsible industry self-regulation
Recognised as a model system of self-regulation for other
commercial sectors.
Main Main MenuMenu
Teaching media literacy: Media Smart
Contrib. Contrib. of of
marketinmarketing menug menu
Main Main MenuMenu
Materials are used in 20,000 schools across Europe, reaching 3
million students.