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Conflict of Interest
a situation that occurs when an advertising agency is handling two or more clients that compete with one another.
Cost-Plus Fee
an agency compensation agreement whereby the agency bills its costs plus a fair profit margin to its client.
Creative Strategy
a document that contains the objectives, target audience description, consumer promise, key copy support points, and brand personality that the advertising campaign must address.
Creative Boutiques
agencies that limit their services to the conceptualization and production of creative executions.
Design Houses
similar to creative boutiques, with more of a graphic design emphasis, work will include corporate projects such as corporate standards and annual reports in addition to marketing materials.
Fixed Fee
compensation agreement that specifies a fixed amount of money to be paid for certain services over a period of time.
Full-Service Agency
an advertising agency with the size, staff, and resources to provide four major departmental functions: account management, creative services, media planning and buying, and research.
Markup
a way agencies make money by adding an additional charge to the cost of production and other services. Traditionally, agencies marked up these materials and services 17.65% of the net cost.
Media Billing(s)
the amount of money an agency or client account places in media.
Media Buying
the implementation of the media plan; the purchase of media.
Media Buying Services
companies that specialize in handling media planning and buying for their clients.
Media Commission
a traditional system for agency compensation whereby the agency retains a percentage (traditionally 15%) of the media space and time it purchases for its clients.
Perceived Value
the percieved unique value or brand personality of a product or service.
Performance Fee
an agency compensation agreement that provides incentives for meeting the client's awareness or sales goals. Compensation is either increased or decreased depending on the results. Pre-press -preparation of production of print materials, often done in-house at the agency.
Production
department within an advertising agency responsible for the production of the copywriter and art director's work. May refer to either print production or broadcast production.
Promotion Mix
the various marketing communications disciplines a company may use to communicate with prospects and customers: advertising, public relations, sales promotion, direct response, packaging, and personal selling.
RFP
Request for Proposal. A request from a client to a number of agencies to prepare an initial credentials presentation which usually includes initial qualifications for the requesting client.
Service Cluster Teams
a team within an agency with the function to serve a client with the services which best meet the client's brand strategy.
Short List
a list of agencies compiled by a client to compet for the client's account. Often, the second stage of a review.
Sliding Scale
agency compensation system that lowers the media commission percentage as the media budget increases.
"Spec"
short for "Speculative Creative." Ads, commercials and promotional materials that represent the agency's views of what the advertising should be.
Strategy Review Board
a group of agency senior executives responsible for reviewing major new strategies and campaigns being developed for the agency's clients.
Traffic
a department within an agency staffed with account coordinators who are responsible for steering the various creative projects through the different agency departments making sure approval procedures are followed and deadlines are met.
Affirmative Disclosure
The FTC uses affirmative disclosure rulings to force businesses to include health and safety information, credit terms and agreements, product ingredients and warning labels. These rulings are designed to prevent consumer deception before they can be harmed.
Caveat emptor
Latin for "let the buyer beware"
Cease and Desist order
legal order issued by an agency or court with jurisdiction that your ad must stop running immediately or fines will be assessed.
Commercial Speech Doctrine
The series of Supreme Court cases that have resulted in the current level of protection offered to advertising.
Disclaimer
a written statement intended to clarify claims made in the body copy of an advertisement.
Deontological ethics
The evaluation of right and wrong based on intentions, regardless of outcomes. Deontological = intent
Guarantee
A guarantee is a promise by the manufacturer to correct defects according to the terms stated.
laissez-faire
Status quo, leaving the status of the matter alone, and choosing not to act in a manner to change it.
Merchantability
The implied claim that the product will work as expected if correctly used. Software is an interesting exception to this rule. Software is often shipped with "bugs", and these bugs often prevent the software from fulling its promised function. (This might also be called "fraud.")
Material claims
Any claim that affects a consumers choice or behavior.
Normative expectations
What a reasonable person might normally expect.
Physiological needs
The basic requirements of life, including shelter, clothing, food, air and water.
Policy
A form of unofficial guidelines that private firms, individuals, and organizations create for internal (and in some cases, external) conduct. (Policy is not regulation.)
Reasonable basis
A rationale (or foundation) for making claims that advertisers must have prior to making any claims about a product or service.
Reasonable consumer
A standard of judgment. The crux of whether or not a claim is deceptive or merely puffery often relies on the consumer's likely interpretation. The FTC created a "test" to make sure they consider questions of advertising deception from the viewpoint of reasonable consumers. This is pretty…
Susceptibility
The level of expertness or sophistication the typical consumer has in regard to product use or purchasing. For example, the FTC is not likely to perceive medical doctors as highly susceptible to advertising claims and in great need of regulation to remedy any problem. However, the commiss…
Teleological ethics
The evaluation of right and wrong based on the social benefits derived by the outcome of an action without regard for the intention of the action. Teleological = results.
Warranty
A promise of performance, attributes or benefits made by a manufacturer. It becomes a contract between the manufacturer and the consumer. For example, Kodak advertisements say that their film is free from defects in materials and workmanship.
Advertising Effectiveness
a measure to determine the extent that the advertising campaign met the objectives that were established.
Advertising Evaluation
a process to determine the effectiveness of the advertising campaign. Four measures used for evaluation include recall, persuasion, entertainment, and sales. The evaluation can take place in rough stage prior to the final production of the advertising or when it is complete for all measur…
Background Review
ometimes called a situation analysis, it is a recap of what is currently known about the Brand. Some common parameters with the background review include: Current users, geographic, seasonality, purchase cycle, creative requirements, competitive sales, and competitive spending.
Consumer orientation
to think about the brand from the consumer's point-of-view instead of the manufacturer's viewpoint.
Creative Brief
this is used to brief the creative department. It contains a creative strategy and other background information needed to write and visually create advertising.
Creative Platform
similar to a creative brief, but follows a more exacting format. The parameters contained are usually target audience, benefit, support, and some type of tone and manner or brand character statement.
Creative Strategy
How the advertiser plans to fulfill the objective. A good template is to convince _____, to use _____, instead of _____, because _____.
Decision Grid
a quantitative weighting system used to make complicated decisions.
Marketing Plan/Strategy
the five Ps: price, product, promotion, place, and people. Also the Advertising, creative, and media objectives.
Positioning
art of arranging the mental picture of your Brand maintained by the target audience. Positioning is done to the mind, not the product.
Public Relations
part of the "Promotion" P. It seeks to use publicity and other forms of non paid communication to influence attitudes and buying behavior.
Reach
The percent of the target group which has been exposed to the advertising at least once. It is an unduplicated number.
Sales Promotion
part of the "Promotion" P. It seeks to use small rewards to change the value relationship of the Brand. An example is a fifty cent coupon.
Target Audience
the group of people most likely to purchase of the product. These people can be users, those who influence the users, and actual buyers.
Trade
retailers and wholesales in the distribution channel who will resell the product to the end users or consumer.
Above-the-line
All expenditures appropriated to advertising media.
Audience composition
A description of a media vehicle's total audience in terms of demographic classification of individuals.
Below-the-line
All promotional expenditures which are not allocated to paid media advertising.
Blinkering
One of four types of ad schedules that is characterized with short in-and-out bursts of advertising throughout the ad campaign period. Hiatuses are approximately the same length and are brief.
Circulation
The total number of copies of a newspaper or magazine that is distributed by subscription, newsstand and/or bulk.
Continuity
refers to a continuous ad schedule where media weight is scheduled constantly throughout the year with no variation in the amount of advertising and no hiatus.
Co-Op Advertising
Retail advertising that is partly or fully funded by a manufacturer.
CPM (Cost per Thousand)
A method of comparison whereby the cost of an advertising vehicle is multiplied by a thousand and divided into the vehicle's total audience. The CPM shows how much it costs to reach a thousand audience members and thus it can be used to compare which advertising vehicles are most cost eff…
Daypart
The part of a broadcast day when a particular program is either seen or heard. It also refers to how advertising time slots are grouped, with the most common being morning, afternoon, early evening, night and late night.
Double Truck
A two-page spread in newspapers where the editorial content or the advertising runs across the gutter.
Flighting
One of four types of ad schedules which includes periodic waves of advertising followed by long periods of total inactivity.
GRP (Gross Rating Points)
The summation of rating points. A duplicated figure that shows how much weight a particular media buy is delivering.
High-involvement
Refers to a product that requires considerable thought and consideration from consumers when it comes to purchase, a computer for example.
HUT (Households Using Television)
A Nielsen term which refers to the percentage of households that is tuning into television at a given time.
Low-involvement
Refers to a product that requires little thought and consideration from consumers when it comes to purchase, a package of gum for example.
Media fragmentation
The splintering of mass media audiences into small, specific groups.
Nontraditional Media
Media that are often driven by technology and can be any new media form that allows for commercial expression.
Pass-along Readership
Magazine that gets read by a person other than the subscriber or the purchaser of the magazine. Pass-along readers are those who get the magazine second hand, patients in a doctor's reception room for example
Precision Marketing
marketing aimed at a specific segment or even individuals Prospects -Individuals identified as those most predisposed to buying a company's product or service.
Pulsing
One of four types of ad schedules which combines continuity and flighting. Pulsing includes a continuous base of advertising that is reinforced by periodic bursts of heavier media action.
PUT (Person Using Television)
A Nielsen term that refers to the percentage of individuals who tune into television during a given time period. It reports the total persons tuned into TV, not to specific programs.
Ratings
A figure that reports the number of different individuals who tuned into the electronic media or read the print media over a specific time period.
Readership
A term used to refer to a publication's audience which tells the total number of different persons reading an average copy of a magazine.
Syndicated Research
Data that is sold to companies by independent research firms.
Target Market
A group of individuals that has been identified as having real sales potential for the brand and can be defined in concrete terms that can include demographics, psychographics, product usage, etc.
Target Profile
For media planning purposes, the target audience is quantified and defined in terms of demographics, psychographics, product usage and media usage.
Traditional Media
These include newspapers, magazine, television, radio, outdoor advertising and yellow pages, they are the media that are established and have been in the marketplace for a long time.
Unit Cost
The amount of money charged for a specific unit of time or space in the media.
Advergames
video games commissioned by a brand and developed around a strong brand theme and presence
Annual Report
presents pertinent financial data of the past year ot stockholders and stakeholders
Benefit
what the advertiser promises the consumer
Branded Integration
The practice of working a brand into the fabric or plot of a film or video, in a more significant way than a simple product placement. Involving multiple mentions or scenes.
"Call to action" (CTA)
Ad statements urging specific actions such as purchase, registration, site visit, etc.
Cause Marketing
An emotional aid. Often a brand will help a charity that relates to the targeted consumers.
Chutzpa
bold, with attitude
Clitchik
well-turned phrase at the end of an ad
Closer
The finishing touch on an argument. ex) "If you can read this, thank a teacher."
Companion ad
one of two or more online ads working to extend or reinforce the message in other ads on the same web page
Drop
the actual act of mailing direct mailing material
Imaginative Divergence
the surprising part of the concept.
Landing Page
Destination web page where users land after clicking on an ad or a link
Lift Note
a note or added small piece in the mailing which adds urgency and extra incentive to prompt reply
Maven
an expert
Pay per action (PPA)
An online display ad for which advertisers pay only when a click-through results in a defined action such as a purchase, registration, appointment for test drive, etc.
Pay per click (PPC)
advertisers only pay when a user clicks
Premium
a gift. Rule of thumb- when you offer something worth getting, response is greater
Schtick
a piece of business
Thumbnails
small sketches of possible as ideas or layout approaches for an ad.

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