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Introduction to Advertising
THE ADVERTISING INDUSTRY
Players in the Advertising Industry
The Marketer or Business Owner who will outsource advertising services
Advertiser
• Are the ‘brand owners’ or clients. Handle the Marketing or PR plans, projects and budgets
Responsible for development of advertising and other communications
Agencies
• Include advertising agencies, to placement agencies (Media), PR, Event and Activations, Digital
Agencies etc
Specialists who provide skills and services to the agencies
Suppliers
• Include printers, Film, Video, Photography, Web design, illustrators, Research companies etc
Are media owners from whom media agencies will buy space or PR will
Media
• Include traditional (TV, Radio, Print, Out of home) and non traditional including Digital and Social
Media.
The Advertisers
Global
•
•
•
•
•
Global Strategy
Biggest spenders
Local Adaptation of ATL
Local Strategy for BTL
Work with global affiliated agencies
•
•
Central Strategy from H/0
Same execution across markets with
less/ minimal adaptation
Use large and medium sized regional
agencies
Regional
•
•
Local
•
•
•
Local insights driving local
communication
Smaller budgets/direct booking
Less sophisticated
In-house or small mostly local
agencies
The Top Spenders
Source: Ipsos Synovate Kenya News March 2014
Industry Trended
100,000
90,000
80,000
SPENDS KES'000'000's
70,000
60,000
50,000
40,000
30,000
20,000
10,000
Industry Spends
Analysis source:
2009
2010
2011
2012
2013
26,969
49,290
64,440
90,389
94,519
The Agencies
Above the line (ATL)
Below the Line (BTL)
• Strategy, Creative
development
• TV, Radio, Print Production
• Design; Logos, Brochures,
Packaging
• Traditional Agency
• “Alternative media” Agency
• Promotions, Experiential,
Direct/CRM, Sponsorship,
Events, Design, Internal
Communications
• Strong mechanics/consumer
touch-points focus
Full Service
Agency
(TTL: Through the
Line)
Media:
• Media/Channel strategy
• Media planning and buying
• Specialist media eg Digital,
Content Management
Specialist:
• Public Relations
• Research
• Brand Strategy and Design
• Consumer Insights
Through the Line Marketing Services
Speciality Agencies
Brand Strategy
Media
Independents
Digital
Experiential
Research
All can be Globally Aligned (Majority
or Minority share ownership) or
Local/Independent
Top 10 Global Agencies
Source: http://www.adbrands.net/agencies_index.htm
Top 10 Global Agencies
Source: http://www.adbrands.net/agencies_index.htm
Top 6 Global Marketing Groups
Source: http://www.adbrands.net/agencies_index.htm
Suppliers
Art studios &
web designers
Printers &
related specialists
Film & video
houses
Research
companies
Media
Print
Out-of-home
Electronic
Direct mail
Digital
interactive
Other
HOW ADVERTISING WORKS
Client Role- The Genesis
Develops overall marketing goals, strategies and plans
Derived from the overall marketing strategy and plan, a
brand plan and advertising strategy is developed
Derived from the brand plan and advertising strategy, an
agency communication brief is developed. This is shared
with the appropriate agency
Agency Role- Bring to Life
Advertising Agency will interpret the brand plan into
communication strategy
The communication strategy will be distilled into an
inspiring creative brief
The Creative will develop the creative strategy and
campaign
Agencies: People
Account
management
Traffic
control
Research &
account
planning/
Strategy
Creative
concepts
Production
Media
buying &
planning
Admin
Other
services
Account Management Role’s
Interpret
Manage
Motivate
Quality
Sell
Grow
Process
Client:
Approves what
is said and how
it’s said so it
fits into
business
objectives,
budget and
brand vision
Acct Mgt:
Strategy:
Creative:
Leads the
process, guides
the agency to
say it on time,
on budget and
according to
client specs.
Determines
what to say:
and how
relevant and
persuasive the
communicatio
n is
How you say
it..determine
potential
impact and
how well it will
be
remembered.
Media:
Reaching the
people you
want to say it
to.
All:
Review and
evaluate
results
In a nutshell
Develop Communication Plans
Agency
roles
Create ads & implement plan
Manage integrated communication
22
WHY IS ADVERTISING IMPORTANT?
The Agency Business
• Art is creativity, advertising is creativity
with strategy
Jef I. Richards (1997), advertising professor
But does creative advertising produce
Results?
“Nobody reads advertising.
People read what interests them.
Sometimes it’s an ad”
Howard Gossage, 1950
ì
“If your advertising goes
unnoticed, everything else is
academic”
Bill Bernbach
ì
ì
After two decades of
research there is conclusive
proof that creatively awarded
advertising works better.
Why
Why?
ì It stands out from the clutter.
ì It is remembered.
ì It sticks in your mind in the days following its
viewing.
ì It has talkability: shown to have the greatest impact
on sales.
ì It is more persuasive.
What is Advertising ?
• Advertising is communication
crafted on behalf of a brand,
aimed at eliciting some sort of
behaviour or attitude change
from its intended target audience.
TYPES OF ADVERTISING
Brand Advertising
• Features brand theme, drives
positioning and aimed at
building strong, long-term
consumer attitude and loyalty.
Influence Perceptions
Remind and Reassure
Tactical Advertising
• Features short term activity, event
but aligned to overall brand theme
and positioning.
• Includes announcements, Retail
ads, promotions, trade ads
Informative
Persuasive
Message Strategy
Emotional
Functional
Self Expressive
ISSUES FACING THE ADVERTISING INDUSTRY
• A survey conducted in 2013 by Forbes Magazine amongst
1,850 CMO’s in the UK established the following as the issues
facing Advertising Agencies
Integrated Marketing Communications skills
..that 68% of the respondents put integrated marketing communications ahead of “effective advertising”
(65%), when they were asked what the most important thing is that they want from an agency.
54%, point to the fact that marketing is becoming more complex due to the explosion of communication
channel options that is making their job more challenging. An agency partner that can integrate messages
holistically across channel is at a premium.
Accountability
Accountability and measurement is clearly keeping marketers up at night as the economy continues to be
sluggish across industries and as marketing budgets come under greater scrutiny by the CEO and the board.
“For years agencies weren’t accountable. Now they are and the model is crumbling. Advertising that doesn’t
drive business will lead to a quick end to the ad budget and perhaps the agency as well.”
The Digital Age
48% say that agencies “[Are] struggling to transition their business models in adapting to the digital age ”
while another 26% say that agencies “Are acquiring assets, but are having difficulty integrating digital
capabilities.”
In other words, almost three-quarters of the marketers are not impressed by the way traditional agencies are
transforming themselves to adopt digital marketing capabilities.
What clients can do better
For their part, marketers recognize that they can make improvements by writing better briefs (74%) and
getting senior client management involved in projects earlier (52%).
Thank You