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Chapter Fifteen
Global Advertising
Global Advertising
Strategic Options
global (with or without localization),
multidomestic
International Advertising
Characteristics
volume, local media distribution, global media,
strategic concerns
Components of Global Advertising
message: prototypes and standardized patterns
media, strategy, organization
15-2
Advertising Intensity
in Selected Nations 1993
Country
North America
Canada
United States
Latin America
Argentina
Mexico
Asia
India
Indonesia
Japan
Malaysia
South Korea
Australia
Europe
Belgium
France
Germany
Italy
Sweden
United Kingdom
Advertising as
percent of gross domestic product
1.17%
2.49
1.08
0.16
0.28
0.39
0.82
0.85
1.21
1.20
0.54
0.65
0.82 (1990)
0.57
0.63
1.35
Source: Distribution Economics Institute, Survey on International Comparison on the Distribution Industry, May 1990.
15-3
Media Usage in Various Countries*
Nation
TV
Print
Radio
Cinema
Transit
Argentina
148
155
43
16
47
Brazil
126
77
10
—
4
France
2,712
4,717
611
57
1,108
Germany
2,826
13,423
641
157
550
133,434
12,900
1,913
—
5,231
South Korea
1,083
1,755
188
—
708
Spain
2,386
4,569
873
62
384
143
1,560
—
13
82
4,621
9,071
287
84
530
45,410
67,536
14,022
—
1,672
Japan
Sweden
United Kingdom
United States
Exhibit
15.2
*In U.S. dollars
Source: International Marketing Data and Statistics 1995 and European Marketing Data and Statistics 1995.
Managing Global Advertising
When Global Advertising is Appropriate
costs, global markets, global products
similarity in image, symbols, features and usage
Decisions
communication flow: encoding, decoding, opinion
leadership, feedback
objectives: evolving from reminder to purchase
stimulation
budgeting: % of sales, competitive parity, objective and
task
Managing Global Advertising
Global Advertising Agencies
globalization of agencies
local knowledge, global/regional campaigns, creative
work, media
value of local agencies
15-6
A Model of the International Mass
Communications Process
Producer/
marketer/
advertiser
Sets
objectives and
advertising
budget
Advertising
agency
Mass
Media
Develops
message
(encoding)
and selects
media
Carries
the
message
Coordination
and
control
Sender’s cultural setting
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)
Scope of Advertising Agencies’ Participation
in Multicountry Campaigns
Market scope
Number of agencies
Percent of total
Agencies doing one type
of multicountry campaign
Global
Major
Regional
Agencies executing more than
one type of multicountry
campaign
Global-major
Global-regional
Major-regional
Global-major-regional
Total
Source: Adapted from Hill and Shao, 1994, p.39..
15
35
103
153
6.5%
15.1
44.4
66.0
5
16
29
29
79
2.2%
6.9
12.5
12.5
34.1
232
100.0%
Chapter Terms and Essay
Terms
Global advertising, global prototypes, hierarchy of
effects, identical ads, localized advertising,
multidomestic advertising, pattern standardization,
objective and task, competitive parity, percentage of
sales
Essay
Identify and describe two advantages and two
disadvantages of globalized advertising. Using two ads
from the Global TV Advertising exercise as examples,
explain the difference between an ad with high
globalization potential and an ad with low globalization
potential.
TV Ad Globalization Potential Exercise
Identify and explain the three criteria for
evaluating the "Globalization Potential" of
television advertising.
For the country assigned to you, identify the
ad with the MOST potential for
globalization. Explain
For the country assigned to you, identify the
ad with the LEAST potential for
globalization. Explain
Chapter Fifteen
Global Advertising