Intro To Advertising Adv Media Planning 002

48 TYPES OF ADVERTISING AGENCIES
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TYPES OF ADVERTISING AGENCIES

CHAPTER OUTLINE
Advertising agents were initially established to sell space on behalf of newspapers in the early 1800s in England. As product owners started to realize that they need to draw the market attention to their products, advertising became a very important part of their business process. As print medias technology evolved, illustrators and designers were employed to make print advertising more interesting. As the marketing science matured, the whole process of advertising was getting very complicated, there was more significant need to get impact, attract consumers and convince them the merits of the products or services. In response to this, advertising agencies took on more people with specialized skills, and today advertising is a highly specialized industry, helping marketers all over the world creating winning brands. This chapter will discuss the basic services of an advertising agency and then described the different types of advertising agencies, established to cater to the different and complex needs of the increasingly competitive business environment.
OBJECTIVES:
1. To understand the basic elements of an advertising agency in providing service to their clients 2. To understand the different services offered by advertising agencies. 3. To understand the function of associated agencies and consultancies
The advertising agency

An advertising agency is an independent organization of creative and business people who specialized in developing and preparing advertising plans, advertisements and other promotional tools. It purchases advertising space and time in the media on behalf of their client. (AAAA- American Advertising Agencies Association) The basic elements of an agency business
Introduction to Advertising | Advertising and Media Planning
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Account Handling Competitive business environment demanded more complex marketing communication process. As a result of this the agencys clients became more demanding and therefore there was a need for some kind of coordination and liaison between the client and the departments of the advertising agency- a need met by the account handler. Advertising Agencies
Account handling
Creative department
Media department
Production department
This the role of the account handling: Advise the client company on how their products can be branded and positioned in the market place to counter act competitors Responsible for all clients contact to establish the broad requirements of the clients. Brief the various departments of the advertising agency with regards to client requirements Ensure advertising campaign help to solve the clients marketing problem Manage the advertising budget and ensures costs are justified. Ensure clients are happy with agencys overall service. Creative Department Creativity is what really builds an agency reputation. Advertising is about visual and copy elements that attract attention and convince the market to use the brands advertised. Thus advertising creativity is about creating messages that will effectively establish positive brand image and positioning. The creative department is led by a creative director, backed by an art director and copywriter. Media Department Electronic, telecommunications and computer technology resulted in extensive choice of media. Therefore, the media department must undertake extensive research to design an Introduction to Advertising | Advertising and Media Planning STIKOM LSPR - Jakarta
effective media plan and schedule to deliver advertising messages to the target audience. Then to ensure the best deal budget wise, the media buyers in the media department must go through negotiation process with the media houses, as there is no fixed price for media space and airtime Production Department The production department is responsible for the production process if TV, print and radio commercials. The actual production process itself is not done in the agency, but is outsourced to production houses, printers and recording studios. The role of the production department is to select the third parties and supervises their work and coordinates with the creative and account handling teams. The full service advertising agency The full service advertising agency is set up to meet the extended needs of the client company for advertising and promotions services. Hence the organization consist of the basic elements of the advertising agency previously mentioned, plus others such as marketing public relations, brand activation, etc. Companies using this type of agencies are usually large FMCG manufacturers with large advertising expenditure. Working with full service advertising agencies is very convenient for these large companies as all of their promotion needs are under one roof, so to speak, making control and supervision of the advertiser easier. However, a smaller company who may not have an advertising department, may also seek the benefits of working with a full service advertising agency. Specialist agencies Specialist agencies are emerging for two main reasons: 1. The successful individuals working in advertising agencies see the potential of establishing their own agencies for the reason of earning more money as business owners. A creative director for example might go on his own to establish specialist creative agency sometimes known as creative boutique 2. A big a full service agency might choose to fragment itself into several specialist agencies for several reasons: more efficient and effective business strategy being one of them. As specialist agencies, they can work together on clients which need full service, and then can pursue business on their own according to their specialty. A la carte agencies A client may choose to work with this type of agency, because it does not need the total offering of the full service advertising agency. A la carte agency is often the choice of advertising managers who handle most of the advertising in house or internally. A company who needs the service of an advertising agency on an occasional basis, for example when launching a new packaging design, may need the creative resources of the agency to create the new designs. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR - Jakarta
Freelance designers ad copywriters After gaining several years experience working in an agency, creative people often it is more exiting to work on their own as freelancers. Their service will be called upon by agencies when they have more workload then they can handle. This type of working arrangement suits smaller agencies, as they dont have to hire full time staff, thus avoiding high overhead costs. This in turn provide cost advantage for the client, in that the client pays only for what is used ( after agencys mark up) rather than having to cover the costs of agencies overhead with full time staff. Another advantage is that freelance creative may bring a fresh approach or have a special style that reflects the clients requirement. Media Independents Advertising agencies are able to negotiate favorable prices with the media due to the sheer volume of space and air-time that they purchase on behalf of their own clients. It was realized that if the media department could buy on behalf of several agencies representing even more clients there would be further economies of scale by buying in bulk. And so media specialists set up the media independents. They are called media independents as they act independently of the advertising agencies and its media department. Media independents agencies are used by full service as well as a la carte agencies, as they have better buying powers and can negotiate favorable prices, which they pass on to the agencies, who pass them on, in turn to their clients. Clients working with creative boutiques or freelance creative may also opt to work with media independent agencies. Specialist media agencies These are agencies which specialize in one particular medium such as outdoor, mobile advertising or foreign publications. This is so because the buying condition differs than that of mass media, and often these types of agencies have different trade permit than agencies previously described. Associated agencies and consultancies Sales promotion consultancies These consultancies specialize in developing sales promotional schemes to meet the marketing and sales objectives of any company. They have a wide range of skills and expertise and are able to evolve a proposal aimed at stimulating customers or motivating intermediaries (including their sales staff). They specialize in media advertising, direct mail and door-to-door distribution, although they may work with media independents for their media bookings. They also select the gifts and other incentives needed in the promotion scheme. An agency of this type may work with an advertising agency or directly with the marketing department of a company. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR - Jakarta
Direct response marketing agencies In providing service direct response agencies will consider profiles, market penetration and wastage, and select the appropriate media to get to their target audience. Direct mail is often used to mail catalogues and brochures. Much of the work of this type of agency is database or relationship marketing. Telemarketing Another form of direct response is promotion via telephone, which may be operated by the company in house or outsourced to an agency which specialized in this service. However, this type of promotion has got a bad reputation, mainly due to the poorly trained telemarketers. Public relations (PR) consultancies Public relations consultancies are retained by organizations on a fee basis, usually for a year at a time. Their job is to inform, create goodwill and communicate the companys image and reputation, as well as promote the corporate and brand names. A PR consultant produces publicity materials such as news releases, articles and feature stories. They conduct press conferences, briefings and interviews to gain editorial coverage (or so called free publicity as space for these activities are not purchased). As media coverage cannot be guaranteed, PR consultants have to develop news writing skills to increase the likelihood that their stories will be printed. Although marketing public relations help to promote brands in the market place, but the message carried are informative rather than persuasive. PR consultancies also prepare road shows, seminars, exhibitions, to improve relationship between the companies at its customers.
POINTS TO REMEMBER
There are four basic elements to an advertising agency: account handling, creative, media and production departments. Other departments are added to meet clients needs, and this evolved into full service advertising agencies which offer a number of services to promote all aspects of the products/services. Full service advertising agencies, although most often used by big FMCGs companies, are sometimes used by smaller companies. Specialist agencies emerged to cater to more specialized needs of the client companies. There are supporting consultancies, such as sales promotion, direct response and public relations, which the client and advertising agencies may call upon as needed.
54 AGENCY RECOGNITION AND REMUNERATION
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AGENCY RECOGNITION AND REMUNERATION

CHAPTER OUTLINE
As a service provider, an advertising agencys reputation is one of its selling points. For an agency reputation means that it is recognized not only for its work, but also for other specific and technical aspects of the business. This chapter will explain the concept of recognition and how it relates to the agency remuneration system.
OBJECTIVES:
1. To understand the agency recognition system, the criteria, and trade association granting recognition 2. To understand how agency gain income and profit by the various remuneration methods
Agency recognition
The most important recognition to an agency is that by the media houses. Good business relations with the media are very important for the agency to carry out its commitment to its clients. The media must be sure that the agency has a substantial financial strength to pay the media services used by the agency on behalf of its clients. Once recognized by the media, agency will receive many privileges from the media houses, such as longer credit terms, more discounts and bonuses. Criteria for recognition To obtain recognition, the agency applies for membership in a recognized trade associations. Persatuan Perusahaan Periklanan Indonesia (PPPI) is one such organization. Another assurance is the agencys clients list and track record in credit payment. If the agency caters to high profile and big spender client companies, it reflects the agencys financial strength and reputation, as it is safe to assume that high profile clients will choose to work with reputable agencies.
Agency income
The commission system The commission system is based on above the line media expenditure. In the agency client contract/agreement, it is decided the percentage the agency will receive from the clients above the line expenditure. When using this system, media discounts are rebated to client. Example: Rate card price: Discount 20%: Cost after disc Agency com 15% on gross Cost to client Rp 10.000.000 Rp 2.000.000 Rp 8.000.000 Rp 1.500.000 Rp 8.000.000 + Rp 1.500.000 = Rp 9.500.000
In this case, the agency is entitled for 15% ( if this is the % agreed on the agency-client contract) on gross media costs. Agency fee The fee system is income generated by agency for their time and skills, especially as nowadays many agencies operate increasingly like consultants advising their clients on marketing communication strategies. Advertisers may accept the fee system if they in turn receive objective and expert advice from their agencies resulting in agency-client relationship based on trust and mutual benefits. Handling charges or mark-ups Handling charges usually applies for below the line activities and production of advertising materials. For this type of work, agencies usually assigned a third party, and the mark up is calculated based on a certain percentage of the costs submitted by the supplier. For instance : Printing cost Mark up 15% Cost to client Rp 10.000.000 Rp 1.500.000 Rp 11.500.000
The handling fee mark up covers the agency time and expertise in overseeing the work done by the supplier, thus ensuring satisfactory result. Variation on the commission and fee system The payment system described above can take any combination. When the agency provides full service, all 3 may be used: the commission system for media services, fee system for consultation and concept development and mark ups for jobs where agency supervision of third party are required such as in producing advertising and other promotion materials. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR - Jakarta
Points to remember
Agency recognition by the media is vital for an agency to buy airtime and space on behalf of the client Criteria for recognition are membership at advertising trade association, such as PPPI, agencys client list and track record of media payment. Once recognized, agencies are entitled for media commissions (discounted from rate card price), and other privileges The agency income is derived from the agency commission which is generated from media commissions, agency fee for providing strategic advice to clients and handling fee or mark ups for supervision of third parties. Any of the above payment system can be combined depending on service rendered and as stipulated in the agency-client contract. Agency and client relationships are based on effective service plus cooperation, trust and respect on both sides.
57 FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES
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FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES

CHAPTER OUTLINE
The service provided by an agency to their clients very much depends on how effective is the teamwork between the departments of the advertising agency. This chapter will provide an understanding of the advertising agencys organization, describing the role and responsibilities of each department, and how they join force to provide satisfactory service to the client.
OBJECTIVES:
1. To understand the functions of the main departments of the advertising agency 2. To understand the area of responsibility of the account handling department especially in relation with briefing and coordinating with other departments 3. To understand how the creative department works, from receiving and interpreting brief 4. To understand the media planning and buying function 5. To understand the production departments role in ensuring concept are implemented in publication and broadcasting
Functions of the basic advertising agency

The four main departments in the advertising agency 1. 2. 3. 4. Account handling Creative Production Media
Account handling The main function of this department is to liaise with the clients and to discuss needs and wants and to interpret them for the various agency departments. Therefore this department plays a vital role in maintaining and strengthening agency-client relationship.
There three level as follows: Account director The account director, the most senior level is concerned with the overall health and strategy of clients accounts under his responsibilities. He may work on different accounts with different executives and support teams. The concern of the account director is to ensure that the work undertaken for the clients meets their objectives, whether short , medium or long term. He leads the account team and other departments in the formation of strategy and is responsible for the overall implementation of the campaign. Account planner The account planner is responsible for ensuring that the actions taken by the agency will support the long term development of the brand. In doing so the account planner studies market trends, competitors activities and consumer behavior. In small agencies, this function is undertaken by the account director. Account executive The account executive ensures that all aspects of the work are carried out to everyones satisfaction. The tasks associated with this position is liaising with the other three departments of the advertising agency, making sure that work is performed on time and meets the agency standard of quality. He also communicates with the client frequently to ensure that line of communication between agency and client is always open and healthy. Creative department the creative department is the producer of ideas and concept and is very important in establishing and maintaining reputation of the agency. Creative director The responsibility of ensuring that the message suits the product, brand or service is that of the creative director. Creative directors have usually risen through the agencys structure from copywriting or art directing. As the head of the creative, he directs the art director and copywriter in establish creative concept and strategy to meet the requirement of the campaign outlined in the creative brief.
Elements of the creative brief the reason for advertising : launching of new brand the objective of advertising, for example brand awareness for launching of new brand target audience: to whom the advertising message is addressed communication strategy: positioning, promise, the essence of the advertising message rationale: the supporting factors for the promise so the message is credible key benefits of the product or factors that fulfill the needs and wants of the target audience the advertising tone the mandatory such as logo, tag line, etc media platform
Copy chief/copywriter/ art director/compugraphic designer The copy chief is a position in the creative department who is responsible for writing the copy (wordings) of the advertising, and as he is a senior member of the team, he supervises more junior position, the copywriter. In making advertising concept, copy chief/copywriter and art director sit down together to interpret the advertising brief, or the direction/ guidelines provided by the creative director. The art director will brief the compugraphic designer so he can help the art director in preparing the visual part of the concept. The next step is to discuss the concept, or copy platform with the creative director. Once the creative team agrees on the concept, they will discuss it with the account handling team to ensure that the copy platform addresses the marketing issue to be resolved by the advertising campaign. If everything is in order, the creative team prepares the finishing touches to the concept and presentation schedule is arranged with the client. Role of the account handlers in the creative process As the account handlers, of all levels, are in regular contact with the client, they are absorbing the needs and wants of the client, whether these are expressed formally or merely implied by the clients behavior or attitude. They learn to understand what the client will accept and will reject, and so they form a vital link in communicating what is required without inhibiting the creative process. However, the account handler, when presenting the concept, also explains and defends the creative ideas, to get them accepted by the client, as they have been carefully thought out to enhance and reinforce the advertisers message. If, in fact, the client is not convinced then it is up to the account handlers to break the news to the creative team. On some occasions, complete campaigns have been thrown out by the client, but in many cases the campaign requires only a small change of emphasis.
Media department The media department is split into three areas: Media research Media planning Media buying Media researcher Media data such as audience data is essential for media department of the advertising agency in order to select appropriate media to place the advertisements and commercials. Much of this complicated media data is available on line, by subscription to computer databases operated by the independent media research organization. The media department can look at individual publications, radio and television programs which might have audience profiles similar with the profile of the target audience. This is called intramedia comparison. If comparison is made between different types of media (newspaper vs magazine), this is known as intermedia comparison. It is possible off course that several media can target the same audience, which leaves option to decide on which can be used to deliver different aspect of the message. Therefore , the role of media research is to support media planners with providing media data such as audience data, TV ratings, media penetration, etc. Such data will help provide a strategic media plan to support the advertising objectives. Media planners The media planner takes the statistical research undertaken by the media researcher as the basis for deciding which media, newspaper, radio, television (intermedia decision) or which newspaper, which radio station and programs, or which TV channel and programs (intramedia decision) , will be the most appropriate to carry the advertising. Another factor that must be considered is the ability of the medium to carry the message, so the media planner must consider the following characteristic of the medium: television advertising, for impact, to gain attention and create awareness as well as image building national newspapers and magazines, to give detailed information such as specifications and credit details as well as offering the opportunity to include a response coupon regional and local newspapers, for co-operative advertising or advertisements to draw attention to local outlets radio, to create image and mood for the product (as well as local stations to draw attention to local outlets/stockists) cinema, to remind as well as give impact (but on a limited basis as people go the cinema infrequently) trade journals, to convince the retailers of the messages being communicated by direct mail Introduction to Advertising | Advertising and Media Planning
The media planner then produce a media plan which provide the media objectives and strategy, and media schedule to show the selected media, time and frequency and the budget/costs. The media plan is presented to the client by the media planner and the account handlers for discussion and approval. Media buyer The final process of the media department is to buy the advertising space and airtime. The media buyers will negotiate with media houses for discounts and credit terms. One of the best strategies to secure good discounts is to buy large volume of space or airtime. The agency credit record is also a factor often considered by media houses to give discounts and other privileges to the agency. Production Department The responsibility of the production department is to make sure that everything that is needed to produce the final advertisement is prepared cost effectively to the highest quality and then delivered to the right place at the right time and in the right format. Since actual production of advertising materials are not done in house at the agency but are outsourced to the appropriate productions houses, printers, etc so the role of the production department is coordinating and supervising the work of the selected external production suppliers.
Points to remember
. The functions of meeting clients needs are coordinated by the account handling team with the assistance of an account planner. Account handling consists of account directors (responsible for strategy) and account executives (who liaise with the client and other agency departments on getting the work completed) The account planners role is primarily concerned with the long-term solution of the clients needs and wants, but might include attention to details that may affect the well being of the clients and their accounts. Account handling is based on responding to campaign and advertising briefs prepared by clients outlining the requirements that they want fulfilled. The role of the creative department is to find a way that is credible but still has attractiveness to communicate the benefits and advantages of clients, their products and services. The creative director works with creative teams to develop the key concepts and copy platform to carry the clients message, based on a creative brief. Concepts are worked up into visuals (by a compugraphic designer) and copy (by a copywriter) or storyboards and scripts (by a scriptwriter) to a standard that can be presented to the client. The media department is responsible for research to establish the media which would be best suited to reach the clients target audience. This would include determining which were the best slots, positions, locations or sites and not just the overall medium but the particular publication, television or radio station, or cinema screen. The media planner creates detailed media schedules and media expenditure for the clients approval. Based on the approved schedule, the media buyer negotiates the best deals in terms of position and location related to the lowest cost. The media department negotiates packages with radio stations, television companies and contractors for outdoor and transport advertising (poster) and cinema advertising for the benefit of the client. The production department ensures that advertisements and commercials are completed as scheduled and meets the agency standard of quality The production department co-ordinates with external production suppliers such as production houses and printers for the production of all promotional material generated by the agency, STIKOM LSPR - Jakarta
63 CREATION OF ADVERTISEMENTS AND COMMERCIALS
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CREATION OF ADVERTISEMENTS AND COMMERCIALS

CHAPTER OUTLINE
The creation of advertisements and commercials requires specific skills. First of all there are specific skills to interpret information written on the creative brief, which is the basis for the concept development of advertisements and commercials. Then there are specific skills in the formulation of creative strategy and message execution in the form of writing copy and scripts as well as art direction for the visual part of the advertisement and commercial. This chapter discusses the meaning of creativity in advertising, how concepts are developed and how creative strategy are realized in the form of storyboard, layout and script.
OBJECTIVES:
1. 2. 3. 4. 5. To understand what is creativity in advertising To understand the creative process in developing advertising concept To understand how to prepare TV commercials To understand how to prepare print advertisements To understand how to prepare radio commercials
Creativity in advertising
Creativity is definitely one the most important aspect in advertising. A unique advertisement or commercial always gets the audiences attention and make the commercial or advertisement stands out among other advertisements and commercials .However, being different and getting attention are not the only criteria for creativity in advertising. Advertising is a marketing problem solving tool. Marketers/advertisers financed the advertising campaign to achieve its marketing objectives. Therefore advertising must be persuasive and motivates the audience by providing advertising message that answers to the target audiences needs and wants. Creativity in advertising means. Effective in helping the advertiser achieve its marketing objectives. Provide a unique and effective way to communicate with the target audience Creating advertising message which relates and provides answers to the target audiences needs and wants Persuasive message which motivates the consumers, therefore contributing to sales Effective in establishing brand image it must be ethical
The creative process Studying the creative brief The creative brief provides the information required by the creative team and is used to guide them in developing the concept. The creative team under the direction of the creative director will study and analyzed the information in the brief, to get the essence of: The advertising objective The audience needs/ wants/problems The aspects of the brand which can fulfill the needs/wants or solve the problems of the target audience The motivation to buy the brand The way to communicate effectively. Brainstorming It is the practice of the creative people to brainstorm together to get ideas. When brainstorming, all ideas that come are listed and discussed. The ideas might relate to the feature and benefits of the products or consumer behavior that you want to evoke with your message. The ones with potentials are short listed and finally the big idea is selected. The creative strategy The two previous processes will result in finding the big idea. The big idea will be formulated into the creative strategy that is what message to be conveyed, to whom and with what approach: who to influence what to say in order in order to influence how to say in order to influence Then the creative strategy is implemented in what is called the message execution which simply means the technique to convey the advertising message to the target audience. The message execution should be: attractive, attention getting simple and easy to understand able to create the perception as defined in the creative strategy Message execution takes the form of storyboard for TV commercials, layout for print advertisements and script for radio commercials
TV commercials Television has other elements over print advertising: visuals, sounds, movements, thus providing powerful impact to the advertising message. However the same principle applies, the commercial has to attract, creates interests and desire, so that potential customers will act in favor of the brand compared to that of the competitors. The storyboard The concept of TV commercial is called the storyboard. The storyboard contains the story line to communicate the big idea and visuals are used to explain the story line. The script for TV commercial is short and concise, and further enriched with music and sound effects to create interests and get attention. Every scene in the storyboard is framed like a TV screen. Below each frame is written the dialogues, camera angle, music and sound effects. The storyboard is used by the agency to explain and sell the advertising concept to the client. Print advertisement Print advertisement refers to advertising placed in magazines, newspapers, tabloids, etc. Elements of print advertisement are: headline sub headline body copy/main copy slogan/tagline visual layout
Headline Headlines are used to attract attention to the advertisement, so that it will be read by the target audience. The format of the headline depends on many factors, among others are the creative strategy, the media used and how it should relate to the visual and body copy Sub headline The sub headline is used to support or enhanced the message in the headline: such as to provide information and improved understanding. Body copy The body copy is an elaboration of the statement or promise made in the headline or sub headline. Therefore the function of the body copy is to persuade by giving information that will motivate the target audience to use the brand. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR - Jakarta
Slogan/tagline Slogan or tagline is used to provide the final persuasion, by giving a phrase of reason to use the brand. Written in only a few words, slogan/ tagline conclude the whole advertising message. It also strengthens the positioning of the brand. Tagline is usually catchy and easy to remember. Visual The visual of a print advertisement is often the most visible and dominant element. It is created to get attention and to communicate the concept of the advertisement and to convey the brand image. Layout Layout is how all of the above elements are placed in the advertisement. Again the main objective is to get attention, to convey the advertising message in a simple way to ensure comprehension and to establish the brand image. Radio After the so-called excitement of the all-singing and all-dancing television, radio may seem a dull medium for any creativity, yet, despite only having sound, it can be used to create the most marvelous word-pictures using the listeners imaginations. With sound, there are not only the words but the fact that the words can be dramatic or humorous while sound effects and music can create exactly the right mood. The elements of radio commercials are: Script containing the main message, the promise and the positioning of the brand. Music, to get attention, to enhance the positioning and to create overall mood. Sound effects to promote imagination in the listeners mind.
POINTS TO REMEMBER
Creativity is a very important aspect of advertising A creative advertising means that it is effective in helping the advertisers reach his advertising objectives, relates to the needs and wants of the consumers, persuasive and motivating the consumers to use the brand so helps to increase sales. The creative process begins with the creative team studying and analyzing the essence of the brief and brainstorm together to get ideas The big idea is formulated in the creative strategy which basically means conveying what message to whom and using what approach The message execution is simply the technique in which to convey the message to the target audience The message execution must be attractive, simple and easy to understand and must establish the brand positioning. For a television commercial, elements such as pictures, movement, sound, and camera directions have to be included as well as dialogues. The storyboard contains the story line to communicate the big idea and visuals are used to explain the story line. Storyboards are used by agency to explain the concept of TV commercial to their clients Print advertisement refers to advertising placed in magazines, newspapers, tabloids, etc. The elements of print advertising are : headline, sub headline , body copy, slogan/ tagline, visual and layout Although radio only has sound, it can be used imaginatively with music and sounds effects
68 PRODUCTION OF ADVERTISING MATERIALS IN MEDIA
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PRODUCTION OF ADVERTISING MATERIALS IN MEDIA

CHAPTER OUTLINE
The production of advertising material is outsourced to a third party : printing establishments, recording studios, production houses. The production department of the advertising agency is mainly responsible for coordinating work between the outside suppliers and the various departments of the advertising agency such as the account handling and creative departments. This chapter will describe the role of the production department to ensure that production of advertising materials is conducted professionally and on time for the clients advertising campaign. It will also describe the production process of print advertising , TV and radio commercials.
OBJECTIVES:
1. To understand the role of the production department in ensuring production of advertising materials are done in a professional manner 2. To understand the production process of print advertisement and other printed promotion materials 3. To understand the production process of TV commercial. 4. To understand the production process of radio commercial
The role of the production department

Once the concept copy and layout (visual), or storyboard has been approved by the client, the producer (in bigger sized agency there are print producer, TV producer and radio producer, in smaller agency all production process are undertaken by one producer), begins the production process by allocating a job number and title. The job numbering system is vital to keep tract of the work through agency and suppliers until completion. Therefore, the responsibilities of the production department are as follows: Coordinating all work required for the production process internally with relevant departments: creative and account handling ( to handle all communication with client) and externally with the suppliers. In bigger agencies progressing work to outside suppliers are monitored by the traffic controller, however in smaller agencies this function is performed by the production manager. Monitoring the production process, ensuring conformation to production schedule Ensuring that standard quality is met Introduction to Advertising | Advertising and Media Planning STIKOM LSPR - Jakarta
Ensuring that all costs borne by agency are allocated to the right job and prepare invoices for approval to the account handlers. Throughout the whole workload of the production department, the key elements are quality control and following tight production schedule. This is to ensure that production of the agencys work is to the highest standard and are done on schedule.
Producing printed advertisement and other printed promotional material.

The print production process begins after the client has approved the copy and layout (concept). The production process is as follows Pre production process: This stage is the preparation stage prior to actually producing the print material. It consists of appointing the agency print producer, preparing detailed planning such as costing, timing, appointing photographer, casting, location hunting or studio set up, make up and wardrobe. Production At this stage the finish artwork is prepared by the compugraphic designer who has taken over tasks of the paste up artists prior to computer technology. All the elements of the print materials: visuals (photo or illustration), headline, body copy, tag line, etc are all incorporated in the computerized artwork. Post production The next step is taking the final artwork for printing. Since the advancement of computer technology, the traditional way of producing print materials by way of color separation and proof prints are no longer practiced. The printing process nowadays uses digital techniques develop for computer printers such as inkjet or laser printer. The process is much faster and more cost efficient compared to traditional printing methods. Every print can be different because printing plates are not required and less waste of chemical and paper. The client has to approve the finished product and then the print advertisement is dispatch to media for placement. Producing TV commercials Once the story board and script is completed, the TV producer is asked for advice on the following
Pre production
1. feasibility study: The TV producer will check if the storyboard is feasible technically. The TV producer will also make sure it can be produced within budget and time frame. 2. initial approval : further checking to ensure that the script will not create problems legally or ethically. The next step is presentation of storyboard to client 3. appointing the TV producer: once the storyboard is approved by client and ready for production, the agency TV producer is appointed. (in bigger sized agency there may be more than one TV producer, therefore one needs to be appointed). 4. selecting the production house: as production of TV commercial is outsourced to a production house, the TV producer will then begin the process of selecting the production house and the director. The production house will submit detailed costing and time frame for approval by the agency. 5. detailed planning: once the proposal from the production house is approved, detailed planning to produce the commercial begins: location hunting, casting, wardrobe, make up artists, etc. Several meetings between account handlers, creative team, production team and the production house team are conducted to ensure the production process will go smoothly. These meetings are called pre production meetings.
Production
6. filming: studio or on location shooting. Although it is strictly guided by the planning and the discussions in the pre production meetings, the actual filming may try different angles and approaches, to be used if the original angles didnt work. This will save the expense of re filming. Commercials are still made on 35mm film, and edited by computerized techniques to produce the commercials on broadcast standard video tapes.
Post production
7. post production editing: this includes recording and dubbing the voice overs, music and sound effects, as well as color corrections. With computer technology, some colors can be emphasized, while others toned down. The commercial is edited into 30, 15 and 5 duration. 8. approval of censor board: all commercials must be censored to ensure compliance to ethical regulations. 9. dispatch to media: the TV commercial is transferred into video tapes/ DVD and dispatch to TV stations.
Producing radio commercials

The production of radio commercial starts with an approved script. Pre production The radio producer prepares the detailed planning such appointing the recording studio, costing, selecting voice talents, sound effects , copyrights for music if any, producing the jingle, if any. Production At this stage all audio element are mixed and recorded at the recording studio. Durations of radio commercials are usually 30 to 60 Post production Once the sample recording is approved by the client then the commercials are transferred to CD format and dispatch to radio stations for placement.
Points to remember
The role of the production department The production process begins by allocating a job number and title. The job numbering system is vital to keep tract of the work through agency and suppliers until completion. The production department coordinates all work required for the production process internally with relevant departments of the advertising agency. It also ensures that works are done as scheduled and meets the agencys standard of quality. Press advertisement the production department is in charge of the production process which includes preparing final artwork and printing process final artwork is done by the compugraphic designer and is the conversion of copy and visual into finished or camera ready artwork The finished artwork is processed by way of digital printing process, which is more time and cost efficient compared to traditional printing process. TV commercials The production of a television commercial starts with a feasibility study is based on the script and perhaps a storyboard. The stages of producing television commercials are: 1. 2. 3. 4. feasibility study by the head of television production script approval to ensure compliance with ethical board appointment of the producer (and production assistant) from within the agency selection of director from a television commercial production company taking account of detailed costing 5. detailed planning 6. studio and location filming 7. post-production editing 8. approval by board of censor 9. dispatch of finished commercials to television stations or channels. Radio commercials 1. the production process begins after the script is approved and the radio producer will make detail planning 2. all the audio elements such as voice over, music, sound effects are mixed and recorded at the recording studio 3. once demo or sample recording is approved by client, it is transferred to CD format and dispatch to radio stations for placement. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR - Jakarta
73 MEDIA IN ADVERTISING AND PRINTED MEDIA
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MEDIA IN ADVERTISING AND PRINTED MEDIA

CHAPTER OUTLINE
Media serves an important role in advertising. It is used to carry and convey advertising message to the target audience. To do this efficiently and effectively, media planners have to make several considerations, such as media data, media characteristics, etc. As one of the chapter about media, this chapter will go through the many categorizations of media used by advertising agency. It will also show the extent of media available for advertising and how it is used to achieved optimum result.
OBJECTIVES:
1. To understand the extend of media available for advertising 2. To understand different types of media and how it used in advertising. 3. To understand the use of print media.
The role of media in advertising

Without media, advertising message will not reach the target audience. Media cost is the largest part of the advertising budget, therefore media planners must be sure that the most effective and efficient media is selected to carry the advertisements and commercials. Thus several considerations are undertaken: Media costs: what media to be used to accommodate the advertising budget given. For example, as TV spots are relatively more expensive than other media placements costs, therefore a rather small budget may not be feasible for buying TV spots Media data: who reads it, listen, watch, how many, how often, etc Media characteristics: o Physical o Restrictions o Timing for booking
Media used in advertising

Press/print newspapers, magazines, tabloids Radio local and national Television- national, local, cable Outdoor - billboards, signage Mobile - public transport Cinema Internet Direct mail - brochures, catalogues
Above the line and below the line media

This categorization of media is used by agencies to distinguish media which are vital for the agencies main source of income. Agency commission is gained from above the line media, thus contributing the agencies main source of income. However, agency will focus on the clients promotional objectives, when electing above the line media and below the line media. Above the line media Provide high reach of the target audience Spots and spaces purchased for advertising Agencies source of main income from media commissions TV, magazines, newspapers,tabloids, radio, outdoor, mobile are in this categorization.
Below the line Specific, made for specific purpose Limited reach, reach specific audience Agencies income limited to design and production Leaflets, brochures, posters, are in this category
Primary and secondary media The principle of primary and secondary media is of greater importance than above the line and below the line media to the advertiser. Primary media The media most often used to carry the advertising message. The main consideration is reach and costs. Secondary media The media used to support the primary media. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR - Jakarta
Printed media
Newspapers National newspapers- general : Kompas, Republika, etc National newspapers-business: Business Indonesia, etc National newspapers-English language: Jakarta Post, etc National Newspaper-evening: Suara Pembaruan, etc Regional/local newspapers: Pikiran Rakyat (Bandung/Jawa Barat, Jawa Post- Surabaya/Jawa Timur, etc)
The characteristics of newspaper are high reach of the target audience, high in news value, offers a variety of size for purchase. However, it has a short life only half a day and the quality of paper may not be suitable for advertisements relying on visual impact such as high end fashion brand. Magazines Magazines are more segmented than newspapers as shown below Consumer magazines- women general: Femina, Kartini. Consumer magazine-women fashion: Dewi. Consumer magazine parenting: Ayah Bunda. Consumer magazine business: Gatra. Consumer magazine teenagers girls: Cosmo girls. Consumer magazine teenagers boys: Hai. Business Magazine: SWA. Lifestyle magazine: Prestige.
Beside consumer magazines, various trade magazines are also available usually published by trade associations. Most magazines are circulated nationwide. Magazines are segmented, has a longer life and higher duplication of readers than newspaper. It has a better production quality than newspapers, so advertisements look more attractive. Tabloids Tabloids can be said as a cross between newspapers and magazine. In appearance and paper quality they are more similar to newspapers, but in content and segmentation are more like magazines. Tabloids are not published daily like newspapers, but weekly. Tabloids worth mentioning here are: Bola for the soccer fan, Nova for women and Cek & Ricek for celebrity news.
Points to remember
Media is used in advertising to reach the target audience. Since there are many types of media, the media planners must refer to media data to ensure that the media selected is appropriate in that it is the most effective and cost efficient media to reach the target audience. Categorization of media includes, above the line media, below the line media, primary and secondary media. Above the line media and below the line media are initially defined to differentiate which media generate the most income for the agency. However, the selection of above the line media and below the line media must take into account the promotion objectives. Primary media is media most often used to carry the advertisement, chosen based on the audience it represents and the costs. Secondary media is selected to support the primary media. Printed media consists of newspapers, magazines and tabloids. Newspapers are further categorized into, national, regional/local, general and business. Magazines represent many segments of the market, such as consumer magazines for women, teenagers, men, and business/ trade magazines. Tabloids are similar to newspapers in terms of paper quality but are similar to magazine in term of segmentation, content and time of publication (weekly instead of daily).
77 BROADCAST MEDIA AND OTHER MEDIA
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BROADCAST MEDIA AND OTHER MEDIA

CHAPTER OUTLINE
Having discussed the role of media in advertising and the printed media, this chapter will focus on broadcast media: television and radio. It will discuss how these media are used as advertising media. Other media, also important for many aspects of promotion such as outdoor media, cinema, direct mail, door to door distribution and POS displays will also be presented in this chapter. The previous chapter and this chapter will show the importance of selecting the appropriate media to achieve specific advertising and promotion objectives, as each media differ in characteristics and hence have their own strengths and weaknesses.
OBJECTIVES:
1. To understand the use of television as an advertising medium 2. To understand the use of radio as an advertising medium 3. To understand how profile of television and radio audiences differs according to the channels and stations, the programs and time of day 4. To understand how the following media deliver advertising messages: Outdoor media Cinema Door to door POS ( point of sales)
The broadcast media

Television Although television is not always a primary medium, it is often the first choice to advertise FMCGs and consumer durables, especially if they are targeted at the so called mass audiences. Television can swiftly and effectively communicate benefits and advantages in an effortless, lively manner to large target audiences. Television if can be afforded by the advertiser, has definite advantages. It delivers moving pictures which can enhance the persuasiveness of the message. Sound effects and music/ jingle are often used to reinforce mood for the brand. Advertisers will opt to buy spot at peak hours or prime time , where popular high rated programs are relayed. Many television channels will compete with each other to offer programs which will command highest viewers. The revenue from selling advertising spots pays for the production of programs or buying programs from overseas. Advertisers pay increased air time price for high rated programs. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR - Jakarta
Terrestrial television used land based transmitters to relay their programs , whilst satellite television used high powered electronic beam from an earth station to a satellite in space which is then reflected back to be collected by receiver dishes outside houses or buildings. The use of satellites enables the receipt of more channels to the viewers compared to the use of land based transmitters. International advertisers benefit from satellite television in that it can reach international audiences. Cable television is carried by optical fibers, which are strands of glass along which tiny light beams are passed to carry the television signal. The optical fibers used are two way, so there are immense opportunities for advertisers to discuss their products on television for customers to buy at the press of button on the remote control unit. Thus emerge shopping channels, using direct response marketing with their target market. Radio Radio is broadcast via airwaves, the use of which is controlled by government, so that a radio station is operated by contractor under license. Radio covers a local area and most radio stations have developed a distinct programming format to cater to specific segments of the population. Hence emerge business news radio stations, stations directed at the female segment of the population, etc. Advertising spots are 30 seconds or 60 seconds. Prime times are early morning when people are in their cars to go to work and again early evening when they are going back from work. One of the advantages or radio, is that it can be listened to anytime, thus the prime time are usually directed at working people. Lack of pictures is not really a problem, as the combination of tone and style of voice plus music and sound effects can often paint a powerful picture in the mind of the listeners. Radio also provides information important to the listeners such as weather forecasts, traffic condition, latest development on particular news of interests, etc and such information may be sponsored by the advertiser. Beside spot advertising and sponsorship, other means of promotion using radio are: Ad lip, where the announcers relay the advertising message, and creating specific talk show programs are also gaining popularity among advertisers. Other media Outdoor advertising Outdoor advertising involves putting the advertising message on billboard, pedestrian crossing bridge and shop signage. Today it has evolved into mobile advertising, using public transport as advertising medium. Introduction to Advertising | Advertising and Media Planning
Billboards are controlled by specialist media agency and advertisers can rent for a period of time. Billboards are not placed randomly but are selected with care based on research data indicating the profile of the public, the estimated number that pass each day and how times a day they pass. The advantage of outdoor advertising is that people cannot really avoid it. Off course people dont stop to look at a billboard, the brand name, colors, the powerful visual and brief associated message will subconsciously remind them of the television or magazine campaign they have seen. Cinema Most cinemas are complexes, with a number of screens to have several films showing to different audience. Cinema goers are usually teenagers and young adults, so brands targeting this segment often find cinema as quite an effective medium for advertising. Cinema has its own way of delivering the advertising message, it has sounds and movements, and the large screens in a darkened room with impressive audio system. Moreover, there is the captive audience, unlike television where people can switch channels or do other activities during commercial break. Selection of cinema is based on who will see the film, the location of the cinema, time such as weekend, etc. Direct mail Unfortunately, direct mail has become known as junk mail owing to too many companies are doing it badly. In fact, provided it is addressed correctly (by name, to the potential buyer or user) with a mailing piece (or promotional leaflet) and a message that appeals to the customers or consumers needs and wants, it is highly successful. Targeting depends on getting the right mailing lists of named individuals, and this has to be done precisely. This is undertaken by direct mail houses, which build or create lists of names and addresses within certain categories such as professionals, business owners , etc. Companies can now build their own mailing lists on computer databases and code them in such a way that they can target mail shots to individuals based on goods and services already bought and the pattern of buying. Door-to-door distribution Door-to-door distribution simply means delivering promotion materials to peoples houses. The areas to receive the door-to-door are mapped according to the profile of the target audience. Another variation of door-to-door is inserting the leaflet in the newspaper, providing off course the target audience has a similar profile to the readers.
Point of Sales (POS) displays POS are used at the retail or outlet where the brand is sold and can take the form of : Stickers/show cards on counters Hanging mobiles suspended from ceiling Metal displays, free standing in the store Dummy pack (actual size or enlarged) Crowners to put on bottle necks Open/closed sign In store videos Shop signs
The purpose is to get customers attention and to remind them that the brands are available in the store. It will also remind them of the key advertising message. As they promote sales, such materials are welcomed by the retailers. Since competition for space is fierce, POS displays must be well planned and budgeted. The media combination No promotion plan can really be effective by using one medium. To achieve maximum impact, promotion campaign usually employs various media: TV commercial to gain awareness, impact and image Newspapers and magazines to provide detailed information such as specifications Radio as reminders to a specific segment and create mood for the brand Cinema for impact and reminder to a specific segment Direct mail to inform retailers about product benefits and to provide detailed information to consumers. POS materials to promote sales of brands in shops where they are sold Advertising can be supported by other promotion techniques: Sales promotion to encourage purchase through incentives Personal selling to encourage interaction with customers Exhibitions to show product and product demonstration Sponsorship to create goodwill.
Points to remember
Television is an effective media as it has sound and movement to reinforce the advertising message. Television has prime time showing high rated programs. The higher the number of people watching the program, the higher the price for the spot. Different programs attract different profile of audiences, and the type of viewer changes throughout the days programming. Radio is an effective advertising medium as it can be listened to anywhere and anytime, while doing other things. Although lacking visuals, radio advertising with sounds and music helps to create a powerful and personalized image of the brand. Outdoor advertising cannot be avoided and carry brief messages, as reminder. Cinema is effective to reach young audience and also provide captive audience. Cinema provides impact in terms of large screen, sounds and movements. Direct mail can be effective provided if executed properly, the right targeting, correctly addressed, and contain useful and persuasive messages. Door-to-door advertisers allow advertisers to deliver leaflet, sales promotion offers, etc to specific target audiences in certain neighborhoods. POS is an effective way to remind customers of the brand image and key advertising message of brands that are sold in the store.
82 MEDIA PLANNING
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MEDIA PLANNING
CHAPTER OUTLINE
Media research is the first and fundamental step in media planning. To understand how many people buy specific newspapers and magazines, or more importantly, how many read them and what types of people they are requires media research. Similar information is also required for broadcast media such as who watches and listens to television and radio programs, is very crucial in making a strategic media plan. To fulfill the needs of media data, agencies employ the services of independent media research companies. This chapter will discuss how agencies acquire the information needed to make media plans, what data is needed, and how this data is used for planning media. This chapter will elaborate the process of media planning and media buying.
OBJECTIVES:
1. To understand the need of media research for media planning purposes and how it is required 2. To understand what data is needed for inter media planning of above the line media 3. To understand what data is needed for below the line media 4. To understand how media data is used in media planning and buying
Media research- above the line

As advertising campaigns are being based on integrated marketing communications, media research is being used to investigate inter media habits, that is to see which radio listeners are viewers of which TV channels and programs and which newspapers and magazines they read. For advertising agencies, media research is important to establish the profile of who receives the advertising message as well as the depth or penetration in the market place. Penetration is also called coverage (especially in printed media) and reach in broadcast media. For media houses, the result of the research allows them to set rates (costs) of advertising space and airtime, and these are not only based on the size of the space or the duration of the airtime, but most importantly on how many people will be exposed to the advertising message and their purchasing power to buy certain goods and services. Using information regarding audience profile, penetration and media rates, agencies can select the best media to target the desired market effectively and can calculate the required budget. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR - Jakarta
83 MEDIA PLANNING
Independent research organizations Independent research organizations are used to establish media data to assure advertisers and advertising agencies that the research is accurate, valid and unbiased. Therefore the agencys media department can rely on the data and be assured that the media they buy on behalf of the clients will reach the advertisers target audience. Media data can be obtained by working together with a world wide media research organization such as AC Nielson. Local research companies are often used by advertisers and advertising agencies to conduct omnibus surveys and competitors advertising expenditures. The Indonesian advertising trade organization, PPPI, published annually an advertiser and agency guide to media in Indonesia called the Media Scene. Research-below the line Direct mail There is no media research for direct mail, but there are ways of establishing the number of potential contacts that a mailing can reach. Mailing lists are classified by names and addresses, professions, buying power, and also indicate an estimate of the number of people in each classification. Data base technology allows for cross-tabulation of different criteria to build a list tailored made to match the audience profile the advertisers want to reach. Internet and POS The Internet and World Wide Web are still in their infancy and not readily available to some of the key target groups that an advertiser wants to reach (e.g. majority of users are young and may be lacking in buying power). Consequently, they are not fully recognized as mainstream media and so little research has been undertaken into their effectiveness as advertising media. However, figures are available on the number of times that a website is visited. Currently there is no research undertaken by independent research organization into effectiveness of POS materials. Its effectiveness relies upon the evaluation of the advertisers marketing and promotion team. Media Planning Based on the analysis of the media data obtained from above mentioned research, media planners will select media that will direct advertising messages effectively and efficiently to the target audience. In addition, media houses also provide what is called media kit. The media kit contains interpretation of data collected and analyzed by the independent media research organizations:
84 MEDIA PLANNING
1. Circulation and readership figures (or viewing or listening figures) 2. Profile of readers (or viewers or listeners, etc) 3. Area of coverage (in geographic terms) 4. An editorial schedule of subjects to be covered in the publication so that advertisers can place their advertisements in special issues, features or sections. For television, this takes the form of video presentation, while cinema chains issue lists of forthcoming films 5. Advertising rates (including rates for special positions or peak viewing times) 6. Frequency (daily, weekly or monthly appearance) 7. Mechanical details (e.g. method of printing and requirements for film for printed media). The scope of media planning Media objective: what is to be achieved , qualitative as well as quantitative Media strategy : how is the best way to achieve the above objective Media schedule: the implementation of media strategy: when and where to place the advertisements and commercials Media budget: costs required to place the advertisements/commercials. Media objectives: Who to reach with the use of selected media How many How often (frequency) Effective reach needed to get your message across Media budget
Media strategy Which media to use: (macro media selection and micro media selection) Budget allocation for each type of media Monthly reach and frequency Media efficiency Size and duration of advertising
Media schedule Showing the most effective and efficient use of media selected Showing the reach and frequency as stated in the media objective Introduction to Advertising | Advertising and Media Planning
85 MEDIA PLANNING
Media budget Monthly media budget Macro media budget Overall campaign budget Media brief Media brief is a document prepared by the account handler which contains all relevant information required by the media planner. It contains the following information: 1. Product/brand information: physical characteristics, use, benefits, etc 2. Marketing objective: what the advertiser wants to achieve with marketing efforts 3. Brand performance in the market: market share and other indication of how the brand is doing among its competitors 4. Advertising objective: what the advertiser wants to achieve through advertising campaign 5. Past advertising efforts and result 6. Consumer buying and usage habits 7. Direct competitors: who and what they do, how do they differ with the brand 8. Target audience 9. Why the audience wants to use the brand 10. Market area: the campaign coverage of marketing area. 11. Media recommended by advertiser 12. Duration of campaign 13. Media budget Media efficiency As mentioned above, media plan strives to select the most cost efficient media to place the advertising message. Therefore there are ways to compare media efficiency as shown below Cost per thousand (CPT) The above is used to compare the cost of different media, to determine which is more cost efficient. The elements are the costs for advertising space/airtime divided by 1000 readers/ audience. Cost per thousand= Cost of Space ------------------------------------------Readership divided by 1000
86 MEDIA PLANNING
Media buying The media buying is the implementation of media planning, meaning that after the approval of the media schedule by the client, the media buyer is responsible to purchase space or airtime for the advertisers. In doing this, they have two interests to achieve: 1. For the advertiser: negotiates the best price ( discounts) 2. For the agency: finds opportunities to earn extra money ( more discounts, flexible terms of payment) The media buyer is also responsible for making sure that the advertisement appears in the media as per media purchase order and that the agency is billed as per agency media buying contract. The media buyer also follows up with the account handler to ensure that the client pays the media bills on time, so that media can be paid on time too.
87 MEDIA PLANNING
Points to remember
The media process consists of media research, planning and buying Media research is crucial as accurate data regarding the medias audience and media characteristics such as penetration, rates are important considerations in the media planning process Media research is undertaken by independent media research organizations to ensure, accurate, valid and unbiased data Account handlers prepare media brief containing information to be used as a basis for formulating media plan. Upon receiving the media brief, media planner will create media plan and schedule consisting of macro media selection and micro media selection. The most effective and cost efficient media are the main considerations when making a media plan. Media efficiency is calculated via various methods such as the CPT (cost per thousand). Media buyers will proceed to buy space and air time once the media schedule is approved by the advertisers. Media buyers will check that advertisements and commercials appear as scheduled and that media bills are paid on time.
88 ETHICS AND CODES OF PRACTICE
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ETHICS AND CODES OF PRACTICE

CHAPTER OUTLINE
Advertising is very powerful and can impact the target audience way of thinking, emotions and behavior. Therefore, it is important that the advertising message does not impact the target audience in a negative way. Most advertisers and advertising agency prefer voluntary control, meaning they themselves control what should be said and what should not be said in an advertisement or commercial, bearing in mind the interest of the target audience. The voluntary controls ensure advertisers maintain the standard of behavior which protect the reputation of the industry and so ensure by implication, that the customer is being protected. This chapter discusses the objectives and roles of code of advertising practice and how it benefits the advertisers, advertising agencies and consumer.
OBJECTIVES:
1. To understand the objectives and role of advertising code of practice 2. To understand how the advertising code of practice benefits the advertisers, advertising agencies and consumers
Advertising creativity and ethics

Creativity and persuasiveness is the basis of the advertising message. To motivate the consumers, advertising messages focus on the consumer benefits, be its rational benefits such as value for money or emotional benefits, promising beauty and image. An advertisement or commercial is creative not just because it is different than other advertisements or commercials, but because it motivates the consumers without over promising and without misconceptions. A creative advertisement or commercial can in its own unique way make the consumers understand why a certain brand will benefit them. Advertisers and its target audience must build and maintain a long term relationship to ensure consumer trust and loyalty. In short, creative advertising is also ethical advertising. The advertising code of practice strives to ensure that consumers expectation are met, and that advertisers and advertising agencies work together to fulfill this expectation.
Advertising code of ethics: objectives For consumers Protect consumers from over promise and misleading information and perception Motivates the consumers to use the brand because advertising message answers to consumers needs and wants The advertising message is credible, thus establishing consumers confidence in using the brand Advertising message is focused and informative, therefore helps the consumer to select the right brand to serve their needs. Educate the consumers by giving examples and appropriate information For advertisers and advertising agencies To use as standard practice in order to uphold professionalism and reputation of the marketing and advertising business To promote healthy competition among advertisers To practice corporate social responsibilities To provide guidelines in creating concepts with the consumers interests in mind. The Advertising Code: general The Advertising Code states that all advertisements should: be legal (and do not break the law or incite anyone to break the law) be fair and promote healthy competition by not exploiting negatively competing brands be decent (and should not cause serious or widespread offence on the grounds of race, religion, sex or disability) be honest (by not exploiting credulity, lack of knowledge or inexperience of consumers) be truthful (by not misleading through inaccuracy, ambiguity, exaggeration, omission, etc) show responsibility to the consumer and to society follow business principles of fair competition not bring advertising into disrepute apply the Code in spirit as well as in the letter Introduction to Advertising | Advertising and Media Planning
be able to be substantiated not exploit or exaggerate fear not show or encourage dangerous practices (especially with the young) not encourage drinking and driving not condone violent or anti-social behavior not use people (e.g. personalities) without permission use only genuine testimonials related to the product (and have written permission to do so from the individuals, publications or organizations involved) indicate clearly that advertisements are not editorial matter
Points to remember
The advertising industry prefers voluntary control, meaning they themselves control what should be said and what should not be said in an advertisement or commercial. The voluntary controls ensure advertisers maintain the standard of behavior which protect the reputation of the industry and so ensure by implication, that the customer is being protected. To be creative, an advertisement /commercials must be unique, answers to consumers needs and also must be ethical. The advertising code of practice ensures long term relationship between consumers and advertisers and also guides advertising agencies to create creative and ethical advertising. The advertising code of practice also aims to promote healthy competition among advertisers.
92 ADVERTISING AND THE LAW
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ADVERTISING AND THE LAW

CHAPTER OUTLINE
Like any other service provider, advertising agencies rely on the long term and mutually fruitful relationship with its clients. This relationship is formalized by the agency client contract agreement which guides how each party work together to maintain a professional working relationship which may lead to a long standing business partnership. Many advertisers have been known to stay with their agencies for many years. As agencies act on behalf of their clients with third parties: the media, production houses and suppliers, agencies also need to formulate contract agreements with third parties to safeguard their interests as well as their clients. This chapter will cover the agency- client contract agreement, agency and third party contract, and discuss the basics of agency and client business relationship.
OBJECTIVES:
1. To understand contract agreement between agencies and its clients 2. To understand contract agreements between agencies and third parties 3. To understand agency-client business relationship
Agency/client contracts and agreement

Every company involved in marketing makes contracts. Contracts are made between agencies and clients as well as between agencies and suppliers (like the media owners, freelance compugraphers, copywriters, and photographers as well as printers). A contract consists of three elements an offer, an acceptance, and a consideration. An offer (of goods or services) by one party and an acceptance (of the offer) by a second party. This is called an agreement and becomes a contract only when a consideration is included by the first party and accepted by the second. (A consideration is an old term usually meaning a sum of money.) Listed below are the areas that a typical contract would cover: period of initial contract (usually 1 year) length of notice period (usually 3 months) clear definition of the services to be provided statement of approval procedures for work produced Introduction to Advertising | Advertising and Media Planning STIKOM LSPR - Jakarta
provisions for terminating the contract terms of business (regarding payment of the agency, mark-ups and handling charges (for both the agencys work and that of third-party suppliers) repayments of volume and other discounts, including commissions from the media owners the rights of the advertiser to use other suppliers arbitration or means of settling disputes should they arise insurance (for professional indemnity, etc) Termination of contract Termination of contract may be initiated by the agency or client. The client may terminate the agency for the following reasons: Unsatisfactory service Slacking in creativity Clients new management wants to explore other agencies Change in agencys management or personnel Agencys pricing Wants fresh new ideas
The following reasons usually lead to termination of contract by agency The client doesnt honor the terms of payment in the contract agreement The clients business is not profitable: agency spends more man hour than it charges the client but cannot ask for higher fees. Conflict of interest: agency has been appointed by clients direct competitor who has more promising business potential.
The goal: long term and profitable business partnership

Just like everything else, a business relationship has to pass several cycles to survive: The introduction cycle At this stage, agency and client has not formalized their relationship, but they are learning about each other. The client is impressed with the agencys skills and experience, its human resources, its eagerness to serve the client by showing understanding of the clients business and market. The agency has a positive feeling about the client: he shows understanding of how an agency work, his objectives are realistic and clear and he has the financial means. These positive impressions then lead the relationship to the next cycle. The development cycle The relationship is formalized by a contract. Agency will continue to impress clients with their professionalism and service excellent. Client shows his eagerness by providing the Introduction to Advertising | Advertising and Media Planning STIKOM LSPR - Jakarta
information needed by agency. At this stage work rules and condition for team work is established. Mistakes made at this cycle are usually forgiven. The maintaining cycle The key at this cycle is effective communication to support effective teamwork. As work intensified, expectation increases, problems also arises. As long as effective solutions are found and the motivation to work together persists, then usually agency and client can form a very long and successful working relationship. Foote, Cone & Belding (FCB) worked with Sunkist for 85 years, Konimex and Matahari Advertising has worked together for 30 years. The termination cycle Many factors can lead to termination of business relationship as previously described, and like so many other things in life, the termination could be amicable or could be a negative experience for both parties.
Agency/third party contracts and agreements

Agency buys advertising space and airtime from the media houses, it also commissioned production establishments to produce advertising materials on behalf of its clients. So if the agency buys space form the media, it makes contract with the media and sells the space back to its clients. If the client does not pay, agency must foot the bill. The same with other third parties employed by the agency on behalf of its clients This is why agencies are required to be creditworthy. The working relationship between agencies and its third parties, indirectly influenced agency and client business relationship. if the agency cannot manage its third parties, then the quality of work that it gives to its clients suffers. The law of copyright Anyone who creates something has a right to protect it from being copied or used by other party. This is an automatic right, with no registration required (unlike a trade mark under older legislation). Anyone who copies any aspect of an advertisement without permission can be sued for an injunction and damages by an owner through a civil action. The rights to all work done by the agency (including artwork) belong to the agency, even though the work has been commissioned by and paid for by the client. This is the case unless the client insists on a clause assigning ownership in the agency/client agreement.
Other copyrights to be considered Work by photographers, free lance designers etc commissioned by the agency on behalf of its clients The use of materials from external source as such the right to use the cartoon character Mickey Mouse.
Points to remember
Agency and client formalized their working relationship with a contract agreement A contract consists of an offer ad an acceptance , which forms an agreement, together with a consideration, usually a sum of money A contract can be terminated by either agency or client, as long as provisions for termination have been met. As agency buys many service from other third parties on behalf of its clients, agency also form contract agreement with third parties. Copyright covers the ownership of words, artistic works (photographs, illustrations, etc), music and many other created elements. The goal of agency and client working relationship is long term business partnership. A business relationship consists of several cycles which if passed successfully will ensure a mutually beneficial business relationship between agencies and its clients.
97 ADVERTISING TESTING AND EVALUATION
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ADVERTISING TESTING AND EVALUATION

CHAPTER OUTLINE
Market situation is very complex. It is imperative to establish the market situation such competitive environment, consumer perception and attitudes, before planning and executing an advertising and promotion campaign. This to ensure that the campaign is effectively directed at relevant market issues. This chapter will explain the various methods of testing and evaluation to ensure that campaigns are planned strategically and executed appropriately. Successful campaigns will enhance advertisers confidence in the methods of advertising as well as on the professionalism of the advertising agency.
OBJECTIVES:
1. To understand the reasons for doing testing and evaluation. 2. To understand the methods of pre-campaign testing. 3. To understand continuous research to monitor performance of advertising and promotion. 4. To understand the methods of evaluating a campaign.
Testing the market place

Testing of the market place to discover information such as the level of market response to the brand, how the company and the brands are perceived by the consumers and customers, are initially taken by the advertisers marketing team. Their findings are then briefed to their agency. The agency will then conduct their own research to find other pertinent information which will guide them to plan an effective campaign. If negative attitudes, motivations and opinion by the customers and consumers are found, then the agency can find ways to re-position the brand so it will be perceived in a positive way. On the other hand positive attitudes can also be discovered and then enhanced in the campaign. Reasons for testing are: Seeing where things may go wrong so can be avoided. Highlighting opportunities that can be exploited for further business growth, or positioning and communicating brands more effectively. Showing how to fulfill objectives. Indicate short and long term plans. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR - Jakarta
Testing and evaluating advertising Testing an evaluation of advertising takes place before, during and after campaign. Research methods are qualitative or quantitative. Qualitative research: This type of research is used to find out the extent of attitudes and beliefs within the market place. It involves small number of people therefore requires less funding and easier to set up. As this type of research provides valuable insights into opinions relating to advertising research, it is often used to test concepts. Quantitative research: On the other hand, quantitative research aims to establish size and mostly demographic nature of the target or market. Pre-production testing The objective of pre-production testing is to ensure that the creative ideas and concept will get the message across to the target audience. This is important because the advertiser and advertising agency wants to be sure that the advertising will achieve the objectives, therefore money and time well spent. Aspects to be tested: What is the impact of the advertisement or the commercial? How does the target audience relate to the message. Is it understood? Does the message convey the right image? Is the message credible? Is it persuasive enough? Does it stands out among other advertisement/commercial
Discussion and interview methods Group discussion Depth one-on-one interview Semi structured and structured interview The individuals selected to participate in discussion and interviews have similar profiles to the target audience. To get the most of these activities, skilled interviewers and facilitators are used with a well designed questionnaire. A closed questionnaire requires only Yes or No answer, an open questionnaire requires the respondent to provide more descriptive answers. Split-run testing
A split run test is done by placing two concepts in different edition of the same publication and seeing if there is a difference in perception. Test marketing This is a rather elaborate and expensive method, as a mini campaign is conducted to assess brand acceptance and promotional techniques. However, it is equally important that the likely effectiveness of the advertising campaign should be tested before it is carried out nationwide. Post-production testing Post-production testing means looking if the advertisements are recalled and that the advertising objectives are met. Checking the campaign. This is checking to ensure that the advertisements and commercials appear at the right time and at the right place. For press advertisements , voucher copy is given to the agency and for commercials a time table of commercials transmitted in a chronological order is provided. Recall testing The objective of recall testing is to see if people remembered the advertisement among other advertisements that they have seen the day before. The recall testing can be either unaided or aided. In the first, the individuals are asked to respond instantly and recall advertisements and their contents from a test selection of advertisements, or from memory of actual types of advertising or product classes. With aided recall, the individuals are shown a selection of advertisements or cards with brand names and are asked which they have seen. Reading and noting This is used to test the percentage of people who look at particular page of a magazine, and how many percent saw the advertisements and actually read the content. Checking responses and sales Increased inquiries and sales are of course the easiest objectives to measure. This is especially true if some response mechanisms are included in the advertisement, such as coupon. Coupons are coded, so the advertiser can see from which media the coupons have cut. For broadcast media, a free number (toll free number) is often used to measure the number of responses received. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR - Jakarta
Continuous testing ad testing during campaign Consumer panels Panels are groups of people who agree to report on their buying behavior either by giving regular interviews or by completing daily diaries of their purchases. They might also be chosen to complete questionnaires on a regular but voluntary basis. Members of other panels use bar-code scanning devices (similar to those used in supermarkets) to record purchases, with the data being transmitted to the market research company for central processing and analysis. One of the best-known kinds of panel records the television commercial breaks and programs that viewers watch. This is a valuable way of determining how many people may have seen a commercial. One major advantage of panels is that agencies and advertisers can subscribe to these services on a continuous basis or immediately prior to a campaign to monitor the purchases through the life of the advertising or promotion. Retail and dealer audits The research involves taking stock levels and accounting for all stock deliveries over a regular period. It covers a number of products and brands, so that it is possible to see the effect of an advertising campaign by the variations in stock turnover of a particular brand. Tracking studies Advertisers subscribe to this means of continuous research to receive 13 reports produced every 4 weeks throughout the year. Like retail audits, it concentrates on certain categories of product, such as confectionery, toiletries, drinks, clothing or consumer durables, or services, such as travel, retailing or financial services. This research involves weekly selfcompletion questionnaires by selected respondents to monitor how effectively advertised brands are being communicated. It also monitors the respondents media habits. Opinion polls A poll or survey is conducted to detect changes in awareness and opinions over a period of time. Based on this the effect of advertising and promotion can be evaluated. It also can be used prior to the campaign to get an understanding of the market place.
101
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48 TYPES OF ADVERTISING AGENCIES

TYPES OF ADVERTISING AGENCIES

The advertising agency

Introduction to Advertising | Advertising and Media Planning

STIKOM LSPR - Jakarta

49 TYPES OF ADVERTISING AGENCIES

50 TYPES OF ADVERTISING AGENCIES

51 TYPES OF ADVERTISING AGENCIES

52 TYPES OF ADVERTISING AGENCIES

Introduction to Advertising | Advertising and Media Planning

STIKOM LSPR - Jakarta

53 TYPES OF ADVERTISING AGENCIES

Introduction to Advertising | Advertising and Media Planning

STIKOM LSPR - Jakarta

54 AGENCY RECOGNITION AND REMUNERATION

AGENCY RECOGNITION AND REMUNERATION

Introduction to Advertising | Advertising and Media Planning

STIKOM LSPR - Jakarta

55 AGENCY RECOGNITION AND REMUNERATION

56 AGENCY RECOGNITION AND REMUNERATION

Introduction to Advertising | Advertising and Media Planning

STIKOM LSPR - Jakarta

57 FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES

FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES

Functions of the basic advertising agency

Introduction to Advertising | Advertising and Media Planning

STIKOM LSPR - Jakarta

58 FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES

Introduction to Advertising | Advertising and Media Planning

STIKOM LSPR - Jakarta

59 FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES

Introduction to Advertising | Advertising and Media Planning

STIKOM LSPR - Jakarta

60 FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES

STIKOM LSPR - Jakarta

61 FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES

Introduction to Advertising | Advertising and Media Planning

STIKOM LSPR - Jakarta

62 FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES

Introduction to Advertising | Advertising and Media Planning

63 CREATION OF ADVERTISEMENTS AND COMMERCIALS

CREATION OF ADVERTISEMENTS AND COMMERCIALS

Introduction to Advertising | Advertising and Media Planning

STIKOM LSPR - Jakarta

64 CREATION OF ADVERTISEMENTS AND COMMERCIALS

Introduction to Advertising | Advertising and Media Planning

STIKOM LSPR - Jakarta

65 CREATION OF ADVERTISEMENTS AND COMMERCIALS

66 CREATION OF ADVERTISEMENTS AND COMMERCIALS

Introduction to Advertising | Advertising and Media Planning

STIKOM LSPR - Jakarta

67 CREATION OF ADVERTISEMENTS AND COMMERCIALS

Introduction to Advertising | Advertising and Media Planning

STIKOM LSPR - Jakarta

68 PRODUCTION OF ADVERTISING MATERIALS IN MEDIA

PRODUCTION OF ADVERTISING MATERIALS IN MEDIA

The role of the production department