Seminar on advertisement

By Preethi.v Princy.s Karthika.m

How Many Ads to You See Each Week?

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The average person is exposed to approximately 2000 ads each week. Do you see that many or more?

What is advertising?
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Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.
The time or space devoted to it is paid for It uses a set format to carry the message rather than personal, one-on-one selling It identifies the sponsor of the message

How does advertising use a set format?

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Advertisements are measured by time or space

A radio spot is usually 30 seconds long (time) A newspaper ad can be 1/4 page (space)

The Main Purpose of Advertising

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To sell products or ideas by presenting its message so well that the customer will buy the product or accept the idea presented.

Promotional Advertising
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Promotional advertising is advertising that is designed to increase sales by

creating an interest in products introducing new products and businesses explaining a product supporting personal selling efforts creating new markets

Institutional Advertising
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Institutional advertising attempts to create a favorable impression (image) and goodwill for a business or an organization
Purpose is to develop a positive image by presenting information about a companys role in the community, important public issues and topics of general interest.

Media
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Media are the agencies, means or instruments used to convey messages

Three Categories of Advertising Media

Print media a Broadcast media a Specialty media
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Print Media
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Print media can include any of the following:

Newspapers Direct Mail Magazine Outdoor Advertising Directory Advertising Transit Advertising

Advantages & Disadvantages of Newspaper Advertising

Large readership a Known circulation (easy to target) a Low cost a Timely and flexible
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Wasted circulation Disposable (short lifespan) Poor quality advertising

Magazine Classifications
Local a Regional a National weeklies a Monthlies a Quarterlies
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Advantages & Disadvantages of Magazine Advertising

Easy to target your market a Read slowly and thoroughly a Good print quality a Longer life span because they are kept of an extended period of time
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Less mass appeal within a geographic area More expensive than newspapers Not timely or flexible (long lead times)

Direct Mail Advertising (Junk Mail)

Advertising that is sent directly to prospective customers through the mail a (More than $80 billion in goods and services sold annually through direct mail) a Have you ever bought anything through direct mail advertising? a What do you do with it when you get it?
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Advantages & Disadvantages of Direct Mail Advertising

Advertiser can be highly selective a Flexible and secretive a Wide choice of formats a Can use coupons or other incentives a Can directly make the sale
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Low level of response (-1%) High costs Poor image (junk mail) often not read

Outdoor Advertising
Non-standardized outdoor signs are used by local firms at their place of business or in other locations throughout the community. a Standardized outdoor signs are available to local, regional or national advertisers.
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Three types of standardized outdoor signs

Posters - Preprinted sheets put up like wallpaper on outdoor billboards (McDonalds) a Painted bulletins - Painted billboards that are changed every 6 months to a year a Spectaculars - outdoor signs using lights, moving parts and are situated in high traffic areas or cities (Chick-Fil-A)
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Advantages and Disadvantages of Outdoor Advertising

Highly visible a Relatively inexpensive a Permits easy repetition of message a Can be geographically tailored for target market
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Short message due to limited viewing time Unknown audience Government regulations

Directory Advertising
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Alphabetical listing of businesses

Relatively inexpensive Found in 98% of households - all demographics Kept for at least a year - not thrown away Very inflexible due to being printed yearly Wasted advertising (to non-target market)

Transit Advertising
Using public facilities to advertise - such as subways, on buses and taxis, in stations a Reaches a wide and captive audience a Economical a Defined market (usually urban)
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Unavailable in smaller towns Subject to defacement Restricted to certain travel destinations

Broadcast Media
Radio - 6+ years listening to the radio a Television - 10+ years watching television in 70 years
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Radio Advertising
96% of people over 12 are reached by radio a Prime time is morning and afternoon drive times - advertisers guaranteed concentrated audience a Ads are available in 15, 30 or 60 second time slots
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Advantages and Disadvantages of Radio Advertising

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Select and audience target their market Flexible - can change quickly and easily Mobile (can be taken anywhere - shopping, jogging, hiking or driving

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Short life span Sometimes many stations - have to decide which to use or use them all (more expensive) Distractions - no visual involvement

Television Advertising
The ultimate advertising medium because it can communicate with sound, action and color a Prime time is 7 p.m. - 11 p.m. a Infomercials - 30 minute commercials (The George Foreman Grill)
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Advantages & Disadvantages of Television Advertising

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All elements for creative message Believability More personal & effective Can reach the masses or target specific interests Adaptable to special needs

Expensive - the highest production costs - too high for small businesses Audience size is not assured Nuisance - channel surfing - leave during commercials

Specialty Media
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Inexpensive, useful items with an advertisers name printed on them usually given away

Other Types of Advertising Media

Sports Arena Billboards a Movie theater commercials a Hot air balloons, blimps, skywriting, banners a shelf ads, shopping cart ads, coupon machines, receipt ads
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Newspaper Rates
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Column Inch Rates - number of columns by number of inches deep multiply by the rate Run of Paper rate - The newspaper chooses where to run the ad - you dont choose the location Open Rate - Basic charge for a minimum amount of space (non-contract rate) Contract Rate - Discounted rates for guaranteed amount of advertising in a time period

CPM
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CPM is the cost per thousand rate - the cost of exposing 1000 readers to an ad
Cost of the ad X1000 = cost per thousand (cpm) Circulation Used to compare the rates for different papers with different circulations

Magazine Rates
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Bleed - 1/2 or full page ads are printed to the very edge (no white border) +15-20% Black & White - Lowest rates - black & white ads Color - Each color adds more cost

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Full color - 4 color Premium position - ad placement in mag. Discounts - frequency, commission, cash CPM - Cost per thousand in circulation