Introduction to Advertising

Module 1

Definitions of Advertising
 Advertising is any paid form of non- personal presentation and
promotion of ideas, goods and services by an identified
sponsor. – Kotler
 Advertising is a paid, mass mediated attempt to persuade
Defining Modern Advertising
 A complex form of communication using objectives and
strategies to impact consumer thoughts, feelings, and actions.
 A form of marketing communication (all the techniques
marketers use to reach their customers and deliver their
messages).

Five Basic Factors of Advertising

1. Paid communication
2. Sponsor is identified
3. Tries to inform or persuade (Convince)
4. Reaches a large audience
5. Message conveyed through many different kinds of largely
nonpersonal mass media

Principle: An effective advertisement is one that can be proven to meet its

objectives.
Objectives, Importance & benefits of advertising
 Introduce a product
 Introduce a brand
 Awareness creation
 Acquiring customers or Brand switching
 Differentiation and value creation
 Brand building
 Positioning the product – Product and brand recall
 Increase sales & Increase profits Source

Classification of advertisements
1. Classification of Advertising on the Basis of Consumers
(i) Classified Advertising
(ii) Display Advertising
(iii) Co-operative Advertising
(iv) End Product Advertising
(v) Direct Response Advertising

2. Classification of Advertising on the Basis of Media

(i)Print Media Advertising
(ii) Broadcast Media Advertising
(iii) Outdoor Media Advertising
(iv) Digital Media Advertising

3. Classification of Advertising on the Basis of Business/Advertiser

(i) Trade Advertising
(ii) Professional Advertising
(iii) Corporate Advertising
 4. Classification of Advertising on the Basis of Area
(i) National Advertising
(ii) Local Advertising
(iii) Global Advertising

Classified Advertising

Display Advertising
Co-operative Advertising

End Product Advertising

end product advertising helps create demand for the ingredient that
helps in the sale of another product

Direct Response Advertising

A Direct Response Advertisement:

1.Gets attention through design, ad size, placement, and timing.
2.Stimulates interest by touching on human emotions, desires, and
needs.

Print Media Advertising

Broadcast Media Advertising

Outdoor Media Advertising

Digital Media Advertising

Trade Advertising

Advertising that is aimed at one of the channels along the line of

distribution rather than the final consumer.
Professional Advertising

Advertising that is directed at professionals, such as doctors,

dentists, etc.

Corporate Advertising

Advertising which are designed to win a target audience with a

specific point of view is known as corporate or institutional
advertising.
National Advertising

National advertising is not confined to any specific geographical area

within a nation. It conveys mass marketing effort.

Local Advertising

The promotional messages in local advertising are directed to the

local population instead of mass market

Global Advertising
Advertising Agencies
What is Ad Agencies: Advertising Agency is just like a tailor. It creates
the ads, plans how, when and where it should be delivered and
hands it over to the client.
These agencies take all the efforts for selling the product of the
clients. Advertising Agencies

Roles and Responsibilities Of An Advertising Agency

 Conducting A Thorough Research.
 Developing Advertisements.
(copies of ads scripts of ad films are written, logos and posters
are designed)
 Media Planning And Buying.
(media platforms chosen by you for showcasing your ads)
 Account Management.
(Account managers are responsible for bridging the gap
between the clients and all other departments in an advertising
agency.)
 Budgeting.
 Sales Promotion.
 Public Relations.
(creating and maintaining a favourable image of a business in
the market)
 Developing Marketing Strategies.

Some of the advertise agencies

 GS&P
 Akshara Advertising
 Chaitra Leo Burnett Pvt Ltd
Structure of ad agency
Here are 6 departments in any advertising agency
 Account Servicing
 Account Planning
 Media
 Creative
 Production
 Finance and Accounting
 Account service department
Account Servicing: The account service, or the account management
department, is the link between the ad agency and its clients.
Depending upon the size of the account and its advertising budget
one or two account executives serve as liaison (Link) to the client.
Account Planning: The account executive is responsible for getting
approved the media schedules, budgets and rough ads or story
boards from the client
Media Department: The responsibility of the agency’s media
department is to develop a media plan to reach the target audience
effectively in a cost effective manner.
Creative department: To a large extent, the success of an ad agency
depends upon the creative department responsibility for the
creation and execution of the advertisements.
 The creative specialists are known as copywriters.
 They are the ones who conceive ideas for the ads and write the
headlines, subheads and the body copy.
Production department: After the completion and approval of copy
and the illustrations the ad is sent to the production department.
Generaly agencies do not actually produce the finished ads; instead
they hire printers, photographers, engravers(editors) typographers
(choose the style, arrangement, or appearance) and others to
complete the finished ad.
For the production of the approved TV commercial, the production
department may supervise the casting of actors to appear in the ad,
the setting for scenes and selecting an independent production
studio. The production department sometimes hires an outside
director to transform the creative concept to a commercial.
Finance & Accounting Department: An advertising agency is in the
business of providing services and must be managed that way. Thus,
it has to perform various functions such as accounting, finance,
human resources etc.
Also this department is important since bulk of the agency’s income
approx. 65% goes as salary and benefits to the employees.

Types of Advertising Agencies

All companies can do this work by themselves. They can make ads,
print or advertise them on televisions or other media places, they
can manage the accounts also.
Then why do they need advertising agencies?
The reasons behind hiring the advertising agencies by the
companies are:
 The agencies are expert in this field. They have a team of
different people for different functions like copywriters, art
directors, planners, etc.
 The agencies make optimum use of these people, their
experience and their knowledge.
 They work with an objective and are very professionals.
 Hiring them leads in saving the costs up to some extent.
There are basically 5 types of advertising agencies
Full service Agencies
 Large size agencies.
 Deals with all stages of advertisement.
 Different expert people for different departments.
 Starts work from gathering data and analyzing and ends on
payment of bills to the media people.

Interactive Agencies
 Modernized modes of communication are used.
 Uses online advertisements, sending personal messages on
mobile phones, etc.
 The ads produced are very interactive, having very new
concepts, and very innovative.
Creative Boutiques
 Very creative and innovative ads.
 No other function is performed other than creating actual ads.
 Small sized agencies with their own copywriters, directors, and
creative people.

Media Buying Agencies

 Buys place for advertise and sells it to the advertisers.
 Sells time in which advertisement will be placed.
  Schedules slots at different television channels and radio
stations.
 Finally supervises or checks whether the ad has been telecasted
at opted time and place or not.

In-House Agencies
 As good as the full service agencies.
 Big organization prefers these type of agencies which are in
built and work only for them.
 These agencies work as per the requirements of the
organizations.

Ad agency revenue earning models

 The classic advertising revenue model involved selling TV
commercials or newspaper ads to generate revenue.
  The advertising revenue model in e-commerce has companies
putting ad space on their sites and generating money from the
number of visitors who see or click on them.

Top 5in India

1. Ogilvy and Mather: Vodafone, Cadbury, Asian Paints and
fevicol.
2. Mudra Communications: Tourism Australia, Colgate and
PolicyBazaar.com.
3. JWT: Listerine, Good night, and teach for India. (James Walter
Thompson)
1. McCann Erickson India: MasterCard, Coca Cola, and
Greenlam Laminates.
2. Lowe Lintas: Idea, ICICI Prudential and Tata Tea