Introduction to Advertising

Five Basic Components of Advertising

Advertising is a paid form of communication. The sponsor is identified. Advertising tries to persuade or influence the

consumer to do something. Advertising reaches a large audience of

potential consumers. The message is conveyed through many

different kinds of mass media, which are largely nonpersonal.

Sales Start Before Your Salesman Calls (1958)

Four Fundamental Elements of Effective Advertising

Advertising strategy The logic and planning behind the advertisement

that gives it direction and focus. Develop the ad to meet specific objectives.

Creative idea The ad’s central idea that grabs your attention

and sticks in your memory. E.g. 愛之味分解茶 vs. 古道油切 vs. 黑松茶花

Four Fundamental Elements of Effective Advertising

Creative execution The details, the photography, the writing, the

acting, the setting, the printing, and the way the product is depicted all reflect the highest production values available to the industry.

E.g. 曼仕德咖啡 , 奇美廣色域 – 1, 2, Corona. Creative media use

Every message has to be delivered somehow. E.g. traditional media, outdoor and transportation

media, and the Internet.

Two Techniques to Persuade Consumers

Hard-sell approach – use reasons to persuade consumers, e.g. NOW Magazine.

Soft-sell approach – build image for a brand and touch consumers’ emotions, e.g. Aqualis.

Four Roles of Advertising - Marketing

The process a business uses to satisfy consumer needs by providing goods and services Product category Target market Marketing mix Brand

Four Roles of Advertising - Communication

Can reach a mass audience Introduces products Explains important changes Reminds and reinforces Persuades

Four Roles of Advertising - Economic

Moves from being informational to creating demand

Advertising is an objective means for providing price-value information, thereby creating a more rational economy

Signaling high quality

Four Roles of Advertising - Societal

Informs consumers about innovations and issues

Mirrors fashion and design trends Teaches consumers about new products Helps shape consumer self-image Perpetuates self-expression

The Functions of Advertising

Building awareness of products and brands Creating a brand image Providing product and brand information Persuading people Providing incentives to take action Providing brand reminders Reinforcing past purchases and brand

experiences

The Key Players

Advertiser Advertising agency Media Supplier Target audience

廣告產業架構

Advertiser

Uses advertising to send out a message about its products

Initiates the advertising effort by identifying a marketing problem

Approves audience, plan and budget Hires the advertising agency

Advertising Agency

Has strategic and creative expertise, media knowledge, workforce talent, and negotiating abilities

In 2002-2003 ad agency gross income was $10.6 billion worldwide. (Advertising Age)

Advertising Age - Agency Family Trees

廣告傳播集團在國內的狀況

廣告傳播集團在國內的狀況

廣告代理商之收費1. 佣金制 (80年代前 )

由媒體支付佣金予廣告公司，佣金比率多少視媒體強弱而定。

2. 17.65%服務費制 (80年代 ~2010) 以媒體實收費用 (媒體淨價 )乘以服務費率付予廣告公司。

3. 服務計價制 (Fee制， 2010~)

廣告代理方式獨家代理創意、媒體購買二元分散委託創意委託、媒體購買自理

廣告主如何選擇廣告公司規模：門當戶對原則。口碑：創意能力、媒體能力、收費標準、配合程度、共事 EQ。

專長與風格尊重廣告公司專業倫理：「一種產業，只服務一家」。

Advertising Agency

Advertising department Act as a liaison between the marketing

department and the advertising agencies and other vendors.

Agency-of-record In-house agency

Perform most, and sometimes all, of the functions of an outside advertising agency.

2013年台灣媒體代理商之最

Media

The channels of communication that carry the message to the audience

Are also companies or huge conglomerates Mass media advertising can be cost effective

because the costs are spread over the large number of people the ad reaches

Supplier

Assist advertisers, agencies, and the media in creating and placing the ads

Vendor services are often cheaper than those in-house.

The Target Audience

The desired audience for the advertising message Data-gathering technology improves accuracy of

information about customers Advertisers must recognize the various target

audiences they are talking to and know as much about them as possible

Purchasers are not always the product users. Interactive technology has created a new world of

targeting and ads can now be customized to individual consumers to some extent.

Types of Advertising

Brand advertising The most visible type of advertising Focusing on the development of a long-term

brand identity and image. Institutional advertising

It is also called corporation advertising or image advertising.

Focusing on establishing a corporate identity or winning the public over to the organization’s point of view.

Types of Advertising

Retail or local advertising Focusing on retailers or manufacturers that sell

their merchandise in a certain geographic area. Objectives: stimulating store traffic and creating a

distinctive image for the retailer. Direct-response advertising

Trying to stimulate a sale directly. The consumer can respond by telephone, mail or

the Internet, and the product is delivered directly to the consumer by mail or some other carrier.

Types of Advertising

Business-to-business advertising B2B advertising is sent from one business to

another. Advertisers place most business advertising in

professional publications or journals.

Types of Advertising

Nonprofit advertising Not-for-profit organizations advertise for customers,

members, and volunteers, as well as for donations and other forms of program participation.

Public service advertising Communicating a message on behalf of some good cause,

e.g. stopping drunk driving or preventing child abuse. These advertisements are usually created by advertising

professionals free of charge and the media often donate the necessary space and time.

The Evolution of Advertising

Age of print (1441~1850) Industrial revolution and emergence of

consumer society (1851~1900) Modern advertising era (1901~1915) Agency era (1916~1960) Creative era (1961~1980) Accountability era (1981~)

明代萬曆版《繡像金瓶梅詞話》插圖中的廣告

Age of Print (1441~1850)

Ads were primarily like classified advertising in format and print media carried them.

Objective: delivering information. Primary medium: newspaper.

第一個報紙廣告 – 懸賞尋找失竊的十二匹馬的「懸賞告示廣告」

廣告藝術之父 – Benjamin Franklin

Industrial Revolution and Emergence of Consumer Society (1851~1900)

Advertising grew in importance and size because of numerous social and technological developments.

Purpose: devising an effective, efficient communication system that could sell products to a widely marketplace.

National media developed as the country’s transportation system grew.

Modern Advertising Era (1901~1915)

The format of advertisement was getting to be similar to the modern one.

The emergence of advertising agency with simple service

Agency Era (1916~1960) & Creative Era (1961~1980)

Agency era: the advertising industry grew and organizations specializing in modern professional advertising developed.

Creative era: showcasing an emphasis on new creative practices to compete in a crowded marketplace and build demand for brands.

Accountability Era (1981~)

The beginning of the industry-wide focus on effectiveness

Clients wanted ads that produced sales so the emphasis was on research and measurement.

The Development of Advertising

The Development of Advertising

The Development of Advertising

The Current Advertising Scene

Interaction Integrated marketing communication (IMC) Globalization

Interaction

Electronic media, such as the Internet and wireless communication, are changing the media landscape

New media are more personal and interactive

Integrated Marketing Communication

IMC is the practice of unifying all marketing communication tools so they send a consistent, persuasive message promoting company goals.

Globalization

In the early 1990s the trade barriers throughout much of Europe came down, making it the largest contiguous market in the world.

Eastern Europe, India, Russia, and China have at least partially opened their markets to international marketing.

The advertising question is whether to practice global or local advertising.