What is Advertising?

The great expansion of business in the 19th century

The utilization of techniques and practices to bring was accompanied by the growth of an advertising
products, opinions, services and causes to public notice industry; it was that century, primarily in the United
in order to persuade them to respond in a certain States, that saw the establishment of advertising
manner is known as advertising. This is an introductory agencies. The first agencies were, in essence, brokers
chapter which will briefly introduce all the significant for space in newspapers. But by the early 20th century
aspects of advertising such as advertising theory, agencies became involved in producing the advertising
advertising campaigns and advertising management. message itself, including copy and artwork, and by the
1920s agencies had come into being that could plan
ADVERTISEMENT and execute complete advertising campaigns, from
Advertisement, also called ad refers to a public initial research to copy preparation to placement in
announcement-generally print, audio, or vid-eo-made various media.
to promote a commodity, service, or idea through
various media, including bill-boards, direct mail, print Advertising developed in a variety of media. Perhaps
magazines and newspapers, radio, television, and the the most basic was the newspaper, offering advertisers
World Wide Web. While advertising is used to a limited large circulations, a readership located close to the
extent in every modern society, often by some agency advertiser's place of business, and the opportunity to
or service of government, it is in countries with alter their advertisements on a frequent and regular
economies based on competition that advertising is basis. Magazines, the other chief print medium, may be
ubiquitous. of general interest or they may be aimed at specific
audiences (such as people interested in outdoor sports
The first ads were generally circulated by public criers, or computers or literature) and offer the manufacturers
who in ancient times announced the sale of various of products of particular interest to such people the
products to passersby. An advertisement offering a chance to make contact with their most likely cus-
reward for a runaway slave, discovered in the ruins of tomers. Many national magazines publish regional
Thebes and estimated to be 3,000 years old, editions, permitting a more selective targeting of
demonstrated that printed advertisements also existed advertisements. In Western industrial nations television
during this period. The oral advertisement, however, and radio became the most pervasive media. Although
remained the most popular form of advertising until in some countries radio and television are state-run
the invention of the printing press about 1450, after and accept no advertising, in others advertisers are
which advertisements became more plentiful and able to buy short "spots" of time, usually a minute or
sophisticated, the advertiser using persuasion and less in duration. Advertising spots are broadcast
suggestion to increase patronage. During the 18th and between or during regular programs, at moments
19th centuries, advertisements were still carried on sometimes specified by the advertiser and sometimes
handbills, posters, and leaflets; however, such media left up to the broadcaster. For advertisers the most
lacked the tremendous circulation of newspapers and important facts about a given television or radio
magazines, which carried the majority of program are the size and composition of its audience.
advertisements during that period. The size of the audience determines the amount of
money the broadcaster can charge an advertiser, and
Newspaper and magazine advertisements popularized the composition of the audience determines the
jingles and slogans, offered the latest fash-ions, and advertiser's choice as to when a certain message,
guaranteed cures with patent medicines. Advertising directed at a certain segment of the public, should be
media expanded with the development of radio in the run. The other advertising media include direct mail,
1920s and television in the 1940s, and advertisements which can make a highly detailed and personalized
became more influential and complex, often based on appeal; outdoor billboards and posters; transit
the results of motivational research. In the second half advertising, which can reach the millions of users of
of the 20th century, television was rivaled only by mass-transit systems; and miscellaneous media,
periodicals as the most popular medium for adver- including dealer displays and promotional items such
tisements, which had so pervaded modern society that as matchbooks or calendars.
there was hardly a public or private area in which they
were not seen-from billboards, shop signs, and clothing In the 21st century, with an intensely competitive
labels to mail-order catalogs and brochures. consumer market, advertisers increasingly used digital
technology to call greater attention to products. In
In the early 1st century, with an intensely competitive 2009, for example, the world's first video
consumer market, advertisers increasingly used digital advertisements to be embedded in a print publication
technology to call greater attention to products. In appeared in Entertainment Weekly magazine. The thin
2009, for example, the world's first video battery-powered screen implanted in the page could
advertisements to be embedded in a print publication store up to 40 minutes of video via chip technology and
appeared in Entertainment Weekly magazine. A thin automatically began to play when the reader opened
battery-powered screen implanted in a page could the page.
store up to 40 minutes of vid. eo via chip technology For an advertisement to be effective, its production
and would automatically begin to play when the reader and placement must be based on a knowledge of the
opened the page. public and a skilled use of the media. Advertising
agencies serve to orchestrate complex campaigns
ADVERTISING whose strategies of media use are based on research
Advertising refers to the techniques and practices used into consumer behaviour and demographic analysis of
to bring products, services, opinions, or causes to the market area. A strategy will combine creativity in
public notice for the purpose of persuading the public the production of the advertising messages with canny
to respond in a certain way toward what is advertised. scheduling and placement, so that the messages are
Most advertising involves promoting a good that is for seen by, and will have an effect on, the people the
sale, but similar methods are used to encourage advertiser most wants to address. Given a fixed
people to drive safely, to support various charities, or budget, advertisers face a basic choice: they can have
to vote for political candidates, among many other their message seen or heard by many people fewer
examples. In many countries advertising is the most times, or by fewer people many times. This and other
important source of income for the media (e.g., strategic decisions are made in light of tests of the
newspapers, magazines, or television stations) through effectiveness of advertising campaigns.
which it is conducted. In the noncommunist world
advertising has become a large and important service There is no dispute over the power of advertising to
industry. inform consumers of what products are avail-able. In a
free-market economy effective advertising is essential
In the ancient and medieval world such advertising as to a company's survival, for unless consumers know
existed was conducted by word of mouth. about a company's product they are unlikely to buy it.
The first step toward modern advertising came with the In criticism of advertising it has been argued that the
development of printing in the 15th and 16th centuries. consumer must pay for the cost of advertising in the
In the 17th century weekly newspapers in London form of higher prices for goods; against this point it is
began to carry advertisements, and by the 18th argued that advertising enables goods to be mass
century such advertising was flourishing. marketed, thereby bringing prices down. It has been
argued that the cost of major advertising campaigns is
such that few firms can afford them, thus helping these
firms to dominate the market; on the other hand, favorable. This is natural as advertising alone is
whereas smaller firms may not be able to compete with not adequate for promoting sales. Many
larger ones at a national level, advertising at the local companies now spend huge funds on
level or online enables them to hold their own. Finally, advertising and public relations.
it has been argued that advertisers exercise an undue 9. Creativity- the essence of advertisinig:
influence over the regular contents of the media they Advertising is a method of presenting a product
employ-the editorial stance of a newspaper or the in an artistic, attractive and agreeable manner.
subject of a television show. In response it has been This is possible through the element of cre-
pointed out that such influence is counteracted, at ativity, which is the essence of advertising.
least in the case of financially strong media firms, by Creative people (professional) in the field of
the advertiser's reliance on the media to convey a advertising can introduce creativity. They
message; any compromise of the integrity of a media introduce new technique for introducing
firm might result in a smaller audience for the creativity.
advertising. Without creativity, advertising will a body
without a soul.
Features of Advertising
1. Advertising provides information: The Advantages of Advertising
basic purpose of advertising is to provide The advantages of advertising can be divided into two
information about products/services to main groups. One group denotes benefits to benefited
prospective buyers. The details of products by advertising.
such as fea-tures, uses, prices, benefits, manufactures and other group denotes benefit to
manufacturer's name, and instructions to be consumers. Let us find out how each of them is
followed while using the product are given in benefited by advertising.
the advertisements. The advertising message
and brand name are also given. The Benefits of Advertising to Manufacturers
information supplied gives education and 1. Large-scale production and marketing:
guidance to consumers and facilitates correct Advertising is useful as a sales promotion tech-
selection of goods by them. nique. It gives information to consumers and
2. Paid form of communication: The advertiser encourages them to purchase more.
has to pay to the media for giving publicity to Manufacturers expand their production base
his advertising message. He pays for the due to higher market demand created through
advertisement and naturally, he decides the advertising.
size, slogan, etc. given in the advertisement. 2. Introduction of new products: Advertising
Advertising is a form of paid communication. facilitates the introduction of new products.
3. Non-personal presentation: Advertising is Due to advertising, information about new
non-personal in character as against salesman. products is given to the prospects. This creates
ship which is personal (face-to-face demand and the manufacturer is able to sell
communication) in character. In advertising, new products along with the existing ones.
the mes. sage is given to all and not to one 3. Creates new demand: Advertising spreads
specific individual. This rule is applicable to all information and encourages consumers to
advertis. ing media including press. However purchase new products. Such advertising leads
even in advertising target consumers or target to the creation of new demand. Various
market can be selected for making an concessions are offered to consumers in the
advertising appeal. initial period. This gives positive response from
4. Gives publicity to goods, services and the consumers. Thus, advertising creates new
ideas: Advertising is for giving information to demand from non-users.
consum-ers: This information is always related 4. Facilitates effective personal selling:
to the features and benefits of goods and Advertising creates proper background for
services of different types. Advertising gives personal selling. It gives advance information
new ideas to consumers as its contents are to the prospects. They visit the shop in order to
meaningful. The aim is to make the ideas purchase a particular product, which they know
popular and thereby to promote sales. For through advertising media. The job of a
example, advertising on family planning, family salesperson becomes easy as consumers
welfare, and life insurance is useful for placing develop affinity to specific products. In brief,
new ideas before the people. advertising supports and supplements personal
5. Basically for persuasion: Advertising aims at selling.
persuasion of potential customers. Advertising 5. Builds brand image: Manufacturers introduce
attracts attention towards a product, creates branding for making their products popular
desire to have the same and finally induces with distinct personality. The brands are made
consumers to visit the market and purchase popular through advertising. As a result,
the same. Advertising has psychological impact consumers develop loyalty towards a specific
on consumers. It influences the buying brand. Advertising builds brand image and this
decisions of consumers. develops consumer loyalty towards a specific
6. Target oriented: It is possible to make brand.
intensive advertising by selecting a specific 6. Reduces cost of production: Advertising
market or specific segment of consumers (e.g. creates demand and promotes sales. This
children, housewives, etc.) for the purpose of enables a manufacturer to conduct production
ad-vertising. This selection of a specific market on a large scale. This leads to reduction in the
is called target market. Advertising becomes cost of production and distribution. As a result,
effective and result oriented when it is target the profit margin of the manufacturer
oriented. The waste in advertising can be increases.
minimized through such target oriented 7. Facing competition: A manufacturer can face
advertising. market competition effectively and can make
7. An Art, Science and Profession: It is now his products popular through advertising. He
universally accepted that advertising is an art, can remove misunderstanding among
science and a profession. It is an art, as it consumers about his products through
needs creativity for raising its effectiveness. appropriate advertising.
Advertising is a science as it has its principles 8. Sales promotion: A manufacturer can make
and rules. Advertising is now treated as a his sales promotion campaign successful by
profession with its professional bodies and using the support of advertising. He can
code of conduct for members. Advertising prepare proper background for the success of
agencies and space brokers function as such campaign as advertising facilitates direct
professionals in the field of advertising. communication with consumers.
8. Important element in marketing mix: 9. Goodwill builder: A manufacturer can build
Advertising is an important element in up goodwill and good image in the business
marketing mix. It supports the sales promotion world and also among the consumers through
efforts of the manufacturer and makes positive advertising. The social welfare programmes
contribution in sales promotion provided other and community service activities can be given
elements in the marketing mix are reasonably wide publicity through advertising. Even the
 progress of the Organization can be brought to festivals. Even local dealer may offer certain
the notice of the public through advertising. concession to his custom-ers. He can make suitable
advertisement of such concession for large scale
Benefits of Advertising to Consumers selling at the local level. In short, effective advertising
1. Information and guidance: Consumers get of consumer durables is necessary and useful for
information and guidance from advertising. regular selling, for providing information and guidance
They can study the advertisements of to consumers and finally for sales promotion.
competitors and select the products, which are
profitable to them. This avoids their cheating Types of Advertising Media
and exploitation at the hands of intermediaries. Advertising media may be as noted in the chart given
2. Acts as reminder: Advertising acts as a below:
reminder to consumers. They remember what
Class of media Types included
is urgently required to be purchased through
advertising.
3. Special attraction to consumers: Print Newspapers, Magazines,
Advertising leads to competition among Journals and other
publications
manufacturers and retailers. They have to offer
something special in order to attract
consumers. such attraction offers benefits to Broadcast Radio, TV
consumers. For example, manutactures have
to bring down the price in order to attract Non-broadcast Video, Cable/ closed
customers. They have to supply quality goods Circuit TV and Cinema
in order to attract more customers. All this is
beneficial to consumers in terms of price and Outdoor Posters, Hoardings, Neon
quality of goods. signs, Sky ads etc.
4. Raises living standards: Advertising raises
the standard of living of people by supplying Transit/Vehicular Railways trains, Buses and
information about goods and services, which Trains, Taxi and Auto
can offer convenience and pleasure to them. rickshaws
Advertising guides consumers in the selection
of most suitable goods for their daily life. Point of Purchase Banners, hangings,
Thus advertising provides higher standard of Packaging, Stickers,
Painted signs
living to consumers as a social group.
5. Effective product use: Consumers get
information about uses/benefits of different Specialty Media T-shirts, Buttons, caps,
stickers, badges, diaries
products through advertising. They also get
guidance as regards the right manner of using
the product. This avoids possible damage of Miscellaneous Direct mail advs, Trolleys
the product purchased. Even the product can at airports etc.
be used for different purposes because of the
information supplied through advertisements.
6. Removes misunderstanding: Advertising
It may be noted that advertising media have their
helps consumers in removing their
special features, merits, limitations and suitabil-ity. An
misunderstanding about certain products. They
advertiser has to consider his advertising budget and
change their attitudes towards certain products
select the most appropriate advertising media and use
and services due to advertising.
them for advertising purpose.
Role of Advertising in Selling Consumer Durables
Advertising Agency Laws
The following points suggest the role of advertising in
Advertisements are one of the most visible ways
selling sales promotion of consumer durables:
businesses get customers to purchase their products
1. Advertising is useful for giving information
and services. Advertising laws protect consumers from
and guidance to prospective buyers of
fraudulent or misleading advertising. Not complying
consumer durables. Here, advertising gives the
with advertising laws can lead to lawsuits and civil
details of special features, benefits, price
penalties so advertising agencies are well served by
discount, and other concessions offered, etc. to
understanding them.
the purchasers of consumerdurables and
encourage interested customers to take
 Deception: Advertising must be truthful and not
initiative in purchasing the durable articles.
contain deceptive information. Deceptive
2. Effective advertising of consumer durables
information is information that would cause a
creates proper background for personal selling.
customer to reasonably make a decision the
An attraction is created in the minds of
customer would otherwise not make. In addition,
consumers and they are encouraged to visit
the advertisement must not lack information
retail shop in order to see the article or look at
needed for the customer to make a decision
the demonstration of its working. Here, the
regarding the product. The U.S. Federal Trade
salesperson can use his skills and see that the
Commission (FTC) that oversees advertising claims
article is purchased by his visitors.
makes a subjective decision whether an
3. Advertising of consumer products enables a
advertisement is deceptive based on the
manufacturer to face market competition ef-
perspective of the consumer.
fectively. He can give special features of his
product and also suggest how his product is
The advertisement should be clear about what
superior to that of his competitors. This is
customers will be receiving. For instance,
useful for sales promotion of consumer
customers who are told they will receive books
durables. vertisements of competitors.
should also be told that the books would be
Even consumers can make appropriate selection of a
abridged versions.
suitable product by studying the ad-
1. Advertising of consumer durables during the
 Evidence: Claims made by advertisers must be
festival period acts as a reminder to consum-
backed up by evidence. The evidence is based on
ers. They remember to purchase a useful
claims made by the advertisement. For example,
product on the eve of the festival. This
an advertisement that says a certain percentage of
technique facilitates sales promotion during the
doctors prefer a particular toothpaste should have
festival period.
a survey to support this claim. Companies still need
2. The seller of consumer products
evidence even if they promise to refund customers'
(manufacturing company) may like to offer
money if they are not satisfied.
attractive gift or price discount to interested
 Injury: Advertisements should not encourage
consumers. Here, advertising can be made
customers to perform actions that could cause
effectively.
injury to the customer or to another individual.
 Web Traffic: When a website owner plays a role in
This encourages consumers to purchase a durable
designing an advertisement, the website owner is
product. Such advertisements are common during
 liable for deceptive advertisements. However, if the motivation of prospective buyers. Attractive and
advertisement agency was responsible for meaningful messages give positive results and the
designing the advertisement, as in the case of advertising becomes result- oriented. The services
Google Adsense where the website owner has no of creative writers, artists, etc. are used for giving
control over the advertisements, the website owner attractive message to the consumers. Here, the
is not liable. advertiser has to decide the message to be given,
 Lease: When lease programs are advertised, the the media to be used for communicating the
lease program information should be very clear message, the extent of creativity, the specific
and easy for consumers to understand. The offer customer group selected for giving the message
must clearly state that it is a lease, must and so on. The message is also related to the
accurately list the cost of the lease, due dates for decisions taken as regards mission and money
the scheduled payments of the leas-es, whether or provided for advertising. For advertising consumer
not the lease requires a security deposit and the product like chocolate, the message is important.
consumer's liability. The buyers are mainly children and others of lower
 Science: Scientific and environmental claims made age groups or for the benefit (pleasure and
by products have to be accurate. satisfaction) of younger generation. The
 The U.S. Federal Communications Commission advertising message should be simple and easily
(FCC) uses current scientific and environmental understandable with the help of picture or slogan.
research to determine whether or not an It should be also attractive and agreeable to
advertisement concurs with the research. younger generation. The pictures or slogans used
should be short and impressive.
Decision-making in Advertising 4. Media: Media of advertising are already noted
While undertaking advertising campaign or while previously. The advertiser has to take decision
organizing an advertising programme for prod-ucts: about the media to be used for advertising
consumer products, (tooth paste, chocolate, soap, face purpose. Media differ as regards cost, coverage,
powder, skin cream, etc.) or durable products, (car, TV, effectiveness and so on. The selection of media
etc.) or industrial products, (machine, etc.) concerned depends on the budget provided, products to be
company has to take certain decisions and adjust the advertised, and features of prospective buyers and
advertising activity accordingly. Such advertising so on. Wrong decision on media may make
decision-mak-ing is a five-step process (Five Ms of advertising ineffective and money spent will be
advertising) consisting of mission, money, wasted. This suggests that media should be
message, media and measurement. In other words, selected properly and decision in this regard is
evaluation and broad decisions need to be taken in important and critical.
regard to these five areas while organising an For advertising popular and extensively used
advertising programme/campaign. Five Ms of consumer items like chocolate, the media should
advertising are five basic considerations, which need to be selected properly. TV advertising particularly a
be given proper attention to have positive/favorable cartoon channel, advertising in children books or
effect of advertising efforts. These considerations are newspaper supplements for children, advertising
particularly applicable to consumer product marketing on radio programmes for children, etc.
such as toothpaste, face powder, body creams, soaps, 5. Measure: Measure relates to the effectiveness of
chocolates and so on. Advertising will be advertising. An advertiser will like to make
effective/result oriented when it is made with proper evaluation of advertisement in order to judge its
planning and appropriate decisions as regards the effectiveness. If an advertisement is not effective
objectives, media used, funds provided and so on. In and purposeful, it will be modified or withdrawn.
short, advertising activity needs appropriate decision- This is necessary for avoiding expenditure on the
making on various matters. Such decisions constitute advertisement, which is not effective or is not likely
the steps in the advertising. to give positive results. An advertiser has to
measure the effectiveness of his advertisement
Five M's of Advertising programme / campaign and take suitable
An advertiser takes decisions on the following decisions. This decision-making as regards
aspects: effectiveness of advertising is equally important
1. Mission: This refers to the purpose/ objective and essential. Such testing facilitates introduction
behind advertising. The objectives behind of suitable remedial measures, if required.
advertising are varied in character. They include
sales promotion, information and guidance to For measuring effectiveness of advertising, the
consumers, developing brand loyalty, market post-advertising sale is one major consideration.
goodwill, facing market competition effec-tively, Demand creation in new market segments or in new
making the products popular/successful and age groups is another consideration for the
introduction of a new product. Decision in regard to measurement of advertising effectiveness. Even
mission is a basic one as other decisions are to be success of sales promotion programme is useful for
adjusted as per the mission, objective, or purpose measuring advertising effectiveness. As soon as the
of advertising decided. For consumer products like advertising campaign is over, a need is generally
chocolate, tooth paste, soap, the mission/objective arisen to measure the effectiveness of the campaign.
include facing market competition, sales promotion Whether, it has achieved the desired results i.e.,
and making the product popular in the market. desired sales profitability or results in terms the
2. Money: This refers to the finance provided for clientage in customer behaviour in fa-vour of the
advertising purpose (advertising budget). It means company's product, which will naturally, affect the
the budget allocation made by the company for future sale of the product. In order to measure the
advertising. Money provided is a limiting factor as effectiveness of advertising copy, two types of tests-
effectiveness of advertising, media used, coverage can be undertaken.
of advertising, etc. are related to the funds  Pre - Test
provided for advertising purpose. Advertising is  Post - Test
costly and companies have to spend cores of
rupees for this purpose. Advertising should be The effectiveness of advertising in a particular media
always within the limits of funds provided. may also be measured in any of the following ways- (a)
Naturally, decisions on advertising package should different newspaper may be selected for
be adjusted as per the budget allocation for advertisements of different departments, (b) coupon
advertising. It may be noted that consumer blank etc. may be provided with the advertisement or
products like toothpaste or chocolate are highly (c) enquiry from consumer should mentioned the name
competitive with many substitutes easily available of the source of information. Thus, in measuring the
in the market. Naturally, extensive advertising on effectiveness of advertising we include measuring of
TV, newspapers, radio, etc. is required. These the effectiveness of advertising campaign, advertising
media are costly. Naturally, the manufactur-ing/ copy and the effectiveness of individual media.
marketing company will have to provide huge
money for advertising purpose. Role of Measuring Advertising Efectiveness
3. Message: Message is provided through the text of The main objective of allocation of huge budget to
advertisement. The message is given through advertising activity is to increase sales and profits of
written words, pictures, slogans and so on. The the firm. The multivariable forces influencing sales
message is for the information, guidance and make it almost impossible to measure with high
precision the sales effect of advertising. Consequently terms of their communication effects on the target
to most advertising research measures the consumers. The main purpose of advertising is
characteristics of an advertisement such as exposure, communicate the general public, existing and
the ability of receiver to com-prehend, retain and prospective consum-ers, various information about the
believe in advertisement, it can be inferred that the product and the company. It desirable to seek post
advertisement is effective in generating sales. measurements of advertising in order to determine
Measuring the effectiveness, however, is not an easy whether advertisements have been seen or heard or in
task, it is still a complex problem and no scientific other words whether they have communicated the
method call be applied precisely particularly, in Indian theme, message or appeal of the advertising. Clearly,
conditions where the advertising industry is growing in advertisements are not seen or heard or are low in
because its problems are closely related to the communication ability relative to advertisements for
economic and cultural problems of the country. comparable products, then the advertising probably is
ineffective and change is called for. Thus, if
Importance of Measuring the Effectiveness of advertisements succeed in communicating the desired
Advertising information and developing the favorable attitude, the
• To Get the Cost Benefit of Advertising- The cost advertising is effective.
of advertising is mounting day by day and
consequently profits are being squeezed. So, the top • Basis for planning: Measuring the effectiveness of
management should be concerned about the cost the advertising is done with a view to improve the
benefit of advertising in the various items of advertising plan by having a comparative view of the
expenditure in the balance sheet of the company, the objectives set out in the plan and the objectives or
contribution of which cannot be measured in terms of goals achieved during the course of execution of the
sales or profitability. Its contribution in terms of sales plan.
or profitability can only be estimated to reasonable If achievement is higher an attempt should be made to
extent. Due to high costs of materials and wages, maintain the position and if there is an unfavorable
strangulated by higher overheads and taxes, the attitude, this should be avoided by making the
management is reasonable in not approving any necessary adjustments in the goals or by improving the
expenditure on advertisement, which is not likely to functioning of the various activities. Thus measuring
bring an additional sale, resulting in additional prof-its. the effectiveness is necessary for the planning.
The main concept is that additional cost of advertising
must produce additional profit and, therefore, the • Thus, we can conclude that measurement of
advertising should prove its contribution in total effectiveness of advertising is necessary oth-erwise;
marketing efforts like any other allocation of corporate the whole planning process will be disturbed. For this
resources or else the advertising expenditure will be purpose, many tests and surveys are conducted,
sel arbitrarily or be slashed drastically. The cost must necessary data are collected and are used extensively
be linked with the benefits derived. If contribution of in the decision making process. On the basis of the
any advertising campaign is higher, it means the cost information collected during the course of surveys,
benefit is higher and the advertisement is effective. management confirms the standards and improves
them wherever necessary so that it may fetch the
• To Justify the Investment in Advertising: The maximum out of its limited resources.
expenditure on advertisements is considered to be an
investment. In any investment decision planning, there Various Department of Advertising
is always a statement of objectives measuring  Account service department: The account
advertising effectiveness. Advertising is a marketing service, or the account management depart-
investment and its objectives should be spelt out in a ment, is the link between the adverting agency
similar manner, clearly indicating the results expected and its clients. Depending upon the size of the
from the campaign. The rate and size of return should account and its advertising budget one or two
be determined in advance. If the expected rate of account executives serve as liaison to the
return is achieved in terms of additional profits, the client. The account executive's job requires
advertisement can be considered an effective one. In high degree of diplomacy and tact as
order to justify the investment in advertising, the misunderstanding may lead to loss of an
management makes an attempt to measure the account. The account executive is mainly
effectiveness of the advertisement. responsible to gain knowledge about the
client's business, profit goals, marketing
• To Compare the Results with the objectives and problems and advertising objectives.
Goals: An objective is a broad aim; a goal is specific The account executive is responsible for
and quantified objective. Generally, the objectives of getting approved the media schedules,
advertising are warded vaguely in general terms such budgets and rough ads or storyboards from the
as to increase sales or profits' or 'to expand our share client. The next task is to make sure that the
of market', or to maintain a favourable attitude of the agency personnel produce the advertising to
company and its product. Evaluation of these the client's satisfaction. The biggest role of the
objectives is not possible. If these objectives are stated account executive is keeping the agency ahead
in terms of the quantity or the amount of sales or of the client through follow-up and com-
percentage of total market shares, these are munications. In addition, this department is
measurable in these terms and effectiveness can be important since bulk of the agency's income
measured. If the goal have been achieved the approx. 65% goes as salary and benefits to the
advenising may be said to be effective. The result employees.
(actual sales) are compared with the goals and if the  Media Department: The Department is
actual performance is better, the advertising is responsible for the planning, scheduling,
effective otherwise, it is ineffective. booking and the purchase of space and time (in
newspapers, magazines, TV's outdoor hoard-
• To compare two markets: Under this procedure, ings). The Media Manager usually works with
advertising is published in test markets and results are the client-servicing department to plan and
contrasted with other market-so called control implement the client's advertising. The
markets-which have had the regular advertising department also keeps a check on the quality
programme. The measurement made to determine of reproduction of the advertisement. It is not
results might be measurements of change in sales, unusual to see sacks full of newspapers and
change in consumer attitude, change in dealer display, magazines being lifted everyday for
and depending upon the objectives sought by the advertisements by this department. Media
advertiser. Although experimentation is test markets planning is a specialized function aimed at
provides an excellent means for testing alternative spending the client's money in the most cost
advertising approaches to see if they are effective in effective manner. It focuses on whom the
actual operations, the measurement made are actually product is trying to reach, therefore, how it
measurements of the effectiveness of the promotional should be po-sitioned. This department takes
programme as a whole rather than measurement of over once the media to be used in decided. It
the effectiveness of the advertising itself. contracts for the space and time and
coordinates the release of advertisements
• To Know the Communication Effect: The according to schedules.
effectiveness of the advertising can be measured in
  Production and Studio Department: After
the completion and approval of the copy and As a percentage of sales, advertising expenditure
the illustrations the ad is sent to the production varies enormously from business to business, from
department. Generally, agencies do not market to market. For example, the leading
actually produce the finished ads; instead, they pharmaceutical companies spend around 20% of sales
hire printers, photographers, engravers, on advertising, whilst business such as Ford and Toyota
typographers and others to complete the spend less than 1%. An average for fast-moving
finished ad. For the production of the approved consumer goods market (FMCG) is around 8-10 of
T.V. commercial, the production department sales.
may supervise the casting of actors to appear
in the ad, the setting for scenes and selecting Approaches to Set the Advertising Budget
an independent production studio. The Same Level as Competitors
production department sometimes hires an This approach is widespread use when products are
outside director to transform the creative well established with predictable sales pat-terns. This
concept to a commercial. approved is based on the assumption that there is an
 Creative department: To a large extent, the "industry average" spend that works well for all major
success of an ad agency depends upon the players in a market. A major problem with this
creative department responsible for the approach is that it encourages businesses to ignore the
creation and execution of the advertisements. effectiveness of their advertising spend - it makes
The creative specialists are known as them "lazy" could also prevent a business with
copywriters. They are the ones who conceive competitive advantage from increase market share by
ideas for the ads and write the headlines, pending more than average.
subheads and the body copy. They are also
involved in deciding the basic theme of the Fixed Percentage of Sales
advertising campaign, and often they do In markets with a stable, predictable sales pattern,
prepare the rough layout of the print ad or the some companies set their advertising spend
commercial storyboard. Creation of an consistently at a fixed percentage of sales. This policy
advertisement is the responsibility of the has the advantage of avoiding an "adver-tising war"
copywriters and the art department decides with could be bad news for profits. This approach
how the advertisement should look. assumes that sales are directly can related to
 Traffic Department: The Traffic advertising. Clearly, this will not entirely be the case,
Department's primary goal is to ensure since other elements of the promotional mix will also
efficiency and prof-itability. To do this we affect sales. If the rule is applied when sales are
manage a system that goes a little something declining, the result will be a reduction in advertising
like this: just when greater sales promotion is required.
 Step 1: Getting a Project in the
Queue - In order for any project to get Residual
in the queue, a work order is submitted This approach is perhaps the wars of all, is to base the
detailing the projects scope. A schedule advertising budget on what the business can afford -
is then backed out and a kick-off after all other expenditure. There is no attempt to
meeting is set. It is during this kick-off associate marketing objectives with levels of
meeting that the Account team and the advertising. In a good year, large amounts of money
Creative team will discuss the could be wasted; in a bad year, the low advertising
approved creative brief and the details budget could guarantee a further low year for sales.
surrounding the project. Work can now
begin. Task
 Step 2: Routing for Internal This approach involves setting marketing objectives
Approval - Prior to any work being based on the "tasks" that the advertising has to
presented to a client, the Creative complete. These tasks could be financial in nature (e.g.
team must route it for internal achieve a certain increase in sales, prof-its) or related
approval. It is here that the Account to the marketing activity that is generated by the
team reviews and provides their campaigns. For example:
feedback. Once both the Creative team  Numbers of enquires received quoting the
and the Account team have signed off, source code on the advertisement.
the pieces) are ready to be presented  Increase in customer recognition/awareness
to the client. of the product or brand (which can be
 Step 3: Implementing Client measured).
Changes - Client changes are  Number of viewers, listeners or readers
addressed via a Change Request Form reached by the campaign.
(or a CSR). The Account team fills this
form out with the client's changes and Institutional Advertising
submit it to the Traffic department. All Advertising is the backbone of businesses. If done
client changes must go through Traffic right, it has the ability to help a business earn millions
so that we can keep track of how many and this is precisely the reason why businesses across
rounds we are on. This helps with that industries keep a substantial chunk of their budget for
whole profitability portion of the job. advertising. There are numerous kinds of advertising
 Step 4: Final Delivery - Just because and institutional advertising is one of them.
the client has approved something Also known as Corporate advertising, institutional
does not mean the project is done. A advertising is any type of advertising that promotes a
project is not considered completed business, organization, institution or similar unit. In
until its been final delivered to either institutional advertising, the business promotes itself
the printer or publication. In essence, rather than its product. However, the important thing
Traffic Incharge of making sure to remember here is that institutional advertising does
everything done well and done quickly. not aim to sell anything directly.
It takes many calendars, many excel Rather, it aims to create an image for the business and
sheets and lots of walking around to build goodwill for the organization and inform
achieve this, but when we do our job consumers about the philosophy of the organization. It
well, everyone is happy. mostly informs the general public about work done by
the organization in the field of health, education,
Advertising - Setting the Avertising Budget environment and other similar fields and tries to build a
It is notoriously difficult to measure the effect of reputation for the company. The most common
advertising on a business' sales. Advertising is just one mediums used for this kind of advertising are
of the variables that might affect sales in a particular Television, Radio, Digital and Print media.
period. These include:
 Consumer and business confidence. Objectives of Institutional Advertising
 Levels of disposable income.  The first and foremost objective of
 Availability of product. Institutional Advertising is to promote the
 Availability of competing products. image of a business as a whole rather than of a
 The weather. single product or service.
  The business also tries to promote its mission, Since institutional advertising only aims to promote the
vision as well as its philosophies and prin- organization as a whole and not any specific product,
ciples. some experts are of the opinion that they simply add to
 Institutional advertising is also an effective the advertising cost of the organization without
way to create and maintain goodwill about the substantial returns on investment in the
organization in the market. short run.
 Organizations also use this kind of advertising  Institutional advertising and product
to promote good qualities such as reliability, advertising are similar in the characteristic that
low prices or good customer care, that they tend to mislead consumers. Hence,
distinguish it from its competitors. consumers might feel cheated by the
organization.
Some Examples of Successful Institutional  Institutional advertising might sometimes lead
Advertising to Monopoly in the market. When an
The above image is an example of institutional organization of a single industry starts to
advertising by Adidas, one of the world's leading sports aggressively pursue institutional advertising, it
brand, in Print Media. Adidas started a campaign to might lead to a situation where it starts ruling
donate 10% of their sales proceeds to the poor orphans over its competitors and thus creates the
of Africa. This was a typical example of Institutional monopo-ly. This might become dangerous for
advertising. the market.
ITC, a multi-business conglomerate, tied hands with Institutional advertising, like anything else, has a
CRY to promote their classmate stationary. positive as well as negative side. However, if done
All their stationary carried an environmental message correctly, it has a huge scope of helping establish a
and ITC even donated Rupee 1 for every stationary positive brand identity for the organiza-tion. With the
sold. Though one of IT's prime businesses was ever-increasing competition, it can act as a booster for
Cigarettes, they managed to earn a good public image organizations.
for the company because of the above initiative. There have been documented cases where an effective
Another successful institutional advertising example is institutional marketing strategy has helped brands get
by IDEA Cellular, a mobile network oper-ator. Their ingrained in the minds of consumers and become their
advertising campaign "What an Idea Sirjee", which preferred choice. Institutional marketing is here to stay
targeted the growing issue of Cor-ruption, found an and thus it better to start using it to build a brand
instant connect with the general public while identity with the target consumers.
simultaneously establishing Idea as a brand that cared
about creating a corruption free country. ADVERTISING THEORY
Coca-Cola too has been into institutional advertising Advertising has numerous objectives which includes
since long. Known for Coke, its leading prod-uct, Coca- communicating with potential customers as well as
Cola has been at the forefront of promoting pursuading them to adopt a particular product or
environmental concerns. Its advertisements that target develop a preference towards the product for repeat
at recycling and Greenpeace have been well received purchase which ultimately results in brand loyalty.
by their target consumers and have simultaneously Advertising Theory or theories therefore try to explain
helped them establish itself as a brand that promotes how and why advertising is effective in influencing
environmental sustainability. behaviors and accomplishing its objectives.
There are numerous theories on advertising. Most
Types of Institutional Advertising theories of advertising generally propose that the
 The first kind of Institutional advertising is in effectiveness of advertising is dependent on the main
Print and digital media. This includes brand practices being carried out including more exposure
promotion through advertisements placed in towards the brand or repetitive advertising.
Newspapers, magazines, emails, text In other words, most theories sugest that if you want a
messages and others. consumer to like a product or a brand con-tinously then
 The second kind of institutional advertising is simply expost the consumer to a product or brands
on Television and Radio and consists of advertising such that there are certain feelings and
specially created infomercials and expectations attached towards the rand itself.
commercials. Advertising theories also make use of content
specification, Specific message and media
Advantages of Institutional Advertising characteristics, consumer characteristics,
• Increase awareness of the organization: Building product/service characteristics, and competitive
the Organization's image through institutional actions.
advertising helps the organization build brand
awareness. For example, if an organization dealing Advertising Theories
with luxury household goods wants to target customers • The mediation of reality: Ads are effective when
with high income, it will craft an advertisement that steered with other media and setting which they are
has several symbols of luxury, like the fine wine or entrenched. Apparently, what makes the ads
fancy homes, and thus entice its target consumers who persuasive is how they utilize the media to elicit world
will end up splurging on their high-end goods. of fictions and that of actions together and not
• Building brand identity: If institutional advertising necessarily the content. What the media do in regards
is aimed to follow a single theme, a cohesive brand to advertising is describing the excitement and
identity is built. An example here would be a brand addiction by extending and heightening our neural
targeting its demographic consumer - the modern responses.
working. If its advertisements also include symbols of For instance, you may realize that people like reading
men or children, it would send a mixed signal to the stories that they have already witnessed in the press
demographic consumer and thus decrease the effect of merely because the media has a way of repeating the
its advertisement. excitement that we have using our wits.
• Countering Negative attitude: Institutional
advertising is one of the most effective ways to counter • Shifting loyalties: Ads know how to play upon and
negative perception of consumers. A large majority of replicate clashed loyalties that keep on changing.
firms use this kind of advertising to counter a negative Mainly, the ads always try to cultivate a strong sense of
image of their company. IT is one of the best examples loyalty to an individual brand, but they also have a way
here. of urging consumers to alter their loyalties and make
In the example mentioned above, it used institutional an attempt toa rather new thing and primarily
advertising to counter customer perception about its renounce old loyalty for a relatively new brand in the
tobacco products. market.
• Develop a subtle sales pitch: Institutional Ads are effective in making consumers to shift their
advertising also helps develop a subtle sales pitch. The allegiance to a particular brand given that they can use
target consumers, who are subjected to this kind of messages packaged in such a way that it
advertising, do not realize that they are being psychologically implicates such a product to negativity.
indirectly being attracted to the products of the
company. • The magic of meaning: This explains how ads are
used in infusing the meaning of the products to the
Disadvantages of Institutional Advertising users in addition to selling. It shows how
advertisements influence the values and other
fundamental beliefs of the consumers. It essentially customer experiences in the digital age. The more
describes how and why ads have gone beyond the traditional advertising practices such as newspapers,
frontier of selling products and services and are billboards, and magazines are still used but fail to have
increasingly becoming involved with the shaping of the same effect now as they did in previous years.
individual and social values.
Ads are regarded as a form of organized magic that The importance of the IMC is to make the marketing
conceals the real nature of consumerism hence process seamless for both the brand and the
affecting social goals and public attitudes. This is consumer. IMC attempts to meld all aspects of
demonstrated through the ability of advertisement to marketing into one cohesive piece.This includes sales
keep away the public from dissatisfied questions. promotion, advertising, public relations, direct
marketing, and social media. The entire point of IMC is
•The hidden message: Ads are used in manipulating to have all of these aspects of marketing work together
and unconsciously misleading the pub-lic. as a unified force. This can be done through methods,
Psychologists argue that advertising is treacherous channels, and activities all while using a media
since it uses psychology to create hidden messages platform. The end goal of IMC is to get the brands
that are emotionally-loaded. What happens is that message across to consumers in the most convenient
since the message is hidden, there is a tendency of way possible.
viewers' critical resistance being deluded and reduced.
For instance, a doctor can be used in advertising a The advantage of using IMC is that it has the ability to
product and encouraging people to use it because he communicate the same message through several
uses the same. The notion here is that people will use channels to create brand awareness. IMC is the most
the product since the doctor is also using it hence it cost-effective solution when compared to mass media
must be healthy. It is this approach that shows advertising to interact with target consumers on a
precisely how critical thinking of consumers can be personal level. IMC also benefits small businesses, as
compromised with the ads. they are able to submerge their consumers with
communication of various kinds in a way that pushes
• Imitative desire: Ads have a way of playing upon them through the research and buying stages creating
consumer's tendency to want what other people also a relationship and dialogue with their new customer.
wish. Many theorists have always argued that it is Popular and obvious examples of IMC put into action
human nature to the desire of becoming what other are the likes of direct marketing to the consumer that
people are especially when the other person is the organization already has a knowledge that the
powerful, good-look-ing or famous. But the truth of the person is interested in the brand by gathering personal
matter is that it's hard to become another person, and information about them from when they previously
it is this castle in the air that keeps the desire alive. shopped there and then sending mail, emails, texts
On the same note, then you need to understand that and other direct communication with the person. In-
ads operate like collaborative rituals and not store sales promotions are tactics such as 30% off
necessarily as one-way messages. In this case, rituals sales or offering loyalty cards to consumers to build a
make it possible for people to put themselves in relationship. Television and radio advertisement are
societies through visionary prognosis toward others. also a form of advertising strategy derived from IMC.
It is always important if possible to critique ads as a All of the components of IMC play an important role
way of revealing hidden messages and ideolo-loyalty and a company may or may not choose to implement
that ultimately help in winning loyalty. any of the integration strategies.
gies. Nevertheless, we should all be in agreement that
ads are essential tools in shaping beliefs and loyalty Media Channels
that ultimately help in winning loyalty. Media channels, also known as, marketing
communications channels, are used to create a
ADVERTISING CAMPAIGN connection with the target consumer. Traditional
An advertising campaign is a series of advertisement methods of communication with the consumer include
messages that share a single idea and theme which newspapers, magazines, Radio, television, billboards,
make up an integrated marketing communication telephone, post and door to door sales.
(IMC). An IMC is a platform in which a group of people These are just a few of the historically traditional
can group their ideas, beliefs, and concepts into one methods.
large media base. Advertising campaigns utilize Along with traditional media channels, comes new and
diverse media channels over a particular time frame upcoming media channels. Social media has begun to
and target identified audi- play a very large role in the way media and marketing
ences. intermingle to reach a consumer base. Social media
The campaign theme is the central message that will has the power to reach a wider audience. Depending
be received in the promotional activities and is the on the age roup and demographic, social media can
prime focus of advertising campaign, as it sets the influence a company's overall image. Using social
motif for the series of individual advertisements and media as a marketing tool has become a widely
other marketing communications that will be used. The popular method for branding. A brand has the chance
campaign themes are usually produced with the to create an entire social media presence based
objective of being used for a significant period but around their own specific targeted community.
many of them are temporal due to factors like being With advancements in digital communications
not effective or market conditions, competition and channels, marketing communications allow for the
marketing mix. possibility of two-way communications where an
Advertising campaigns are built to accomplish a immediate consumer response can be elicited. Digital
particular objective or a set of objectives. Such communications tools include: websites, blogs, social
objectives usually include establishing a brand, raising media, email, mobile, and search engines as a few
brand awareness, aggrandizing the rate of examples. It is important for an advertising campaign
conversions/sales. The rate of success or failure in to carefully select channels based on where their
accomplishing these goals is reckoned via target consumer spends time to ensure market and
effectiveness measures. There are 5 key points at advertising efforts are maximized.
which an advertising campaign must consider to
ensure an effective campaign. These points are, Modern Day Implications to the Advantages and
integrated marketing communications, media Disadvantages of Traditional Media Channels
channels, positioning, the communications In the rapidly changing marketing and advertising
process diagram and touch points. environment, exposure to certain consumer groups and
target audiences through traditional media channels
Integrated Marketing Communication: (IMC) has blurred. These traditional media channels are
Integrated marketing communication (IMC) is a defined as print, broadcast, out-of-home and direct
conceptual approach used by the majority of mail. The introduction of various new modern-day
organizations to develop a strategic plan on how they media channels has altered their traditional
are going to broadcast their marketing and advertising advantages and disad-vantages. It is imperative to the
campaigns. Recently there has been a shift in the way effectiveness of the Integrated Marketing
marketers and advertisers interact with their Communication (IMC) strategy that exposure to certain
consumers and now see it as a conversation between demographics, consumer groups and target audiences
Advertising/ Marketing teams and consumers. IMC has is anticipated to provide clarity, consistency, and
emerged as a key strategy for organizations to manage maximum communications impact.
 graduate, degrees, masters, Ph.D. or other forms of
Print media is mainly defined as newspapers and defining educational factors. Knowing this information
magazines. With the transition in last decade can help an advertiser understand their target markets
[2006 - 2016] to digital information on phones, level of thinking to help adapt the advertising
computers and tablets, the demographic that still are campaign to be understood by the given target
exposed to traditional print media is going to be older. consumer/s.
It is also estimated that there will be a reduction of
print material in coming years. This has to be taken For a business to successfully find the appropriate
into account by the advertisers and in some cases, Target Market for their products or services, it is
they could use this to their advantage. Newspapers important that they segment the market to better
advantages would be that it is low cost, timely, reader decide which customers to target. This is best done
controls exposure and has moderate coverage to the when the market is segmented into the four following
older generations in western society. Disadvantages areas: geographic, demographie psychographic
would obviously be the aging demographic, short life, and behavioural.
clutter and low attention-getting capabilities.
Magazines are similar in some cases but have defined Geographic segmentation involves the market being
differenc es as they are a niche product increasing divided into different nations, regions, states, counties,
segmentation potential; they also have high cities, or neighbourhoods. Segmenting the Target
informational content and longevity. Disadvantages are market geographically is effective as different areas
they are visual only, lack of flexibility and a long lead have different needs, which can be affected by
time for advertisement placement. weather, fashion, etc.

Traditional broadcast media's primary platforms Demographic segmentation separates the market
are television and radio. These are still relatively into groups according to age, gender, family size,
prominent in modern-day society, but with the income, occupation, education, religion, nationality,
emergence of online content such as YouTube. and race. It is important to note that this is the easiest
Instagram and Vine it would difficult to anticipate and least expensive way to segment the market, as the
where the market is headed in the next de-low post per research has already been done.
exposure and impacts human senses. Disadvantages
would be that it has low selectivity, short message life Psychographic segmentation is the process of
and high production costs. Alternatively, radio offers markets being divided into groups based on social
flexibility, high frequency and low advertising & class, personality characteristics, and values.
production costs. Disadvantages to radio are that its
audio only, low atten-tion-getting and short message. Behavioural segmentation "divides a market into
groups based on consumer knowledge, attitude use, or
Out-of-home (OOH) media a broad marketing response to a product". This is believed to be the best
concept that is no longer relegated to large, static bill- starting point, when a business is building a market
boards on the side of motorways. More current and segment. The behavioural segment is important
innovative approaches to OOH media range from street because it focuses on why consumers consume
furniture to aerial blimps. Due to the constant and products. For example, during Father's day and
contemporary nature of the outdoors there will always Mother's day, flowers were promoted due to the heavy
be new ways in which a campaign can revitalize this demand of flowers during these holidays.
media channel. Advantages would be the accessibility
and reach, geographic flexibility and relatively low Defining the target market helps businesses and
cost. Disadvantages to OOH media are that it has a individuals design a marketing campaign. This in turns
short life, difficult to measure / control and it can helps businesses/ individuals avoid waste and get their
convey poor brand image. advertisements to likely customers. While attempting
to find the correct target market it is important to focus
Direct mail is classified as messages sent directly to on specific groups of individuals that will benefit from
consumers through the mail delivery service. One of your product. By marketing to specific groups of
the more 'dated' media channels and in the modern individuals that specifically relate to the product,
day has very little advantages, other than it is highly businesses and individuals will more quickly and
selective and has high information content. efficiently find those who will purchase the product.
Disadvantages are that it promotes a poor brand image Businesses and individuals that monitor their existing
- junk mail and that it has a high cost to contact ratio. data (customer and sales data) will find it easier to
define their target market, and surveying existing
Target Market customers will assist in finding more customers.
When an organisation begins to construct their Avoiding inefficiencies when finding a target market
advertising campaign they need to research each and is equally as important. Wasting time and money
every aspect of their target market and target advertising to a large group of potential customers is
consumer. The target consumer is the person or group inefficient if only a handful become customers. A
of people who is most likely to buy from an focused plan that reaches a tiny audience can work out
organisation, he is also called 'potential custom-er'. A well if they're already interested in what you're selling.
target consumer can be categorized by several key Over time target markets can change. People
characteristics; Gender, age, occupation, marital interested today might not be interested tomorrow,
status, geographical location, behavioral, level of and those not interested in the present time, might
income and education to name the main factors. This become interested over time. Analysing sales data and
process is called segmenting customers on the basis of customer information helps businesses and individuals
demographics. understand when their target market is increasing or
decreasing.
Gender is simply whether a person is male or female.
Age is usually broken up into bracketed intervals of ten There are many advantages that are associated
or so years, for example, a person's age between 15-25 with finding your Target Market. One advantage is
years old. By understanding which age bracket the the "ability to offer the right product " through
target market falls into the advertisers can position knowing the age and needs of the customer willing to
their efforts accordingly. Occupation is also known as purchase the item. Another advantage of Target
a profession and refers to what a person does for a Marketing assists businesses in understanding
living; this could be a particular job, student, what price the customer will pay for the
unemployed etc. A person's marital status defines products or service. Businesses are also more
whether they are married or unmarried. Geographical efficient and effective at advertising their product,
location is a broad term specifying a particular area or because they "reach the right consumers with
place within a given country, state/ city, suburb or messages that are more applicable".
street as some examples. Income refers to how much
money a person is earning annually which can help However, there are several disadvantages that can
identify how much money they have left over after be associated with Target Marketing. Firstly,
expenses to potential spend on a brand. The final finding your Target Market is expensive. Often
factor to explain is education, whether a person went businesses conduct primary research to find whom
to school or not, what school they attended, what their Target Market is, which usually involves hiring a
standard of education they have, diplomas, certificates, research agency, which can cost "tens of thousands of
dollars". Finding ones Target Market is also time- product reinforces the companies name, product and
consuming, as it often "requiresa considerable brand It also makes the brand popular and strengthens
amount of time to identify a target audience". Also customer loyalty. Product benefits to customer are
focusing on finding your Target Market can make you better advertised through positioning the product,
overlook other customers that are interested in your which results in more interest and attention of
product. Businesses/Individuals may find that their consumers. This also attracts different types of
'average customer' might not include those that fall consumers as products posse's different bene-fits that
just outside of the average customers "demographics", attract different groups of consumers, for example: a
which will limit the sale of their products. The last shoe that is advertised for playing sports, going for
disadvantage to note is the ethical ramifications that walks, hiking and casual wear will attract different
are associated with Target Marketing. An example of groups of consumers. Another advantage of positioning
this would be a "beer company that may target less is the competitive strength it gives to businesses/
educated, poorer people with larger-sized bottles". individuals and their products, introducing new
products successfully to the market and
Positioning communicating new and varied features that are added
In advertising various brands compete to overtake the to a product later on.
perceptual mapping in a consumers mind. Everyday
consumers view advertising and rank particular brands Communication Process Diagram
compared to their competitors. Individuals rank these The Communication of processes diagram refers to the
specific brands in an order of what is most important to order of operation an advertising campaign pieces
them. For example, a person may compare brands of together the flow of communication between a given
cars based on how sporty they think they look, organisation and the consumer. The diagram usually
affordability, practicality and classiness. How one flows left to right (unless shown in a circular array)
person perceives a brand is different to another but is starting with the source. An advertising campaign uses
largely left to the advertising campaign to manipulate the communication process diagram to ensure all the
and create the perception that they want you to appropriate steps of communication are being taken in
envision as the consumer. order.

Positioning is an important marketing concept that The source is the person or organisation that has a
businesses implement to market their products or message they want to share with potential con-sumers.
services. The positioning concept focuses on creating An example of this is Vodafone wanting to tell their
an image that will best at-tract the intended audience. consumers and new consumers of a new monthly plan.
Businesses that implement the positioning concept
focus on pro-motion, price, placement and product. The diagram then moves on to encoding which
When the positioning concept is effective and consists of the organisation putting messages,
productive it elevates the marketing efforts made by a thoughts and ideas into a symbolic form that be
business, and assists the buyer in purchasing the interpreted by the target consumer using symbols or
product. words.

The positioning process is imperative in marketing The third stage in the diagram is channel message.
because of the specific level of consumer-based This occurs when the information or meaning the
recognition is involved. A company must create a source wants to convoy, is put into a form to easily be
trademark brand for themselves in order to be transmitted to the targeted audience. This also
recognizable by a broad range of consumers. For includes the method that communication gets from the
example, a fast food restaurant positions itself as fast, source to the receiver. Examples of this is Vodafone
cheap, and delicious. They are playing upon their advertising on TV, bus stops and university campuses
strengths and most visible characteristics. On the other as students may be the intended consumer for the new
hand, a luxury car brand will position its brand as a plan.
stylish and expensive platform because they want to
target a specific brand very different than the fast food Decoding is the processes that the viewer interprets
brand. the message that the source sent. Obviously it is up to
the source to ensure that the message encoded well
For the positioning concept to be effective one must enough so that it is received as in-tended.
focus on the concepts of promotion, price, place
and product. The receiver is also known as the viewer or potential
consumer. This is the person who interprets the source
There are three basic objectives of promotion, message through channeling whether they are the
which include: presenting product information to intended target audience or not. Every day we
targeted business customers and consumers, interpret different advertisements even if we are not
increase demand among the target market, and the target audience for that advertisement.
differentiating a product and creating a brand
identity. Tools that can be used to achieve these In between these steps there are external factors
objectives are advertising, public relations, personal acting as distractions, these factors are called noise.
selling, direct marketing, and sales promotion. Noise distorts the way the message gets to the
intended target audience. These distractions are from
Price of an object is crucial in the concept of all other forms of advertising and communication from
positioning. Adjusting or decreasing the product price every other person or organisation.
has a profound impact on the sales of the product, and Examples of noise are State of mind, unfamiliar
should complement the other parts of the positioning language, unclear message, Values, Attitudes, Per-
concept. The price needs to ensure survival, increase ceptions, Culture and Knowledge of similar products or
profit, generate survival, gain market shares, and services to name a few forms of noise.
establish an appropriate image.
Finally there is the response or feedback. This is the
Positioning a product is essential in the positioning receiver's reaction to the communication of message
concept. It is the process marketers use to and the way they understood it. Feedback relates to
communicate their products' attributes to the intended the way sales react as well as the in-terest or questions
target market. In order for products to be successful that arise in relation to the message put out.
businesses must focus on the customer needs,
competitive pressures, available communication
channels and carefully crafted key messages.

Product Positioning presents several advantages in

the advertising campaign, and to the busnesses/
individuals that implement it. Positioning connects with
superior aspects of a product and matches "them with
consumers more effectively than competitors". Touch Points
Positioning can also help businesses or individuals
realise the consumer's expectations of the product/s
they are willing to purchase from them. Positioning a
 weekday mornings or window displays that are
regularly updated). The fifth step is to create a
statement which positions the
brand/product/company in the market. Define the
brands characteristics and give it an identity is the
sixth element. Lastly, clearly identify a budget
which will be put solely towards marketing going
forward.

For a successful overall guerrilla marketing campaign,

combine the above steps with seven winning actions.
Customer journey with touchpoints English. These seven principles are commitment - stick to
When considering touch points in an advertising the marketing plan without changing it; investment -
campaign a brand looks Multisensory touch points. appreciate that marketing is an investment,
These touch points help the brand to develop a point of consistency - ensure the marketing message and
contact between themselves and the consumer. strategy remains consistent across all forms of,
Modern day advancements in various forms of confidence - show confidence in the commitment to
technology have made it easier for consumers to the guerrilla marketing strategy, patience - time and
engage with brands in numerous ways. The most dedication to the strategy, assortment - incorporate
successful touch points are those that create value in different methods of advertising and marketing for
the consumer and brands relationship. Common optimum results, and subsequent - build customer
examples of touch points include social media links, QR loyalty and retention though follow up marketing post-
codes, person handing out flyers about a particular sale.
brand, billboards, web sites and various other methods
that connect the brand and consumer. Levinson suggests guerrilla marketing tactics were
initiated to enable small businesses with limited
Multi sensory touch points are subconscious yet financial resources to gain an upper hand on the
helps use to recognise brands through characteristic corporate giants who had unlimited budgets and
identified through human sensors. These resources at their disposal. Large companies cottoned
characteristics could be shape, colour, textures, on to the success of guerrilla marketing and have had
sounds, smell or tastes associated with a given brand. hundreds of effective attention-grabbing campaigns
It is important for an advertising campaign to consider using the strategies originally designed for smaller
sensory cues into their campaign as market places businesses with minimal marketing budgets.
continue to become increasingly competitive and
crowded. Anyone of the given sensory characteristics Non-traditional, unconventional and shocking
may remind a person of the brand they best associate campaigns are highly successful in obtaining media
with. A prime example of this is Red Bull who use the coverage and therefore brand awareness, albeit good
colour, shapes and size of their cans to best relate their or bad media attention. However, like most marketing
product to success and winning. A taller can looks like strategies a bad campaign can backfire and damage
the 1st place podium when placed next to competitors, profits and sales. Undercover marketing and
the design looks like the finish flag in racing astroturfing are two type of guerrilla marketing that are
representing winning. The opportunity for an deemed as risky and can be detrimental to the
advertising campaign to succeed is significantly company.
increased with the use of multi sensory touch points
used as a point of difference between brands. "Advertising can be dated back to 4000 BC where
Egyptians used papyrus to make sales messages and
Guerrilla Marketing wall posters. Traditional advertising and marketing
Guerrilla marketing is an advertising strategy which used papoped over the centuries but never bloomed
increases brand exposure through the use of until early 1900s". Guerrilla marketing are relatively
unconventional campaigns which initiate social simple, use tactics to adver-tise on a very small
discussion and "buzz". This can often be achieved with budget. It is to make a campaign that is "shocking,
lower budgets than conventional advertising methods, funny, unique, outrageous, clever and creative that
allowing small and medium-sized businesses the people can't stop talking about it". Guerrilla marketing
chance to compete against larger competitors. Through is different when compared to traditional marketing
unconventional methods, inventiveness and creativity, tactics. "Guerrilla marketing means going after
guerrilla marketing leaves the receiver with a long conventional goals of profits, sales and growth but
lasting impression them by surprise and may doing it by using unconventional means, such as
incorporate an element of shock. Guerrilla marketing is expanding offerings during gloomy economic days to
typically executed exclusively in public places, inspire customers to increase the size of each
including streets, parks, shopping centres etc., to purchase". Guerrilla marketing also suggests that
ensure maximum audience resulting in further rather than investing money, it is better to "invest
discussion on social media. time, energy, imagination and knowledge" instead.
Guerrilla marketing puts profit as their main priority not
Guerrilla marketing is the term used for several types sales as their main focal point, this is done to urge the
of marketing categories including street marketing, growth of geometrically by enlarging the size of each
ambient marketing, presence marketing, alternative transactions. This all done through one of the most
marketing, experimental marketing, grassroots powerful marketing weapons around, the telephone.
marketing, wild posting, guerrilla projection Research shows that it will always increases profits and
advertising, undercover marketing and astroturfing. sales. The term "guerrilla first appeared during the war
of independence in Spain and Portugal at the beginning
Jay Conrad Levinson coined the term Guerrilla of the 19th century it can be translated as battle". Even
Marketing with his 1984 book of the same name. thou guerrilla marketing was aimed for small business;
Through the enhancement of technology and common this did not stop bigger business from adopting the
use of internet and mobile phones, marketing same ideology. "Larger business has been using
communication has become more affordable and unconventional marketing to complement their
guerrilla marketing is on the rise, allowing the spread advertising campaigns, even then some marketers
of newsworthy guerrilla campaigns. argue that when bigger business utilize guerrilla
marketing tactics, it isn't true guerrilla". The rea-son
When establishing a guerrilla marketing strategy, there being that larger companies have bigger budgets and
are seven elements to a clear and logical usually their brands well established. In some cases, it
approach. Firstly, write a statement that identifies is far riskier for a larger business to do guerrilla
the purpose of the strategy. Secondly define how the marketing tactics. Which can cause problem when their
purpose will be achieved concentrating on the key stunts become a flop when compared to smaller
advantages. Next Levinson suggests writing a business, as they do not run as much risk, as most
descriptive summary on the target market or people will just write it off as another failed stunt. Many
consumers. The fourth element is to establish a methods in guerrilla marketing consist of "graffiti (or
statement that itemizes the marketing tools and reverse graffiti, where a dirty wall is selectively
methods planning to be used in the strategy (for cleaned), interactive displays, intercept encounters in
example, radio advertising during 6.30am - 9am on
public spaces, flash mobs, or various PR stunts are and ads will be used, and if it is a television campaign,
often used." what type of commercials will be used.

Small business use social media as a form of There might also be a mix and match advertising in
marketing. This Is due to that social media in the 21st which radio might supplement television advertising
century is phenomenon. "Collecting billions of people and so on. It is important that through advertising
around the world through a series of status updates, management the image is conveyed that all the
tweets, and other rich media". Social media is a strategies complement each other. It should not look to
powerful tool in the world of business. Guerrilla public that the radio advertising is focusing on
marketing strategies and tactics are a great and cost something else while television on something else. The
effective way to generate" awareness for your whole process in the end should benefit the product or
business, products and services. To maximize full service.
potential in your marketing efforts, it's to blend them
with a powerful and robust online marking strategy The role of people designing the advertising campaign
with a marketing automation software". Which can is crucial to its success. They have been trained by
boost small businesses. Guerrilla tactics consist of seasoned professionals who provide the training in the
instruments that have effects on the efforts. Some specific field. Designing an advertising campaign is no
instruments are usually there to maximize the surprise small a task and to understand the consumer behavior
effect and some of these instruments mainly cutting from the data collected from market research is a very
advertising costs." Guerrilla marketing is a way of important aspect of the campaign.
increasing the number of individuals exposed to the
advertising with the cost of campaign. The instrument A whole lot of creativity and inspiration is required to
of diffusion helps to each a wide audience, which launch an adequate advertising campaign. In addition,
causes none or little cost because consumers (viral the management skills come into play when the work
marketing) or the media (guerrilla PR) pass on the has to be done keeping the big picture in mind. It
advertising message". Guerrilla campaigns usually would be fruitful for the company if the advertising
implement a free ride approach, this means that to cut campaign lasts well over the lifetime of a product or
their costs and increase the number of recipients service, reach the right customers, and generate the
simultaneously to maximize the low cost effect. For desired revenue.
example, they will try to benefit from placing
advertisements on big events e.g. sporting events. Use of advertising requires some understanding as to
Guerrilla marketing was regarded to target existing how it functions through the use of suitable media. To
customers rather than new ones, aiming to increase understand this process of communication, various
their engagement with a product and/ or brand. "When models have been turned to under-stand more about
selecting audiences for a guerrilla message, a group consumer responses to advertisement in terms of their
that is already engaged with the product at some level involvement and feelings
is the best target; they will be quicker to recognize and and on the other hand researches continue their
respond to creative tactics, and more likely to share interest in more quantitative approaches.
the experience with their friends, as social media has
become a major feature of the market landscape, The important models are as follows:
guerrilla marketing has shown to be particularly  AIDA Model: AEDA model or theory is one of the
effective online. Consumers who regularly use social early models of the subject. It was de-veloped in
media are more likely to share their interactions with the 1920's. The letters in the acronym denote:
guerrilla marketing and creative advertising can Attention, Interest, Desire and Action. The model
quickly go viral." suggests that any effective impersonal sales
presentation should attract Attention, gain Interest,
ADVERTISING MANAGEMENT arouse a Desire and result in Action.
Advertising Management is a complex process of
employing various media to sell a product of service.  Five Stage Model: An interesting model was put
This process begins quite early from the marketing forward in the 1930's by rural sociologists studying
research and encompasses the media campaigns that the process of "innovation adoption". This model
help sell the product. suggested five stages in any adoption process:
Awareness, Interest, Evaluation, Trial and Adoption.
Without an effective advertising management process
in place, the media campaigns are not that fruitful and  Six Stage Model: This model was put forward by
the whole marketing process goes for a toss. Hence, Lavidge and Gary Steiner: AKLPCP-Awareness,
companies that believe in an effective advertising Knowledge, Liking, Preference, Conviction and
management process are always a step ahead in terms purchase-Model. They give higher importance to
of selling their goods and services. the cognitive evaluations before the purchase. With
an increase in competition and enhancement in
Advertising management begins from the market discerning abilities of potential buyers and users,
research phase. At this point, the data produced by information is likely to plays greater role. The
marketing research is used to identify what types of persuasive power of advertising in itself is a
advertising would be adequate for the specific product. function of the information content.
Gone are the days when there was only print and
television advertising was available to the
manufacturers. These days apart from print and This models also take into account the prevailing
television, radio, mobile, and Internet are also available degree of competition. The competition can arise
as advertising media. Advertising management process between two brands or between substitute
in fact helps in defining the outline of the media products in two dissimilar categories. The stage of
campaign and in deciding which type of advertising liking (after the stage of awareness and
would be used before the launch of the product. knowledge) refers to the ability of advertising in
creating a choice through its creativity and theme.
If you wish to make the advertising effective, always Preference for the brand is the combined effect of
remember to include it from the market re-search time. product characteristics and their relevance in
Market research will help to identify the niche segment satisfying the need of target audience through
of the population to which the product or service has to creative advertising.
be targeted from a large population. It will also identify
why the niche segment would opt for the product or  DAGMAR Model: All the above models belong to a
service. This information will serve as a guideline for class that is commonly called the "hierarchy of
the preparation of advertising campaigns. effect" model.
In the 1950's came another model DAGMAR, belonging
Once the niche segments are identified and the to the same broad category of hierarchy of effects
determination of what types of advertising will be used model. Communication theories have proposed several
is done, then the advertising management focuses on models to explain the way of advertising works and
creating the specifics for the overall advertising each have some similarity.
campaign. If it is a radio campaign, which type of ads
would be used, if it is a print campaign, what write ups One model known as the DAGMAR Model (Defining
Advertising Goals for Measured Advertising Results)
describes the sequence of stages through which the  Offset the Competing Brands: Many similar
prospective customer has to move: products are flowing towards the market and
 Unawareness, consumers are tempted to buy them through
 Awareness, various promotional measures. Further, advertising
 Comprehension of the offer, facilitates the creation, direction and extension of
 Conviction, demand for the particular products or service. A
 Action. good advertising policy is always linked with the
ultimate behaviours of customers.
Through advertising, the retailer will make the For instance, when one buys a bathing soap today,
potential customer aware of the store and its range of one may go in for a particular brand the next time.
offers. As part of the advertising communication By focusing the qualities and merits of the product
process, information has to be clearly trans mitted so it in a better way than other similar products, the
can be decoded and comprehended properly. The competitors can be defeated by capturing their
process is then to make the offer credible so that the share of the market.
potential customer can show a favourable attitude to
the store or product. The act of purchase may then Increasing the Consumption Rate among the
follow. Present Customers
 Increasing Usage of the Products: When a product
Advertising Objectives is introduced in the market, it is meant for a
Five key words to summaries the advertising specific use. But when the product is put into use
objectives: consumers may come to know of its new uses. This
1. What: What role is advertising expected to fulfil in is possible through research. Advertising will
the total marketing effort? explain the multiple uses to the masses.
2. Why: Why is it believed that advertising can  Reminding the Consumers: The demand may be
achieve this role? (What evidence is there and seasonal-cool drinks, woollen dresses, air-coolers
what assumptions are necessary?) etc. They are saleable during the season period;
3. Who: Who should be involved in setting objectives; but during off season period, no sales may be
who should be responsible for agreeing the possible. Again at the arrival of the season,
objectives, coordinating their implementation and customers may not remember the brand used by
subsequent evaluation? Who are the intended them, before making purchase. In these
audience? circumstances, advertising reminds the customers
4. How: How are the advertising objectives to be put about the forgotten products.
into practice?  Educating the Public: Advertisement being a
5. When: When are various parts of the programme connecting link between the producer and the
to be implemented? When can response be consumers also plays its role by imparting
expected to each stage of the programme? knowledge. Consumers may not know the good or
bad reactions of a certain product or services. For
Functions of Advertising instance, when we purchase cloth, we are warned
The main objective of advertising is to stimulate or through advertisement, to go in for sanforized
increase sales to all customers-present, for-mer and cloth(dot)Sanforized cloth will not shrink.
future. Advertising increases the present sales and
potential demand of the product. The above objectives Those who do not know this, buy bad material and
are realized by the functions of advertising. when stitched the dress becomes tight. Another
example is baby milk food. The producer gives full
Functions of advertising are given below: instructions even on the pack-age about the
measurement of milk powder according to the age
Increasing the Number of Customers of babies. Take the exam-ple of new model scooter
 By Increasing the Customers and Widening the or car.
Market: Advertising through communication media
informs consumers about the presence of a The company appoints its own mechanics to see to
product in the market. This effective ad- the repairs and this will be published in
vertisement works in two ways. First it stimulates newspapers. In case you approach any other
demand and then it strengthens the stim-ulated mechanic to repair your new model vehicle, the
demand. The benefits and various uses of the inexperienced mechanic may spoil it. Other similar
products must be made known to the public of the instances are shampoo, hair dye, soap, powder,
area where the marketer wants to enter for hair oil, medicine etc. The understanding of the
marketing. To achieve the objectives, advertising is product, its uses, advantages etc., can be well-
the only way. It serves to widen the market educated through advertising.
through increasing the buyers.  Shaping a Goodwill: Almost every firm wants to
 By Developing a Brand Loyalty: All traders or establish a good name in the society. Like a human
manufacturers aim to attract the prospects in being, a firm doing good services to the society or
favour of their products and services. Development offering products-different from others, better and
of loyalty to one's brand among the customers is cheaper than other products etc., earns a good
important. For instance, if one is using a particular name. Such a firm may ever be remembered by
brand of soap, then adver tising must aim at the consumers.
making him to use only this soap. Advertising and
its impact make him a continuous and ever user The consumers may prefer a product, because of:
and do not want him to leave it for another brand.
o Low price o Multiple uses
o Fashion o Quality merchandise
o Service after sales o Wider publicity.

All these merits are known to the consumers through Publicity facilitates large-scale production, followed by
advertising, and sales are boosted automat ically. Thus mass consumption creating employment opportunities,
a firm can build a goodwill for its products. Advertising apart from profits.
plays a vital role in creating the public into background
or an interest in the thousands of people-about the "Advertising" aims at:
product in the shortest span of time at the least cost.
o Benefitting the Producer. o Supplementing the Salesmen.
o Educating the Consumer. o Link between Producer and the Consumer.

The term ad network is media neutral, but is often used

ADVERTISING NETWORK to imply "online ad network" since the marketplace of
An advertising network, or ad network, connects aggregated publisher ad space and advertisers is
businesses that want to run advertisements with increasingly found on the Inter-net. The crucial
websites that wish to host them. The principle attribute difference between traditional and online ad networks
of an ad network is the gathering of ad space and is that online ones deliver advertisements to the public
matching it with the advertiser's needs. through an ad server. Delivering ads through one
central hub allows the business owner to use various for the advertiser about where their ads will run.
methods of targeting, tracking and reporting that don't They typically promote high-quality traffic at
exist with traditional media alternatives. market prices and are heavily used by brand
marketers. The economic model is generally
Ad networks work with publishers all over the Web, revenue share. Vertical Networks offer ROS (Run-
helping anyone who has unsold inventory, or ad space, Of-Site) advertising across specific Channels
and wishes to monetize their offerings. The networks (example: Auto or Travel) or they offer site-wide
then aggregate this inventory, package it and sell it to advertising options, in which case they operate in a
advertisers. similar fashion to Publisher Representation firms.
 Blind networks: These companies offer good
Pros and Cons pricing to direct marketers in exchange for those
The benefits of using ad networks are numerous for marketers relinquishing control over where their
both content providers and advertisers. Con tent ads will run, though some networks offer a "site opt
providers find them an easy and reliable way to sell out" method. The network usually runs campaigns
inventory, although the revenue is typically less than as RON or Run-Of-Network. Blind networks achieve
what they could earn selling the space themselves. their low pricing through large bulk buys of
Advertisers also like the ease of use. With minimal typically remnant inventory combined with
effort, they can purchase a campaign that targets a conversion optimization and ad targeting
specific group of consumers on websites throughout technology.
the world. Ad networks are also known for flexible  Targeted networks: Sometimes called "next
payment models and cost efficiencies. generation" or "2.0" ad networks, these focus on
specific targeting technologies such as behavioral
The downside to advertisers is limited control over ad or contextual, that have been built into an ad
placements. The possibility exists that ads could server. Targeted networks specialize in using
appear next to inappropriate content. Many advertisers consumer clickstream data to enhance the value of
have also complained that their own campaign the inventory they purchase. Further specialized
analytics often do not match up with the metrics targeted networks include social graph
provided by the networks. Despite these downfalls, technologies which attempt to enhance the value
many businesses find ad networks to be an affordable of inventory using connections in social networks.
and efficient way of reaching consumers.
Based on Number of Clients and Traffic Quality
Pricing Structure Ad networks can also be divided into first-tier and
Ad networks offer many different pricing models to suit second-tier networks. First-tier advertising net-works
the needs of different businesses: have a large number of their own advertisers and
 CPM - cost-per-mille is the simplest of ad delivery publishers, they have high quality traffic, and they
options. Advertisers pay a price for every 1,000 serve ads and traffic to second-tier networks. Examples
impressions delivered. An ad served on someone's of first-tier networks include the major search engines.
browser is an impression. Whether or not the user Second-tier advertising networks may have some of
clicks on the ad has no bearing on the price. their own advertisers and publishers, but their main
 CPC - cost-per-click is a performance-based model. source of revenue comes from syndicating ads from
Impressions served do not factor in cost. Instead, other advertising networks.
advertisers pay for every click they get on an ad
campaign. This method of pricing often depends While it is common for websites to be categorized into
upon advertisers bidding on the maximum amount tiers, these can be misleading. While Google is in the
they will pay for a single click, a model that's clear majority of advertisement impression served,
become very popular on Google AdSense and other networks that could be labeled as tier 2 actually
Adwords. The downside of CPC is the uncertainty of dominate over these tier 1 ad networks as far as the
how often the ad will be served, however, the low number of customers reached.
risk and focus on performance still make it an
attractive option to most marketers. Mobile and Video Ad Networks
 CPA-cost-per-acquisition, or cost-per-action, takes Ad networks often support a wide spectrum of ad
the performance-based model even further by formats (e.g. banners, native ads) and platforms (e.g.
guaranteeing advertisers will only pay for a specific display, mobile, video). This is true for most ad
action or conversion by the user. This ad delivery networks. However, there also are ad net-works that
metric is often a key performance indicator for focus on particular kinds of inventory and ads:
marketers when evaluating return on investment  Mobile ad networks, focus on the traffic generated
(ROI). A campaign that cost $250 and resulted in via mobile web and mobile apps, and work with the
25 sales means the CPA was $10. If the per-sale- corresponding ad formats.
profit exceeds $10 then the campaign was a  Video ad networks serve ads via inventory,
success. associated with online video content.
 Video and mobile ad networks can be acquired by
Ad Targeting Capabilities larger advertising companies, or operate as
Targeting capabilities for advertisers have increased standalone entities,
dramatically over the years due to massive quantities
of consumer data that have become available to the Issues
marketing community. Targeting capabilities may  Positioning: Most ad networks don't disclose
include: impressions per site. This means that advertisers
 Age or media agencies aren't sure where their ads will
 Gender run. This can be a dangerous proposition if your ad
 Income turns up in website that you don't want to be
 Geography associated with.
 Behavior - displays relevant ads to users based on  Malware: Some ad networks have been implicated
content they've clicked on while visiting several in aiding the distribution of malware due to
sites. allowing malicious advertisers to buy inventory
across their partner sites without enough scrutiny.
Types  Price transparency: Let's examine a scenario. An
There are several criteria for categorizing advertising ad network packages display inventory
networks. In particular, the company's busi-ness  to an agency at say $10 CPM (cost per mille or cost
strategy, as well as the quality of the networks' traffic per thousand impressions). The ad network would
and volume of inventory can serve as bases for then buy a very small portion of the inventory on
categorization. premium publications at $50 CPM and a large
portion of the long tail inventory at $2 CPM. The
Based on Business Strategy real eCPM (effective CPM) of the campaign for the
Online advertising networks can be divided into three ad network is around $2.50, and is far from the
groups based on how they work with advertisers and agency's claim of premium inventory. The
publishers: marketer is however appeased with screen grabs
of his ads appearing in premium positions,
 Vertical networks: They represent the oblivious of the masquerade while the ad network
publications in their portfolio, with full transparency walks away with a big margin.
 Ad relevance: More often than not, the ads were
out of relevance with the website content as a fall
out of point 1, and also because there weren't
intelligent contextual engines built into the ad
servers (the server system that churns out the ads)
of these ad networks.
Online Ad Networks and Advertising Publishers
Most online ad-network platforms offer website owners and marketers to signup as advertising publishers. Publishers
can then display ads shared by the advertising network and the revenue is shared between both the advertising
network and publisher. When the beginners could not pass through the minimum criteria for publishing
advertisements, ad placement services could ban the publisher for not fulfilling the requirements. Some networks
demand strict terms and conditions while there are other ad publishing alternatives sometimes commissions vary on
what sells other-wise user still to earn a good commission when one matches the criteria, the publisher is allowed to
display and share ads provided by the platform to earn a good revenue. Getting approved as a publisher to the best
advertising platform is a thorough process. Websites with a clean interface, more traffic and engagements are
preferred to be selected as ad network publisher by the advertising platforms.

Notable Advertising Networks

Network Name Founded
24/7 Open AdStream 1997 Modern day implications to the
advantages & disadvantages of traditional
media channel
AdBrite 2002
Adcash 2007
Atlas Solutions 2001
Bing Ads 2006
Adform 2002
AdTaily 2010
Advertising.com 1998
AdWords 2000
BlueLithium 2004
Chitika 2003
Criteo 2005
DoubleClick 1998
Baidu 2000
ExoClick 2006
Hydra Network 2003
Right Media 2004
Rocket Fuel 2008
ValueClick 1998
Yahoo! Publisher Network 2005
Yashi 2007
Zedo 1999

Google Display Network (GDN)

Google has a vast network of websites advertisers can display ads on, from the New York Times down to the smallest
blogs on the Web. They offer several options businesses can use to target audiences. They may even combine two or
more targeting methods in the same campaign:
 Contextual Targeting - Google delivers advertisements to users based on the content they consume. The
content aggregator-Google, in this case - assigns labels to specific websites and matches it with keywords
associated with a specific ad. GDN can also serve an ad that contextually fits websites where a user has previously
been. For instance, a user might visit an outdoor sporting goods website and then click away to look at political
news site. Con-textual targeting could be used to show an ad for family-sized camping tents to that user on the
political site.
 Placement Targeting - marketers can choose which websites or webpages the ad serves on.
 Remarketing - users who visit a website are then shown advertisements for that website as they browse other
areas of the display network. Remarketing can be a highly effective tactic to market to people who may have
abandoned their shopping carts on your website. To increase the chance of a sale, you should combine this with an
abandoned cart email.
 Interest Categories - Marketers can target people based on interests they reveal in the Web content they visit.
 Topic Targeting - Similar to interest categories, topic targeting allows marketers to pick a specific topic and
Google will display the ads on quality sites related to that subject.
 Geographic and Language - Marketers can distribute their ads within a specified region or postal code and
define the native language of the audience.
 Demographic Targeting - Ads are distributed to an audience based on age and gender.

The growth of advertising networks, and the wealth of user data that has come with it, presents tremendous
opportunities for marketers who want to expand their reach with consumers. Whether your goals are to build
awareness or generate conversions, an advertising network can help you find your audience and get results.