Description
There are two kinds of marketing strategies that can be used to promote any product: "above-the-line" (ATL, essentially advertising in the mass media) and "below-the-line" (BTL). These category names reflect the business practices of advertising agencies.
Abstract
The annals of Marketing Management have witnessed a tug of war between advertising and
sales promotion since inception. But in the early phase of twenty first century this war has
taken a new avatar in form of Above - The- Line and Below - The- Line activities, widening
both scope and intensity of this war. Above-the-line propagated traditional marketing
channels that strive to reach a mass audience with messages that reinforce a brand
communicate general product information or inspire an emotional response. Below-the-line!
initiatives, by comparison, acts like traditional direct marketing efforts " they aspire to
establish targeted relationships between marketers and individual consumers, and offer
comparable ease in measurability. #ith increase fragmentations and demographic along with
the increased pressure to increase effectiveness of marketing communication soon BTL
activities started substituting ATL activities and there has been a steady growth in BTL
e$penditure in this century . #ith its uni%ue ability to personali&e and customi&e
communication this form of communication is slowly replacing the mass media advertising.
This paper attempts to highlight these trends and also comment about the e$isting channels
that BTL activities employ. 'n order to substantiate the claims, a case study has been
specifically designed in order to show the relevance of BTL activities in this fragmenting
world.
Research Objective: To investigate the relevance of Below -The- Line activities to current
marketing communication practices.
Research Design: Analysis of secondary literature and industry documents
Research Methodology: This paper has been written by analy&ing the secondary literature
and other industrials documents .(ata came from primary and secondary document sites on
the #orld #ide #eb arising from the reduction in the advertising e$penses. (ocuments from
the marketing )ournals commenting on the obsolescence of mass media advertising in the
conte$t of fragmented media, fragmented audience and slowly decreasing retention levels. 'n
addition to this white paper on *ertical Market Trends in (irect Mail and the 'mpact on
+roduction ,ervice +roviders, based on do&ens of interviews with e$ecutives at large
companies engaging in direct mail marketing-including agencies, printers and other
industry e$perts- e$amines . key trends, and focuses particularly on market conditions for
direct mail printers and letter shop firms.
/
Introduction of the Topic
There are two kinds of marketing strategies that can be used to promote any product0 1above-
the-line1 2ATL, essentially advertising in the mass media3 and 1below-the-line1 2BTL3. These
category names reflect the business practices of advertising agencies. Agencies generally
make commission on placement of advertisements in newspapers, maga&ines and cinema,
and on television, radio and billboards, a fee that appears 1above the line1 on their bill.
Traditionally, other forms of promotion-events, direct marketing, email promotions, te$t
message promotions, premiums, price reductions, public relations activities, sponsorship,
trade shows, e$hibitions, sales literature and catalogues-were charged at a fi$ed fee and thus
appeared 1below the line
Above-the-line propagated traditional marketing channels that strive to reach a mass audience
with messages that reinforce a brand communicate general product information or inspire an
emotional response. Below-the-line! initiatives, by comparison, acts like traditional direct
marketing efforts " they aspire to establish targeted relationships between marketers and
individual consumers, and offer comparable ease in measurability. Traditionally ATL and
BTL strategies have been considered distinct, and BTL the poor cousin. BTL activities were
generally used to complement the main mass media marketing activities and usually a
fraction of marketing resources were allocated for these activities. BTL activities first shot
into prominence when ATL activities for products which have unwholesome demand were
proscribed by the ,ocio-legal restrictions. 4ven though BTL activities started off to fill in for
ATL activities, increasingly, BTL strategies are now recogni&ed as economical, uni%ue, and
personal ways to achieve 1cut-through1 in the supersaturated advertising environment.
Figure 1.1 Channels of BTL and ATL activities
5
Above-the-Line Media elo!-the-Line Media
/. Are tailored to reach a mass audience
Are targeted to individual consumers,
based on their e$pressed needs and
preferences
5. 4stablish brand identity or reinforce
emotional concepts surrounding a
product or brand
'ssue a call-to-action,! inspiring specific
customer activity or tailored messages
about a product or brand
6. May or may not drive customer
response
(rive individual responses
7. Are difficult " if not impossible " to
measure with any accuracy
Are highly measurable, allowing
marketers insight into their return-on-
investment, as well as those tactics that
are 2and are not3 working
8. 9ater to the mass market
4stablish one-to-one relationships
between consumers and marketers
Figure 1.2 Differences s in BTL and ATL activities
"volution of belo! -the- line activities
'n a market rapidly adapting to changes in technology, available information and heightened
consumer demand, traditional, brand-oriented advertising is no longer the primary driver of
customer behavior. #hether it:s reflected in dwindling print newspaper circulation or the
stagnant market for network television commercials, significant evidence suggests that the
marketing landscape has fundamentally shifted " from an above-the-line! focus on reaching
a broad population with emotionally-oriented appeals, to a below-the- line! approach that
stresses targeted, customer-centric communications, measurable results and concrete return-
on-investment.
#e believe that the metaphorical line! separating marketing philosophies 2often %uoted, but
never precisely defined3 is reflected in three key %ualities that separate today:s emerging
promotional methods from the top-down advertising monologue of the past. Acting in
concert, they embody the universal elements of successful below-the-line marketing efforts0
6
• #erception " The e$tent to which a consumer feels that he or she is engaged as an
active participant in a marketing dialogue, rather than a target of an aggressive direct
sales or branding effort
• Interaction " The e$tent to which consumers are empowered to respond to marketing
communications via preferred channels that are both convenient and accessible
• Measurability " The e$tent to which a marketer can track the results of an individual
initiative, determine commensurate return-on-investment and ad)ust future campaigns
to provide for an enhanced chance of success
Figure 1.3 Framework of BTL activities
The paper, based on e$haustive secondary e$plores the key factors that are leading
sophisticated marketers in all vertical segments to move dollars away from above- the- line!
2ATL3 and toward direct, measurable below-the-line! 2BTL3 marketing tactics.
7
$hannels of TL activities
Database %ar&eting: 't involves use of proprietary database of consumer records which can
enhance prospect or customer data sources with unprecedented demographic, lifestyle and
transactional data. 't can be utili&ed for tuning marketing offers targeted at new prospects --
and provide their current customers with products that more closely match purchasing
preferences and habits.
(atabase marketing services include0
/. (ata 4nhancement;Append0 Appending of desired information, including0
• 9ontact information 2email, telephone, and postal addresses3
• (emographic information 2age, gender, marital status, children, ethnicity3
• Lifestyle information 2income level, home ownership, interests, and hobbies3
5. (ata n-going reporting and analysis to help clients assess results and
make ad)ustments if needed.
• ?ull campaign stats " Mails;emails sent, delivered, opens and click rates
• =esponder snapshots of demographic, geographic and lifestyle information
Interactive services: By designing online campaigns that generate valuable and conversions
by the use of #eb +roperties, Affiliate @etwork and ,earch 4ngine Marketing
Affinity %ar&eting: 4nhancing brand value and gaining new customers by affinity programs
like collaborations with
• *eteranAs >rgani&ations
• ,portsmenAs >rgani&ations
• 9onservation and #ildlife Advocacy >rgani&ations
• ,eniors Advocacy >rgani&ations
• +olitical >rgani&ations
• =eligious >rgani&ations
• Bouth Activity >rgani&ations
• 4thnic Croup Advocacy >rgani&ations
• 9ause Based >rgani&ations
(irect =esponse +rint0 't:s most common form today is infomercials. 't is achieved by
eliciting a direct response via television presentations. *iewers respond via telephone or
internet, credit card in hand.
>ther media, such as maga&ines, newspapers, radio, and e-mail can be used to elicit the
response, but they tend to achieve lower response rates than television.
"vent Mar&eting: 't involves a strategic-based face-to-face contact designed to impact a
brandAs perception among its constituents. 't is set of promotional activities involving an
event such as a sporting or social event, designed to bring a product to the attention of the
public
D
#ro%otional Mar&eting: 't is a non-personal promotional effort that is designed to have an
immediate impact on sales. ,ales promotion is media and non-media marketing
communications employed for a pre-determined, limited time to increase consumer demand,
stimulate market demand or improve product availability.
4$amples include0
• 9oupons
• (iscounts and sales
• 9ontests
• +oint of purchase displays
• =ebates
• ?ree samples 2in the case of food items3
• Cifts and incentive items
• ?ree travel, such as free flights
,ales promotions can be directed at the customer, sales staff, or distribution channel members
2such as retailers3. ,ales promotions targeted at the consumer are called consumer sales
promotions. ,ales promotions targeted at retailers and wholesale are called trade sales
promotions.
$urrent 'cenario in the field of TL activities
(espite general growth in advertising and marketing services e$penditures -- as well as a
one-year spike in broadcast television spending brought on by the %uadrennial >lympics;
E.,. presidential election cycle " market spending data suggest that above- the-line marketing
is not fairing well compared to the industry at large. 'n 5FFD, ATL spending 2encompassing
such channels as television, radio, newspapers, maga&ines and yellow pages3 is e$pected to
grow 8.D percent, a full /.. percent behind the industry as a whole. By 5FF., that difference
will become more pronounced, as ATL spending growth is pro)ected at )ust 7.D percent for the
year, compared to an e%uivalent ..6 percent industry growth. According to e-Marketer,
spending on online advertisements " a uni%ue medium that offers reach and brand e$posure
along with the one-to-one benefits of BTL marketing " will reach G/5.H billion in
5FF8, representing an increase of more than 67 percent from 5FF7 spending. By 5FFH, annual
.
online e$penditures should hit G55.6 billion, reflecting an average annual growth of nearly 5/
percent since 5FF5.Cains are being reali&ed among virtually all media that provide the BTL
advantages of perception, interaction and measurability. #hether in direct mail
2pro)ected growth ..8 percent in 5FF8, according to the #interberry Croup3, promotions 26..
percent, according to +=>M> Maga&ine3 or e-mail marketing 26/ percent, according to
Iupiter =esearch3, recent spending and marketer commentary indicate a real and growing
preference for tactics based on established data and %uantifiable results. The world:s largest
marketing service providers, likewise, are adapting to the business imperative of one-to-one
communications. 'n doing so, they appear finally poised to transition out of the mass
advertising-centric focus that has for so long defined their business. #++ Croup, for e$ample
" one of the world:s largest advertising and marketing services holding companies, with
annual revenues of appro$imately G/F billion " recently announced thatmedia investment
management continues to show the strongest growth of all our communications services
sectors, along with Jbelow- the-lineK direct, 'nternet and interactive and healthcare
communications.!
Figure 1. !rowth in e"#enditure of BTL and ATL activities
L
Figure 1.$ Com#osition of BTL and ATL activities
Figure 1.% &' (arketing '#ending) 2**1+ 2**,
4$penditure estimates say a lot about where sophisticated marketers are focusing their efforts,
but they don:t address the more fundamental %uestion of why. #hy, after so many years of
success with above-the-line methods, are marketers finally changing their approach to
reaching customers and fostering profitable relationshipsM And why do customers
appear so willing to accept this new communications philosophyM The following seven
trends e$plore the factors, both e$ternal and internal, that are contributing to this emerging
marketing emphasis. ,pecifically, it identifies seven key trends that are directly impacting the
allocation of marketing budgets for both ATL and BTL campaigns. They include0
H
/. 9hanging consumer demographics decrease the influence of traditional mass media
2i.e. !one-si&e-fits-all!3 marketing messages
5. Crowing consumer sophistication heightens the demand for channel-agnostic
communications
6. #idespread marketing clutter! diminishes the impact of commercial messages that
don:t address specific and individually relevant consumer needs
7. 4nhanced information availability empowers both marketers and consumers with
insight that allows for precise customer targeting and intelligent purchase decisions
8. Neightened client pressure to deliver %uantifiable value by evaluation of =>' of the
marketing initiatives , forces marketing service providers " especially agencies " to
re-evaluate services platforms
D. Crowing effectiveness of multi channel! campaigns 2those that cross multiple media3
reinforces demand for tactics that establish one-to-one relationships between
marketers and consumers
.. =apid technological advances allow for consumer;marketer interactions that are
fre%uent, easier and more relevant than previously possible
Trends I%pacting TL Mar&eting udgets
/.3 $hanging consu%er de%ographics decrease the influence of traditional %ass- %edia
(i)e) *one-si+e-fits-all,- %ar&eting %essages)
Enderstanding the conventions of culture as well as the individual cultural differences and
similarities of target locales empowers marketing professionals to reali&e that one universal
message-whether verbal or visual, can never reach a global audience. >ne global culture
comprised of people with identical values does not e$ist-not even within the confines of our
own country as the recent elections illustrate. (ifferences in learning and thinking patterns
influence the way people process information, as demonstrated in their innate responses to
marketing communications. Audiences differ in the way they perceive and value concepts of
time, space, money, relationships, power, risk, and even the protocols of gender roles. 't is
important to note that when attempting to customi&e communications with cultural
differences in mind, it is )ust as important to recogni&e the cultural similarities. As much as
locali&ation vendors like to overemphasi&e 1e$treme customi&ation1, cultural similarities do
e$ist, and are deeply imbedded in the core values of your products and service offerings.
/F
This trend is highlighted in a multicultural market like Enited ,tates, where in /HHFO ethnic
minorities commanded GD7..7 billion in annual consumer spending, or about /8.D percent of
total e$penditures. By 5FF/ that proportion had shot up to nearly /H percent " some G/.6
trillion, according to American Multi channel Marketing. 9learly, the influence of
multicultural Americans, with their widely disparate preferences, customs and even
languages, is growing along with their representation in the general population.
Today, appro$imately 58 percent of the E.,. population is of African, Asian or Nispanic
descent. But by and large, above-the-line marketing messages are still crafted for
consumption by the larger population " ignoring the cultural sensibilities of many and
threatening to reawaken the kind of cross-cultural snafus now immortali&ed in business
legend. 4scalating life e$pectancy and the coming-of-age of the Baby Boom generation are
heightening the impact of older Americans, as well. Iust like multicultural consumers, this
uni%ue sub-population will re%uire targeted, relevant marketing communications in the
years ahead.
5. .ro!ing consu%er sophistication heightens the de%and for channel-agnostic
co%%unications.
Advances in marketing and communications haven:t )ust served to benefit marketers "
consumers, too, have learned to e$ploit technology, information and available media channels
for their benefit. Among other capabilities, the sophisticated modern consumer is adept at0
P Esing the 'nternet to compare product prices
P ,creening out unwanted outbound telemarketing calls 2or telemarketing calls altogether "
through participation on the @ational (o-@ot-9all list3
P ,kipping past television commercials " the lifeblood of above-the-line marketing " with
Ti*o and other digital video recording technologies
P Bypassing traditional print advertisements through online newspaper subscriptions
and opt-in headlines! e-mails that provide a selected snapshot of relevant news with only a
fraction of the advertising interference.
9ollectively, these practices speak to the active participation of consumers in the marketing
process, a phenomenon made possible by the same innovations that many marketers e$pected
would cement their authority in customers: daily lives. They demand marketing responses
that are concise, relevant and universal across all media " so that consumers who choose to
interact via multiple channels 2say, researching available products online and then completing
the purchase in-store3 are e$posed to a consistent fundamental buying e$perience.
//
/) 0idespread %ar&eting 1clutter, di%inishes the i%pact of co%%ercial %essages that
don2t address specific and individually relevant consu%er needs)
=apid advances in the %uality of available marketing media have had at least one deleterious
effect0 a saturated media consumption landscape, plus a resultant consumer backlash against
advertising messages that are perceived as intrusive or otherwise irrelevant.
,ophisticated consumers " like the Ti*o users referenced earlier, who tune out commercial
advertisements in a move to do away with the clutter .?orrester and the 9able television
Advertising Bureau note that in 5FF7, // billion E.,. (*= users skipped between DL and
.L percent of commercial advertisements, effectively accounting for appro$imately G5-6
billion in wasted advertising spending. 4merging media such as cable-on-demand and
podcasted television shows 2Available for download to portable video player )ust minutes
after running on broadcast networks3 likewise have the potential to further marginali&e ATL
media that speak to the general population, rather than individual preferences.
3) "nhanced infor%ation availability e%po!ers both %ar&eters and consu%ers !ith
insight that allo!s for precise custo%er targeting and intelligent purchase decisions)
,ignificant advances in database marketing, analytics and customer relationship management
29=M3 platforms have spawned an informational avalanche, allowing marketers the
opportunity to build a comprehensive, 6DF-degree view of the customer and their
transaction history. By ma$imi&ing the comple$ array of available information, leading-edge
/5
marketers are reaching prospects with offers targeted to their e$pressed 2or e$pected3 wants
and desires " and driving significantly enhanced response rates and lifetime customer value.
@ot to be outdone, consumers are arming themselves with an array of enhanced informational
tools to make smarter buying decisions. #eb sites reinforce the movement to obtain
information and apply it through stricter scrutiny of the available market.
4) 5eightened client pressure to deliver 6uantifiable value forces %ar&eting service
providers 7 especially agencies 7 to re-evaluate services platfor%s)
Among traditional advertising agencies, average client tenure now stands at less than/L
months per account. 'n a timeframe shorter than many ad campaigns themselves, marketers
are increasingly deciding that these trusted strategic advisers " once thought of as the
standard-bearers of marketing strategy, conception and delivery " can easily be replaced by
others whose strategic, creative and, most notably, financial ob)ectives better align with their
own.
#hile shoddy creative work is often cited as the reason, more often, the actual fuel for this
rapid agency turnover is a lack of concrete delivery. 'n the face of alternative below-the-line
media that offer the benefits of personali&ation and measurable return-on-investment, the vast
investment re%uired to sustain solo ATL campaigns 2as well as the agencies from which they
originate3 is increasingly seen as e$cessive in the eyes of bottom-line focused e$ecutives.
,ome agencies have responded in force " by shifting their efforts from above- to below-the-
line media. 'n addition to the #++ e$ample cited earlier, three ma)or agencies, including
+ublicis E,A, >gilvy Q Mather and ?oote, 9one Q Belding, have each taken recent steps to
diminish the traditional barriers between ATL and BTL advertising. 'n some cases, e$ecutives
have been tasked with cross-channel campaign developmentO in others, entire below-the-line
business units have been elevated to serve the strategic role once held by their advertising
colleagues
Merrill Lynch recently announced that the industry as a whole has finally reached neutral!
status in its reliance of ATL advertising for marketing purposes " indicating that the two core
marketing approaches now stand on e%ual footing, complementing each other -- and
depending on each other " to fuel successful integrated marketing campaigns.
8) .ro!ing effectiveness of 1%ultichannel, ca%paigns (those that cross %ultiple %edia-
reinforces de%and for tactics that establish one-to-one relationships bet!een %ar&eters
and consu%ers.
Civen the proper tools, consumers prefer to engage with marketers through a combination of
available media 2including retail stores, the 'nternet, catalogs, direct mail and direct response
/6
television3 thus relegating single-channel categori&ations such as! catalog buyer! and online
shopper! to the business archive. But these customers offer more than )ust a challenge to
marketing strategists " they also offer greater profit potential. According to the 'nternet
Advertising Bureau, well-e$ecuted multichannel marketing campaigns generate a sales lift
ranging from . to 67 percent. *iewed from another perspective, that spells trouble for single-
channel marketers 2such as those hoping that traditional television advertisements will fuel
visits to retail stores3.
The real demand for marketers is to e$ploit the channels at their disposal to craft appropriate,
uniform offers for the same customer groups, no matter their chosen interaction point.
'ncreasingly, savvy marketers are waking up to this essential needO according to the (irect
Marketing Association, appro$imately 75 percent of marketers now sell via two primary
channels, while another 7F percent sell via three. Marketers likewise are increasingly
searching for service providers whose capabilities span more than one or two media "
providing both potential cost advantages and a uniform platform from which to launch
cohesive, integrated campaigns.
9) Rapid technological advances allo! for consu%er:%ar&eter interactions that are
%ore fre6uent; easier and %ore relevant than previously possible)
Long ago cited as the most significant factor inhibiting the growth of BTL marketing, the
recent proliferation of appropriate, cost-effective technologies " for both marketers and
consumers " has finally reached the critical mass necessary to fuel campaigns that cross
multiple media and stand out from the mass-oriented messages proffered by traditional
advertising.
The scope of technological advance spans all media, but perhaps the most significant advance
involves the widespread adoption of high-speed, broadband 'nternet connections "
allowing consumers to surf the 'nternet effortlessly and manage rich, NTML-coded e-mail
and online messages that inspire click-through and greater response. More than 76 percent of
E.,. households now connect to the 'nternet through a broadband connection, according to
Iupiter =esearch, and appro$imately LF percent will be on broadband by 5F/F.
Li%itations of the Research
/7
This paper has not taken into account the considerations that how BTL activities should be
customi&ed and designed with respect to various industries and segments. 't also fails to
account for the relevance of a BTL activity to multicultural society. 't also fails to consider
the linguistic considerations of the people while customi&ing these activities.
.ap Analysis
This research moves out of the world of Advertising and sales promotion and set up a new
standard in the field of marketing communication. Though the e$isting literature talks about
individual channels like direct mailing and event promotion in detail, there is no research
pertaining to relevance of all the BTL activities. The e$isting research highlights the new and
modern techni%ues of marketing communications but it fails to consider it a front end force
and it always complements the BTL activities with ATL activities. This paper attempt to defy
this convection and shots BTL activities into the prominence )ust like ATL shot into
prominence a century ago
In 'u%%ary
#ith an increasingly comple$ array of promotional options at their fingertips,
marketers continue to search for solutions that deliver the essential concepts of perception,
interaction and measurability offered by the below-the-line marketing approach. 9aught
between the contrasting needs to grow profitability and meet the demands of a sophisticated
customer corps, this dual imperative has resulted in a significant shift in marketing emphasis
" away from mass-oriented media and toward direct, targeted and return-on-investment-
oriented channels including direct mail, direct response broadcast;print, e-mail, event
marketing, online advertising, insert media, promotions and search engine marketing.
To marketers, the go-forward challenge is to identify the appropriate media mi$ for their
business, encompassing both above-the-line 2for branding and identity3 and below-the-line
2for customer ac%uisition, retention and loyalty development3 methods. ,ervice providers that
successfully intertwine these multiple channels stand to meet those needs more effectively
than providers still mired in a siloed, single- channel approach.
/8
doc_371081987.doc
There are two kinds of marketing strategies that can be used to promote any product: "above-the-line" (ATL, essentially advertising in the mass media) and "below-the-line" (BTL). These category names reflect the business practices of advertising agencies.
Abstract
The annals of Marketing Management have witnessed a tug of war between advertising and
sales promotion since inception. But in the early phase of twenty first century this war has
taken a new avatar in form of Above - The- Line and Below - The- Line activities, widening
both scope and intensity of this war. Above-the-line propagated traditional marketing
channels that strive to reach a mass audience with messages that reinforce a brand
communicate general product information or inspire an emotional response. Below-the-line!
initiatives, by comparison, acts like traditional direct marketing efforts " they aspire to
establish targeted relationships between marketers and individual consumers, and offer
comparable ease in measurability. #ith increase fragmentations and demographic along with
the increased pressure to increase effectiveness of marketing communication soon BTL
activities started substituting ATL activities and there has been a steady growth in BTL
e$penditure in this century . #ith its uni%ue ability to personali&e and customi&e
communication this form of communication is slowly replacing the mass media advertising.
This paper attempts to highlight these trends and also comment about the e$isting channels
that BTL activities employ. 'n order to substantiate the claims, a case study has been
specifically designed in order to show the relevance of BTL activities in this fragmenting
world.
Research Objective: To investigate the relevance of Below -The- Line activities to current
marketing communication practices.
Research Design: Analysis of secondary literature and industry documents
Research Methodology: This paper has been written by analy&ing the secondary literature
and other industrials documents .(ata came from primary and secondary document sites on
the #orld #ide #eb arising from the reduction in the advertising e$penses. (ocuments from
the marketing )ournals commenting on the obsolescence of mass media advertising in the
conte$t of fragmented media, fragmented audience and slowly decreasing retention levels. 'n
addition to this white paper on *ertical Market Trends in (irect Mail and the 'mpact on
+roduction ,ervice +roviders, based on do&ens of interviews with e$ecutives at large
companies engaging in direct mail marketing-including agencies, printers and other
industry e$perts- e$amines . key trends, and focuses particularly on market conditions for
direct mail printers and letter shop firms.
/
Introduction of the Topic
There are two kinds of marketing strategies that can be used to promote any product0 1above-
the-line1 2ATL, essentially advertising in the mass media3 and 1below-the-line1 2BTL3. These
category names reflect the business practices of advertising agencies. Agencies generally
make commission on placement of advertisements in newspapers, maga&ines and cinema,
and on television, radio and billboards, a fee that appears 1above the line1 on their bill.
Traditionally, other forms of promotion-events, direct marketing, email promotions, te$t
message promotions, premiums, price reductions, public relations activities, sponsorship,
trade shows, e$hibitions, sales literature and catalogues-were charged at a fi$ed fee and thus
appeared 1below the line
Above-the-line propagated traditional marketing channels that strive to reach a mass audience
with messages that reinforce a brand communicate general product information or inspire an
emotional response. Below-the-line! initiatives, by comparison, acts like traditional direct
marketing efforts " they aspire to establish targeted relationships between marketers and
individual consumers, and offer comparable ease in measurability. Traditionally ATL and
BTL strategies have been considered distinct, and BTL the poor cousin. BTL activities were
generally used to complement the main mass media marketing activities and usually a
fraction of marketing resources were allocated for these activities. BTL activities first shot
into prominence when ATL activities for products which have unwholesome demand were
proscribed by the ,ocio-legal restrictions. 4ven though BTL activities started off to fill in for
ATL activities, increasingly, BTL strategies are now recogni&ed as economical, uni%ue, and
personal ways to achieve 1cut-through1 in the supersaturated advertising environment.
Figure 1.1 Channels of BTL and ATL activities
5
Above-the-Line Media elo!-the-Line Media
/. Are tailored to reach a mass audience
Are targeted to individual consumers,
based on their e$pressed needs and
preferences
5. 4stablish brand identity or reinforce
emotional concepts surrounding a
product or brand
'ssue a call-to-action,! inspiring specific
customer activity or tailored messages
about a product or brand
6. May or may not drive customer
response
(rive individual responses
7. Are difficult " if not impossible " to
measure with any accuracy
Are highly measurable, allowing
marketers insight into their return-on-
investment, as well as those tactics that
are 2and are not3 working
8. 9ater to the mass market
4stablish one-to-one relationships
between consumers and marketers
Figure 1.2 Differences s in BTL and ATL activities
"volution of belo! -the- line activities
'n a market rapidly adapting to changes in technology, available information and heightened
consumer demand, traditional, brand-oriented advertising is no longer the primary driver of
customer behavior. #hether it:s reflected in dwindling print newspaper circulation or the
stagnant market for network television commercials, significant evidence suggests that the
marketing landscape has fundamentally shifted " from an above-the-line! focus on reaching
a broad population with emotionally-oriented appeals, to a below-the- line! approach that
stresses targeted, customer-centric communications, measurable results and concrete return-
on-investment.
#e believe that the metaphorical line! separating marketing philosophies 2often %uoted, but
never precisely defined3 is reflected in three key %ualities that separate today:s emerging
promotional methods from the top-down advertising monologue of the past. Acting in
concert, they embody the universal elements of successful below-the-line marketing efforts0
6
• #erception " The e$tent to which a consumer feels that he or she is engaged as an
active participant in a marketing dialogue, rather than a target of an aggressive direct
sales or branding effort
• Interaction " The e$tent to which consumers are empowered to respond to marketing
communications via preferred channels that are both convenient and accessible
• Measurability " The e$tent to which a marketer can track the results of an individual
initiative, determine commensurate return-on-investment and ad)ust future campaigns
to provide for an enhanced chance of success
Figure 1.3 Framework of BTL activities
The paper, based on e$haustive secondary e$plores the key factors that are leading
sophisticated marketers in all vertical segments to move dollars away from above- the- line!
2ATL3 and toward direct, measurable below-the-line! 2BTL3 marketing tactics.
7
$hannels of TL activities
Database %ar&eting: 't involves use of proprietary database of consumer records which can
enhance prospect or customer data sources with unprecedented demographic, lifestyle and
transactional data. 't can be utili&ed for tuning marketing offers targeted at new prospects --
and provide their current customers with products that more closely match purchasing
preferences and habits.
(atabase marketing services include0
/. (ata 4nhancement;Append0 Appending of desired information, including0
• 9ontact information 2email, telephone, and postal addresses3
• (emographic information 2age, gender, marital status, children, ethnicity3
• Lifestyle information 2income level, home ownership, interests, and hobbies3
5. (ata n-going reporting and analysis to help clients assess results and
make ad)ustments if needed.
• ?ull campaign stats " Mails;emails sent, delivered, opens and click rates
• =esponder snapshots of demographic, geographic and lifestyle information
Interactive services: By designing online campaigns that generate valuable and conversions
by the use of #eb +roperties, Affiliate @etwork and ,earch 4ngine Marketing
Affinity %ar&eting: 4nhancing brand value and gaining new customers by affinity programs
like collaborations with
• *eteranAs >rgani&ations
• ,portsmenAs >rgani&ations
• 9onservation and #ildlife Advocacy >rgani&ations
• ,eniors Advocacy >rgani&ations
• +olitical >rgani&ations
• =eligious >rgani&ations
• Bouth Activity >rgani&ations
• 4thnic Croup Advocacy >rgani&ations
• 9ause Based >rgani&ations
(irect =esponse +rint0 't:s most common form today is infomercials. 't is achieved by
eliciting a direct response via television presentations. *iewers respond via telephone or
internet, credit card in hand.
>ther media, such as maga&ines, newspapers, radio, and e-mail can be used to elicit the
response, but they tend to achieve lower response rates than television.
"vent Mar&eting: 't involves a strategic-based face-to-face contact designed to impact a
brandAs perception among its constituents. 't is set of promotional activities involving an
event such as a sporting or social event, designed to bring a product to the attention of the
public
D
#ro%otional Mar&eting: 't is a non-personal promotional effort that is designed to have an
immediate impact on sales. ,ales promotion is media and non-media marketing
communications employed for a pre-determined, limited time to increase consumer demand,
stimulate market demand or improve product availability.
4$amples include0
• 9oupons
• (iscounts and sales
• 9ontests
• +oint of purchase displays
• =ebates
• ?ree samples 2in the case of food items3
• Cifts and incentive items
• ?ree travel, such as free flights
,ales promotions can be directed at the customer, sales staff, or distribution channel members
2such as retailers3. ,ales promotions targeted at the consumer are called consumer sales
promotions. ,ales promotions targeted at retailers and wholesale are called trade sales
promotions.
$urrent 'cenario in the field of TL activities
(espite general growth in advertising and marketing services e$penditures -- as well as a
one-year spike in broadcast television spending brought on by the %uadrennial >lympics;
E.,. presidential election cycle " market spending data suggest that above- the-line marketing
is not fairing well compared to the industry at large. 'n 5FFD, ATL spending 2encompassing
such channels as television, radio, newspapers, maga&ines and yellow pages3 is e$pected to
grow 8.D percent, a full /.. percent behind the industry as a whole. By 5FF., that difference
will become more pronounced, as ATL spending growth is pro)ected at )ust 7.D percent for the
year, compared to an e%uivalent ..6 percent industry growth. According to e-Marketer,
spending on online advertisements " a uni%ue medium that offers reach and brand e$posure
along with the one-to-one benefits of BTL marketing " will reach G/5.H billion in
5FF8, representing an increase of more than 67 percent from 5FF7 spending. By 5FFH, annual
.
online e$penditures should hit G55.6 billion, reflecting an average annual growth of nearly 5/
percent since 5FF5.Cains are being reali&ed among virtually all media that provide the BTL
advantages of perception, interaction and measurability. #hether in direct mail
2pro)ected growth ..8 percent in 5FF8, according to the #interberry Croup3, promotions 26..
percent, according to +=>M> Maga&ine3 or e-mail marketing 26/ percent, according to
Iupiter =esearch3, recent spending and marketer commentary indicate a real and growing
preference for tactics based on established data and %uantifiable results. The world:s largest
marketing service providers, likewise, are adapting to the business imperative of one-to-one
communications. 'n doing so, they appear finally poised to transition out of the mass
advertising-centric focus that has for so long defined their business. #++ Croup, for e$ample
" one of the world:s largest advertising and marketing services holding companies, with
annual revenues of appro$imately G/F billion " recently announced thatmedia investment
management continues to show the strongest growth of all our communications services
sectors, along with Jbelow- the-lineK direct, 'nternet and interactive and healthcare
communications.!
Figure 1. !rowth in e"#enditure of BTL and ATL activities
L
Figure 1.$ Com#osition of BTL and ATL activities
Figure 1.% &' (arketing '#ending) 2**1+ 2**,
4$penditure estimates say a lot about where sophisticated marketers are focusing their efforts,
but they don:t address the more fundamental %uestion of why. #hy, after so many years of
success with above-the-line methods, are marketers finally changing their approach to
reaching customers and fostering profitable relationshipsM And why do customers
appear so willing to accept this new communications philosophyM The following seven
trends e$plore the factors, both e$ternal and internal, that are contributing to this emerging
marketing emphasis. ,pecifically, it identifies seven key trends that are directly impacting the
allocation of marketing budgets for both ATL and BTL campaigns. They include0
H
/. 9hanging consumer demographics decrease the influence of traditional mass media
2i.e. !one-si&e-fits-all!3 marketing messages
5. Crowing consumer sophistication heightens the demand for channel-agnostic
communications
6. #idespread marketing clutter! diminishes the impact of commercial messages that
don:t address specific and individually relevant consumer needs
7. 4nhanced information availability empowers both marketers and consumers with
insight that allows for precise customer targeting and intelligent purchase decisions
8. Neightened client pressure to deliver %uantifiable value by evaluation of =>' of the
marketing initiatives , forces marketing service providers " especially agencies " to
re-evaluate services platforms
D. Crowing effectiveness of multi channel! campaigns 2those that cross multiple media3
reinforces demand for tactics that establish one-to-one relationships between
marketers and consumers
.. =apid technological advances allow for consumer;marketer interactions that are
fre%uent, easier and more relevant than previously possible
Trends I%pacting TL Mar&eting udgets
/.3 $hanging consu%er de%ographics decrease the influence of traditional %ass- %edia
(i)e) *one-si+e-fits-all,- %ar&eting %essages)
Enderstanding the conventions of culture as well as the individual cultural differences and
similarities of target locales empowers marketing professionals to reali&e that one universal
message-whether verbal or visual, can never reach a global audience. >ne global culture
comprised of people with identical values does not e$ist-not even within the confines of our
own country as the recent elections illustrate. (ifferences in learning and thinking patterns
influence the way people process information, as demonstrated in their innate responses to
marketing communications. Audiences differ in the way they perceive and value concepts of
time, space, money, relationships, power, risk, and even the protocols of gender roles. 't is
important to note that when attempting to customi&e communications with cultural
differences in mind, it is )ust as important to recogni&e the cultural similarities. As much as
locali&ation vendors like to overemphasi&e 1e$treme customi&ation1, cultural similarities do
e$ist, and are deeply imbedded in the core values of your products and service offerings.
/F
This trend is highlighted in a multicultural market like Enited ,tates, where in /HHFO ethnic
minorities commanded GD7..7 billion in annual consumer spending, or about /8.D percent of
total e$penditures. By 5FF/ that proportion had shot up to nearly /H percent " some G/.6
trillion, according to American Multi channel Marketing. 9learly, the influence of
multicultural Americans, with their widely disparate preferences, customs and even
languages, is growing along with their representation in the general population.
Today, appro$imately 58 percent of the E.,. population is of African, Asian or Nispanic
descent. But by and large, above-the-line marketing messages are still crafted for
consumption by the larger population " ignoring the cultural sensibilities of many and
threatening to reawaken the kind of cross-cultural snafus now immortali&ed in business
legend. 4scalating life e$pectancy and the coming-of-age of the Baby Boom generation are
heightening the impact of older Americans, as well. Iust like multicultural consumers, this
uni%ue sub-population will re%uire targeted, relevant marketing communications in the
years ahead.
5. .ro!ing consu%er sophistication heightens the de%and for channel-agnostic
co%%unications.
Advances in marketing and communications haven:t )ust served to benefit marketers "
consumers, too, have learned to e$ploit technology, information and available media channels
for their benefit. Among other capabilities, the sophisticated modern consumer is adept at0
P Esing the 'nternet to compare product prices
P ,creening out unwanted outbound telemarketing calls 2or telemarketing calls altogether "
through participation on the @ational (o-@ot-9all list3
P ,kipping past television commercials " the lifeblood of above-the-line marketing " with
Ti*o and other digital video recording technologies
P Bypassing traditional print advertisements through online newspaper subscriptions
and opt-in headlines! e-mails that provide a selected snapshot of relevant news with only a
fraction of the advertising interference.
9ollectively, these practices speak to the active participation of consumers in the marketing
process, a phenomenon made possible by the same innovations that many marketers e$pected
would cement their authority in customers: daily lives. They demand marketing responses
that are concise, relevant and universal across all media " so that consumers who choose to
interact via multiple channels 2say, researching available products online and then completing
the purchase in-store3 are e$posed to a consistent fundamental buying e$perience.
//
/) 0idespread %ar&eting 1clutter, di%inishes the i%pact of co%%ercial %essages that
don2t address specific and individually relevant consu%er needs)
=apid advances in the %uality of available marketing media have had at least one deleterious
effect0 a saturated media consumption landscape, plus a resultant consumer backlash against
advertising messages that are perceived as intrusive or otherwise irrelevant.
,ophisticated consumers " like the Ti*o users referenced earlier, who tune out commercial
advertisements in a move to do away with the clutter .?orrester and the 9able television
Advertising Bureau note that in 5FF7, // billion E.,. (*= users skipped between DL and
.L percent of commercial advertisements, effectively accounting for appro$imately G5-6
billion in wasted advertising spending. 4merging media such as cable-on-demand and
podcasted television shows 2Available for download to portable video player )ust minutes
after running on broadcast networks3 likewise have the potential to further marginali&e ATL
media that speak to the general population, rather than individual preferences.
3) "nhanced infor%ation availability e%po!ers both %ar&eters and consu%ers !ith
insight that allo!s for precise custo%er targeting and intelligent purchase decisions)
,ignificant advances in database marketing, analytics and customer relationship management
29=M3 platforms have spawned an informational avalanche, allowing marketers the
opportunity to build a comprehensive, 6DF-degree view of the customer and their
transaction history. By ma$imi&ing the comple$ array of available information, leading-edge
/5
marketers are reaching prospects with offers targeted to their e$pressed 2or e$pected3 wants
and desires " and driving significantly enhanced response rates and lifetime customer value.
@ot to be outdone, consumers are arming themselves with an array of enhanced informational
tools to make smarter buying decisions. #eb sites reinforce the movement to obtain
information and apply it through stricter scrutiny of the available market.
4) 5eightened client pressure to deliver 6uantifiable value forces %ar&eting service
providers 7 especially agencies 7 to re-evaluate services platfor%s)
Among traditional advertising agencies, average client tenure now stands at less than/L
months per account. 'n a timeframe shorter than many ad campaigns themselves, marketers
are increasingly deciding that these trusted strategic advisers " once thought of as the
standard-bearers of marketing strategy, conception and delivery " can easily be replaced by
others whose strategic, creative and, most notably, financial ob)ectives better align with their
own.
#hile shoddy creative work is often cited as the reason, more often, the actual fuel for this
rapid agency turnover is a lack of concrete delivery. 'n the face of alternative below-the-line
media that offer the benefits of personali&ation and measurable return-on-investment, the vast
investment re%uired to sustain solo ATL campaigns 2as well as the agencies from which they
originate3 is increasingly seen as e$cessive in the eyes of bottom-line focused e$ecutives.
,ome agencies have responded in force " by shifting their efforts from above- to below-the-
line media. 'n addition to the #++ e$ample cited earlier, three ma)or agencies, including
+ublicis E,A, >gilvy Q Mather and ?oote, 9one Q Belding, have each taken recent steps to
diminish the traditional barriers between ATL and BTL advertising. 'n some cases, e$ecutives
have been tasked with cross-channel campaign developmentO in others, entire below-the-line
business units have been elevated to serve the strategic role once held by their advertising
colleagues
Merrill Lynch recently announced that the industry as a whole has finally reached neutral!
status in its reliance of ATL advertising for marketing purposes " indicating that the two core
marketing approaches now stand on e%ual footing, complementing each other -- and
depending on each other " to fuel successful integrated marketing campaigns.
8) .ro!ing effectiveness of 1%ultichannel, ca%paigns (those that cross %ultiple %edia-
reinforces de%and for tactics that establish one-to-one relationships bet!een %ar&eters
and consu%ers.
Civen the proper tools, consumers prefer to engage with marketers through a combination of
available media 2including retail stores, the 'nternet, catalogs, direct mail and direct response
/6
television3 thus relegating single-channel categori&ations such as! catalog buyer! and online
shopper! to the business archive. But these customers offer more than )ust a challenge to
marketing strategists " they also offer greater profit potential. According to the 'nternet
Advertising Bureau, well-e$ecuted multichannel marketing campaigns generate a sales lift
ranging from . to 67 percent. *iewed from another perspective, that spells trouble for single-
channel marketers 2such as those hoping that traditional television advertisements will fuel
visits to retail stores3.
The real demand for marketers is to e$ploit the channels at their disposal to craft appropriate,
uniform offers for the same customer groups, no matter their chosen interaction point.
'ncreasingly, savvy marketers are waking up to this essential needO according to the (irect
Marketing Association, appro$imately 75 percent of marketers now sell via two primary
channels, while another 7F percent sell via three. Marketers likewise are increasingly
searching for service providers whose capabilities span more than one or two media "
providing both potential cost advantages and a uniform platform from which to launch
cohesive, integrated campaigns.
9) Rapid technological advances allo! for consu%er:%ar&eter interactions that are
%ore fre6uent; easier and %ore relevant than previously possible)
Long ago cited as the most significant factor inhibiting the growth of BTL marketing, the
recent proliferation of appropriate, cost-effective technologies " for both marketers and
consumers " has finally reached the critical mass necessary to fuel campaigns that cross
multiple media and stand out from the mass-oriented messages proffered by traditional
advertising.
The scope of technological advance spans all media, but perhaps the most significant advance
involves the widespread adoption of high-speed, broadband 'nternet connections "
allowing consumers to surf the 'nternet effortlessly and manage rich, NTML-coded e-mail
and online messages that inspire click-through and greater response. More than 76 percent of
E.,. households now connect to the 'nternet through a broadband connection, according to
Iupiter =esearch, and appro$imately LF percent will be on broadband by 5F/F.
Li%itations of the Research
/7
This paper has not taken into account the considerations that how BTL activities should be
customi&ed and designed with respect to various industries and segments. 't also fails to
account for the relevance of a BTL activity to multicultural society. 't also fails to consider
the linguistic considerations of the people while customi&ing these activities.
.ap Analysis
This research moves out of the world of Advertising and sales promotion and set up a new
standard in the field of marketing communication. Though the e$isting literature talks about
individual channels like direct mailing and event promotion in detail, there is no research
pertaining to relevance of all the BTL activities. The e$isting research highlights the new and
modern techni%ues of marketing communications but it fails to consider it a front end force
and it always complements the BTL activities with ATL activities. This paper attempt to defy
this convection and shots BTL activities into the prominence )ust like ATL shot into
prominence a century ago
In 'u%%ary
#ith an increasingly comple$ array of promotional options at their fingertips,
marketers continue to search for solutions that deliver the essential concepts of perception,
interaction and measurability offered by the below-the-line marketing approach. 9aught
between the contrasting needs to grow profitability and meet the demands of a sophisticated
customer corps, this dual imperative has resulted in a significant shift in marketing emphasis
" away from mass-oriented media and toward direct, targeted and return-on-investment-
oriented channels including direct mail, direct response broadcast;print, e-mail, event
marketing, online advertising, insert media, promotions and search engine marketing.
To marketers, the go-forward challenge is to identify the appropriate media mi$ for their
business, encompassing both above-the-line 2for branding and identity3 and below-the-line
2for customer ac%uisition, retention and loyalty development3 methods. ,ervice providers that
successfully intertwine these multiple channels stand to meet those needs more effectively
than providers still mired in a siloed, single- channel approach.
/8
doc_371081987.doc