Download Advertising, Public Relations, and Marketing Communications

Financing and Shaping the Media:
Advertising, Public Relations, and
Marketing Communications
Week Three
THE ADVERTISING
INDUSTRY
ADVERTISING – the activity of explicitly paying for media
space or time in order to direct favorable attention to certain
goods or services
ADVERTISING AGENCIES – companies that specialize in the
creation of ads for placement in media that accept payment
for exhibiting those ads
AGENCY HOLDING COMPANIES – firms that own full-service
advertising agencies, specialty agencies, direct-marketing
firms, research companies, and even public relations
agencies
ADVERTISING SPENDING
2O1O VS. 2005
*Numbers for traditional media industries include online advertising activities within these industries.
**Includes digital revenues for firms (e.g., Salon) with no traditional media counterpart.
***Includes billboards, kiosks, mall boards, transit ads, and other outdoor vehicles.
****Includes cinema advertising, in-game video game advertising, and advertising on film, music, video game, and
consumer book websites. Does not include advergaming or product placement in video games; these are considered
marketing services, not advertising.
TABLE 4.1 Advertising Spending by Media Industry, 2010 vs. 2005*
AD AGENCIES
Issues related to Ad agencies
- CLIENT CONFLICTS are situations that occur when
agencies serve companies that compete with one
another
Ad agencies can be described along four dimensions
1. BUSINESS-TO-BUSINESS vs. CONSUMER
AGENCIES
2. GENERAL AGENCIES vs. SPECIALTY AGENCIES
3. TRADITIONAL AGENCIES vs. DIRECT-MARKETING
AGENCIES
4. AGENCY NETWORKS vs. STAND-ALONE FIRMS
THE “BIG EIGHT”, 2011
TABLE 4.2 The “Big Eight” Marketing Agency Holding Companies, 2011
TOP 10 AGENCY NETWORKS
TABLE 4.3 Top 10 Agency Networks, Ranked by 2012 Worldwide Network
Revenue
THREE BASIC
FUNCTIONS OF AD WORK
CREATIVE PERSUASION – the set of imaginative activities
involved in producing and creating advertisements
MARKET RESEARCH – research whose end goal is gathering
information that will help an organization sell more products
or services
MEDIA PLANNING AND BUYING – A function of advertising
involving purchasing media space and/or time on
strategically selected outlets that are deemed best-suited to
carry a client’s ad message
PRODUCTION IN THE
ADVERTISING AGENCY
ACCOUNT EXECUTIVE
CREATIVES/CREATIVE PERSONNEL
MARKET SEGMENTATION
SALES PITCH
BRANDING
ADVERTISING AGENCY
STRUCTURE
FIGURE 4.1 Structure of a Typical Advertising Industry
DISTRIBUTION IN THE
ADVERTISING INDUSTRY
MEDIA PLANNERS
PSYCHOGRAPHIC DATA
MEDIA PLAN
IN-STORE MEDIA
COST PER THOUSAND (CPM)
Questions media planners ask
• What is the outlet’s reach with respect to (ad planners use the term
“against”) the target audiences? That is, what percentage of the entire
target audience (say, teenage girls) will the outlet reach?
• Considering the costs of running an ad there, how efficient is the
outlet in reaching that target audience compared with other outlets?
EXHIBITION IN THE
ADVERTISING INDUSTRY
AD CAMPAIGN – the entire set of advertisements using a
particular theme to promote a certain product for a certain
period of time
LOCATION-BASED ADVERTISING – the process of sending
commercial messages to people based on their geographic
location
PUBLIC RELATIONS
PUBLICITY – the process of getting people or products
mentioned in the news and entertainment media in order to
get members of the public interested in them
MEDIA RELATIONS – all dealings with reporters and other
members of media organizations who might tell a story about
a client
Prominent Public Relations Activities
•
•
•
•
•
Corporate Communications
Financial Communications
Health Care
Public Affairs
Crisis Management
THE BIG FOUR
The largest agency holding companies
TABLE 4.4 Major PR Firms Owned by Large Agency Holding Companies
TABLE 4.5 Examples of Ways Public Relations Agencies May Influence
Media Content
PRODUCTION, DISTRIBUTION AND
EXHIBITION IN THE PR INDUSTRY
PRODUCTION
PRESS RELEASE – a short
essay that is written in the form
of an objective news story
DISTRIBUTION
PUBLICITY OUTLET – a media
vehicle that has in the past
been open to input from PR
practitioners
EXHIBITION
INFORMATION SUBSIDIES –
the time and money that PR
people provide media
practitioners that helps the
latter get their work done
MARKETING
COMMUNICATION
INTEGRATED MARKETING COMMUNICATION
(IMC)/MARKETING COMMUNICATION – a type of PR, the goal
of which is to blend (integrate) historically different ways to
communicate to an organization’s various audiences and
markets
BRANDED ENTERTAINMENT – the act of linking the firm or
product’s name (and personality) with an activity that the
target audience enjoys
EVENT MARKETING – creating compelling circumstances
that command attention in ways that are relevant to the
product or firm
SPENDING SHARES ON
CONSUMER EVENT MARKETING
FIGURE 4.2 Shares of Spending on Consumer Event Marketing, 2009
OTHER FORMS OF
MARKETING
EVENT SPONSORSHIP
PRODUCT PLACEMENT
BARTER
PRODUCT INTEGRATION
DIRECT MARKETING
DATABASES
DATABASE MARKETING
RELATIONSHIP MARKETING
MEDIA LITERACY ISSUES RELATED
TO ADVERTISING AND PR
• Advertising and commercialism
• COMMERCIALISM
• HIDDEN CURRICULUM
• The exploitation of children
• Destruction of the global environment
• Truth and hidden influence in public relations
TARGETING BY ADVERTISING
AND PR FIRMS
TAILORING – the capacity to aim media content and ads at
particular individuals
SELECTABILITY – ability to reach an individual with
entertainment, news, information, and advertising based on
knowledge of the individual’s background, interests, and habits
ACCOUNTABILITY TO ADVERTISERS – the ability to trace an
individual’s response to a particular ad
INTERACTIVITY – the ability to cultivate a rapport with, as well as
the loyalty of, individual consumers