Description
Advertising is a challenge, and the decision on advertisement budgeting and analyzing it's success is far more difficult. This presentation is a brief about the same.
ADVERTISING
Partha Sinha Neha Singh
1
2
CONTENTS
? Process
? Advertisement Budgeting ? Developing advertising campaign ? Measuring Effectiveness of advertisement
campaign.
3
COMPONENTS OF ADVERTISEMENT
Developing Advertisement Campaign
BUDGET
Measuring Effectiveness
4
ADVERTISING BUDGET
It’s probably the toughest part of any business . How much to spend, where to place the ads , how often, what message to spend and to who?
1.How much to spend overall?
(a) A lot (because of necessity or opportunity) (b) A little (in view of constraints , modest goals
2. How to allocate the spending?
(a) Across target audiences ( profitability) (b) Across media(advertising tasks) (C) Across Geographic's (revenue pattern)
FACTORS AFFECTING DECISIONS
BUDGET
? STAGE IN THE PRODUCT LIFE-CYCLE ?MARKET SHARE AND CONSUMER BASE ?COMPETITION AND CLUTTER ?ADVERTISING FREQUENCY ?PRODUCT SUBSTITUABILITY
ADVERTISING ELASTICITY
A measure of a market’s sensitivity to increases or decreases in advertising saturation. Advertising elasticity is a measure of an advertising campaigns effectiveness in generating new sales.
DEVELOPING THE ADVERTISING CAMPAIGN
Developing and evaluating an advertising campaign employ both art and science to develop the message strategy or positioning of an advertising. It attempts “what” the ad convey about the brands, Its “creative strategy”, “how” the ad expresses the brand claims.
10
STEPS IN DEVELOPING THE ADVERTISING CAMPAIGN
? Message generation and evaluation. ? Creative development and execution. ? Social-responsibility review
Message generation and evaluation:
Inductive and Deductive methods are used to generate messages. In inductive method creative people talk to customers, dealers and competitors to know the strength and weakness of the product. In deductive method says what the buyer expects as reward from a product. The advertisement messages are to be rated on desirability,exclusiveness and believability.
CREATIVE DEVELOPMENT AND EXECUTION
The advertising impact doesn’t depends upon What it says, but often more How it says. Execution can be decisive, here we review; ? Television ads ? Print ads ? Radio ads ? Film ads
LEAGAL AND SOCIAL ISSUES
Advertising ethics and codes need to be followed by the advertisers and advertising agencies. Advertisers must not make false promises and should not show false demonstration..
DECIDING ON MEDIA AND MEASURING EFFECTIVENESS
• Media Selection:
Target audience media habits.
Product Characteristics.
Message Characteristics.
Cost.
15
Selecting specific Media Vehicles
Circula tion
Audiance Effective Audianc e
Effective Adexposed Audiance
16
DECIDING ON MEDIA TIMING AND ALLOCATION
Macroscheduling Problem
Microscheduling Problem
17
Macro scheduling
? Business Cycle ? Product PLC
Introductory Stage Growth Stage Maturity Stage Decline Stage
Total Market Sales Time
18
Micro scheduling
Level Rising Falling Alternating
Concentrated
Continuous
Intermittet
19
MICROSCHEDULING: Bonobus case
? Bonobos is a premium, web-driven men’s
apparel brand and e-tailer in U.S. ? Bonobos receives roughly 25% of its customer service inquiries from social channels. ? Bonobos held a “Twixlusive,” a 24-hour sale, exclusively on Twitter.
20
MICROSCHEDULING: Bonobus case
? Results :
? 80 Retweets in about 8 minutes
? 100 first-time purchasers ? 1,200% ROI in 24-hours
? 13 times more cost effective (CPA) to acquire a new
customer from Twitter than from other marketing channels
21
Evaluating Advertisement Effectiveness
? Communication-Effect Research
? Portfolio tests ? Laboratory tests
? Sales-Effect Research ? Marketing Analytics tools
? Google Analytics ? SAS
22
Measuring Effectiveness: CM Photographic
? A specialized event photographers. ? Focused on Marriage events to increase the
bottom-line. ? Advertised on Facebook :
23
Measuring Effectiveness: CM Photographic
? Results: (12 months timeline)
? CM Photographics generated nearly $40,000 in
revenue from Facebook advertisement. ? $600 advertising investment on Facebook. ? Directed traffic from Facebook,
? 60% became qualified leads
24
Conclusion
? Advertisement is a powerful tool:
? Need to use efficiently and effectively. ? Create Impact. ? Cost effective. ? Gives long term and short term objectives.
25
26
doc_993120767.pptx
Advertising is a challenge, and the decision on advertisement budgeting and analyzing it's success is far more difficult. This presentation is a brief about the same.
ADVERTISING
Partha Sinha Neha Singh
1
2
CONTENTS
? Process
? Advertisement Budgeting ? Developing advertising campaign ? Measuring Effectiveness of advertisement
campaign.
3
COMPONENTS OF ADVERTISEMENT
Developing Advertisement Campaign
BUDGET
Measuring Effectiveness
4
ADVERTISING BUDGET
It’s probably the toughest part of any business . How much to spend, where to place the ads , how often, what message to spend and to who?
1.How much to spend overall?
(a) A lot (because of necessity or opportunity) (b) A little (in view of constraints , modest goals
2. How to allocate the spending?
(a) Across target audiences ( profitability) (b) Across media(advertising tasks) (C) Across Geographic's (revenue pattern)
FACTORS AFFECTING DECISIONS
BUDGET
? STAGE IN THE PRODUCT LIFE-CYCLE ?MARKET SHARE AND CONSUMER BASE ?COMPETITION AND CLUTTER ?ADVERTISING FREQUENCY ?PRODUCT SUBSTITUABILITY
ADVERTISING ELASTICITY
A measure of a market’s sensitivity to increases or decreases in advertising saturation. Advertising elasticity is a measure of an advertising campaigns effectiveness in generating new sales.
DEVELOPING THE ADVERTISING CAMPAIGN
Developing and evaluating an advertising campaign employ both art and science to develop the message strategy or positioning of an advertising. It attempts “what” the ad convey about the brands, Its “creative strategy”, “how” the ad expresses the brand claims.
10
STEPS IN DEVELOPING THE ADVERTISING CAMPAIGN
? Message generation and evaluation. ? Creative development and execution. ? Social-responsibility review
Message generation and evaluation:
Inductive and Deductive methods are used to generate messages. In inductive method creative people talk to customers, dealers and competitors to know the strength and weakness of the product. In deductive method says what the buyer expects as reward from a product. The advertisement messages are to be rated on desirability,exclusiveness and believability.
CREATIVE DEVELOPMENT AND EXECUTION
The advertising impact doesn’t depends upon What it says, but often more How it says. Execution can be decisive, here we review; ? Television ads ? Print ads ? Radio ads ? Film ads
LEAGAL AND SOCIAL ISSUES
Advertising ethics and codes need to be followed by the advertisers and advertising agencies. Advertisers must not make false promises and should not show false demonstration..
DECIDING ON MEDIA AND MEASURING EFFECTIVENESS
• Media Selection:
Target audience media habits.
Product Characteristics.
Message Characteristics.
Cost.
15
Selecting specific Media Vehicles
Circula tion
Audiance Effective Audianc e
Effective Adexposed Audiance
16
DECIDING ON MEDIA TIMING AND ALLOCATION
Macroscheduling Problem
Microscheduling Problem
17
Macro scheduling
? Business Cycle ? Product PLC
Introductory Stage Growth Stage Maturity Stage Decline Stage
Total Market Sales Time
18
Micro scheduling
Level Rising Falling Alternating
Concentrated
Continuous
Intermittet
19
MICROSCHEDULING: Bonobus case
? Bonobos is a premium, web-driven men’s
apparel brand and e-tailer in U.S. ? Bonobos receives roughly 25% of its customer service inquiries from social channels. ? Bonobos held a “Twixlusive,” a 24-hour sale, exclusively on Twitter.
20
MICROSCHEDULING: Bonobus case
? Results :
? 80 Retweets in about 8 minutes
? 100 first-time purchasers ? 1,200% ROI in 24-hours
? 13 times more cost effective (CPA) to acquire a new
customer from Twitter than from other marketing channels
21
Evaluating Advertisement Effectiveness
? Communication-Effect Research
? Portfolio tests ? Laboratory tests
? Sales-Effect Research ? Marketing Analytics tools
? Google Analytics ? SAS
22
Measuring Effectiveness: CM Photographic
? A specialized event photographers. ? Focused on Marriage events to increase the
bottom-line. ? Advertised on Facebook :
23
Measuring Effectiveness: CM Photographic
? Results: (12 months timeline)
? CM Photographics generated nearly $40,000 in
revenue from Facebook advertisement. ? $600 advertising investment on Facebook. ? Directed traffic from Facebook,
? 60% became qualified leads
24
Conclusion
? Advertisement is a powerful tool:
? Need to use efficiently and effectively. ? Create Impact. ? Cost effective. ? Gives long term and short term objectives.
25
26
doc_993120767.pptx