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What What advertising advertising CANNOT do CANNOT do Why do Why do companies companies advertise? advertise? What are What are the the benefits benefits to to society? society? What is What is the the consumer consumer benefit? benefit? The role and value of advertising Contributio Contributio ns of the ns of the marketing marketing industry industry What does What does advertising advertising do? do? www.valueofadvertising.org

Role Value Of Advertising

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La publicité est un outil de l’économie. C’est celui qui est le plus souvent critiqué. Par les consommateurs qui prétendent assez facilement que la publicité n’exerce aucune influence sur leurs choix de consommation. Par les gouvernements et partis politiques qui désirent soit la contrôler, soit la taxer ou qui voudraient quelles soient très efficaces lorsqu’il s’agit de “vendre” leurs idées, leurs programmes ou leur image. Oui, la publicité joue un rôle important dans l’économie. Et, ce plus particulièrement en temps de crise car elle est l’un des rares moteurs qui peuvent remettre en marché le système économique. Pour ces raisons et pour bien d’autres, nous vous invitons à prendre connaissance du dossier Power Point réalisé par la Fédération Mondiale des Annonceurs. Vous ne regarderez plus jamais la publicité comme vous l’avez fait jusqu’à présent. -------------------------------------- © 2009 - Best Of Marketing - http://www.bestofmarketing.com - Bernhard Adriaensens – Consultant et Conférencier International en Marketing et Management

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Page 1: Role Value Of Advertising

What What advertising advertising CANNOT doCANNOT do

Why do Why do companies companies advertise?advertise?

What are What are the the

benefits benefits to to

society?society?

What is What is the the

consumer consumer benefit?benefit?

The role and value of advertising

ContributioContributions of the ns of the marketing marketing industry industry

What does What does advertising advertising

do?do?

www.valueofadvertising.org

Page 2: Role Value Of Advertising

What does advertising do?

The The procesproces

ssMain Main MenuMenu

Page 3: Role Value Of Advertising

Awareness

Knowledge

Preference

Purchase

“I remember that

brand”“I understand what they are offering me”

“I am going to try it out/buy

it again” Main Main MenuMenu

The desired response:

“I choose this over the

competitor” based on

emotional/rational benefits

Page 4: Role Value Of Advertising

Why do companies advertise?

The The procesproces

ssMain Main MenuMenu

Page 5: Role Value Of Advertising

Awareness

Knowledge

Preference

Purchase

Establish our brand name

Communicate proposition attributes

Establish point of difference versus

competition

Advertiser objectives:

Main Main MenuMenu

Page 6: Role Value Of Advertising

Everyone Everyone advertisesadvertises

Better Better value value

propositiopropositionn

AccountabiliAccountabilityty

Consumer Consumer choicechoice

What is the consumer benefit?

Main Main MenuMenu

Page 7: Role Value Of Advertising

Advertising promotes choice

Main Main MenuMenu

Cons. Cons. benefibenefit menut menu

Taste Preferences

Price

Quality Convenience

Page 8: Role Value Of Advertising

Accountability

Main Main MenuMenu

Cons. Cons. benefibenefit menut menu

Ingersoll Rand’s Kryptonite brand replaced 380,000 bike-locks after

impregnable promise was

shattered by a man and his pen.

Source: USA Today, 18 September 2004

Page 9: Role Value Of Advertising

Better value proposition

Main Main MenuMenu

Cons. Cons. benefibenefit menut menu

When bans on advertising were lifted in some US states, prices of

eyeglasses fell by 30% to 40% thanks to public awareness and competition.

Source: D. Carlton and J. Perloff, Modern Industrial Organization, 1989

Page 10: Role Value Of Advertising

Everyone advertises!

Main Main MenuMenu

Cons. Cons. benefibenefit menut menu

The top 100 marketers account for only 20% of all media ad expenditure.

Source: AdAge, 21st Annual Global Marketers, 19 November 2007; WARC, World Advertising Trends 2007

Local businesses, not-for-profit organisations, even individuals use advertising…in the classifieds, when distributing fliers for an event, or when selling products on eBay.

Page 11: Role Value Of Advertising

CreativitCreativity and y and

creative creative valuesvalues

Sports Sports and and

CultureCulture

Job Job CreationCreation

Media Media pluralismpluralism

InnovatioInnovationn

IntangiblIntangible assetse assets

Economic Economic growthgrowth

What are the benefits to society?

Main Main MenuMenu

Page 12: Role Value Of Advertising

Main Main MenuMenu

Societal Societal benefits benefits menumenu

Economic Growth

Page 13: Role Value Of Advertising

Main Main MenuMenu

Intangible Assets

SocietSocietal al

benefibenefits ts

menu menu

On average, the brand constitutes 30% of the stock-market value of listed companies.

Source: Milward Brown Optimor. BrandZ: Top 100 Most Powerful Brands, 2007, pp. 3 & 26

Page 14: Role Value Of Advertising

SocietaSocietal l

BenefitBenefits Menus Menu

Main Main MenuMenu

Job Creation

US advertising plays a key role in generating 18.2 million of the

126.7 million jobs. Source: Lawrence R. Klein, The Role of Advertising in America, 1999

SocietSocietal al

benefibenefits ts

menu menu

Page 15: Role Value Of Advertising

Innovation

Main Main MenMen

uu

SocietaSocietal l

benefitbenefits menus menu

MP3 technology was invented in Germany, but developed and

brought to market in the US.

Page 16: Role Value Of Advertising

Media pluralism

On average, newspapers and magazines rely on advertising revenue for over

50% of their earnings. Source: SEO Economisch Onderzoek-Univ of Amsterdam, Het economische belang van reclame, Centrum voor Merk en Communicatie, 2006,

pp. iii & 52

Main Main MenuMenu

SocietaSocietal l

benefitbenefits menus menu

Page 17: Role Value Of Advertising

Main Main MenuMenu

“No advertising at the Olympic Games but no

games without advertising”

Michael Payne (IOC Marketing Director 1983-2004)

Sports and culture

SocietaSocietal l

benefitbenefits menus menu

Page 18: Role Value Of Advertising

Creativity and creative values

Main Main MenuMenu

SocietaSocietal l

benefitbenefits menus menu

Henri de Toulouse-Lautrec was an ad guy.

Page 19: Role Value Of Advertising

Main Main MenuMenu

Convince citizens against their better judgment Deliver success for an unwanted or poor

quality proposition. “Research shows that 75% of new product

launches fail”: nothing kills a bad product like good advertising. Source: AMR Research Report, 23 June 2005

Ignore societal expectations of responsible advertising reflected in self-regulation codes

What advertising CANNOT do

Page 20: Role Value Of Advertising

SustainablSustainable e

developmendevelopmentt

Contributions of the marketing industry

Social Social marketingmarketing

TeachingTeachingA model of A model of responsiblresponsibl

e self e self regulationregulation

Main Main MenuMenu

Page 21: Role Value Of Advertising

Advertising is the agent of social marketing, which can raise awareness, inspire action and save lives.

Many national governments are among the largest

advertisers.

Page 22: Role Value Of Advertising

Procter & Gamble’s Ariel consumers in the UK are twice as likely as the

average consumer to reduce their wash temperature to 30° since the launch of the Ariel Cool Clean UK Campaign.

Sources: ‘P&G Urges Business Leaders to Follow Green Path’, Brand Republic, 26 February 2008; P&G information: www.scienceinthebox.com/en_UK/programs/Cool_savings.html

Page 23: Role Value Of Advertising

Contrib. Contrib.

of of marketinmarketing menug menu

A model of effective and responsible industry self-regulation

Recognised as a model system of self-regulation for other

commercial sectors.

Main Main MenuMenu

Page 24: Role Value Of Advertising

Teaching media literacy: Media Smart

Contrib. Contrib. of of

marketinmarketing menug menu

Main Main MenuMenu

Materials are used in 20,000 schools across Europe, reaching 3

million students.