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Advertising 3850 Exam 2 Study Guide

by: Bridget Notetaker

Advertising 3850 Exam 2 Study Guide ADPR 3100-0

Marketplace > University of Georgia > Advertising > ADPR 3100-0 > Advertising 3850 Exam 2 Study Guide
Bridget Notetaker

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About this Document

This is a study guide for the exam 2 test we are taking on Friday, 10/7. This document covers lectures 8 through 12 which are all fair game for the exam.
Principles of Advertising
Nathaniel J. Evans
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This 14 page Study Guide was uploaded by Bridget Notetaker on Tuesday October 4, 2016. The Study Guide belongs to ADPR 3100-0 at University of Georgia taught by Nathaniel J. Evans in Fall 2016. Since its upload, it has received 84 views. For similar materials see Principles of Advertising in Advertising at University of Georgia.

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Date Created: 10/04/16
Advertising 3100 Exam 2 Study Guide  Lecture 8:  Objectives: o Marketing objective:  What people do (buying behavior) o Communicative objective:  What people think and believe (attitudes) o Advertising:  Achieves a communications objective  Assists a marketing objective o How does it assist?  Communication objective  attitudes, opinions, beliefs  marketing objective (purchase behavior)  We bank on this relationship (high correlations)  Communication Objectives: 1. Awareness: put it on the radar  Create awareness  Increase awareness 2. Branding: target market’s associations with the product  Brand  Rebrand 3. Positioning: how the target market views it in relation to competitors  Position  Reposition  Target Market: o Market segmentation o Demographics o Psychographics o Market profiles:  Ex: taking a person and looking at their age, marital status, hobbies, etc.  Ex: Viewers of the Bravo Channel  “Will and Gracers” o Urban, cosmopolitan; women and best male (often gay) friends  “PTA Trendsetters” o Married women with children; style trend watchers  Stage determined by buying behavior: o Pioneering:  New buyers; first product in category o Competitive:  Undecided buyers; high competition o Retentive:  Committed buyers; dominant market share  Features/benefits: o Feature: a characteristic of the product o Benefit: the good thing that is made possible by the feature o People don’t buy features, they buy benefits  Not things, but satisfaction of their wants and needs  “We don’t buy drill bits, but the holes they make”  “Don’t sell me car insurance, talk to me about safety”  “Don’t sell me bricks, tell me about building my home”  “Don’t sell me a perfume, tell me about a romantic adventure”  “Don’t sell me a 4WD car, tell me about the places I’ll go”  Target market determines the benefit: o Benefit of summer camp?  For kids?  Making friends  Adventure  Independence, etc.  For parents?  Freedom  For grandparents?  Pictures  Bragging rights  For camp counselors?  Experience  Growth and maturity  Market-brand-message: Sealy Mattress: o Old brand and positioning:  Best design: feels so good it shows o Key Message:  “Sealy Posturepedic Morning”  “Get a better six” o Target Market:  Urban Achievers o Desired brand and positioning:  Problem solver: Sleeping in the real world isn’t that easy  Lecture 9:  Outdoor vs. Out-of-Home (OOH) o Transit Shelters o Bus Billboards and now bus wraps o Building walls o Digital outdoor o Technology innovations, etc.  Profile: o Local, mobile o Supplemental medium Concept Explanation Reach % of target audience exposed to an ad (or entire media schedule) in a given time period Frequency Number of times an individual person is exposed to ad (or entire media schedule) in a given time period CPM (cost per thousand) AD Cost x 1,000 / circulation  Supplemental: o Strong visual reinforces TV campaigns o Provides missing visual for radio campaigns o Higher frequency for magazine campaigns o Better graphics for newspaper campaigns  Strengths: o Pioneering stage: build awareness and brand recognition o Retentive stage: reminders  Drawbacks: o Exposure voluntary and brief o Viewers preoccupied o Few premium sites o Much criticized as “visual pollution”  Out-of-Home Strengths: o Low cost, high frequency o Local, mobile audience o Strong creative o Pioneering or retentive stage o Supporting other media  Buying OOH: GRPs o “Gross rating point” (for Outdoor)  Percentage  Adult population  In single, local market  Daily exposure o Ex: 50 = GRPs = deliver 50% market/day o Allotments in sets of 50 or 100 GRPs  Sometimes less for larger markets  Calculating GRP: o Per allotment: the number of ads required to reach a desired GRP o Expressed as a percentage of the population, so you multiply by 100 o GRPs = (total DEC for allotment / total market population) X 100  Buying OOH: o Daily Effective Circulation (DEC): the average number of persons, in cars or other vehicles, passing and potentially exposed to an ad display  This is calculated for the area/where the ad will be placed o Add up DEC for all posters/ads in allotment  Number of posters used in an individual buy  Calculating DEC: o Market: Athens o Population: 120,000 o Audience Level Purchased: 50 GRPs o Allotment: 10 display ads ($2,000 a piece)  These ads all have different and unique DECs)  Gross Impressions: o Measure of total exposure (duplicated audience)  GI = GRPs x DEC  Usually done on a weekly or monthly basis  Weekly ex: (50 x 60,000) x 7 = 21,000,000 GI  Monthly ex: (50 x 60,000) x 30 = 90,000,000 GI  Cost-effectiveness: o $ per GRP = (total cost of allotment / GRPs in allotment)  Ex: ($20,000 / 50) = $400 per GRP o Ex: $ per 1,000 GI = total cost of allotment/(GIs in allotment/1,000)  $ per 1,000 GI = $20,000/(21,000,000/1,000) = $.95 per 1,000 GI  Calculation Sheet: ***MEMORIZE*** GRPs (Gross Rating (Total DEC for 60,000/120,000 = 50 Points) allotment/total market GRPs population) x 100 GI (Gross Impressions) GRPs x DEC (50 x 60,000) x 30 = (weekly/monthly/bi- 90,000,000 monthly) $ per GRP Total cost of 16,000/50 = 320 allotment/GRPs in that allotment $ per 1,000 GI Total cost of 16,000/3,000 = 5.33 allotment/(GIs in allotment/1,000)  Verification: o Traffic Audit Bureau for Media Measurement (TAB)  Market-based traffic data  Checks sign visibility o Perception Research Services (PRS)  Eye-tracking studies  ¾ notice and read copy  Larger, more noticed o Simmons Market Research Bureau (SMRB)  Annual consumer study of 25,000 people  Media-usage habits; OOH recall  Buyer’s Guide to Outdoor Advertising  Now owned by Domedia  Rate guides; cost; market populations  Lecture 10:  Newspapers: o Profile: 1. Reach: low 2. Frequency: high 3. Cost/Impression: high o Strengths:  High reach with older, upscale, opinion leaders  Desirable target markets  Immediacy: next day publications  Credibility o Drawbacks:  Clutter  Declining readership  Increasing cost of advertising  Challenges from online news aggregators  Nobody wants to pay for news anymore o Newspaper Advertising Categories:  Classified  Ex: a person buys a “square” in the newspaper to sell their car  About $10 billion a year in as expenditures in 2008  Now less than $5 billion due to social media like Craigslist  Display  All non-classified newspaper advertising is called Display  Retail (local): all places that a person could physically go to in their town (ex: Wal-Mart, Creature Comforts)  Local retailers are the main source of display ad $  Changing retailer market: consolidation, greater market share, service concentration o Put stress on small business/retailers (reduces their ad budget and ability to spend)  National: places that cannot physically be walked into (ex: Samsung/AT&T)  Standard Advertising Units: allow national advertisers to seamlessly buy across multiple outlets/in different markets  Co-op (Cooperative Advertising)  Partnership:  Local retailers: lower costs  National companies: extended reach  National advertisers cover anywhere from 50% to 100% o Buying Space:  Flat Rate: no discounts  Uniform charge regardless of space bought  Open Rate: discount structure  Also refers to the highest rate against which all discounts are applied  Two types of Open Rates: 1. Bulk: advertiser is charged proportionally less as more space is purchased  SPACE 2. Frequency: advertiser is charged proportionally less as more insertions are purchased  NUMBER OF ADS o Calculation Sheet: ***MEMORIZE*** CPM (cost per (Cost of Space x (1,500 x thousand) 1,000)/ circulation 1,000)/40,000 = 37.5 Reach (Total (40,000/120,000) x circulation/target 100 = 33.33 market population) x 100 GRPs Reach x # of ads 33.33 x 8 = 266.67 bought $ per GRP Total cost of print 1,500/266.67 = 5.62 space/GRPs o GRPs:  GRPs (gross rating points) reach x frequency  How do we get reach?  Reach = (total circulation of all ads/total target market) x 100 o Cost-Effectiveness:  How cost effective is your mix of print placements?  Refer to $ per GRP formula  Magazines: o Profile: 1. Reach: extremely low 2. Frequency: medium 3. Cost/impression: high o Drawbacks:  Cost  Clutter  Long lead time  Difficult to reach large audiences segments o Strengths:  Segmenting  Strong visuals  Long life = boost reach and frequency per issue o Best use:  Complete information  Supplemental  Older, targeted, more affluent segments o Buying:  Cost and number of readers aren’t everything  Effectiveness in reaching your target market is very important o Calculation Sheet: ***MEMORIZE*** CPM (cost per (Cost of Space x (250,000 x 1,000) / thousand) 1,000) / circulation 1,500,000 = 166.67 Weighted CPM (Cost of Space x (250,000 x 1,000) / 1,000) / circulation in 275,000 = 909.10 your Target Market Reach (Target Market (275,000/5,000,000) x Circulation/Target 100 = 5.5 Market Population) x 100 GRPs Reach x # of Ads 5.5 x 15 = 82.5 Bought $ per GRP Total Cost of Print 250,000 / 82.5 = Space / GRPs 3,030.30 o Cost Efficiency:  Refer to CPM and weighted CPM formulas  Cost efficiency of a publication in reaching portion of readership that is your target audience (region) o GRPs:  GRPs (gross rating points) reach x frequency  How do we get reach? o Refer reach formula o Cost Effectiveness:  How cost effective is your mix of print placements?  Refer to $ per GRP formula o Verification:  Audit Bureau of Circulations (ABC)  Verifies circulation  Syndicated market research  Readership studies o Print:  Advantages:  Trusted and influential (boosts effectiveness)  Segmenting geographically; lifestyle  Disadvantages:  Comparatively high cost  Clutter  National, large markets unreachable  Lecture 11:  Television: o National, large audiences o Pricey o Increasingly a niche medium o Brand/positioning o Profile:  Reach: high  Frequency: high  Cost/impression: high o Drawbacks:  Clutter (1/4 ads, many 15 seconds)  Audience smaller, fragmented; lower income  Viewer avoidance  Cost  Ephemeral (brief) message requires higher frequency o Strengths:  High reach as a medium (varies based on the show)  99% of all households  Creative flexibility (color, sound, motion)  Delivers large, national markets  Increasingly delivers national niche markets o Best uses:  National campaigns addressing large markets  Brand message (brand identity) o Good for awareness o Good for attitude development/change  Positioning (re-positioning) o Good for competitive considerations o Categories:  Network  New shows  National advertisers buy time from national network (ABC, NBC, etc.)  Network sends to all network affiliates to show  Cable:  New shows or repeats  National advertisers buy time from cable provider (MTV, ESPN, Comedy Central, etc.)  Unlike Network, Cable delivers niche and predictable audiences  Spot (Network):  New shows or repeats  National or local advertisers  Buy from individual or local stations; shown only on those stations  Spot (Cable):  New shows or repeats  National or local advertisers  Buy from cable provider and then shown only in selected DMA o Calculation Sheet: ***MEMORIZE*** Rating (size) (Program’s (290,000/2,452,200) x audience/total TV 100 = 11.82 households) x 100 Share (popularity) (Program’s (290,000/800,000) x audience/total 100 = 36.25 households using TV) x 100 GRPs Reach x # of spots 11.82 x 7 = 82.74 bought GI (Gross Impressions) Program’s audience x 290,000 x 7 = # of spots bought 2,030,000 $ per GRP Total cost of TV 700,000/82.74 = buys/GRPs $8,460.24 $ per GI Total cost of TV 700,000/2,030,000 = buys/GI 0.34 o Ratings:  Audience Units:  TV household: a residence with at least one TV in it  HUT: Household Using Television o This number will always be smaller than TV household  Size:  “How many TV households are tuned to this particular show?”  Keep in mind that this is done for DMA (ex: Atlanta)  Ex: rating = (175,000/2,386,000) x 100 = 7.33 o Share:  Popularity:  “Of the households using television, what proportion are tuned to a specific show at a specific time?”  HUT is always smaller than TV households o Makes Share a larger number than Rating  Ex: share = (175,000/875,000) x 100 = 20 o Totals for single TV buy:  GRPs: rating x # of spots bought on a particular show  GI (Gross Impressions): persons watching a show x number of spots bought on a particular show o Cost-effectiveness of all buys:  $ per GRP = total cost of TV buys/GRPs delivered by the TV buys  $ per GI = total cost of TV buys/GIs delivered by TV buys o How do we know what is a good buy?  We don’t buy an individual show based on rating…we buy a schedule of shows that give us a relative weight (ex: GRPs)  We can’t compare GRPs unless the populations are equal…  So we look at cost per GRP:  $ GRP = cost of schedule of commercial/ GRPs o Ex: New York – (3 x 7.33) = 22 GRPs  Cost of schedule = (3 x $37,250) = $111,750  So: $111,750/22 = $5,079.55 per GRP o Ex: Atlanta – (3 x 7.33) = 22 GRPs  Cost of schedule = (3 x $21,500) = $64,500  So: $64,500/22 = $2,931.81 per GRP o Increasingly a niche medium:  1950-1980s:  Three national broadcasting networks  1980s and beyond:  Cable  Satellite networks  Program recording  500+ channels; time-shifting  November through December campaign:  Period of highest viewership  Holiday shopping in full swing o Verification:  Nielsen rating  People Meter attached to the main TV  Nielsen Station index  Local-television watching  Meters and user diaries  Lecture 12:  Digital Advertising: o Strengths:  Relatively low cost; precise pricing (difficult to find)  Engaging  Timely  Segmentation o Drawbacks:  Limitations  Uncertainty in effectiveness  Number of websites/outlets  Issues with awareness (Fragmentation)  Digital Executions: o Augmented reality  Ex: Ikea, Fast and Furious 7 o Face recognition  Ex: Snapchat, Nike Free Race, Pedigree Doggelganger o Virtual Reality  Ex: Volvo test drive, McDonald’s Happy Meal, Merrell Trailscape  The Gamification of Advertising: o Today’s gamers:  Average player is 30 years old  47% of all gamers are female  97% of teens 12-17 play digital games  99% of boys and 94% of girls o Devices that attract gamers:  Mobile devices: 66%  Gaming console: 52%  Computer: 42% o Why is gaming important to advertisers?  Estimates suggest 320 million gamers in the U.S.  Majority of young adults are large consumers of gaming media  Looks and feels less like traditional advertising  Promotes interaction with the brand/product  Game enjoyment can translate into brand enjoyment  Projected ad expenditures total about $5 billion in 2019 o Types of Advertising using Games:  In-game advertising (IGA): inclusion of products or brands within an existing digital game for entertainment purposes  Multiple brands are usually featured in IGA  Flexibility in number and type of ad-placements  Game players are “exposed” to brands while playing  Static vs. dynamic placement o Does the ad change each time the car makes a lap  Advertising in social network games: placement of brands or products in digital games that are played via major social network sites  Engagement is based on: o Interaction with friends o Relationship building o Teamwork/competition o Role-play o Escapism o Big mobile component o Flexibility: design, deliverability, reach  Advergames: games specifically designed and created to promote a brand, product, or service  Research shows that 65-85% of company websites incorporate some form of child targeted advergames  The main aim is to deliver a powerful message and to increase traffic  Free and easy online games designed to promote the brand  Brand and game are inseparable (game is designed around the brand)  Typically found on company websites o Ex: McDonald’s, Kelloggs, etc.  Brand attitudes: positively affected by advergame play o Adults, adolescents, and kids like the brand or product when they like the advergame  Brand and product category choices influences (especially among kids) o Kids tend to choose unhealthy food after playing an advergame featuring unhealthy foods o Advergames that feature healthy foods influence healthy choices  Influencing Factors: brand attitudes are highest when kids are optimally challenged but lowest when under challenged  Hot Topics: o Debate over children’s recognition of the “commercial” content in advergames  Some say they can, most say they can’t o Consensus: kids need to get better at advertising recognition in advergames o Design Considerations and Effects:  Keeping in mind the importance of brand recall, memory, and attitudes, 2 characteristics are relevant for design decisions:  Prominence: Can gamers see the advertising easily? o Prominence depends on the location, frequency, and size of the advertising in the game o Prominent placements typically result in better brand memory o Too much prominence can be intrusive if not executed well  Congruity: Is there a fit between the advertisement and game environment? o Game environment and brand should match up o Congruent: advertising for a poker movie on a poker game  More positive attitudes toward the brand/product but less recall o Incongruent: advertising for Pepsi on Halo  More recall of the brand/product but less positive attitudes o Gamification for Future Professionals:  Balance your responsibility to the client and your responsibility to the public  Consider vulnerable audiences, like children who may not get that it’s advertising  Take the lead – disclose the advertising content even when you don’t have to  Makes you look transparent, and that’s good as an advertiser


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