Communications and Advertising

CAA201

CHAPTER 2 ADVERTISING
 Learning
Objectives
LO1. Understand the concept of advertising, its
evolution, and its role in modern times.

LO2. Analyze the development of key marketing

communication concepts over time.

LO3. Explore the organization of the advertising

industry, including key players, types of
agencies, and jobs within agencies.

LO4. Explain why and how the practice of

advertising is changing over time.
WHAT IS ADVERTISING ?
Advertising
Advertising is a paid form of
persuasive communication that
uses mass and interactive media
to reach broad audiences so as to
connect an identified sponsor
with buyers (a target audience),
provide information about
products (goods, services, and
ideas, and interpret the product
features in terms of the
customer's needs and wants.)

Billboard advertisement competition

between Beamin & Gojek
Milestones in The History of Advertising

15th
1704 1920s
Century

Printing Press First Newspaper Radio

Invention Ad Advertising
Johannes Gutenberg's The first known newspaper The advent of radio provided
invention of the printing press advertisement appeared in a new platform for
revolutionized advertising by the “Boston News-Letter,” advertisers. The first radio
making printed materials marking the beginning of commercial ads in 1922 for
widely available. This led to the structured advertising in Hawthorne Court
creation of printed print media. Apartments in New York City.
advertisements & newspapers.
 Milestones in The History of Advertising

1950s 1994 2000s

Television Digital Social Media

Advertising Advertising Advertising
TV commercials became a The launch of the first The rise of social media
dominant form of banner ad on the web in platforms like Facebook
advertising, with the first TV 1994 (AT&T – USA) marked (2004) and Instagram (2010),
ads in 1941 (watchmaker the beginning of digital Tiktok (2016) transformed
Bulova – New York) . TV advertising. This era advertising with targeted ads
allowed advertisers to use introduced online ads, which and influencer marketing,
both visual and auditory quickly evolved into various allowing for precise audience
elements to engage forms like search engine and targeting and engagement.
audiences. display ads.
Advertising’s
basic functions

01 Identification
Identifies a product and/or
the store where it’s sold

02 Information
Making commercial messages
available to the masses

03 Persuasion
Persuade people to buy things
Key Advertising
components
Strategy
1 The logic behind an advertisement stated in
objectives that focus on areas such as sales,
emotional appeal, or brand reputation.

Message
2 The concept behind a message and how it
is expressed based on consumer insights.

Media
3 Targets prospective buyers by matching
their profiles to media audiences.

Evaluation
4 Based on strategic objectives and
professional standards
 Brand advertising Nonprofit advertising
1 5
Focuses on building a brand's NGO use to reach customers,
image and reputation. members, volunteers, and donors

Retail or Local Business-to-business

2 6
Advertising advertising
Promotes local businesses, Sent from one business
sales, events. Common to another

Direct Response types of Public service

3 7
Advertising
Encourages immediate
Ads advertising
Usually produced and run for
consumer action. free on behalf of a good cause

Institutional Specialized
4 8
Advertising advertising
Enhances the image of an Used to address specific areas
organization or institution. such as international health care,
green marketing campaign
Exercise 1
Class divided into 4 groups; each group
presents 2 interesting examples of 2
Common types of Ads.

• Group 1: Brand advertising &

Institutional advertising

• Group 2: Retail or local advertising &

Business-to-business advertising

• Group 3: Direct-response advertising

& Specialized advertising

• Group 4: Public service advertising &

Nonprofit advertising
 Publicity
Marketing 1 Generating public interest and media

Communication coverage without direct payment.

(Marcom) Public relations

2 Building & maintaining a positive brand image
Advertising is a key component of with the community and customers.
Marketing Communication
(Marcom), a comprehensive
toolkit used to promote products, Direct Response
services, or brands. 3
Encouraging immediate consumer action
Marcom includes more than just
through channels like direct mail or phone calls.
advertising. Other tools in the
promotional toolkit:
Promotion gifts (Specialties)
4
Providing branded items or promotional
products to enhance brand visibility.
 Difference Between
Marcom & IMC
Marcom
• Refers to all marketing communication activities
such as advertising, PR, sales, promotions, and
direct marketing.
• Focuses on delivering messages through various
channels.

IMC
• A strategy that integrates all marketing tools to
deliver a unified message across all channels.
• Ensures consistency and coordination of marketing
efforts, creating a seamless brand experience for
customers.
What roles does
advertising play?
Marketing and communication
roles:
• It transforms a product into
a distinctive brand by
creating a brand image.

Economic and societal roles

• Advertising works to create
demand for brands and
lower prices for consumers.
• Advertising shapes our self-
image and sense of style
through things we wear and
use.
 The Role of Creativity in Advertising
• Creativity is central to effective advertising, turning basic messages into engaging & memorable content
• It helps differentiate a brand, making it stand out in a competitive market.
• An interesting creative advertising can go viral & bring unexpected value when it gets noticed.
A key
principle

“Advertising generates cost

efficiencies by increasing
demand among large groups
of people, resulting in higher
levels of sales and ultimately,
lower prices.”
The Advertising
World
 Key players in Advertising Industry

The Client The Agency

Consultants The Media

Celebrity & KOL Professional

Suppliers
 The Client (Organization)

• The message sponsor or

advertiser .
• Likely to have an
inhouse marketing
team that initiates the
advertising effort.
• Hires the advertising
agency.
The Agency

• Creates, produces, and

distributes the messages.
• Employs experts who are
passionate about their work.
• Can negotiate the best media
deals for clients.
 The Media

• Channels of
communication that
deliver messages and
engage audiences.
• The mass media enable
advertisers to reach
many people with a
single message in a
cost-efficient manner.
• Many are large media
conglomerates such as
Time Warner and
Viacom.
Professional Suppliers and Consultants

• Provide specialized services

to advertisers and agencies.
• Includes artists, writers,
photographers, producers,
printers, and vendors who supply
user-generated content online.
Celebrity & KOL
• Boost credibility: Celebrities
and KOLs lend trust to
brands.

• Attract attention: Their

presence draws immediate
consumer interest.

• Influence decisions: They

shape consumer
preferences and buying
choices.

• Widen reach: They help

brands connect with larger
or new audiences.
Types of Agencies

Full-Service Agencies
Encompasses account
management, creative services,
media planning, and account
planning.

In-House Agencies
Is a part of the advertiser’s
organization; helps to control
costs and maintain control over
brand image.
 Types of Agencies
• Specialized Agencies
Specialize in certain functions, audiences,
industries or markets.
• Creative Boutiques
Small agencies that work only on the
creative execution of an idea or product.
• Media-Buying Services
Specialize in the purchase of media for
clients
 Types of Agencies

Agency Networks and Holding Companies

• Large conglomerations of agencies under a central ownership
• One or more agency network, usually with multiple offices
 How are agency jobs organized?

Account
management
Media research,
planning, and
buying
Account
planning and
research

Internal
operations
Creative
development
and research
How are agency
jobs organized?
Account
management
• This team acts as a liaison
between the client and agency.
• The account executive
interprets the client’s
marketing research, strategy
for the agency.

Account planning
and research
• This team gathers market
intelligence and acts as the
voice of the consumer.
• Strategic specialists research
consumers’ wants, needs and
brand relationships.
How are agency
jobs organized?
Creative development
& production
Includes copywriters, art directors,
and producers.

Media research,
planning, & buying
This department provides
research, planning, and buying
services.

Internal operations
Includes traffic, print production,
finance, and human resources.
How are Agencies paid?
From three main sources:

Commissions
Based on media billings.

Fees
Based on an hourly rate or % of total
value of project. Also covers travel
and various expenses.

Retainers
A regular amount billed each
month, based on projected work.
How are Agencies
paid?
Two recent trends:

Based on performance
The agency is paid a percentage
of the client’s sales or marketing
budget.

Value billing
The agency is paid for its
creative and strategic ideas
rather than for executions and
media placements.
The Volution of Advertisement
Advertising Makes
Us Unhappy
• The study by the University of
Warwick, conducted across 27
European countries from 1980 to
2011, found a relationship
between advertising spending
and public satisfaction. When
advertising increases, people's
happiness tends to decrease.

• Advertising fosters social

comparison, encouraging
consumers to compare
themselves to others, which leads
to feelings of inadequacy and
dissatisfaction with their personal Read full article:
lives. https://hbr.org/2020/01/advertising-
makes-us-unhappy
HOW CAN WE SOLVE THIS PROBLEM?
Let’s Make Better Content

• Promoting positive, ethical

strategies that focus on
personal well-being.

• Emphasize relatable, authentic

messages that empower and
uplift consumers.

• Shift focus from materialism to

values like self-appreciation and
emotional fulfillment in ads to
foster a healthier impact on the
audience.
Dentsu Creative Trends 2024
 Consumer in charge

• Nowadays, consumer less believe in

Ads, but F factors

• Consumers have taken control of

media and marketing through the
and social media.

• Consumer-generated advertising
creates valuable brand publicity.
 Blurring lines

• Television is still a major player, but the

number of other channels has exploded.

• Digital media has fragmented the

media world with new, ever-changing
forms.

• Agencies must take a stronger

leadership role in the development of
brand strategy.
 Let’s Discuss
What is an effective ad?
 Effective ad campaign?

• Effective ads deliver the

message the advertiser
intended, and that
consumers respond to
as the advertiser hoped
they would.

• Effectiveness is gauged
(measured) according
to predetermined
objectives.

Let’s discuss if campaign “Share a Coke” campaign is

effective or not? Why?
Advertisement Awards
Cannes Lions International
Festival of Creativity
Often considered the pinnacle of global
advertising awards, Cannes Lions honors the
most outstanding achievements in creativity
and innovation across various categories.

The Clio Awards

The Clio Awards recognize and celebrate
creative excellence in advertising, design, and
communication. It is known for its prestigious
status in the industry.

Effie Awards
The Effie Awards are a prestigious global
awards program that recognizes & celebrates
effective marketing communications.
THANK YOU!