ORGANIZATIONS OF ADVERTISING BUSINESS

1. History

1800- Whites, first British ad agency

It worked as

- A space broker selling press advertising

- Copy writer

- Designer

2017- Nepal Advertisers, First Nepalese ad agency

2. Reader survey

1950s- Hulton Readership Survey

But ABC was working since 1931 in Britain.

TV commercials were started with the advent of TV in 1955.

3. Location

Mainly capital

Industrial area

4. Public relation

Advertisers as well as media

5. Role

-To plan, create and execute ad campaigns for client. If the advertiser defaults, the agency is responsible for paying debts incurred on the client's behalf.

- Middle position, as a mediator

Ad department

                                                The advertisers

                                                Ad manager

The agency                                                   The media

Account executive                                       Ad sales manager

Ad agency and its world

The advertisers

                                                                        Media Specialists

                        AD AGENCY                        The media

Professional orgs                                                     Suppliers

                                                           

Training

Fair Trading Rules

Commission

15%- National

10%- Regional

TYPES OF AD AGENCIES

1. Service agencies

It provides a whole range of services to the client, both advertising and non advertising.

Advertising Services include Planning, creating and producing advertising campaign which broadly encompasses account planning, research, creative service, media planning and production of ad materials to different media even out door.

Non ad functions may include PR, making corporate identity plans, packaging, organizing fairs, exhibitions and training -materials.

According to Frank Jefkins, Service agencies are categorize as,

1. Full service agencies
1. Marketing research
2. Public relation
3. Recruitment advertising
4. Sales promotion
2. Medium size agencies
1. Freelance job
2. Copy writing
3. Creativity
3. Business to business
1. Trade exhibition

1.                  A La Carte Services i.e. order according to choice, can be hard from a full service agency or small specialist out fits which go by the nomenclature a la carte or boutique.

It often works on ad hoc assignments having separate identity.

Such outfits specialize in creative concepts, strategy development, media planning etc. Their services are at times called for by small and medium size agencies which may not be in a position to offer the high paid creative writers or media planers.

They are also categorized as

1. Creative agencies: These produce copy platform or themes and create campaigns for different media, perhaps inventing characters and writing jingles and music for broadcasting commercials.
2. New product development agencies: They may influence the original concept of the product, and certainly participate in naming products, packing designs, pricing and market segmentation, distribution, test marketing and selling-in to the trade operations as well as the main consumer advertising campaign.
3. Direct response agencies: These agencies have responded to demand, and direct response in all its form, including the use of media. The technique is to sell direct, by post, telephone, fax and the internet.
4. Incentive scheme agencies: Both buy and supply goods and services which are offered as gifts or premiums to customers or as incentive award to the employees.
5. Sales promotion agencies: A modern sales promotion scheme is very often an original exercise created for short term operation. Big prize competition, money off flash pack, charity promotions are some examples of it.
6. Sponsorship agencies: Sponsorship may be for marketing, advertising or public relations purposes, and quite often may embrace all three.

2.                  The House Agency

It is an agency established by a company to look after its advertising requirements.

AD AGENCY STRUCTURE

FUNCTIONS OF AD AGENCIES

1. Consumer research to determine the strengths and weaknesses of the product in household use.
2. Market research to describe the best prospects.
3. Development of marketing strategy and budget
4. Help in naming and packing.
5. Develop and pre testing of the creative concept
6. Media planning to reach target markets efficiently
7. A plan for launching the product to the trade.
8. Application of the creative concept to promotion and point-of-sale materials

9.      Publicity plan for exploiting the product's news

10.  A Plan for generating enthusiasm within the sales force.

Media planning

Function of media planning:

Media planning is a blend of marketing skills and familiarity with mass communication. The planning decisions includes: which audiences to reach, where (geographic emphasis), when (timing), for how long (campaign length) and how intense (frequent) the exposure should be.

 - Wells, Burnett and Moriarty

4 W'S in Media Planning

Who- Who requires a precise description of target prospects? Radio and TV stations also have their own type of audience.

WHERE- Local and regional advertisers confine their media choices to those that best cover their particular trading areas.

WHAT- What message is to be communicated has considerable importance in deciding which media to use?

WHEN- When to advertise can be planned in terms of seasons of the year, month, day, week, hour or minute.

The change in the role of media within Ad agencies from a clerical function to a management function was the result of several factors.

a.         The first was the demand by the advertiser for more accountability.

b.         The second was the adoption of marketing concept with its emphasis in consumer research and strategy planning.

c.         The third has been the sheer explosion of media.

Aperture concept of media planning

The goal of the media planner is to expose consumer prospects to the advertiser's message at critical point. This ideal opening is called an aperture. The most effective advertisement should expose the consumer to the product when interest and attention is very high. Only the accurate marketing research, appreciation of the message concept and a sensitive understanding of mass communication could succeed this complex and difficult assignment.

Media planning operations:

1. Information sources and analysis

Media planning

A.      Marketing Sources

·         Distribution patterns

·         Market sales

·         Rival promotions

B.      Creative sources

·         Theme

·         Message

·         Research

C.     Media sources

·         Popularity

·         Profiles

·         Cost forecasts

2. Setting objectives and strategies

A.     Finding Target audience

·         Demographics- People are described by their age, income, education, occupation, marital status, family size and several other tags.

·         Psychographics- It looks for more sensitive measures of motivation and behavior.

·         Product use segmentation- Audiences can also be classified according to their consumption habits (usage). Media planners obtain information on which products the audiences buy or how often they use or consume these products.

B.     Where to advertise: Geographic area

C.     When to advertise: Timing

·         Seasonal Timing

·         Holyday Timing

·         Day-of-the week timing

·         Hour-of-the-Day timing

D.     Duration: Find the best campaign length

·         The advertising budget

·         Consumer-use cycle (It is the time between purchase and repurchase).

·         Lack of brand loyalty

·         Competitive advertising

E.     Find acceptable media environments

·         Media content-product compatibility (Shoes on sports program)

·         Media-created mood: Food product will not allow its commercials to run during the program that ia not fully for family audiences.

3. Media selection procedure

A.      Audience Measure

B.      Media reach

C.     Frequency

4. Staging the media plan

Media plans are interwoven with all other areas of advertising: the budget, the target audience, the advertising objectives and the message demands.

A.     Situation Analysis

B.     Aperture opportunity

C.     Strategy to select the media

D.     The flowchart: Scheduling and budgeting allocation

MEDIA SELECTION

3.      Circulation (Print)

ABC

4.      Audiences (Electronic)

ABC performs three functions

1.       Audits the circulation figures of member publisher and certifies to the accuracy of publishers statements.

2.       Establish standard for reporting the quantity, quality and distribution or circulation.

3.       Serves as a clearinghouse, gathering statements from member publishers and disseminating circulation reports to the advertising agencies.

5.      Media cost efficiency

Most of the media quote their rates in terms of a standard unit of space.

-Editorial or Program content

Ad media Mix

4 Ms

·         Money

·         Market

·         Media

·         Methodology

Media strategies

• Class selectivity
• Coverage
• Flexibility- frequency 
• Cost Budget
• Editorial environment 

Favorable? People read?

• Production quality
• (Reprint)
• Permanence (The abilities of the media to keep ads before prospect eyes)
• Trade acceptability (is it accepted trade) no to kantipur
• Merchandising cooperation 

THE DESIGNING OF ADVERTISING

The message designing

4. Problem Solution

5. SLICE OF LIFE

6. SPOKESPERSON

1. Testimonial

1. Nature of the product

1. The target group

1. Special characteristics of the product

1. The competitors

1. Promises

1. The different one

1. Brand position

1. With consumer

1. Passing on information

1. Create brand awareness

1. Incite them to act i. e. purchase

1. Confirm the legitimacy of their choice after purchase

2. With trade

1. To induce them to stock the product

1. To push the product on the counter

1. To provide strategic shelf-space

3. With manufacturers

1. To make them raw materials

1. To convince them about rational product benefits

1. To convince them about cost aspects

1. LAW OF UNITY-

2. LAW OF VARIETY

3. LAW OF BALANCE

4. LAW OF RHYTHM

1. Appeal

2. Message presentation

3. Ad message structure

4. Message format

1. Headline

2. Sub head

3. Body copy

4. Price

4. Name and address

4. Coupon- if any

4. Signature slogan- Where ever you are.

1. Clichés - Buzzwords like Now! New! At last! Today!

1. Action words- Buy! Try! Watch! Enjoy! Call! Look! Taste! Ask!

1. Emotive or exciting words- Wonderful! Beautiful! Amazing! Economical!

1. Adverse publicity – Reports printed and published in media

1. Refusal of further advertising space

1. Removal of Trade Incentives – Council of Membership

1. Legal Proceedings – Refer to Office of Fair Trading (OFT)

THE EIGHT LAWS OF DESIGNING

Layout

Developing layouts

Design Principles

Organization

Direction

Dominance

Visual Path

Utility

Consistency

Continuity

White space

Margins

Contrast

Balance

Simplicity

Color

LAW AND ETHICS OF ADVERTISING

LEGAL VS VOLUNTARY CONTROLS

Law of Contract

Contract of Advertising

Sanctions

Criticism

Hard and soft sell

Ads are designed to touch either the head or the heart. These two approaches are also called HARD SELL and SOFT SELL. A hard sell is a rational, informational message that designed to touch the mind and create a response based on logic.

But soft sell uses an emotional message and is designed around an image intended to touch the heart and create a response based on feelings and attitudes.

FORMATS AND FORMULAS

1.      STRAIGHT FORWARD FACTUAL

These ads usually convey information without using any gimmicks. They are rational rather than emotional. Business-to-business advertising also is generally factual tone.

2. DEMONSTRATIONS AND COMPARISONS            

The demonstrations focus on how to use the product or what it can do to you. The product's strengths take center stage. The objective of demonstration's conviction is 'seeing is believing.' It can be a very persuasive technique.

A comparison contrasts two or more products and usually finds the advertising brand to be superior. The comparison can be direct, his which the competitor is mentioned, or indirect, with just a reference to 'other leading brands.'

   

3. HUMOR

The copy strategy behind making people laugh is the hope they will transfer the warm feelings they have as they have being entertained to the product. Humor is hard to handle, however. Although, everyone appreciates a good joke, not everyone finds the same joke funny. The danger of humor is people will remember the punch line and forget the product name. But some humor, if deftly (skillfully, cleverly) handled, is acceptable. (David Ogilvy)

It is also known as the product-as- hero technique. The message begins with problem, and the product is precluded as the solution. This is a common technique used with cleansers and additives that make things run smoother.

A variation on this technique is the problem-avoidance message where the problem is avoided because of product use.

It is really just as an elaborate version of a problem-solution message presented in the form of a play let. It uses common place situation with 'typical people' talking about the problem. It puts the audience in the position of overhearing a discussion wherein the problem is stated and resolved.

Using a person to speak on behalf of the product is another popular message technique. Spokespersons and endorsers are thought to build credibility. They are either celebrities we admire or the experts we respect or someone 'just like us' whose advice we might seek out one of the problems of spokesperson strategy is that the person may be so glamorous or so a attractive that the message gets lasts. AMITHAV BACHCHAN

It is a variation of the spokesperson message format. The difference is that people who give testimonials are talking about their own personal experiences with the product.

Message designing and positioning

Objectives

1. Law of UNITY

2. Law of VARIETY

3. Law of BALANCE

4. Law of RHYTHM

5. Law of HARMONY

6. Law of PROPORTION

7. Law of SCALE

8. Law of EMPHASIS

UNITY can be disturbed by

·         an irritating border

·         too many different and conflicting type faces

·         badly distributed color

·         disproportionate elements

·         'busy' layouts containing a confusion of parts

There should be change and contrast as with bold and medium weight of type, or good use of white space.

·         The ad should not be monotonous

·         Variety can also be introduced by the use of pictures

OPTICAL BALANCE- It is one third down a space, not half way.

A picture or headline may occupy one-third and the text copy two-third.

SYMMETRICAL BALANCE falls midway so that a design can be divided in to equal halves, quarters and so on, but should not divide into two halves so that it looks like separate ads.

Though print ad is static, but it is still possible to obtain a sense of movement so that the eye is carried down and through the ad. The eye should lead from Para to Para.

The general from of overall design should be pleasantly rhythmic.

5. LAW OF HARMONY            

 There should be no sharp, annoying and jerky contrast.

All the elements should harmonize, helping to create unity

6. LAW OF PROPORTION

This applies particularly to the type sizes used for different widths of the copy, the wider the column the larger the type size, and vice versa.

7. LAW OF SCALE

It is the use of the color, black looks closer to the eye than grey and red is the most dominant color. Black on either yellow or orange is very bold where as white on yellow is weak.

8. LAW OF EMPHASIS

All emphasis is no emphasis. Do not use

·         all capital letters

·         Too many bold letters

Anatomy of a Typeface

Serif    Ascender

Cap height Expel x -HEIGHT

                                                Descender

Copy writing

q       Create a bridge to the target audience by being persuasion

q       Arouse the audience, why to read/listen

q       Use familiar words and build up points of interest

q       Use specific and concrete word

q       Repeat key points

q       Convince the audience by sticking the fact

q       Use rhyme and rhythm

q       Make use of ......... effects i. e. leave the message incomplete

q       Ask the audience to draw the conclusion

A. Central

a.      The central message

b.      Compare advantage and disadvantages

c.      Provoke active information

B. Peripheral

a.      Pleasant association

b.      Scenic background

c.      Favorable conclusion

a.      Drawing conclusion

b.      Repetition

c.      One vs. two sided communication

d.      Comparative advantage

e.      Order of presentation

a.      Organization

b.      Plan

c.      Style

d.      Type of ad message

AIDCA model of Ad

A-          Attracting attention

I-              Rousing interest

D-   Building desire

C-      Conviction

A- Obtain action

Seven elements of Copy Writing

·         Association of ideas- Deuba like it!

·         Alliterative- Rhythm

·         Bargain- Now only Rs. 99.

·         Commanding- buy it now!

·         Challenging- Why put up with higher price?

·         Curiosity- Even Robert plays football.

·         Declaration- No. 1

·         Emotional- Sexy juice

·         Interrogative- Do you have more interest?

·         Identification- The German beer

·         Humorous- Open seven days a week

·         Gimmick- sss.......sss.....sss

·         Sense of movement so that the eye is carried progressively through the copy

·         Typographical contrast

·         Emphasis selling points

·         Different ideas

·         Absorb the interest at a glances

·         Make more interesting

·         Emotive

·         Factual- hard selling/educational

·         Narrative- description, story

·         Picture and captions

·         Monologue or dialogue

·         Gimmick

·         Quotation

Copy device

            It is a drawing that shows all the elements in the ad where are to be positioned. The most common layout format is one with a single dominant visual that occupies about 60 – 70 % of the area. Underneath it is a headline and a copy block. The logo or signature signs of the message are at the bottom.

Thumbnail sketches – These are quick miniature version of the ad, preliminary sketch that are used for developing the concept and finding the positioning of the elements. These are small preliminary sketches of various layout ideas. The second step is a rough layout. Rough are done to size but not with any great attention to how they look.

Semi Comp (Comprehensive):

            A semi comp is done to the exact size of the ad and all the elements are exactly signed and positioned. Color is added where appropriate. Shading for black and white is done with various gray markers to indicate tonal variation.

Comprehensive:

            A layout that looks as much like the final printed ad as possible. On special occasions, a full-blow comprehensive may be developed. This is an impression presentation piece.

Mechanical or Key lines:

            A finished paste up, with every element perfectly positioned that is photographed to make printing plates for offset printing.

            The functional side of layouts makes the message easy to perceive. The aesthetic side makes it attractive and pleasing to the eye.

            Organized visual images are easier to recognize, perceive and remember than are visual images without any order.

-          Gerald Murch

            The path determined by the ordering of the elements is direction.

Guttenberg Diagonal is the motion from upper left to lower right. Graphics expert Edmund Arnold coins it. Most layouts try to work with natural eye movements.

            It is focal point; the first element is a layout that the eyes see. Normally the dominant element is a visual, but it can be a headline the big and bold face.

            The direction is which the reader’s eyes moves while scanning a layout, Guttenberg diagonal is one model.

            Keep things together that go together.

            It is important to unity. Using one typeface rather than several is a good technique for unity.

            Neighboring elements that touch and align are another important aspect of unity. Captions need to adjoin the pictures to which they refer. Headline lead into the text.

            White space is not simply an area where nothing happens. It works in one of two ways: it either frames and element in the sea of white, which gives the importance, or it separates elements that do not belong together.

            It is simply a white space designed to frame the ad and separate it from everything surrounding it. Ina a magazine, you can use bleed, an ad in which the printed area runs to the trim edge of the page.

            Contrast indicates the importance of various elements. Contrast makes one element stand out because it is different. Contrast also used to separate an ad from its surroundings.

            Optical 1/3 headline  + 2/3 body, symmetrical ½ + ½

            Less is more, so when in doubt leave it out (delete)

            Color is used in advertising to

-          Attract attention

-          Provide Real son – exactly what it is.

-          Establish moods – red, yellow, orange, are bright and happy.

-          Build brand identity – Pepsi (Red + Blue)

Three phases

The pre marketing era:

Buyers and sellers communicated each other. In 300 BC Babylonian clay tablet is the earliest form of advertisement.

Mass communication era: (After the mid 1700s till the early 1900s)

Newspaper ad started with the printing press i. e. 1438 when Johann Guttenberg invented movable printing press. First ad in English newspaper was printed about 40 years after the printing press.

The research era:

Since 1950s ad entered in the sophisticated era. Advertisers have developed new techniques to understand and segment audiences, and target them with specific messages.

Newspaper advertisement

1477- British advertisement (But not known, where it was published)

1665- Oxford gazette (Later renamed London gazette)

In England, there were 25 newspapers in 1700s and 258 in 1800s.

Ad in Nepalese context

1919 BS- Ad in Mokshasiddhi, for the first time in Nepal. The ad was about the notice of next publication of the Nepal Manoranjan press.

Ethical Criteria (3A)

Advocacy: Advertising by its very nature, tries to persuade the audience to do something. Thus it is not objective or neutral. This fact disturbs critics who think that advertising should be objective information and neutral.

Accuracy: YOU MUST NOT LIE. WHAT YOU PROMISE, YOU MUST PROVIDE.

Acquisitiveness: Advertising gives us choices and incentives for which we continue to strive (great efforts).

British Code of Ad.

            The codes require that advertisements and sales promotions should be

-          Legal, decent, honest, and truthful.

-          Prepared with the sense of responsibility to consumers and society.

-          In line with the principles of fair competition generally accepted in business.

The CAP – Committee of Advertiser Practice devises the codes.

Characteristics of Legislation

i)                    Advertiser should obey in the public interest, under penalty of fine or punishment.

ii)                  The law can be preventive in make known what is illegal.

iii)                Some laws depend on interpretations by the courts and may not be effective until the test case has occurred to set precedents.

iv)                The law has to be invoked (power of the law) either by the plaintiff (a person who brings an action at law), swing (make a legal claim against)) according to whether it is common or statute law.

Characteristics of Voluntary Controls

i)                    Advertiser should obey in the public interest. An offending advertising agent risks losing his/her recognition status and right to commission, while the client risks damaging his/her reputation if a complaint are made.

ii)                  There are no penalties other than above and necessity to amend or withdraw an offending ad.

iii)                Voluntary controls are self-regulating and are likely to prevent unethical advertising from appearing.

iv)                Advertising is competitive but there are limits. No ‘knocking copy’ is allowed. You cannot say your rival product is bad.

v)                  Voluntary self-regulatory control can be more effective than legislation.

            To be legally binding a contract must have four elements, namely, an offer, an unconditional acceptance of the offer and consideration in the form of some exchange or sacrifice while consent must be genuine and not wrongfully obtained.

Simple Contract: it is one that is not under seal and it can be made orally.

Expressed Contract: This is one in which the terms are set out in words, either orally or in writing, by the partners.

Implied Contract: It is the contract depends on the circumstances.

Executed contract: one or both parties perform the contract. Usually dates are agreed for the performance of the work and payment for it.

1.      The purchase of ad space/airtime.

2.      The hiring of out door ad sites and exhibition stand space

3.      Service agreements with advertising agents, public relation consultants and other professional consultants

4.      The purchase of print, display on arterial, photography and artwork.

            Advertising is an immoral and parasitical force, which exalts (make higher in rank) false values and induces people to buy things they either do not need or cannot afford. It is said to create expectations that cannot be satisfied.

In Indonesia TV commercials were banned because they were thought to increase the expectation of poorer people.

            Critics of advertising have made one fundamental mistake: they blame the TOOL and not the USER. There is mother wrong with advertising, but there are advertisers who abuses or misuse advertising deliberately or unintentionally.