1. Advertising

2. Definition of Advertising • “. . . any form of nonpersonal presentation and promotion of ideas, goods, and services usually paid for by an identified sponsor.”

3. Advertising business consists of: • Advertisers • Advertising agencies • Media

4. Types of agencies • In-house agencies • Advertising agencies

5. Advertising Functions • Creative • Media • Account Services • Research

6. Advertising Agency People • Creative Director • Creates, copy, graphics, and layout • Account Executive • Liaison for clients and creative staff • Media Buyer • Places ads • Researcher • Generates information on target customers

7. Agency structure • Account manager • Liaison with advertiser • Translates client communications needs to appropriate departments so that solutions can be created. • Research • If client doesn’t have a department, can do appropriate product, consumer, and/or advertising research.

8. Agency structure (continued) • Media • Determines which media most efficiently and impactfully deliver message to primary prospects. • Production • Translates print layouts, TV storyboards, radio scripts, etc., to form in which the consumer receives it.

9. Agency structure (continued) • Creative • Copywriters and art directors who translate product characteristics into attractive advertising points. • Find ways to convince primary prospects that the product is the best solution to specific wants and needs.

10. Types of advertising media • Print • Broadcast • Out of home • (Outdoor and transit) • Direct mail • New: Internet

11. Relative costs

12. Some points of interest about advertising media • All media base price on size and/or demographics of their audience • Each medium does something unique for the advertiser • Demonstration • Cheap repetition • Long copy delivery • Quality reproduction

13. More points of interest about advertising media • Each medium lends its own “aura” to the advertisement • “News” • Prestige • Authority • Personality

14. Some questions/allegations about advertising • Advertising encourages people to buy things they don’t need. • Advertising is wasteful. It promotes products that are essentially the same. • Advertising causes social disorder by setting expensive standards and making people resent a system they don’t share.

15. More questions/allegations about advertising • Clever or misleading advertising extends the life of an inferior product. • Large companies dominate the market; therefore, the consumer has little real power.

16. How advertising agencies get paid • Media commissions (15%) • Production mark-ups (17.65%) • Fees for special projects