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GLOBAL ADVERTISING
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Top Global Advertisers
Top Global Advertising Agencies
The Global Ad Agency Job
• To coordinate with the global advertiser in terms of final
message creation & media selection
• To effectively construct a media schedule for the various local
markets within its global network
• To communicate the global advertisements effectively into
various smaller local markets
• To account for across-country variability in financial
arrangements & payments
Global Advertising Defined
GLOBAL ADVERTISING – media advertising that is
more or less uniform across many countries, often, but
not necessarily in media vehicles with global reach
Pros and Cons of Global Advertising
ADVANTAGES
•
•
•
•
•
CONSISTENCY OF BRAND COMMUNICATIONS
MEDIA SPILLOVER
COST SAVINGS
IMPROVED PRODUCTION
LEVERAGING A GREAT IDEA
DISADVANTAGES
•
•
•
•
IMAGES AND SYMBOLS MIGHT NOT BE LOCALLY ACCEPTABLE
APPROPRIATE MEDIA MIGHT NOT BE AVAILABLE
PRODUCT USAGE IS NOT THE SAME
LOCAL CREATIVITY IS STIFLED
Drivers of Global Advertising

SUPPLY SIDE

1) GLOBAL AD AGENCIES

2) GLOBAL MEDIA

DEMAND SIDE

3) GLOBAL CUSTOMERS

4) PREFERENCE CONVERGENCE

5) GLOBAL COMPETITORS
Four Components of Global Advertising
1. STRATEGY – Global ads involve products &services that are positioned
similarly across markets, wherein the product’s appeal is consistent
2. ORGANIZATION – global ads are typically directed from headquarters
with the help of advertising agencies with a global network
3. MEDIA – with global reach are used, creating spillover that crosses
borders to reach customers in different countries & follows traveling
customers around the globe
4. MESSAGE & CREATIVE – copy & visualization may be uniform across
markets, uniformity decreases based on how different each local market
is from another
Global Ad Categories
• IDENTICAL ADS – ads are identical, usually with localization only
in terms of language voice-over changes & simple copy translations
(e.g. the Marlboro cowboy ads)
• PROTOTYPE ADVERTISING – the same ads, but the voice-over
may be changed to avoid language & cultural problems, & the ad
may be re-shot with local celebrities (e.g. Drakkar Noir)
• PATTERN STANDARDIZATION – similar but less structured global
approach, wherein the positioning theme is unified & some
alternative creative concepts are planned, but execution differs
between markets (e.g. Xerox)
Global Ads: Same everywhere?
PROTOTYPE ADVERTISING
PATTERN STANDARDIZATION
• Brand Name same
• Brand Name same
• Theme same
• Theme same
• Visual same
• Visual same
• Positioning same
• Positioning same
• Actors same
• Actors not same
• Words same
• Words not same
• Language (local)
• Language (local)
• Media same
• Media not same
• Materials same
• Materials not all same
• Slogan same
• Slogan same
Web Ads Are Naturally Global
WEB ADS are those boxed inserts on the screen that appear as you surf the
web. They are interactive in the sense that you can click on them to get more
information about the product/service.
Types of Web ads:
• Banner ads – most common, measured in pixels
• Tickers – banner ads that move across the screen
• Interstitial ads – ads that flash while a request is being handled, filling up idle loading
time.
• Pop-up ads – ads that appear once a site has been loaded prior to webpage access
• Transactional ads – let you order/request something without leaving the current webpage
• Roadblocks – full screen ads that users must pass through to get to other screens
• Rich media ads – the web version of a TV commercial, with audio and motion
The International Mass Communication
Process
Producer/
marketer/
advertiser
Sets
objectives and
advertising
budget
Coordination
and
control
Sender’s cultural setting
Advertising
agency
Mass
Media
Develops
message
(encoding)
and selects
media
Carries
the
message
Generate
feedback
on effects
Receiver’s cultural setting
Opinion
leaders,
individuals
Receive the
message and
interpret
(decoding)
Individuals
Think, feel
and act
(hierarchy
of effects)
Cultures and Visual vs Verbal Processing
VISUAL PROCESSING
TV commercials
Radio Ads
Low literacy
Younger Segments
Low Involvement products
High context societies
VERBAL PROCESSING
Magazines
Newspapers
High Literacy
Older segments
High involvement products
Low context societies
The Hierarchy of Effects
ADVERTISING EXPOSURE
AWARENESS
KNOWLEDGE
LIKING/ATTITUDE
PREFERENCE
TRIAL
REPEAT PURCHASE/LOYALTY
Matching Ad Objectives and Media
AWARENESS
TV, Radio
KNOWLEDGE
Words (spoken/written),
Print, TV/Radio
ATTITUDE CHANGE &
IMAGE BUILDING
INFLUENCE BEHAVIOR
TV, Magazines, Cinema,
Outdoor Ads
Media must be timely,
newspapers, TV
Global Advertising is Most
Powerful When…
 •
the image communicated can be identical across
countries
 • the symbols used carry the same meaning across
countries
 • the product features desired are the same
 • the usage conditions are similar across markets
Goodyear’s Latin-Am. Campaign Planning
Global Tire Ads: Language pitfalls
How do you say “tire” in Latin America’s
Spanish?
What to say
Where to say it
CAUCHOS
Venezuela
CUBIERTAS
Argentina
GOMAS
Puerto Rico
LLANTAS
Mexico, Peru, Guatemala, Colombia
NEUMATICOS
Chile
Goodyear: Lessons for Global Advertisers
1.
By focusing on regions, it may be possible to reap the scale benefits &
cost efficiencies of global advertising without sacrificing too much on
the side of local adaptation.
2.
The early involvement of country subsidiaries & agency professionals
not only facilitates later acceptance of unified themes but also helps
broaden the sources of powerful campaign concepts.
3.
The process by which pattern standardization is arrived at needs to allow
open & free exchange.
4.
Even when the company has operated for years in a market, research is
still necessary, especially when conditions are changing.
Takeaway
As the affluence of countries grows, new products/services
appear, & customers need more information.
Advertising becomes more important and advertising
expenditures as a percentage of GDP increase.
Takeaway
As markets integrate, global communications expand, &
customers become more similar, pan-regional advertising
campaigns will become increasingly cost-efficient & more
effective than multi-domestic advertising.
Takeaway
Instead of complete uniformity, global advertising tends to
follow a pattern standardization approach with unified slogan,
visualization, & image but with local execution in terms of
language, spokespersons, & copy.
This helps avoid the pitfalls of standardized & translated
messages.
Takeaway
The global advertising agency is often at an advantage over
local rivals when it comes to global /regional advertising.
But independent local advertising agencies have combined
with others to form multinational networks & can sometimes
offer stronger local talent.
Takeaway
Developing a global campaign takes time, effort, & planning.
The process should involve headquarters and ad agency
managers & local representatives whose knowledge will help
formulate the global communication strategy.