11/29/12 12:36 PM Advertising and Public Relations • Momo’s does no advertising because they do marketing right • They have great pizza - not really expensive and only need one • When you have lots of competition you have to advertise more because you need to distinguish the better product • If a company advertises a lot, it means that they don’t have a product that is better than the competition • Reminder ad: Use Condoms • Humor ad: swear jar commercial – cannot put on tv, but companies know that these commercials will go viral and they can get away with it. With the internet it is free to advertise Advertising Pervasiveness • The average American is exposed to more than 3,000 ads every day o Logos o Internet o Billboards / signs (exposure that counts) o Radio o Apps on your phone • Clutter Ad: find ways to present the information they want you to know in ways that you aren’t necessarily used to or expecting o BMW: embedding their product in a short film. This is a way that isn’t expecting. Guy Ritchie and Madonna were married. o 100,000 views on YouTube o Low-wear out: people like to watch this stuff over and over again. Cutting through the clutter Spending • Spending more on direct mail, television • Down the road more spending online, special projects Product advertising – promotes the uses, features, and benefits of specific products Pioneer/primary demand – focuses on a product category • Got Milk? Campaign – entirety of milk campaign • Beef is what’s for dinner – the entire beef product category o People pay into a pot, creating demand for the entire category and everyone winsAdvocacy advertising – conveys a firm’s position on a public issue • Like the Free Tibet ad shown Competitive: points out a brands advantages relative to competing brands • Three types o Comparative: two or more brands on one or more characteristics § Domino’s: the taste that beat Subway 2:1 ú Only works if you aren’t the leading player in that category o Reminder: reminds customers of an established brand’s characteristics and benefits § Remind you that is everywhere, popular and everyone wears ú Nike does this with logos o Reinforcement: assures current users they have made the right choice § AT&T does this – “the right choice” Mobile Ads: advertisements sent to mobile phones or other wireless devices • First mobile ad was sent in 2000 • Now accounts for 2% of the advertising market • Wave of the future: more individualized ads – offers one-on-one advertising with each individual consumer • $33 for TV ads • $2.85 for mobile – small category but will grow soon • $6.45 for online ads Branded entertainment: • With all the advertising clutter, recall of a typical ad is only 10% • Recall of a branded entertainment episode is 24% o So much more bang for your buck with branded entertainment • So what is branded entertainment? o It is an ad or show that the company who is sponsoring will get their name in somehow. o College entertainment: Axe was sponsoring the prank – “Axe Body Spray” paid University of Maryland to do this prank o They paid $50,000o In return, the company was allowed to stream the video on YouTube • His favorite Ad o Terry Tate, office linebacker ad from Reebok o It isn’t always obvious o Reebok sponsored this ad – very subtle but very entertaining • Coke’s new campaign o Reach people that get them involved in the campaign itself – instead of passive observers we want active participants o “Lets users buy the world a coke from the palm of their hand” o Where the coca cola machine themselves buy people in other countries a free coke o Letting people buy people a coke – making the world smaller o Reaching people at a younger age o Social media to market to consumers • Gatorade’s Replay o Was done in attempt to take the Gatorade back to its core market – athletes o Teaming up two teams that had tied 15 years ago to replay the game o Whole thing is sponsored by Gatorade - Peyton Manning is a coach on the side (huge o Not just showing the Gatorade commercial – but getting you involve. o Finding ways to get around the problem of ignoring commercials Scheduling advertising • Continuous – runs steadily throughout the year o Coca Cola o Good for continuously used products – not a seasonal product, people always use it • Flighting – runs in spurts o Heavy/none o Good for seasonal products – suntan lotion • Pulsing – a combination. Runs steadily but with bursts at certain timeso Super Bowl o Back to school – always advertising something but at a large level right before school starts Measuring advertising • Reach: the percentage of consumers in the target audience exposed to a particular advertisement in a state period o What percentage of the target market did I reach? o Good ads reach the highest percentage o If you pick the right show, then your reach goes up and your ad dollars go further • Frequency: the number of times these targeted consumers are exposed Advertising effectiveness • Is it more effective to touch 100 customers once or 25 customers 4 times? o 25 customers 4 times – because we don’t really internalize an ad the first time. It really takes 4 times • What is the optimal number of times to reach a target consumer? o At some point there is a diminishing return – so what is the optimal number. o 3 is the ideal number o Exposure 1 – what is that o Exposure 2 – what of it o Exposure 3 – what is its intended purpose o Curiosity, recognition, decision o Find the point at which you have reached everyone at least three times, but not too much beyond that Measuring advertising effectiveness • Pretest/posttest o Pretest § Evaluation performed before a campaign begins o Run the campaign o Posttest § Evaluation after the campaign ends. Measure something like reach – how many have you reached with your message§ Recognition/recall: respondents shown a portion of an ad – or sometimes a memorable image and asked: ú 1. Do you recognize this ad (recognition measure) ú 2. Please type in the sponsor of this aid (unaided recall measure) ú 3. Please choose the sponsor of this ad from the following list (aided recall) • Advertising – allows us to put together all the things we have talked
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