Exam 2 Study Guide
Exam 2 Study Guide ADPR 3100-0
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This 19 page Study Guide was uploaded by Meghan Shah 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 104 views. For similar materials see Principles of Advertising in Advertising at University of Georgia.
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Date Created: 10/04/16
Exam 2 Study Guide Strategic Planning Advertising is just the tip of the iceberg Campaign Components ○ Objective(s) – goal(s) of the campaign. ▪ Not about success or money. ▪ About changing attitudes ○ Strategy – the overall plan for reaching the goal ○ Tactics – (execution) specific steps to deliver the strategy Main Focus – The Brand ○ Brands are valuable because they differentiate and give us instant recognition ▪ Good branding prompts a lot of associations in consumers’ minds ○ Brand Equity – the most important factor in determining the actual value of a brand ▪ It’s the value that stakeholders (consumers, distributors, salespeople) think about a brand relative to the competition. ▪ Competition is important Strategic Planning: Key Parts ○ Brand equity analysis – what/where the brand is now. ▪ SWOT analysis Strengths, Weaknesses, Opportunities, Threats ○ Strategic options and recommendations ▪ How do we change our brand to achieve our goal? How to change attitudes ○ Brand equity research – what specific aspects of the brand do we need to change? Quantitative and qualitative research Market research and testing ○ Creative brief – what is our resulting plan of action? ▪ One big key take away The Creative Brief ○ A single page that summarizes: ▪ The product and its competitors ▪ What we want the campaign to accomplish objective ▪ Who we are talking to – target audience ▪ What they currently think about the product or service – current brand positioning ▪ What we want them to think about our product or service – desired brand positioning ▪ Why they should think this way – key features and benefits ▪ What our message is – the “One Thing” The Product Life Cycle ○ A curve that projects how long a product will be successful from its inception to its end ▪ Determines the best kind of advertising ○ Stages: ▪ Pioneering stage – pioneering/creating a new product category Advertising in this stage introduces an idea that makes previous concepts appear date/antiquated Goes on until people appreciate the fact that they need the product. Ads in Pioneering stage: Marketing objective – create a market Communication objective – create awareness; educate consumers; show that a product exists; identify the need. Ex: Apples introduction of the personal computer in 1984 Redbull – first energy drink of its kind ▪ Competitive Stage Once consumers accept the product, the brand will attract competition. Other brands/companies are trying to get some of the market share Consumers ask themselves “What should I buy?” The focus is on superiority Superiority over other brands needs to be established in order to stay/become the preference We advertise benefits, not features Product features – things a product does Product benefits – what you get from the features and from that particular product (especially compared to the competition) ← Benefits are intangible – they’re very abstract, like feelings Ads in the competitive stage Marketing objective – increase sales and market share Communication objectives – position; promote unique features PC vs. Mac commercials ▪ Retentive Stage When product has reaching maturity and wide scale acceptance Brands walk a fine line when trying to keep old/existing customers and attract new one. Don’t want to aggravate existing consumers just to attract new ones This can be tricky, because target audiences respond to different things in different ways Ads in the retentive stage Marketing objective – maintain market share and consumer loyalty Communication objective – brand; highly visual, low content Creative advertising is used, even necessary, here ▪ For advertising, the product life cycle isn’t linear, it’s cyclical “advertising spiral” Pioneering competitive retentive new pioneering new competitive new retentive etc. Marketing objective: what people do (buying behavior) Communications objective – what people think and believe (attitudes) Advertising achieves a communications objective and assists in marketing objective How does a communications objective assist the marketing objective? Communication objective’s goal is to change people’s attitudes, beliefs, and opinions These attitudes, beliefs, and opinions are major factors in consumer behavior, and more importantly, purchase behavior ← A person has to like a product before they even think about buying it We bank on the relationship between consumers’ attitudes, beliefs, and opinions and purchase behavior ← There’s a high correlation between the two Communications Objectives ○ Awareness (put it on the radar) ▪ Create awareness ▪ Increase awareness ○ Branding (target market’s associations with the brand) ▪ Brand ▪ Rebrand ○ Positioning (how the target market views it the brand in relation to its competitors) ▪ Position ▪ Reposition ○ You can only pick one objective at a time, otherwise it’s not really possible to achieve either goal. ▪ Successfully reaching a communications objective is hard enough as is. ▪ Consumers get confused by the different messages Consistency is very important ▪ Unrealistic Target Market ○ Market segmentation on the basis of ▪ Demographics age, gender, etc. There’s so much differentiation between/among people within the same group ▪ Psychographics More specific ▪ Market profiles Made up profile that describes the kind of person that would be the ideal consumer Combining demographics and psychographics Based on this profile, we can make guesses (predictive behaviors) at what kinds of choice a person who fits the profile makes. Stage is determined by buying behavior ○ Pioneering – new buyers; first product in category ○ Competitive – undecided buyers; high competition ○ Retentive – committed buyers’ dominant market share Features and Benefits ○ Features – product/brand characteristics; what the product does/ can do ○ Benefits – what consumers get from using the product (that is made possible by the product features) ▪ good things or bad things; abstract things like feelings ○ People don’t buy features; they buy benefits ▪ Not things, but satisfaction of their wants and needs ▪ People don’t buy drill bits; they buy holes The target market(s) determines the benefit(s) Out of Home Advertising Where do we place the message? Earned media – social media and online conversations about a certain brand or thing OutofHouse and Outdoor advertising mean the same thing now. Profile ○ Reach % of total audience exposed to an ad (or entire media schedule) in a given time period ▪ Time period is super important ○ Frequency – number of times a individual person is exposed to and ad (or entire media schedule) in a given time period ○ For outdoor advertising, reach is lower than average, because mostly the same people are seeing the ads, but they are seeing it multiple times a day (high frequency) ▪ Done on a small scale ▪ Local ▪ Mobile audiences People usually have a limited time to see the ads, like when driving to work. ○ Outdoor advertising is a supplemental medium ▪ Outdoor ads can help increase the strength of an existing campaign ▪ Rarely do you see outdoor advertising that doesn’t belong to a campaign Outdoor advertising has strong visuals that a great for reinforcing TV campaigns It provides missing visuals for radio campaigns They provide higher frequency for magazine campaigns They have better graphics for newspaper campaigns Strengths ○ Great for pioneering stage; can help build awareness and brand recognition ▪ doesn’t really work for competitive stage, because you need to convey much more information ○ Used in the retentive stage as reminders ▪ Brands have to keep up awareness about themselves and their products. Otherwise, everybody just forgets about them. Drawbacks ○ Exposure is voluntary and brief ○ Viewers are often preoccupied ○ There are few premium sites (locations) ○ Much criticized as visual pollution Out of Home Strengths ○ Low cost, high frequency needs ○ Local, mobile audience ○ Strong creative ○ Pioneering or retentive stages ○ Supports other media Buying OOH: ○ GRP – “gross rating point” for Outdoors ▪ Percentage ▪ Adult population ▪ In single, local market ▪ Daily exposure ▪ Buying a % of the local adult population in this market ▪ # of GRPs = % of audience 100% everyone sees it 200% everyone sees it twice ▪ Calculating GRPs # of GRPs = [(Total DEC for allotment) / (Total market pop)] * 100 GRPs are always expressed as a percentage ▪ Bought in allotments – the number of ads required to reach a desired GRP Sets of 50 to 100 GRPs Sometimes varies based on market size, like less for larger markets ○ DEC – Daily Effective Circulation – the # of people who have the opportunity to see the ad in a day (driving, walking, etc.) ▪ Calculated for the area where the ad will be placed ▪ Add up DEC for all posters/ads in allotment (# of posters/ads used in an individual buy) ▪ Example of calculating DEC Market: Athens Population: 120,000 Audience level purchased: 50 GRPs Allotment: 10 display ads, $2,000 a piece Each ad has its own DEC Example: 50 GRPs – (DEC) / (120,000) 50 GRPs = 60,000 / 120,000 50% of 120,000 is 60,000 ○ GI – Gross Impressions – measures of total exposures (duplicated audience) ▪ GI = GRPs * DEC ▪ Usually done on a weekly or monthly basis ▪ Example: Weekly: (50 * 60,000) * 7 = 21,000,000 GI per week Monthly (50 * 60,000) * 30 = 90,000,000 GI per month ○ Costeffectiveness ▪ $ per GRP = (Total cost of allotment) / (GRPs in allotment) ▪ Example: $ per GRP = ($20,000) / (50) = $400 per a GRP $20,000 because 10 ads in allotment at $2,000 each ▪ $ per 1,000 GI = (Total cost of allotment) / [(GIs in allotment) / (1,000)] ▪ Example: $ per 1,000 GI = ($20,000) / [(21,000,000) / (1,000)] = $0.95 per 1,000 GI ○ Verification ▪ The Traffic Audit Bureau of Media Measurement (TAB) Marketbased traffic data Checks sign visibility ▪ Perception Research Services (PRS) Eyetracking studies 3/4 notice and read copy Larger = more noticed ▪ Simmons Market Research Bureau (SMRB) Annual consumer study of 25,000 people Mediausage habits; OOH recall ▪ Buyer’s Guide to Outdoor Advertising Now owned by Domedia Rate guides; cost; market populations Newspapers Profile ○ Low reach (circulation) ○ High frequency (daily papers) ○ Fairly high cost per an impression ▪ Price has been driven up by the decline of readers/subscribers ○ Supplemental medium (now) ○ Upscale, older audience ○ Good for local and retail ads Strengths ○ Higher reach with older, upscale people and opinion leaders ○ Desirable target markets ○ Immediacy ▪ Next day publication Makes it very easy to fix and adapt Flexible ○ Credibility ▪ Newspapers are seen as the medium with the most credibility People trust newspapers and journalists, because they’re more objective Drawbacks ○ So much clutter ▪ People want to read articles, not ads ○ Declining readership ▪ More and more content is going online ○ Increasing cost of advertising ▪ In order to substitute the loss of subscribers, the cost of placing ads has gone up ○ Challenges from online news aggregators ▪ People don’t want to pay for the news Information is so much easier to access now Can be accessed for free Newspaper Advertising Categories ○ Classified ○ Display ▪ Local retail ▪ National ○ Coop (Cooperative Advertising) ○ Classified ▪ Personal – people placing ads ▪ About $10 billion a year in ad expenditures in 2008 ▪ Now, less than $5 billion a year ▪ What could be contributing to this? Sites like Craigslist and Facebook, social media, and apps ○ Display ▪ Basically all other, nonclassified newspaper advertising ▪ Primarily local (retail) businesses: Local retailers are the main source of display ad $ These are physical places you can go and buy stuff Local to the area – can be big chains/national stores in the immediate area Products are nation, but the actual stores and retailers are local Changing retailer market: Consolidation & greater market shares Service concentration – like Walmart, “onestopshop” Puts a lot of stress on small businesses/retailers It reduces their ad budget and ability to spend ▪ Secondary source of $ are national advertisers Can be brands with no local or nearby stores National ads are more about branding and less about trying to get people to go to the stores Standard Advertising Units Allow national advertisers to seamlessly buy across multiple outlets/in different markets Don’t have to prepare different ads for different newspapers ○ Coop ▪ Partnerships Local retailers lower costs National companies expand reach National advertisers cover 50 – 100% of costs Big national brands (that don’t or mostly don’t have their own stores) sell their products through local retailers, especially big department stores, like Belk. The brand and store advertise together “Come get your new ___ at ___store” The goal is to get consumers into the store buy the brand’s products 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 kinds: ▪ Bulk – advertiser is charged proportionally less as more space is purchased. Amount of space ▪ Frequency – advertiser is charged proportionally less as more insertions are purchased. Number of ads. ○ CPM = (cost of space * 1000) / circulation ▪ CPM – cost per thousand ▪ Example: Red & Black of Athens Cost for quarter page: $1440.60 3 quarter page ads Circulation: 10,000 Population of Athens: 120,000 CMP = [(3(1440.6) * 1000] / 10,000 = $388.80 ○ GRPs = reach * frequency ▪ Reach = [(total circulation of all ads) / (total target market)] * 100 ▪ Frequency = number of ads ▪ Example: Reach = (10,000 / 120,000) * 100 = 8.33 Frequency is 3 GRPs = 25 ○ Costeffectiveness ▪ $ per GRP = (total cost of print space)/ (GRPs delivered by print) ▪ Example: $ per GRP = 3,888 / 25 = $155.52 3,888, because 3 ads at $1440.60 each 25 is # of GRPs Magazines Profile ○ Very low reach ▪ Low circulation, low readership numbers ○ Medium frequency ○ Very high cost per impression ▪ Magazines have nicer quality than newspapers ○ Supplemental medium ○ The have very niche audiences. ▪ Targeted audiences flock to certain magazines ▪ Advertisers choose specific magazines to advertise in, because the readers are the same kind of people who are likely to buy the advertised products Strengths ○ High credibility ○ Advertising to a specific target audience ○ High quality (production) ○ More creative flexibility ○ Long shelf lives ▪ Articles can be relevant and useful for years ▪ Boosts reach and frequency ○ Segmenting ▪ Super targeted audiences ▪ Strong visuals Drawbacks ○ High cost ○ Lots of clutter ▪ People want content, not the as ○ Long lead time ▪ Ads have to be designed and placed months before the ad is run ▪ Difficult to reach large audience segments ▪ Low frequency Most magazine print only once a month Selfselection bias – situations wh the caracteristics of the people which cause them to select themselves in the group create abnormal or undesirable conditions in the group Best Use ○ Complete information ▪ Detailed articles ○ Supplemental ○ Older, targeted, more affluent segments ○ Target market must be a big city Creative flexibility ○ Many different kinds of spreads and layouts ○ Can use/add certain elements to the medium ▪ The opaque page over the picture ▪ The magazine where the inside of the front goes with the inside of the back ▪ Popups ▪ Interactive ads The tightening of the bra Scratch and sniff Rip out pages and use the magazine as a mirror when sun tanning Make things like a bottle opener Edibles ▪ With the internet and smart phones, you can have multiplatform ads Much more interactive Immersive Super Apps Videos Games Buying Space in Magazines ○ Prices depend on size and frequency ○ Ex: Car & Driver Space 1 time 6 times 12 times 1/2 page $27, 612 $25,955 $24,298 1/3 page $19,506 $18,392 $17,218 1/6 page $10,875 $10,223 $9,570 Buying ○ Cost and number of readers aren’t everything ○ Effectiveness in reaching your target market is very important ○ Example: ▪ Cost of space: $250,000 ▪ Population: 1,500,000 ▪ In target market circulation: 275,000 ▪ Target market population: 5,000,000 ▪ Number of ads bought: 15 ○ CPM = (cost of space * 1,000) / circulation ▪ Cost per thousand ▪ Example: (250,000 * 1000) / 1,500,000 = $166.67 per thousand ○ Weighted CPM = (cost of space * 1,000)/ circulation in your target market ▪ Ex: (250,000 * 1,000) / 275,000 = $909.10 per thousand (weighted) ○ Reach = [target market circulation / target market population] * 100 ▪ Example: (275,000 / 5,000,000) * 100 = 5.5 % reach ○ GRPs = reach * number of ads bought ▪ Ex: 5.5 * 15 = 82.5 ○ $ per GRP = total cost of print space / GRPs ▪ Ex: 250,000 / 82.5 = $3,030.30 per GRP Verification ○ Audit Bureau of Circulations (ABC) ▪ Verifies circulation ○ Syndicated market research ▪ Readership studies Print Advantages ○ Trusted and influential ▪ This boosts effectiveness ○ Segmenting ▪ Geographically or lifestyle Disadvantages ○ Comparatively high cost ○ Clutter ○ National, larger markets are unreachable Television Profile ○ Very high reach ▪ 99% of households own at least 1 TV ○ Primary medium ▪ You can have an ad campaign on TV alone (no supplemental ads like outdoor or print) and it will can successful ○ Cost is very high ▪ 30 seconds cost thousands of dollars ○ Frequency is very high Strengths ○ High reach as a medium ▪ Varies based on channel and show ○ Creative flexibility ▪ TV ads can be almost anything ▪ Lots to work with: sound, color, and motion ○ Delivers large, national markets ○ Increasingly delivers to niche markets Drawbacks ○ Clutter ▪ 1 in 4 ads is only 15 seconds ○ Audiences are smaller, fragmented, and low income ○ Viewer avoidance ▪ Changing channels ▪ Doing something else during commercial breaks ○ Very costly ○ Ephemeral ▪ Messages are brief and fleeting ▪ You must to have high frequencies Best Uses ○ National campaigns addressing large markets ▪ Brand message (brand identity) Good for awareness Good for attitude development/change ▪ Positioning (or repositioning) Good for competitive considerations Categories ○ Network ▪ New shows ▪ National advertisers buy time from national networks ABC, NBC, etc. ▪ The networks send the ads to all of its affiliated shows and stations ○ Cable ▪ New shows or repeats ▪ National advertisers by time from cable providers MTV, ESPN, Comedy Central, etc. ▪ Unlike network, cable delivers to niche and predictable audiences ○ Spot (network) ▪ New shows or repeats ▪ National or local advertisements ▪ Buy from individual local stations; shown on only those stations ○ Spot (cable) ▪ New shows or repeats ▪ National or local ads ▪ Buy from cable provider and then only shown is selected DMA DMA – designated market areas Ex: Atlanta Formulas ○ The example: ▪ Program’s audience: 290,000 ▪ Total TV households: 2,452,200 ▪ Total HUT: 800,000 ▪ Number of spots bought: 7 ▪ Cost of TV buys: $700,000 ▪ Gross Impressions: 2,030,000 ○ Rating (size) = (program’s audience / total TV households) * 100 ▪ Audience units: TV household a residence in a DMA that has at least one TV HUT households using the TV at a given time ▪ “How many TV households are tuned into this particular show?” ▪ Keep in mind that this is done for a DMA ▪ Ex: rating = (290,000 / 2,453,200) * 100 = 11.82 ○ Share (popularity) = (Program’s audience / total HUT in DMA) * 100 ▪ “Of households using the TV, what proportion are tuned into a specific show at a specific time?” ▪ HUT is always less than TV households Share is much larger than rating ▪ Ex: Share = (290,000 / 800,000) * 100 = 36.25 ○ GRPs = Reach * number of spots bought (during/on a particular show) ○ GIs = people watching the show * number of spot bought on/during a particular show Gross impressions ▪ Ex: GRPs = 11.82 * 7 = 82.74 ○ HHI = GRP (in decimal form) * Total TV households ▪ HHI – household impressions ▪ Decimal form – divide by 100 ▪ Ex: HHI = .8274 * 2.452,200 = 2,028,950.28 ○ $ per GRP = total cost of TV buys / GRPs ▪ Ex: $ per GRP = 700,000 / 82.74 = $8,460.24 ○ $ per GI = Total cost of TV buys / GI ▪ Ex: $ per GI = 700,000 / 2,030,000 = $0.34 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 (like GRPs) ○ We can’t compare GRPs unless the populations are equal ○ We look at cost per GRP Increasingly Niche Medium ○ 1950s – 1980s ▪ Three national broadcasting networks ○ 1980s & beyond ▪ Cable ▪ Satellite networks ▪ Program recording ▪ 500+ channels; timeshifting Verification ○ Nielson ratings ▪ People Meter attached to the main TV ○ Nielson Station index ▪ Localtelevision watching ▪ Meters and user diaries Television ○ National, large audiences ○ Pricey ○ Increasingly a niche medium ○ Brand/positioning Digital Advertising Strengths ○ Relatively low cost – precise pricing (can be difficult to find) ○ Engaging ○ Timely ○ Segmentation ○ Flexible Limitations ○ Uncertainty in effectiveness ▪ How do we measure this to see if it’s working or not? ▪ Large number of websites and outlets Issues with awareness (fragmentation) ▪ Can’t reach large audiences Digital advertising is growing and has been since it existed ○ It’s one of the most popular ways to advertise ○ More and more money is being allocated to digital advertising ○ This year is the first time that anything has outpaced TV ads in terms of spending ○ Across the board it’s grown immensely ○ Problem is that things are getting more complicated now ▪ It’s hard to come up with ways to measure how successful something is We don’t really know what’s meaningful or not The metrics aren’t clear and they aren’t as easy to figure out as all of the other mediums We don’t really know how to measure the number of people who see the ad Did they click on purpose or accident? Are they looking at the ad or is the ad just on screen? ▪ We don’t really know if the measure that we have are the best way to go about evaluating ads and content ▪ Content measurement tools: Facebook insights; Twitter/ YouTube/ LinkedIn / Pinterest /etc. Analytics; Curalate; Social Bro; Google Analytics/Omniture ▪ Social listening tools: Simply Measured; Sysomos; Nuvi; Crimson Hexagon; Zignal Labs ▪ Soft KPIs (key performance indicators): likes; follows; share; retweets/reblogs; views ▪ Hard KPIs: site traffic; sales; social rank/influence; subscriptions; in store visits Digital Executions ○ There are so many different ways to advertise digitally; ○ Main ones: email marketing (spam); paid searches; online displays; augmented reality; face recognition (like snapchat has); webisodes; Videos (YouTube); viral campaigns (user distribution); user generated content; games/gamification; QR codes; immersive/3D sculpture; virtual reality ○ Associative marketing – fun, interesting, and interactive advertising; not necessarily trying to sell something, but to get people to think or feel positively about the brand ○ Augmented Reality ▪ IKEA – using an app and catalog to see what furniture would look like in your home ▪ Furious 7 – visual display set up in a mall that added action to your image (of you) ○ Digital Face Recognition ▪ Nike Free Face – making the shoes move and change based on/to mimic your facial expressions ▪ Pedigree Doggelganger – Australia SPCA and Pedigree developed a site/app to get people to adopt shelter dogs (and save their lives) by finding dogs that look similar to you. You could go meet them ▪ Snapchat filters – Wendy’s, creepy Taco Bell one; Cadbury Crème Egg eyes ○ Virtual Reality ▪ Using people’s phones with the little constructible VR goggles ▪ For this to become more widespread and effective, VR has to become much less expensive than it is now. ▪ Volvo test drive – You saw the inside of a Volvo from the perspective of the driver – simulating you driving ▪ McDonalds Happy Meal – get and assemble VR goggles and play VR games from McDonalds on smartphones ▪ Merrell Trailscape – Big thing set up at Sundance; people tried hiking boots on and were connected to a VR rig that had motion capture; it felt like you were walking on a dangerous mountain. What’s interesting is how real the experiences feel; our brains make us feel things based on what information they get from our eyes. VR is designed to feel very real The Future ○ As technology becomes more and more advanced, these things will become increasingly more interactive and more immersive. ▪ Things will feel more like real life, like with VR ▪ Motion capture technology, like with the Merrell Trailscape thing ▪ Immersive & interactive displays in public spaces, like the mall with the cool Furious 7 installation. The Gamification of Advertising Gaming has changed ○ In the past, gamers were thought of as gross men that lived in their parents’ basements and played games all day ○ Now, that is very far from the truth ▪ The 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) ▪ People of all ages play As people get older, more women than men are playing games, which is the opposite of how it is up until that age group ○ We have several devices that we use for games: Mobile devices, computers, and gaming consoles Why is gaming important to advertisers? ○ Estimates suggest that 320,000,00+ gamers are in the US ○ Majority of young adults are large consumers of gaming media (4+ hours a week on average) ○ Game R&D and placement I typically less expensive than traditional advertising ($5,000 to $100,000) ○ Looks and feels less like traditional advertising ▪ People don’t like blatant advertising; they find in annoying and irritating ○ Promotes interaction with the brand/product ○ Game enjoyment can translate into brand enjoyment ○ Projected ad expenditures total about $5 billion in 2019 Types of Advertising Using Games ○ InGame Advertising (IGA) – inclusion of products or brands within an existing digital game for entertainment purposes ▪ They’re elements in the game ○ Advertising in social network games (Farmville, words with friends, etc.) – placement of brands or products in digital games that are played on social media sites ○ Advergames – games specifically designed and created to promote a brand, product, or service. The main goal is to deliver a powerful message to increase traffic InGame Advertising ○ Multiple brands are featured in InGame advertising ○ There’s a lot of flexibility in the number and type of adplacements ○ Game players are “exposed” to brands while playing ○ Static vs. dynamic placement – staying in the same place or changing and moving around. Advertising in Social Network Games ○ Engagement is based on: ▪ Interaction with friends ▪ Relationship building ▪ Teamwork or competition ▪ Roleplay ▪ Escapism ○ There’s a big mobile component to this ▪ Apps and games like words with friends ○ There’s a lot of flexibility in terms of design, reach, and deliverability Advergames ○ Free and easy online games designed to promote the brand ○ The brand and game are inseparable – the game is designed around the brand ○ Typically found on company websites (like McDonalds, Kellogg, etc.) ○ Can be in the form of social media games ○ Games like the Chipotle one with the scarecrow ○ Branded apps are also gaining momentum Design Considerations and Effects ○ Keeping in mind the importance of brand recall, memory, and attitudes, there are two characteristics relevant for design decisions: ▪ Congruity – Is there are fit between the advertisement and game environment? ▪ Prominence – Can gamers see the advertising easily? ○ Prominence ▪ Depends on the location, frequency, and size of the advertising in the game ▪ Prominent placements typically result in better brand memory ▪ Too much prominence can be intrusive if not executed well ○ Congruity in InGame Ads ▪ Game environment and brand should match up and make sense together Congruent – more positive attitudes towards the brand/product, but less recall Incongruent – more recall, but less positive attitudes Advergames ○ Research shows that 6585% of company websites incorporate some form of child targeted advergames ○ Do they work? ▪ Brand attitudes are positively affected by advergame play Adults, adolescents, and kids like the brand or product when they like the advergame ▪ Brand and product category choices are influential, especially for kids Kids tend to choose unhealthy food after playing an advergame that features unhealthy foods Advergames that feature healthy foods influence healthy choices ○ Influencing factors ▪ Attitudes toward the brand/game – level of difficulty/challenge can’t be too easy or too difficult Brand attitudes were the highest when kids are optimally challenged but lowest when under challenged ○ Hot Topics ▪ Debate over children’s recognition of the “commercial” content in advergames Some say they can see it, but most say they can’t Why does this matter? Most of these advergames advertise unhealthy foods We have a childhood obesity problem in the US If kids only knew it was advertising then they wouldn’t want all of that junk, right? Some evidence for that exists, but we’re still figuring it all out Consensus Kids need to get better at advertising recognition in advergames Who’s responsible for that? ← Advertisers? ← Government? ← Parents? Advertisers aren’t required to help kids do this Government has no standing to say advertiser must Parents should and can educate their kids about this Parents don’t always know what advergames are They have a hard time recognizing them as persuasive Gamification for future professionals ○ Balance your responsibility to the client and your responsibility to the public ▪ Consider vulnerable audiences who may not get that it’s advertising, like children ○ Take the lead – disclose the advertising content even when you don’t have to ▪ Makes you look transparent, and that’s a good thing as an advertiser ○ Consider advergames beyond conventional means: ○ Antismoking, prohealth, prosocial, environmental, PSAs, etc.
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