intro to advertising adv media planning 002

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STIKOM LSPR - JakartaIntroduction to Advertising | Advertising and Media Planning

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CHAPTER8

TYPES OF ADVERTISING AGENCIESCHAPTER OUTLINE

Advertising agents were initially established to sell space on behalf of newspapers in the

early 1800s in England. As product owners started to realize that they need to draw the

market attention to their products, advertising became a very important part of their business

process. As print medias technology evolved, illustrators and designers were employed to

make print advertising more interesting.

As the marketing science matured, the whole process of advertising was getting very

complicated,therewasmoresignicantneedtogetimpact,attractconsumersandconvince

them the merits of the products or services. In response to this, advertising agencies took

on more people with specialized skills, and today advertising is a highly specialized industry,

helping marketers all over the world creating winning brands.

This chapter will discuss the basic services of an advertising agency and then described

the different types of advertising agencies, established to cater to the different and complex

needs of the increasingly competitive business environment.

OBJECTIVES:

To understand the basic elements of an advertising agency in providing service to their1.

clients

To understand the different services offered by advertising agencies.2.

To understand the function of associated agencies and consultancies3.

The advertising agency

An advertising agency is an independent organization of creative and business people

who specialized in developing and preparing advertising plans, advertisements and other

promotional tools. It purchases advertising space and time in the media on behalf of their

client.

(AAAA- American Advertising Agencies Association)

The basic elements of an agency business

TYPES OF ADVERTISING AGENCIES


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Introduction to Advertising | Advertising and Media Planning STIKOM LSPR - Jakarta

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AccountHandling

Competitive business environment demanded more complex marketing communicationprocess. As a result of this the agencys clients became more demanding and therefore

there was a need for some kind of coordination and liaison between the client and the

departments of the advertising agency- a need met by the account handler.

Account handling

Production

department

Media

department

Creative

de artment

Advertising Agencies

This the role of the account handling:

Advisetheclientcompanyonhowtheirproductscanbebrandedandpositionedinthe

market place to counter act competitors

Responsibleforallclientscontacttoestablishthebroadrequirementsoftheclients.

Brief the various departments of the advertising agency with regards to client

requirements

Ensureadvertisingcampaignhelptosolvetheclientsmarketingproblem

Managetheadvertisingbudgetandensurescostsarejustied.

Ensureclientsarehappywithagencysoverallservice.

Creative Department

Creativity is what really builds an agency reputation. Advertising is about visual and copy

elements that attract attention and convince the market to use the brands advertised. Thus

advertising creativity is about creating messages that will effectively establish positive brand

image and positioning.

The creative department is led by a creative director, backed by an art director and

copywriter.

Media Department

Electronic, telecommunications and computer technology resulted in extensive choice of

media. Therefore, the media department must undertake extensive research to design an



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effective media plan and schedule to deliver advertising messages to the target audience.

Then to ensure the best deal budget wise, the media buyers in the media department must

gothroughnegotiationprocesswiththemediahouses,asthereisnoxedpriceformediaspace and airtime

Production Department

TheproductiondepartmentisresponsiblefortheproductionprocessifTV,printandradio

commercials. The actual production process itself is not done in the agency, but is outsourced

to production houses, printers and recording studios. The role of the production department

is to select the third parties and supervises their work and coordinates with the creative and

account handling teams.

The full service advertising agency

The full service advertising agency is set up to meet the extended needs of the client

company for advertising and promotions services. Hence the organization consist of the basic

elements of the advertising agency previously mentioned, plus others such as marketing

public relations, brand activation, etc.

Companies using this type of agencies are usually large FMCG manufacturers with large

advertising expenditure. Working with full service advertising agencies is very convenient

for these large companies as all of their promotion needs are under one roof, so to speak,

making control and supervision of the advertiser easier. However, a smaller company whomaynothaveanadvertisingdepartment,mayalsoseekthebenetsofworkingwithafull

service advertising agency.

Specialist agencies

Specialist agencies are emerging for two main reasons:

1. The successful individuals working in advertising agencies see the potential of

establishing their own agencies for the reason of earning more money as business

owners. A creative director for example might go on his own to establish specialist

creative agency sometimes known as creative boutique2. A big a full service agency might choose to fragment itself into several specialist

agenciesforseveralreasons:moreefcientandeffectivebusinessstrategybeingone

of them. As specialist agencies, they can work together on clients which need full

service, and then can pursue business on their own according to their specialty.

A la carte agencies

A client may choose to work with this type of agency, because it does not need the total

offering of the full service advertising agency. A la carte agency is often the choice of

advertising managers who handle most of the advertising in house or internally. A companywho needs the service of an advertising agency on an occasional basis, for example when

launching a new packaging design, may need the creative resources of the agency to create

the new designs.



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Freelancedesignersadcopywriters

After gaining several years experience working in an agency, creative people often it is moreexiting to work on their own as freelancers. Their service will be called upon by agencies

when they have more workload then they can handle. This type of working arrangement

suits smaller agencies, as they dont have to hire full time staff, thus avoiding high overhead

costs. This in turn provide cost advantage for the client, in that the client pays only for what

is used ( after agencys mark up) rather than having to cover the costs of agencies overhead

with full time staff. Another advantage is that freelance creative may bring a fresh approach

orhaveaspecialstylethatreectstheclientsrequirement.

Media Independents

Advertising agencies are able to negotiate favorable prices with the media due to the sheer

volume of space and air-time that they purchase on behalf of their own clients. It was realized

that if the media department could buy on behalf of several agencies representing even

more clients there would be further economies of scale by buying in bulk. And so media

specialists set up the media independents.

They are called media independents as they act independently of the advertising agencies

and its media department. Media independents agencies are used by full service as well as

a la carte agencies, as they have better buying powers and can negotiate favorable prices,

which they pass on to the agencies, who pass them on, in turn to their clients.

Clients working with creative boutiques or freelance creative may also opt to work with

media independent agencies.

Specialist media agencies

These are agencies which specialize in one particular medium such as outdoor, mobile

advertising or foreign publications. This is so because the buying condition differs than that

of mass media, and often these types of agencies have different trade permit than agencies

previously described.

Associated agencies and consultancies

Sales promotion consultancies

These consultancies specialize in developing sales promotional schemes to meet the

marketing and sales objectives of any company. They have a wide range of skills and

expertise and are able to evolve a proposal aimed at stimulating customers or motivating

intermediaries (including their sales staff). They specialize in media advertising, direct mail

and door-to-door distribution, although they may work with media independents for their

media bookings. They also select the gifts and other incentives needed in the promotion

scheme.

An agency of this type may work with an advertising agency or directly with the marketing

department of a company.



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Direct response marketing agencies

Inprovidingservicedirectresponseagencieswillconsiderproles,marketpenetrationandwastage,andselecttheappropriatemediatogettotheirtargetaudience.Directmailisoften

used to mail catalogues and brochures. Much of the work of this type of agency is database

or relationship marketing.

Telemarketing

Another form of direct response is promotion via telephone, which may be operated by the

company in house or outsourced to an agency which specialized in this service. However, this

type of promotion has got a bad reputation, mainly due to the poorly trained telemarketers.

Public relations (PR) consultancies

Public relations consultancies are retained by organizations on a fee basis, usually for a year

at a time. Their job is to inform, create goodwill and communicate the companys image and

reputation, as well as promote the corporate and brand names. A PR consultant produces

publicity materials such as news releases, articles and feature stories. They conduct press

conferences,briengsandinterviewstogaineditorialcoverage(orsocalledfreepublicity

as space for these activities are not purchased).

As media coverage cannot be guaranteed, PR consultants have to develop news writingskills to increase the likelihood that their stories will be printed. Although marketing public

relations help to promote brands in the market place, but the message carried are informative

rather than persuasive.

PR consultancies also prepare road shows, seminars, exhibitions, to improve relationship

between the companies at its customers.



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POINTS TO REMEMBER

Therearefourbasicelementstoanadvertisingagency:accounthandling,creative,media and production departments.

Otherdepartmentsareaddedtomeetclientsneeds,andthisevolvedintofullservice

advertising agencies which offer a number of services to promote all aspects of the

products/services.

Fullserviceadvertisingagencies,althoughmostoftenusedbybigFMCGscompanies,

are sometimes used by smaller companies.

Specialist agencies emerged to cater to more specialized needs of the clientcompanies.

Therearesupportingconsultancies, such as salespromotion, direct response and

public relations, which the client and advertising agencies may call upon as needed.



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CHAPTER9

AGENCY RECOGNITION ANDREMUNERATIONCHAPTER OUTLINE

As a service provider, an advertising agencys reputation is one of its selling points. For an

agencyreputationmeansthatitisrecognizednotonlyforitswork,butalsoforotherspecic

and technical aspects of the business.

This chapter will explain the concept of recognition and how it relates to the agency

remuneration system.

OBJECTIVES:

To understand the agency recognition system, the criteria, and trade association1.

granting recognition

To understand how agency gain income and prot by the various remuneration2.

methods

Agency recognition

The most important recognition to an agency is that by the media houses. Good business

relations with the media are very important for the agency to carry out its commitment to

itsclients.Themediamustbesurethattheagencyhasasubstantialnancialstrengthto

pay the media services used by the agency on behalf of its clients. Once recognized by the

media, agency will receive many privileges from the media houses, such as longer credit

terms, more discounts and bonuses.

Criteria for recognition

To obtain recognition, the agency applies for membership in a recognized trade associations.

Persatuan Perusahaan Periklanan Indonesia (PPPI) is one such organization. Another

assurance is the agencys clients list and track record in credit payment. If the agency caters

tohighproleandbigspenderclientcompanies,itreectstheagencysnancialstrength

and reputation,asit issafe toassume thathighprole clientswill choose toworkwith

reputable agencies.

AGENCY RECOGNITION AND REMUNERATION


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Agency income

The commission system

The commission system is based on above the line media expenditure. In the agency client

contract/agreement, it is decided the percentage the agency will receive from the clients

above the line expenditure. When using this system, media discounts are rebated to client.

Example:

Rate card price: Rp 10.000.000

Discount20%: Rp2.000.000

Cost after disc Rp 8.000.000

Agency com 15% on gross Rp 1.500.000Cost to client Rp 8.000.000 + Rp 1.500.000 = Rp 9.500.000

In this case, the agency is entitled for 15% ( if this is the % agreed on the agency-client

contract) on gross media costs.

Agency fee

The fee system is income generated by agency for their time and skills, especially as

nowadays many agencies operate increasingly like consultants advising their clients on

marketing communication strategies. Advertisers may accept the fee system if they in turn

receive objective and expert advice from their agencies resulting in agency-client relationshipbasedontrustandmutualbenets.

Handlingchargesormark-ups

Handling charges usually applies for below the line activities and production of advertising

materials. For this type of work, agencies usually assigned a third party, and the mark up

is calculated based on a certain percentage of the costs submitted by the supplier. For

instance :

Printing cost Rp 10.000.000Mark up 15% Rp 1.500.000

Cost to client Rp 11.500.000

The handling fee mark up covers the agency time and expertise in overseeing the work

done by the supplier, thus ensuring satisfactory result.

Variation on the commission and fee system

The payment system described above can take any combination. When the agency provides

full service, all 3 may be used: the commission system for media services, fee system forconsultation and concept development and mark ups for jobs where agency supervision of

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Points to remember

Agencyrecognitionbythemediaisvitalforanagencytobuyairtimeandspaceonbehalf of the client

Criteriaforrecognitionaremembershipatadvertisingtradeassociation,suchasPPPI,

agencys client list and track record of media payment.

Oncerecognized,agenciesareentitledformediacommissions(discountedfromrate

card price), and other privileges

Theagencyincomeisderivedfromtheagencycommissionwhichisgeneratedfrom

media commissions, agency fee for providing strategic advice to clients and handlingfee or mark ups for supervision of third parties.

Anyoftheabovepaymentsystemcanbecombineddependingonservicerendered

and as stipulated in the agency-client contract.

Agencyandclientrelationshipsarebasedoneffectiveservicepluscooperation,trust

and respect on both sides.



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There three level as follows:

Account director

The account director, the most senior level is concerned with the overall health and strategy

of clients accounts under his responsibilities. He may work on different accounts with different

executives and support teams.

The concern of the account director is to ensure that the work undertaken for the clients meets

their objectives, whether short , medium or long term. He leads the account team and other

departments in the formation of strategy and is responsible for the overall implementation

of the campaign.

Account planner

The account planner is responsible for ensuring that the actions taken by the agency will

support the long term development of the brand. In doing so the account planner studies

market trends, competitors activities and consumer behavior. In small agencies, this function

is undertaken by the account director.

Account executive

The account executive ensures that all aspects of the work are carried out to everyones

satisfaction. The tasks associated with this position is liaising with the other three departmentsof the advertising agency, making sure that work is performed on time and meets the agency

standard of quality. He also communicates with the client frequently to ensure that line of

communication between agency and client is always open and healthy.

Creative department

the creative department is the producer of ideas and concept and is very important in

establishing and maintaining reputation of the agency.

Creative director

The responsibility of ensuring that the message suits the product, brand or service is that

of the creative director. Creative directors have usually risen through the agencys structure

from copywriting or art directing. As the head of the creative, he directs the art director

and copywriter in establish creative concept and strategy to meet the requirement of the

campaign outlined in the creative brief.

FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES


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Elements of the creative brief

thereasonforadvertising:launchingofnewbrand theobjectiveofadvertising,forexamplebrandawarenessforlaunchingofnewbrand

targetaudience:towhomtheadvertisingmessageisaddressed

communication strategy: positioning, promise, the essence of the advertising

message

rationale:thesupportingfactorsforthepromisesothemessageiscredible

keybenetsof theproductor factors that fulll theneedsandwantsof the target

audience

theadvertisingtone

themandatorysuchaslogo,tagline,etc

mediaplatform

Copy chief/copywriter/ art director/compugraphic designer

The copy chief is a position in the creative department who is responsible for writing the

copy (wordings) of the advertising, and as he is a senior member of the team, he supervises

more junior position, the copywriter.

In making advertising concept, copy chief/copywriter and art director sit down together to

interpret the advertising brief, or the direction/ guidelines provided by the creative director.

The art director will brief the compugraphic designer so he can help the art director in

preparing the visual part of the concept. The next step is to discuss the concept, or copyplatform with the creative director. Once the creative team agrees on the concept, they will

discuss it with the account handling team to ensure that the copy platform addresses the

marketing issue to be resolved by the advertising campaign. If everything is in order, the

creativeteampreparesthenishingtouchestotheconceptandpresentationscheduleis

arranged with the client.

Role of the account handlers in the creative process

As the account handlers, of all levels, are in regular contact with the client, they are absorbing

the needs and wants of the client, whether these are expressed formally or merely impliedby the clients behavior or attitude. They learn to understand what the client will accept and

will reject, and so they form a vital link in communicating what is required without inhibiting

the creative process.

However, the account handler, when presenting the concept, also explains and defends the

creative ideas, to get them accepted by the client, as they have been carefully thought out to

enhance and reinforce the advertisers message. If, in fact, the client is not convinced then

it is up to the account handlers to break the news to the creative team. On some occasions,

complete campaigns have been thrown out by the client, but in many cases the campaign

requires only a small change of emphasis.



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Media department

The media department is split into three areas:

Mediaresearch

Mediaplanning

Mediabuying

Media researcher

Media data such as audience data is essential for media department of the advertising agency

in order to select appropriate media to place the advertisements and commercials. Much

of this complicated media data is available on line, by subscription to computer databases

operated by the independent media research organization. The media department can

look at individual publications, radio and television programs which might have audience

prolessimilarwiththeproleofthetargetaudience.Thisiscalledintramedia comparison.

If comparison is made between different types of media (newspaper vs magazine), this is

known as intermedia comparison. It is possible off course that several media can target the

same audience, which leaves option to decide on which can be used to deliver different

aspect of the message.

Therefore , the role of media research is to support media planners with providing media

datasuchasaudiencedata,TVratings,mediapenetration,etc.Suchdatawillhelpprovide

a strategic media plan to support the advertising objectives.

Media planners

The media planner takes the statistical research undertaken by the media researcher as

the basis for deciding which media, newspaper, radio, television (intermedia decision) or

whichnewspaper,whichradiostationandprograms,orwhichTVchannelandprograms

(intramedia decision) , will be the most appropriate to carry the advertising. Another factor

that must be considered is the ability of the medium to carry the message, so the media

planner must consider the following characteristic of the medium:

televisionadvertising,forimpact,togainattentionandcreateawarenessaswellas

image building

nationalnewspapersandmagazines,togivedetailedinformationsuchasspecications

and credit details as well as offering the opportunity to include a response coupon

regionalandlocalnewspapers,forco-operativeadvertisingoradvertisementstodraw

attention to local outlets

radio, tocreate imageandmoodfor theproduct (aswellas localstationstodraw

attention to local outlets/stockists)

cinema, to remindaswell asgive impact (but ona limitedbasisas peoplego the

cinema infrequently)

tradejournals,toconvincetheretailersofthemessagesbeingcommunicatedbydirect

mail



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The media planner then produce a media plan which provide the media objectives and

strategy, and media schedule to show the selected media, time and frequency and the

budget/costs.

The media plan is presented to the client by the media planner and the account handlers for

discussion and approval.

Media buyer

Thenalprocessofthemediadepartmentistobuytheadvertisingspaceandairtime.

The media buyers will negotiate with media houses for discounts and credit terms. One of

the best strategies to secure good discounts is to buy large volume of space or airtime. The

agency credit record is also a factor often considered by media houses to give discounts and

other privileges to the agency.

Production Department

The responsibility of the production department is to make sure that everything that is needed

toproducethenaladvertisementispreparedcosteffectivelytothehighestqualityandthen

delivered to the right place at the right time and in the right format.

Since actual production of advertising materials are not done in house at the agency but are

outsourced to the appropriate productions houses, printers, etc so the role of the productiondepartment is coordinating and supervising the work of the selected external production

suppliers.



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Points to remember

Thefunctionsofmeetingclientsneedsarecoordinatedbytheaccounthandlingteam

with the assistance of an account planner.

Accounthandlingconsistsofaccountdirectors(responsibleforstrategy)andaccount

executives (who liaise with the client and other agency departments on getting the

work completed)

.

Theaccountplannersroleisprimarilyconcernedwith the long-termsolutionof the

clients needs and wants, but might include attention to details that may affect the well

being of the clients and their accounts.

Accounthandlingisbasedonrespondingtocampaignandadvertisingbriefsprepared

byclientsoutliningtherequirementsthattheywantfullled.

The role of the creative department is to nd away that is credible but still has

attractivenesstocommunicatethebenetsandadvantagesofclients,theirproducts

and services.

Thecreativedirectorworkswithcreativeteamstodevelopthekeyconceptsandcopy

platform to carry the clients message, based on a creative brief.

Conceptsareworkedupintovisuals (byacompugraphicdesigner)andcopy(bya

copywriter) or storyboards and scripts (by a scriptwriter) to a standard that can bepresented to the client.

Themediadepartmentisresponsibleforresearchtoestablishthemediawhichwould

be best suited to reach the clients target audience. This would include determining

which were the best slots, positions, locations or sites and not just the overall medium

but the particular publication, television or radio station, or cinema screen.

Themediaplannercreatesdetailedmediaschedulesandmediaexpenditureforthe

clients approval.

Basedontheapprovedschedule,themediabuyernegotiatesthebestdealsinterms

of position and location related to the lowest cost.

Themediadepartmentnegotiatespackageswithradiostations,televisioncompanies

and contractors for outdoor and transport advertising (poster) and cinema advertising

forthebenetoftheclient.

The production department ensures that advertisements and commercials are

completed as scheduled and meets the agency standard of quality

Theproductiondepartmentco-ordinateswithexternalproductionsuppliers suchasproduction houses and printers for the production of all promotional material generated

by the agency,



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CHAPTER11

CREATION OF ADVERTISEMENTS ANDCOMMERCIALSCHAPTER OUTLINE

Thecreationofadvertisementsandcommercialsrequiresspecicskills.Firstofallthereare

specicskillstointerpretinformationwrittenonthecreativebrief,whichisthebasisforthe

conceptdevelopmentofadvertisementsandcommercials.Thentherearespecicskillsin

the formulation of creative strategy and message execution in the form of writing copy andscripts as well as art direction for the visual part of the advertisement and commercial.

This chapter discusses the meaning of creativity in advertising, how concepts are developed

and how creative strategy are realized in the form of storyboard, layout and script.

OBJECTIVES:

To understand what is creativity in advertising1.

To understand the creative process in developing advertising concept2.

TounderstandhowtoprepareTVcommercials3.To understand how to prepare print advertisements4.

To understand how to prepare radio commercials5.

Creativity in advertising

Creativityisdenitelyonethemostimportantaspectinadvertising.Auniqueadvertisementor

commercial always gets the audiences attention and make the commercial or advertisement

stands out among other advertisements and commercials .However, being different and

getting attention are not the only criteria for creativity in advertising. Advertising is a marketing

problemsolvingtool.Marketers/advertisersnancedtheadvertisingcampaigntoachieveits

marketing objectives. Therefore advertising must be persuasive and motivates the audience

by providing advertising message that answers to the target audiences needs and wants.

Creativity in advertising means.

Effectiveinhelpingtheadvertiserachieveitsmarketingobjectives.

Provideauniqueandeffectivewaytocommunicatewiththetargetaudience

Creating advertising message which relates and provides answers to the target

audiences needs and wants

Persuasivemessagewhichmotivatestheconsumers,thereforecontributingtosales

Effectiveinestablishingbrandimage itmustbeethical

CREATION OF ADVERTISEMENTS AND COMMERCIALS


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The creative process

Studying the creative brief

The creative brief provides the information required by the creative team and is used to

guide them in developing the concept. The creative team under the direction of the creative

director will study and analyzed the information in the brief, to get the essence of:

Theadvertisingobjective

Theaudienceneeds/wants/problems

Theaspectsofthebrandwhichcanfullltheneeds/wantsorsolvetheproblemsofthe

target audience

Themotivationtobuythebrand

Thewaytocommunicateeffectively.

Brainstorming

It is the practice of the creative people to brainstorm together to get ideas. When brainstorming,

all ideas that come are listed and discussed. The ideas might relate to the feature and

benetsoftheproductsorconsumerbehaviorthatyouwanttoevokewithyourmessage.

Theoneswithpotentialsareshortlistedandnallythebigideaisselected.

The creative strategy

Thetwopreviousprocesseswillresultinndingthebigidea.Thebigideawillbeformulated

into the creative strategy that is what message to be conveyed, to whom and with what

approach:

whotoinuence

whattosayinorderinordertoinuence

howtosayinordertoinuence

Then the creative strategy is implemented in what is called the message execution which

simply means the technique to convey the advertising message to the target audience. Themessage execution should be:

attractive,attentiongetting

simpleandeasytounderstand

abletocreatetheperceptionasdenedinthecreativestrategy

Message execution takes the form of storyboard for TV commercials, layout for print

advertisements and script for radio commercials



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TV commercials

Television has other elements over print advertising: visuals, sounds, movements, thusproviding powerful impact to the advertising message.

However the same principle applies, the commercial has to attract, creates interests and

desire, so that potential customers will act in favor of the brand compared to that of the

competitors.

The storyboard

TheconceptofTVcommercialiscalledthestoryboard.Thestoryboardcontainsthestory

line to communicate the big idea and visuals are used to explain the story line. The script

forTVcommercialisshortandconcise,andfurtherenrichedwithmusicandsoundeffectsto

createinterestsandgetattention.EverysceneinthestoryboardisframedlikeaTVscreen.

Beloweachframeiswrittenthedialogues,cameraangle,musicandsoundeffects.

The storyboard is used by the agency to explain and sell the advertising concept to the

client.

Print advertisement

Print advertisement refers to advertising placed in magazines, newspapers, tabloids, etc.

Elements of print advertisement are:

headline

subheadline

bodycopy/maincopy

slogan/tagline

visual

layout

Headline

Headlines are used to attract attention to the advertisement, so that it will be read by thetarget audience. The format of the headline depends on many factors, among others are the

creative strategy, the media used and how it should relate to the visual and body copy

Sub headline

The sub headline is used to support or enhanced the message in the headline: such as to

provide information and improved understanding.

Body copy

The body copy is an elaboration of the statement or promise made in the headline or sub

headline. Therefore the function of the body copy is to persuade by giving information that

will motivate the target audience to use the brand.



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Slogan/tagline

Sloganortaglineisusedtoprovidethenalpersuasion,bygivingaphraseofreasontouse the brand. Written in only a few words, slogan/ tagline conclude the whole advertising

message. It also strengthens the positioning of the brand. Tagline is usually catchy and easy

to remember.

Visual

The visual of a print advertisement is often the most visible and dominant element. It is

created to get attention and to communicate the concept of the advertisement and to convey

the brand image.

Layout

Layout is how all of the above elements are placed in the advertisement. Again the main

objective is to get attention, to convey the advertising message in a simple way to ensure

comprehension and to establish the brand image.

Radio

After the so-called excitement of the all-singing and all-dancing television, radio may seem

a dull medium for any creativity, yet, despite only having sound, it can be used to create the

most marvelous word-pictures using the listeners imaginations. With sound, there are notonly the words but the fact that the words can be dramatic or humorous while sound effects

and music can create exactly the right mood.

The elements of radio commercials are:

Scriptcontainingthemainmessage,thepromiseandthepositioningofthebrand.

Music,togetattention,toenhancethepositioningandtocreateoverallmood.

Soundeffectstopromoteimaginationinthelistenersmind.



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POINTS TO REMEMBER

Creativityisaveryimportantaspectofadvertising

Acreativeadvertisingmeansthat itiseffectiveinhelpingtheadvertisers reachhis

advertising objectives, relates to the needs and wants of the consumers, persuasive

and motivating the consumers to use the brand so helps to increase sales.

Thecreativeprocessbeginswiththecreativeteamstudyingandanalyzingtheessence

of the brief and brainstorm together to get ideas

Thebigideaisformulatedinthecreativestrategywhichbasicallymeansconveying

what message to whom and using what approach

Themessageexecutionissimplythetechniqueinwhichtoconveythemessagetothe

target audience

Themessageexecutionmustbeattractive,simpleandeasytounderstandandmust

establish the brand positioning.

Foratelevisioncommercial,elementssuchaspictures,movement,sound,andcamera

directions have to be included as well as dialogues.

Thestoryboardcontainsthestorylinetocommunicatethebigideaandvisualsare

used to explain the story line.

Storyboardsareused by agency to explain theconceptofTV commercial to their

clients

Printadvertisementreferstoadvertisingplacedinmagazines,newspapers,tabloids,

etc.

Theelementsofprintadvertisingare:headline,subheadline ,bodycopy,slogan/

tagline, visual and layout

Althoughradioonlyhassound,itcanbeusedimaginativelywithmusicandsounds

effects



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CHAPTER12

PRODUCTION OF ADVERTISING MATERIALSIN MEDIACHAPTER OUTLINE

The production of advertising material is outsourced to a third party : printing establishments,

recording studios, production houses. The production department of the advertising

agency is mainly responsible for coordinating work between the outside suppliers and the

various departments of the advertising agency such as the account handling and creativedepartments.

This chapter will describe the role of the production department to ensure that production

of advertising materials is conducted professionally and on time for the clients advertising

campaign.Itwillalsodescribetheproductionprocessofprintadvertising,TVandradio

commercials.

OBJECTIVES:

To understand the role of the production department in ensuring production of advertising1.materials are done in a professional manner

To understand the production process of print advertisement and other printed promotion2.

materials

TounderstandtheproductionprocessofTVcommercial.3.

To understand the production process of radio commercial4.

The role of the production department

Once the concept copy and layout (visual), or storyboard has been approved by the

client,theproducer(inbiggersizedagencythereareprintproducer,TVproducerandradioproducer, in smaller agency all production process are undertaken by one producer), begins

the production process by allocating a job number and title. The job numbering system is

vital to keep tract of the work through agency and suppliers until completion. Therefore, the

responsibilities of the production department are as follows:

Coordinating all work required for the production process internally with relevant

departments: creative and account handling ( to handle all communication with client)

and externally with the suppliers. In bigger agencies progressing work to outside

suppliers are monitored by the trafc controller, however in smaller agencies this

function is performed by the production manager. Monitoringtheproductionprocess,ensuringconformationtoproductionschedule

Ensuringthatstandardqualityismet

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Ensuring that allcostsbornebyagency areallocated to theright jobandprepare

invoices for approval to the account handlers.

Throughout the whole workload of the production department, the key elements are quality

control and following tight production schedule. This is to ensure that production of the

agencys work is to the highest standard and are done on schedule.

Producing printed advertisement and other printed promotional

material.

The print production process begins after the client has approved the copy and layout

(concept). The production process is as follows

Pre production process:

This stage is the preparation stage prior to actually producing the print material. It consists

of appointing the agency print producer, preparing detailed planning such as costing,

timing, appointing photographer, casting, location hunting or studio set up, make up and

wardrobe.

Production

Atthisstagethenishartworkispreparedbythecompugraphicdesignerwhohastaken

over tasks of the paste up artists prior to computer technology. All the elements of the print

materials: visuals (photo or illustration), headline, body copy, tag line, etc are all incorporated

in the computerized artwork.

Post production

Thenextstepistakingthenalartworkforprinting.Sincetheadvancementofcomputer

technology, the traditional way of producing print materials by way of color separation and

proof prints are no longer practiced. The printing process nowadays uses digital techniques

develop for computer printers such as inkjet or laser printer.

Theprocessismuchfasterandmorecostefcientcomparedtotraditionalprintingmethods.

Every print can be different because printing plates are not required and less waste of

chemical and paper.

Theclienthastoapprovethenishedproductandthentheprintadvertisementisdispatch

to media for placement.

Producing TV commercials

Oncethestoryboardandscriptiscompleted,theTVproducerisaskedforadviceonthefollowing



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Producing radio commercials

The production of radio commercial starts with an approved script.

Pre production

The radio producer prepares the detailed planning such appointing the recording studio,

costing, selecting voice talents, sound effects , copyrights for music if any, producing the

jingle, if any.

Production

Atthisstageallaudioelementaremixedandrecordedattherecordingstudio.Durationsofradio commercials are usually 30 to 60

Post production

Once the sample recording is approved by the client then the commercials are transferred

toCDformatanddispatchtoradiostationsforplacement.



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Points to remember

The role of the production department

The production process begins by allocating a job number and title. The job

numbering system is vital to keep tract of the work through agency and suppliers until

completion.

Theproductiondepartmentcoordinatesallworkrequiredfortheproductionprocess

internally with relevant departments of the advertising agency.

Italsoensuresthatworksaredoneasscheduledandmeetstheagencysstandardof

quality.

Press advertisement

the production department is in charge of the production process which includes

preparingnalartworkandprintingprocess

nalartworkisdonebythecompugraphicdesignerandistheconversionofcopyand

visualintonishedorcamerareadyartwork

Thenishedartworkisprocessedbywayofdigitalprintingprocess,whichismoretime

andcostefcientcomparedtotraditionalprintingprocess.

TV commercials

The production of a television commercial starts with a feasibility study is based on the scriptand perhaps a storyboard.

The stages of producing television commercials are:

1. feasibility study by the head of television production

2. script approval to ensure compliance with ethical board

3. appointment of the producer (and production assistant) from within the agency

4. selection of director from a television commercial production company taking account

of detailed costing

5. detailed planning6.studioandlocationlming

7. post-production editing

8. approval by board of censor

9.dispatchofnishedcommercialstotelevisionstationsorchannels.

Radio commercials

1. the production process begins after the script is approved and the radio producer will

make detail planning

2. all the audio elements such as voice over, music, sound effects are mixed and recordedat the recording studio

3.oncedemoorsamplerecordingisapprovedbyclient,itistransferredtoCDformatand

dispatch to radio stations for placement.



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CHAPTER13

MEDIA IN ADVERTISING ANDPRINTED MEDIACHAPTER OUTLINE

Media serves an important role in advertising. It is used to carry and convey advertising

messagetothetargetaudience.Todothisefcientlyandeffectively,mediaplannershave

to make several considerations, such as media data, media characteristics, etc.

As one of the chapter about media, this chapter will go through the many categorizations

of media used by advertising agency. It will also show the extent of media available for

advertising and how it is used to achieved optimum result.

OBJECTIVES:

To understand the extend of media available for advertising1.

To understand different types of media and how it used in advertising.2.

To understand the use of print media.3.

The role of media in advertising

Without media, advertising message will not reach the target audience. Media cost is the

largest part of the advertising budget, therefore media planners must be sure that the most

effectiveandefcientmediaisselectedtocarrytheadvertisementsandcommercials.Thus

several considerations are undertaken:

Mediacosts:whatmediatobeusedtoaccommodatetheadvertisingbudgetgiven.

Forexample,asTVspotsarerelativelymoreexpensivethanothermediaplacements

costs,thereforearathersmallbudgetmaynotbefeasibleforbuyingTVspots Mediadata:whoreadsit,listen,watch,howmany,howoften,etc

Mediacharacteristics:

o Physical

o Restrictions

o Timing for booking

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Media used in advertising

Press/printnewspapers,magazines,tabloids Radiolocalandnational

Television-national,local,cable

Outdoor-billboards,signage

Mobile-publictransport

Cinema

Internet

Directmail-brochures,catalogues

Abovethelineandbelowthelinemedia

This categorization of media is used by agencies to distinguish media which are vital for

the agencies main source of income. Agency commission is gained from above the line

media, thus contributing the agencies main source of income. However, agency will focus

on the clients promotional objectives, when electing above the line media and below the

line media.

Above the line media

Providehighreachofthetargetaudience

Spotsandspacespurchasedforadvertising

Agenciessourceofmainincomefrommediacommissions

TV,magazines,newspapers,tabloids,radio,outdoor,mobileareinthiscategorization.

Belowtheline

Specic,madeforspecicpurpose

Limitedreach,reachspecicaudience

Agenciesincomelimitedtodesignandproduction

Leaets,brochures,posters,areinthiscategory

Primary and secondary media

The principle of primary and secondary media is of greater importance than above the line

and below the line media to the advertiser.

Primary media

The media most often used to carry the advertising message. The main consideration is

reach and costs.

Secondary media

The media used to support the primary media.



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Printed media

Newspapers

Nationalnewspapers-general:Kompas,Republika,etc

Nationalnewspapers-business:BusinessIndonesia,etc

Nationalnewspapers-Englishlanguage:JakartaPost,etc

NationalNewspaper-evening:SuaraPembaruan,etc

Regional/local newspapers: Pikiran Rakyat (Bandung/Jawa Barat, Jawa Post-

Surabaya/Jawa Timur, etc)

The characteristics of newspaper are high reach of the target audience, high in news value,

offers a variety of size for purchase. However, it has a short life only half a day and thequality of paper may not be suitable for advertisements relying on visual impact such as high

end fashion brand.

Magazines

Magazines are more segmented than newspapers as shown below

Consumermagazines-womengeneral:Femina,Kartini.

Consumermagazine-womenfashion:Dewi.

Consumermagazineparenting:AyahBunda.

Consumermagazinebusiness:Gatra. Consumermagazineteenagersgirls:Cosmogirls.

Consumermagazineteenagersboys:Hai.

BusinessMagazine:SWA.

Lifestylemagazine:Prestige.

Besideconsumermagazines,varioustrademagazinesarealsoavailableusuallypublished

by trade associations. Most magazines are circulated nationwide. Magazines are segmented,

has a longer life and higher duplication of readers than newspaper. It has a better production

quality than newspapers, so advertisements look more attractive.

Tabloids

Tabloids can be said as a cross between newspapers and magazine. In appearance and

paper quality they are more similar to newspapers, but in content and segmentation are

more like magazines. Tabloids are not published daily like newspapers, but weekly. Tabloids

worthmentioninghereare:Bolaforthesoccerfan,NovaforwomenandCek&Ricekfor

celebrity news.



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Points to remember

Mediaisusedinadvertisingtoreachthetargetaudience.

Sincetherearemanytypesofmedia,themediaplannersmustrefertomediadatato

ensure that the media selected is appropriate in that it is the most effective and cost

efcientmediatoreachthetargetaudience.

Categorizationofmediaincludes,abovethelinemedia,belowthelinemedia,primary

and secondary media.

Abovethelinemediaandbelowthelinemediaareinitiallydenedtodifferentiatewhich

media generate the most income for the agency. However, the selection of above theline media and below the line media must take into account the promotion objectives.

Primarymediaismediamostoftenusedtocarrytheadvertisement,chosenbasedon

the audience it represents and the costs.

Secondarymediaisselectedtosupporttheprimarymedia.

Printedmediaconsistsofnewspapers,magazinesandtabloids.

Newspapers are further categorized into, national, regional/local, general and

business.

Magazinesrepresentmanysegmentsofthemarket,suchasconsumermagazinesfor

women, teenagers, men, and business/ trade magazines.

Tabloidsaresimilartonewspapersintermsofpaperqualitybutaresimilartomagazine

in term of segmentation, content and time of publication (weekly instead of daily).



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CHAPTER14

BROADCAST MEDIA AND OTHER MEDIACHAPTER OUTLINE

Having discussed the role of media in advertising and the printed media, this chapter will

focus on broadcast media: television and radio. It will discuss how these media are used

as advertising media. Other media, also important for many aspects of promotion such as

outdoor media, cinema, direct mail, door to door distribution and POS displays will also be

presented in this chapter.

The previous chapter and this chapter will show the importance of selecting the appropriatemedia toachievespecicadvertisingand promotionobjectives,aseachmedia differ in

characteristics and hence have their own strengths and weaknesses.

OBJECTIVES:

To understand the use of television as an advertising medium1.

To understand the use of radio as an advertising medium2.

Tounderstandhowproleoftelevisionandradioaudiencesdiffersaccordingtothe3.

channels and stations, the programs and time of dayTo understand how the following media deliver advertising messages:4.

Outdoor media

Cinema

Doortodoor

POS ( point of sales)

The broadcast media

Television

Althoughtelevisionisnotalwaysaprimarymedium,itisoftentherstchoiceto

advertise FMCGs and consumer durables, especially if they are targeted at the so called mass

audiences.Televisioncanswiftlyandeffectivelycommunicatebenetsandadvantagesin

an effortless, lively manner to large target audiences.

Televisionifcanbeaffordedbytheadvertiser,hasdeniteadvantages.Itdeliversmoving

pictures which can enhance the persuasiveness of the message. Sound effects and music/

jingle are often used to reinforce mood for the brand.

Advertisers will opt to buy spot at peak hours or prime time , where popular high rated

programs are relayed. Many television channels will compete with each other to offerprograms which will command highest viewers.

The revenue from selling advertising spots pays for the production of programs or buying

programs from overseas. Advertisers pay increased air time price for high rated programs.

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Terrestrial television used land based transmitters to relay their programs , whilst satellite

television used high powered electronic beam from an earth station to a satellite in space

whichisthenreectedbacktobecollectedbyreceiverdishesoutsidehousesorbuildings.The use of satellites enables the receipt of more channels to the viewers compared to the

use of land based transmitters.

Internationaladvertisersbenet from satellite television in that it canreach international

audiences.

Cabletelevisioniscarriedbyopticalbers,whicharestrandsofglassalongwhichtinylight

beamsarepassedtocarrythetelevisionsignal.Theopticalbersusedaretwoway,so

there are immense opportunities for advertisers to discuss their products on television for

customers to buy at the press of button on the remote control unit. Thus emerge shopping

channels, using direct response marketing with their target market.

Radio

Radio is broadcast via airwaves, the use of which is controlled by government, so that a

radio station is operated by contractor under license.

Radio covers a local area and most radio stations have developed a distinct programming

formattocatertospecicsegmentsofthepopulation.Henceemergebusinessnewsradio

stations, stations directed at the female segment of the population, etc.

Advertising spots are 30 seconds or 60 seconds. Prime times are early morning when

people are in their cars to go to work and again early evening when they are going back

from work. One of the advantages or radio, is that it can be listened to anytime, thus the

prime time are usually directed at working people. Lack of pictures is not really a problem,

as the combination of tone and style of voice plus music and sound effects can often paint a

powerful picture in the mind of the listeners.

Radioalsoprovidesinformationimportanttothelistenerssuchasweatherforecasts,trafc

condition, latest development on particular news of interests, etc and such information may

be sponsored by the advertiser.

Besidespotadvertisingandsponsorship,othermeansofpromotionusing radioare:Ad

lip,wheretheannouncersrelaytheadvertisingmessage,andcreatingspecictalkshow

programs are also gaining popularity among advertisers.

Other media

Outdoor advertising

Outdoor advertising involves putting the advertising message on billboard, pedestrian

crossing bridge and shop signage. Today it has evolved into mobile advertising, using public

transport as advertising medium.



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Billboardsarecontrolledbyspecialistmediaagencyandadvertiserscanrentforaperiodof

time.Billboardsarenotplacedrandomlybutareselectedwithcarebasedonresearchdata

indicatingtheproleofthepublic,theestimatednumberthatpasseachdayandhowtimesa day they pass.

The advantage of outdoor advertising is that people cannot really avoid it. Off course

people dont stop to look at a billboard, the brand name, colors, the powerful visual and

brief associated message will subconsciously remind them of the television or magazine

campaign they have seen.

Cinema

Mostcinemasarecomplexes,withanumberofscreenstohaveseverallmsshowing

to different audience. Cinema goers are usually teenagers and young adults, so brands

targetingthissegmentoftenndcinemaasquiteaneffectivemediumforadvertising.Cinema

has its own way of delivering the advertising message, it has sounds and movements, and

the large screens in a darkened room with impressive audio system. Moreover, there is the

captive audience, unlike television where people can switch channels or do other activities

during commercial break.

Selectionofcinemaisbasedonwhowillseethelm,thelocationofthecinema,timesuch

as weekend, etc.

Direct mail

Unfortunately,directmailhasbecomeknownasjunkmailowingtotoomany

companies are doing it badly. In fact, provided it is addressed correctly (by name, to the

potentialbuyeroruser)withamailingpiece(orpromotionalleaet)andamessagethat

appeals to the customers or consumers needs and wants, it is highly successful.

Targeting depends on getting the right mailing lists of named individuals, and this has to

be done precisely. This is undertaken by direct mail houses, which build or create lists of

names and addresses within certain categories such as professionals, business owners ,

etc. Companies can now build their own mailing lists on computer databases and code themin such a way that they can target mail shots to individuals based on goods and services

already bought and the pattern of buying.

Door-to-door distribution

Door-to-doordistributionsimplymeansdeliveringpromotionmaterialstopeopleshouses.

Theareastoreceive thedoor-to-dooraremappedaccording tothe proleof the target

audience.

Anothervariationofdoor-to-doorisinsertingtheleaetinthenewspaper,providingoffcourse

thetargetaudiencehasasimilarproletothereaders.



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Point of Sales (POS) displays

POS are used at the retail or outlet where the brand is sold and can take the form of :

Stickers/showcardsoncounters

Hangingmobilessuspendedfromceiling

Metaldisplays,freestandinginthestore

Dummypack(actualsizeorenlarged)

Crownerstoputonbottlenecks

Open/closedsign

Instorevideos

Shopsigns

The purpose is to get customers attention and to remind them that the brands are available

in the store. It will also remind them of the key advertising message. As they promote sales,

suchmaterialsarewelcomedbytheretailers.Sincecompetitionforspaceiserce,POS

displays must be well planned and budgeted.

The media combination

No promotion plan can really be effective by using one medium. To achieve maximum impact,

promotion campaign usually employs various media:

TVcommercialtogainawareness,impactandimage Newspapersandmagazinestoprovidedetailedinformationsuchasspecications

Radioasreminderstoaspecicsegmentandcreatemoodforthebrand

Cinemaforimpactandremindertoaspecicsegment

Directmailtoinformretailersaboutproductbenetsandtoprovidedetailedinformation

to consumers.

POSmaterialstopromotesalesofbrandsinshopswheretheyaresold

Advertising can be supported by other promotion techniques:

Salespromotiontoencouragepurchasethroughincentives Personalsellingtoencourageinteractionwithcustomers

Exhibitionstoshowproductandproductdemonstration

Sponsorshiptocreategoodwill.



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Points to remember

Television is an effective media as it has sound and movement to reinforce theadvertising message.

Televisionhasprimetimeshowinghighratedprograms.

Thehigherthenumberofpeoplewatchingtheprogram,thehigherthepriceforthe

spot.

Differentprogramsattractdifferentproleofaudiences,andthetypeofviewerchanges

throughout the days programming.

Radioisaneffectiveadvertisingmediumasitcanbelistenedtoanywhereandanytime,

while doing other things.

Althoughlackingvisuals,radioadvertisingwithsoundsandmusichelpstocreatea

powerful and personalized image of the brand.

Outdooradvertisingcannotbeavoidedandcarrybriefmessages,asreminder.

Cinemaiseffectivetoreachyoungaudienceandalsoprovidecaptiveaudience.

Cinemaprovidesimpactintermsoflargescreen,soundsandmovements.

Directmailcanbeeffectiveprovidedifexecutedproperly,therighttargeting,correctly

addressed, and contain useful and persuasive messages.

Door-to-dooradvertisersallowadvertiserstodeliverleaet,salespromotionoffers,etc

tospecictargetaudiencesincertainneighborhoods.

POSisaneffectivewaytoremindcustomersofthebrandimageandkeyadvertising

message of brands that are sold in the store.



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CHAPTER15

MEDIA PLANNINGCHAPTER OUTLINE

Mediaresearchis therstand fundamentalstep inmediaplanning.Tounderstandhow

manypeoplebuyspecicnewspapersandmagazines,ormoreimportantly,howmanyread

them and what types of people they are requires media research. Similar information is

also required for broadcast media such as who watches and listens to television and radio

programs,isverycrucialinmakingastrategicmediaplan.Tofullltheneedsofmediadata,

agencies employ the services of independent media research companies.

This chapter will discuss how agencies acquire the information needed to make media

plans, what data is needed, and how this data is used for planning media. This chapter will

elaborate the process of media planning and media buying.

OBJECTIVES:

To understand the need of media research for media planning purposes and how it1.

is required

To understand what data is needed for inter media planning of above the line2.media

To understand what data is needed for below the line media3.

To understand how media data is used in media planning and buying4.

Media research- above the line

As advertising campaigns are being based on integrated marketing communications, media

research is being used to investigate inter media habits, that is to see which radio listeners

areviewersofwhichTVchannelsandprogramsandwhichnewspapersandmagazines

they read.

Foradvertisingagencies,mediaresearchisimportanttoestablishtheproleofwhoreceives

the advertising message as well as the depth or penetration in the market place. Penetration

is also called coverage (especially in printed media) and reach in broadcast media.

For media houses, the result of the research allows them to set rates (costs) of advertising

space and airtime, and these are not only based on the size of the space or the duration

of the airtime, but most importantly on how many people will be exposed to the advertising

message and their purchasing power to buy certain goods and services.

Usinginformationregardingaudienceprole,penetrationandmediarates,agenciescan

select the best media to target the desired market effectively and can calculate the required

budget.

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Independent research organizations

Independent research organizations are used to establish media data to assure advertisersand advertising agencies that the research is accurate, valid and unbiased. Therefore the

agencys media department can rely on the data and be assured that the media they buy on

behalf of the clients will reach the advertisers target audience.

Media data can be obtained by working together with a world wide media research

organization such as AC Nielson. Local research companies are often used by advertisers and

advertising agencies to conduct omnibus surveys and competitors advertising expenditures.

The Indonesian advertising trade organization, PPPI, published annually an advertiser and

agency guide to media in Indonesia called the Media Scene.

Research-belowtheline

Direct mail

There is no media research for direct mail, but there are ways of establishing the number

ofpotential contactsthatamailingcan reach.Mailing listsare classiedbynamesand

addresses, professions, buying power, and also indicate an estimate of the number of people

ineachclassication.Databasetechnologyallowsforcross-tabulationofdifferentcriteriato

buildalisttailoredmadetomatchtheaudienceproletheadvertiserswanttoreach.

Internet and POS

The Internet and World Wide Web are still in their infancy and not readily available to some of

the key target groups that an advertiser wants to reach (e.g. majority of users are young and

may be lacking in buying power). Consequently, they are not fully recognized as mainstream

media and so little research has been undertaken into their effectiveness as advertising

media.However,guresareavailableonthenumberoftimesthatawebsiteisvisited.

Currently there is no research undertaken by independent research organization into

effectiveness of POS materials. Its effectiveness relies upon the evaluation of the advertisers

marketing and promotion team.

Media Planning

Basedontheanalysisofthemediadataobtainedfromabovementionedresearch,media

plannerswillselectmediathatwilldirectadvertisingmessageseffectivelyandefcientlyto

the target audience.

In addition, media houses also provide what is called media kit. The media kit contains

interpretation of data collected and analyzed by the independent media research

organizations:

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1.Circulationandreadershipgures(orviewingorlisteninggures)

2.Proleofreaders(orviewersorlisteners,etc)

3. Area of coverage (in geographic terms)

4. An editorial schedule of subjects to be covered in the publication so that advertisers

can place their advertisements in special issues, features or sections. For television,

this takes the form of video presentation, while cinema chains issue lists of forthcoming

lms

5. Advertising rates (including rates for special positions or peak viewing times)

6. Frequency (daily, weekly or monthly appearance)

7. Mechanical details (e.g. method of printing and requirements for lm for printed

media).

The scope of media planning

Mediaobjective:whatistobeachieved,qualitativeaswellasquantitative

Mediastrategy:howisthebestwaytoachievetheaboveobjective

Mediaschedule:theimplementationofmediastrategy:whenandwheretoplacethe

advertisements and commercials Mediabudget:costsrequiredtoplacetheadvertisements/commercials.

Media objectives:

Whotoreachwiththeuseofselectedmedia

Howmany

Howoften(frequency)

Effectivereachneededtogetyourmessageacross

Mediabudget

Media strategy

Whichmediatouse:(macromediaselectionandmicromediaselection)

Budgetallocationforeachtypeofmedia

Monthlyreachandfrequency

Mediaefciency

Sizeanddurationofadvertising

Media schedule

Showingthemosteffectiveandefcientuseofmediaselected

Showingthereachandfrequencyasstatedinthemediaobjective

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Media buying

The media buying is the implementation of media planning, meaning that after the approvalof the media schedule by the client, the media buyer is responsible to purchase space or

airtime for the advertisers. In doing this, they have two interests to achieve:

1. For the advertiser: negotiates the best price ( discounts)

2.For the agency: ndsopportunities toearnextramoney(morediscounts, exible

terms of payment)

The media buyer is also responsible for making sure that the advertisement appears in the

media as per media purchase order and that the agency is billed as per agency media

buying contract. The media buyer also follows up with the account handler to ensure that the

client pays the media bills on time, so that media can be paid on time too.

MEDIA PLANNING


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Points to remember

Themediaprocessconsistsofmediaresearch,planningandbuying

Mediaresearchiscrucialasaccuratedataregardingthemediasaudienceandmedia

characteristics such as penetration, rates are important considerations in the media

planning process

Mediaresearchisundertakenbyindependentmediaresearchorganizationstoensure,

accurate, valid and unbiased data

Accounthandlerspreparemediabriefcontaininginformationtobeusedasabasisfor

formulating media plan.

Uponreceivingthemediabrief,mediaplannerwillcreatemediaplanandschedule

consisting of macro media selection and micro media selection. The most effective and

costefcientmediaarethemainconsiderationswhenmakingamediaplan.

Media efciency is calculated via various methods such as the CPT (cost per

thousand).

Mediabuyers will proceed to buyspaceandair time once themediaschedule is

approved by the advertisers.

Mediabuyerswillcheckthatadvertisementsandcommercialsappearasscheduled

and that media bills are paid on time.

MEDIA PLANNING


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CHAPTER16

ETHICS AND CODES OF PRACTICECHAPTER OUTLINE

Advertising is very powerful and can impact the target audience way of thinking, emotions

and behavior. Therefore, it is important that the advertising message does not impact the

target audience in a negative way.

Most advertisers and advertising agency prefer voluntary control, meaning they themselves

control what should be said and what should not be said in an advertisement or commercial,

bearing in mind the interest of the target audience. The voluntary controls ensure advertisersmaintain the standard of behavior which protect the reputation of the industry and so ensure

by implication, that the customer is being protected.

This chapter discusses the objectives and roles of code of advertising practice and how it

benetstheadvertisers,advertisingagenciesandconsumer.

OBJECTIVES:

To understand the objectives and role of advertising code of practice1.To understand how the advertising code of practice benets the advertisers,2.

advertising agencies and consumers

Advertising creativity and ethics

Creativity and persuasiveness is the basis of the advertising message. To motivate the

consumers,advertisingmessagesfocusontheconsumerbenets,beitsrationalbenets

suchasvalueformoneyoremotionalbenets,promisingbeautyandimage.

An advertisement or commercial is creative not just because it is different than other

advertisements or commercials, but because it motivates the consumers without over

promising and without misconceptions. A creative advertisement or commercial can in its

ownuniquewaymaketheconsumersunderstandwhyacertainbrandwillbenetthem.

Advertisers and its target audience must build and maintain a long term relationship to

ensure consumer trust and loyalty. In short, creative advertising is also ethical advertising.

The advertising code of practice strives to ensure that consumers expectation are met, and

thatadvertisersandadvertisingagenciesworktogethertofulllthisexpectation.

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Advertising code of ethics: objectives

For consumers

Protectconsumersfromoverpromiseandmisleadinginformationandperception

Motivatestheconsumerstousethebrandbecauseadvertisingmessageanswersto

consumers needs and wants

Theadvertisingmessageiscredible,thusestablishingconsumerscondenceinusing

the brand

Advertising message is focused and informative, therefore helps the consumer to

select the right brand to serve their needs.

Educatetheconsumersbygivingexamplesandappropriateinformation

For advertisers and advertising agencies

Touseasstandardpracticeinordertoupholdprofessionalismandreputationofthe

marketing and advertising business

Topromotehealthycompetitionamongadvertisers

Topracticecorporatesocialresponsibilities

Toprovideguidelinesincreatingconceptswiththeconsumersinterestsinmind.

The Advertising Code: general

The Advertising Code states that all advertisements should:

be legal (and do not break the law or incite anyone to break the law)

be fair and promote healthy competition by not exploiting negatively competing

brands

be decent (and should not cause serious or widespread offence on the grounds of

race, religion, sex or disability)

be honest (by not exploiting credulity, lack of knowledge or inexperience ofconsumers)

be truthful (by not misleading through inaccuracy, ambiguity, exaggeration, omission,

etc)

show responsibility to the consumer and to society

follow business principles of fair competition

not bring advertising into disrepute

apply the Code in spirit as well as in the letter



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be able to be substantiated

not exploit or exaggerate fear

not show or encourage dangerous practices (especially with the young)

not encourage drinking and driving

not condone violent or anti-social behavior

not use people (e.g. personalities) without permission

use only genuine testimonials related to the product (and have written permission to do so from the individuals, publications or organizations involved)

indicate clearly that advertisements are not editorial matter



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provisionsforterminatingthecontract

termsofbusiness(regardingpaymentoftheagency,mark-upsandhandling

charges (for both the agencys work and that of third-party suppliers) repaymentsofvolume and otherdiscounts, including commissions from themedia

owners

therightsoftheadvertisertouseothersuppliers

arbitrationormeansofsettlingdisputesshouldtheyarise

insurance(forprofessionalindemnity,etc)

Termination of contract

Termination of contract may be initiated by the agency or client. The client may terminate the

agency for the following reasons:

Unsatisfactoryservice

Slackingincreativity

Clientsnewmanagementwantstoexploreotheragencies

Changeinagencysmanagementorpersonnel

Agencyspricing

Wantsfreshnewideas

The following reasons usually lead to termination of contract by agency

Theclientdoesnthonorthetermsofpaymentinthecontractagreement Theclientsbusinessisnotprotable:agencyspendsmoremanhourthanitcharges

the client but cannot ask for higher fees.

Conictofinterest:agencyhasbeenappointedbyclientsdirectcompetitorwhohas

more promising business potential.

Thegoal:longtermandprotablebusinesspartnership

Just like everything else, a business relationship has to pass several cycles to survive:

The introduction cycle

At this stage, agency and client has not formalized their relationship, but they are learning

about each other. The client is impressed with the agencys skills and experience, its human

resources, its eagerness to serve the client by showing understanding of the clients business

and market. The agency has a positive feeling about the client: he shows understanding of

howanagencywork,hisobjectivesarerealisticandclearandhehasthenancialmeans.

These positive impressions then lead the relationship to the next cycle.

The development cycle

The relationship is formalized by a contract. Agency will continue to impress clients with

their professionalism and service excellent. Client shows his eagerness by providing the

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information needed by agency. At this stage work rules and condition for team work is

established. Mistakes made at this cycle are usually forgiven.

The maintaining cycle

The key at this cycle is effective communication to support effective teamwork.

As work intensied, expectation increases, problems also arises. As long as effective

solutions are found and the motivation to work together persists, then usually agency and

client can formavery longand successfulworking relationship.Foote,Cone&Belding

(FCB)workedwithSunkistfor85years,KonimexandMatahariAdvertisinghasworked

together for 30 years.

The termination cycle

Many factors can lead to termination of business relationship as previously described, and

like so many other things in life, the termination could be amicable or could be a negative

experience for both parties.

Agency/third party contracts and agreements

Agency buys advertising space and airtime from the media houses, it also commissioned

production establishments to produce advertising materials on behalf of its clients. So if

the agency buys space form the media, it makes contract with the media and sells the

space back to its clients. If the client does not pay, agency must foot the bill. The same with

other third parties employed by the agency on behalf of its clients This is why agencies are

required to be creditworthy.

Theworkingrelationshipbetweenagenciesanditsthirdparties,indirectlyinuencedagency

and client business relationship. if the agency cannot manage its third parties, then the

quality of work that it gives to its clients suffers.

Thelawofcopyright

Anyone who creates something has a right to protect it from being copied or used by otherparty. This is an automatic right, with no registration required (unlike a trade mark under

older legislation). Anyone who copies any aspect of an

advertisement without permission can be sued for an injunction and damages by an owner

through a civil action.

The rights to all work done by the agency (including artwork) belong to the agency, even

though the work has been commissioned by and paid for by the client. This is the case

unless the client insists on a clause assigning ownership in the agency/client agreement.



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Other copyrights to be considered

Workbyphotographers, free lancedesigners etc commissioned bythe agency onbehalf of its clients

Theuseofmaterialsfromexternalsourceassuchtherighttousethecartooncharacter

Mickey Mouse.



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Points to remember

Agencyandclientformalizedtheirworkingrelationshipwithacontractagreement

Acontractconsistsofanofferadanacceptance,whichformsanagreement,together

with a consideration, usually a sum of money

A contract canbe terminated by either agency or client,as long as provisions for

termination have been met.

Asagencybuysmanyservicefromotherthirdpartiesonbehalfofitsclients,agency

also form contract agreement with third parties.

Copyright covers theownershipofwords, artisticworks (photographs, illustrations,

etc), music and many other created elements.

Thegoalofagencyandclientworkingrelationshipislongtermbusinesspartnership.

Abusiness relationshipconsists of severalcycleswhich if passed successfullywill

ensureamutuallybenecialbusinessrelationshipbetweenagenciesanditsclients.



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CHAPTER18

ADVERTISING TESTING AND EVALUATIONCHAPTER OUTLINE

Market situation is very complex. It is imperative to establish the market situation such

competitive environment, consumer perception and attitudes, before planning and executing

an advertising and promotion campaign. This to ensure that the campaign is effectively

directed at relevant market issues.

This chapter will explain the various methods of testing and evaluation to ensure that

campaigns are planned strategically and executed appropriately. Successful campaignswill enhance advertisers condence in the methods of advertising as well as on the

professionalism of the advertising agency.

OBJECTIVES:

To understand the reasons for doing testing and evaluation.1.

To understand the methods of pre-campaign testing.2.

To understand continuous research to monitor performance of advertising and3.

promotion.To understand the methods of evaluating a campaign.4.

Testing the market place

Testing of the market place to discover information such as the level of market response to

the brand, how the company and the brands are perceived by the consumers and customers,

areinitiallytakenbytheadvertisersmarketingteam.Theirndingsarethenbriefedtotheir

agency.

Theagencywillthenconducttheirownresearchtondotherpertinentinformationwhichwillguide them to plan an effective campaign. If negative attitudes, motivations and opinion by

thecustomersandconsumersarefound,thentheagencycanndwaystore-positionthe

brand so it will be perceived in a positive way. On the other hand positive attitudes can also

be discovered and then enhanced in the campaign.

Reasons for testing are:

Seei

intro to advertising adv media planning 002

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