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Lesson 4.8 – Advertising Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Advertising TV Commercials and infomercials Print Advertisements Direct Mail Internet (banner ads, “pop up” ads, social media ads) Advertising: Any paid, nonpersonal form of communication by an identified company promoting goods and services. Social Media Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Types of Advertising The 2014 NCAA Men’s Basketball Tournament (“March Madness”) generated over $1 billion in advertising revenue (click here to see a breakdown from Kantar Media) Last year, movie studios spent $3.06 billion advertising films in the U.S. alone (not counting what they spent promoting in other global markets) Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Why Advertise? Effective communication Create awareness Create / Change image Associate a brand with feelings and emotion Precipitate behavior Establish / Maintain goodwill Assist in the increase in sales Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Types of Advertising Print Media: Any written form of communication used to inform, persuade, or remind consumers about products or services offered Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Types of Advertising Outdoor Advertising: Includes any outdoor signs and billboards Offers a high level of visibility Provides 24-hour advertising Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Outdoor Advertising The elevator doors in hotels and business buildings can even be used for advertising Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Outdoor Advertising Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Types of Advertising Mass Transit Advertising: Uses public transportation, such as buses, bus stands, taxicabs, and subways to post advertising messages Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Mass Transit Advertising Hops are a new single A minor league baseball team from Hillsboro, Oregon a suburb of Portland. Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Types of Advertising Broadcast Media: Any visual and/or auditory form of communication used to inform, persuade, or remind consumers about goods or services offered Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Types of Advertising Radio Advertising: Advertisers match their target market to a radio station that segments a particular market * Has the ability to reach a wide audience Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Types of Advertising Television Advertising: Includes commercials and infomercials Is traditionally the most expensive form of broadcast media Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Television Advertising: The fitness craze known as P90X relied on a carefully crafted TV infomercial strategy to build a $400 million-a-year empire. The franchise has been so successful that they released a third installment, P90X3, in 2014 Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Television Advertising: Honda assistant VP-advertising Tom Peyton, whose company spends more than $600 million on U.S. television advertising annually and sponsors the Honda Classic golf tournament, the Rose Bowl's Rose Parade, and the NHL's Anaheim Ducks, recently told Ad Age: "There has to be a point where the price of sports properties on TV, the price of tickets for consumers to games, is truly affecting the amount of sports we can engage in — and the type of sports we engage in.” Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Types of Advertising Online/Digital Media: Advertising through various digital media platforms * Banner ads, pop-ups etc. * Digital broadcasts * Social media channels (Facebook, Twitter, etc.) * Mobile Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Types of Advertising The $60 million in digital advertising sales earned by NBC through its online coverage of the London Games was three times what the network earned for the 2008 Games in Beijing (sales for the 2014 Winter Games in Sochi were slightly down from the 2012 Sumer Games in London to $50 million) Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Types of Advertising Online/Digital Media Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Types of Advertising “Specialty” Media (or Promotional Products): Includes “everyday” items displaying a company name or logo Examples include lanyards, calendars, pens, magnets, and coffee mugs Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Types of Advertising Additional Forms of “Creative” Media: Marketers often use many other creative ways of communicating advertising messages to consumers Examples include: blimps (and other forms of aerial advertising, supermarket carts/bags, hot air balloons, and in-theater advertisements Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Types of Advertising In addition to the light rail advertisements, Adidas and the Portland Timbers prominently featured a number of advertisements through the Portland airport to celebrate the 2014 MLS All-Star game Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Alaska Airlines took aerial advertising a step further when they introduced the Major League Soccer Portland "Timbers Jet", a Boeing 737 featuring a paint theme featuring the Portland Timbers' name and logo in the team's trademark colors (to celebrate the new airplane and their relationship with the team, Alaska Airlines grants early boarding to Portland International Airport passengers wearing an official Timbers jersey) Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 In 2012, Virgin America unveiled a San Francisco Giants-themed plane, complete with the Giants logo and with a black beard and mustache painted under the craft's nose in an usual tribute to popular pitcher, Brian Wilson Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 In 2014, Boeing rolled out a Seattle Seahawks branded airplane, paying homage to the team’s famed “12th Man” shout out to fans. In the plane’s first flight, the aircraft carved the number “12″ in the sky over downtown Seattle Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 In addition to advertising via mass transit, Fox took to their advertising to the streets during the popular Comic Con festival in 2012 by positioning popular animated characters from “Family Guy”, “The Simpsons”, “Bob’s Burgers” and “The Cleveland Show” and positioning them in San Diego pedal cabs Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 LSU Athletics took a unique advertising as part of a basketball campaign when they teamed with adverCar (a company that pays individuals to affix advertising messages to their personal vehicles), essentially paying fans to drive their message into local neighborhoods, shopping centers and commuter routes Copyright © 2014 by Sports Career Consulting, LLC Intro to Basic SEM Principles LESSON 4.8 Upfront Advertising Marketers and media agencies may choose to buy ads in the spring selling period known as the "upfront", which is when networks sell much of the ad time for fall. Buying early sometimes affords marketers more creative flexibility, allowing them to ask for unique ways to promote their brands. Copyright © 2014 by Sports Career Consulting, LLC Intro to Basic SEM Principles LESSON 4.8 Upfront Advertising Thanks to in part to two major sporting events in 2014 — the Sochi Winter Olympics and the FIFA World Cup that generated more than $1.5 billion in advertising dollars, fewer dollars were available in the upfront market for the 2014-15 season. As a result, upfront spending dropped for the first time since the recessionstifled 2009-10 season, representing a spending decline of nearly $500 million. Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Advertising Agencies Nike contracts the Wieden & Kennedy agency to manage and oversee some of their advertising campaigns Copyright Advertising Agency: An organization that decides on and implements an advertising strategy for a customer © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Advertising Agencies Wieden + Kennedy won an award at the 2012 Cannes Lions festival for its advertising spot featuring Carmelo Anthony, created for the Jordan Brand Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Advertising Agencies In 2013, the agency celebrated the 25th anniversary of its famous slogan developed for Nike, “Just Do It” Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Advertising Agencies Wieden + Kennedy is also responsible for the wildly popular “It’s Not Crazy, It’s Sports” ad campaign for ESPN, addressing the culture of fandom in the sports industry Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Advertising Agencies Under mounting pressure and facing a potential lawsuit, the Washington Redskins enlisted the help of a PR professional to help make a decision as to whether the franchise should change the team nickname Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Why an Agency? Expertise Time constraints Time constraints “Fresh” perspectives Access to athletes, celebrities, entertainers? Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Considerations for Agency Selection Does the agency have a solid marketing plan in place? Does the agency have comprehensive marketing skills? Can the agency determine target markets and a means to reach them? Does the agency view itself as a partner of the hiring organization? Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Considerations for Agency Selection Does the agency have a track record of success? Has the agency worked with others in your industry? Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Additional Considerations Comfort level with the representative that will be handling the account Making sure all written copy is customer centered Selection of an agency that views itself as a partner of the organization Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Agency Extension Creative use of in house advertising capability The Red Sox, as a way to generate additional revenue, leveraged relationships in the industry and throughout the community and created a spin-off agency, the Fenway Sports Group FSG was so successful that they were profitable in their first year and their client base included NASCAR, Boston College, and even the rival New York Yankees Copyright © 2014 by Sports Career Consulting, LLC Marketing Applications LESSON 4.8 Blank Slide Available for Teacher Edits Copyright © 2014 by Sports Career Consulting, LLC LESSON 4.8 REVIEW (ANSWERS) Marketing Applications 1) Identify specific forms of advertising and explain why businesses choose to advertise Copyright © 2014 by Sports Career Consulting, LLC LESSON 4.8 REVIEW (ANSWERS) Marketing Applications 2) Identify specific forms of advertising and explain why businesses choose to advertise Print media, outdoor advertising, mass transit advertising, broadcast media, online media and specialty media are examples of specific forms of advertising Copyright © 2014 by Sports Career Consulting, LLC LESSON 4.8 REVIEW (ANSWERS) Marketing Applications 2) Identify specific forms of advertising and explain why businesses choose to advertise Companies advertise for a number of reasons, including: Effective communication Create awareness Create or change image Associate a brand with feelings/emotion Precipitate behavior Establish and maintain positive public Copyright © 2014 by Sports Career Consulting, LLC