Advertising management

Introduction to Advertising
Advertising is a form of communication for
marketing and used to encourage or persuade
an audience (viewers, readers or listeners;
sometimes a specific group) to continue or take
some new action.
Most commonly, the desired result is to drive
consumer behavior with respect to a commercial
offering, although political and ideological
advertising is also common.
The purpose of advertising may also be to
reassure employees or shareholders that a
company is viable or successful.
Advertising messages are usually paid for by
sponsors and viewed via various traditional
media; including mass media such as

newspaper, magazines, television commercial,
radio advertisement, outdoor advertising or
direct mail; or new media such as blogs,
websites or text messages.
In 2010, spending on advertising was estimated
at $142.5 billion in the United States and $467
billion worldwide
History
Egyptians used papyrus to make sales
messages and wall posters. Commercial
messages and political campaign displays have
been found in the ruins of Pompeii and ancient
Arabia. Lost and found advertising on papyrus
was common in Ancient Greece and Ancient
Rome. Wall or rock painting for commercial
advertising is another manifestation of an
ancient advertising form, which is present to this

day in many parts of Asia, Africa, and South
America. The tradition of wall painting can be
traced back to Indian rock art paintings that date
back to 4000 BC. History tells us that Out-of-
home advertising and billboards are the oldest
forms of advertising.
As the economy expanded during the 19th
century, advertising grew alongside. In the
United States, the success of this advertising
format eventually led to the growth of mail-order
advertising.
In June 1836, French newspaper La Presse was
the first to include paid advertising in its pages,
allowing it to lower its price, extend its
readership and increase its profitability and the
formula was soon copied by all titles. Around
1840, Volney B. Palmer established the roots of
the modern day advertising agency in

Philadelphia. In 1842 Palmer bought large
amounts of space in various newspapers at a
discounted rate then resold the space at higher
rates to advertisers. The actual ad - the copy,
layout, and artwork - was still prepared by the
company wishing to advertise; in effect, Palmer
was a space broker.
The situation changed in the late 19th century
when the advertising agency of N.W. Ayer &
Son was founded. Ayer and Son offered to plan,
create, and execute complete advertising
campaigns for its customers.
By 1900 the advertising agency had become the
focal point of creative planning, and advertising
was firmly established as a profession. Around
the same time, in France, Charles-Louis Havas
extended the services of his news agency,
Havas to include advertisement brokerage,

making it the first French group to organize. At
first, agencies were brokers for advertisement
space in newspapers. N. W. Ayer & Son was the
first full-service agency to assume responsibility
for advertising content. N.W. Ayer opened in
1869, and was located in Philadelphia
Modern/present
At the turn of the century, there were few career
choices for women in business; however,
advertising was one of the few. Since women
were responsible for most of the purchasing
done in their household, advertisers and
agencies recognized the value of women's
insight during the creative process. In fact, the
first American advertising to use a sexual sell
was created by a woman – for a soap product.
Although tame by today's standards, the

advertisement featured a couple with the
message "The skin you love to touch".
Modern advertising was created with the
innovative techniques used in tobacco
advertising beginning in the 1920s, most
significantly with the campaigns of Edward
Bernays, which is often considered as the
founder of modern, Madison Avenue advertising.
The tobacco industries was one of the firsts to
make use of mass production, with the
introduction of the Bonsack machine to roll
cigarettes. The Bonsack machine allowed the
production of cigarettes for a mass markets, and
the tobacco industry needed to match such an
increase in supply with the creation of a demand
from the masses through advertising

Advertising is the promotion of a company's
products and services carried out primarily to
drive up sales of the products and services. It is
also done to build a brand identity and
communicate changes in old products or
introduce new product/services to the
customers.
Advertising has become an essential element of
the corporate world and hence companies allot a

considerable amount of resources towards their
advertising budget. There are several reasons
for advertising, some of which are as follows:
Increasing the sales of the product/service.
Creating and maintaining a brand identity or
brand image.
Communicating a change in the existing
product line.
Introduction of a new product or service.
Increasing the buzz-value of the brand or
the company.
There are several reasons for advertising.
Similarly, there exist various media which can be
effectively used for advertising. Mentioned below
are the various categories or types of
advertising.
Print Advertising - Newspapers, Magazines,

Brochures, Fliers
Print media has always been a popular
advertising option. Advertising products via
newspapers or magazines is a common
practice. In addition to this, the print media also
offers options like promotional brochures and
fliers for advertising purposes. Often,
newspapers and magazines sell the advertising
space according to the area occupied by the
advertisement, the position of the advertisement
in the publication (front page/middle page,
above/below the fold), as well as the readership
of the publications.
For instance, an advertisement in a relatively
new and less popular newspaper will cost far
less than an advertisement in an established
newspaper that has a high readership. The price
of print ads may also depend on quality of the
paper and the supplement in which they appear.

For example, an advertisement in the glossy
(and popular) supplement of a newspaper costs
more than one in a supplement which uses
mediocre quality paper.
Outdoor Advertising - Billboards, Kiosks,
Trade-shows and Events
It makes use of several tools and techniques to
attract the customers outdoors. The most
common examples of outdoor advertising are
billboards, kiosks, and also events and trade-
shows organized by the company. Billboard
advertising is very popular. However it has to be
really terse and catchy in order to grab the
attention of the passersby. Kiosks not only
provide an easy outlet for the company's
products but also make for an effective
advertising tool to promote the company's

products. Organizing special events or
sponsoring them makes for an excellent
advertising opportunity and strategy. The
company can organize trade fairs, or even
exhibitions for advertising their products. If not
this, the company can organize several events
that are closely associated with their field. For
instance a company that manufactures sports
utilities can sponsor a sports tournament to
advertise its products.
Broadcast Advertising - Television, Radio
and the Internet
Broadcast advertising is a very popular
advertising medium that constitutes several
branches like television, radio or the Internet.
Television advertisements have been very
popular ever since they were introduced. The

cost of television advertising often depends on
the duration of the advertisement, the time of
broadcast (prime time/lull time), sometimes the
show on which it will be broadcast, and of
course, the popularity of the television channel
itself. The radio might have lost its charm owing
to new age media. However it remains the
choice of small-scale advertisers. Radio jingles
have been very a popular advertising medium
and have a large impact on the audience, which
is evident in the fact that many people still
remember and enjoy old popular radio jingles.
Covert Advertising - Advertising in Movies
Covert advertising is a unique kind of advertising
in which a product or a particular brand is
incorporated in some entertainment and media
channels like movies, television shows or even

sports. There is no commercial advertising as
such in the entertainment but the brand or the
product is subtly (or sometimes evidently)
showcased in the entertainment show. Some of
the famous examples for this sort of advertising
have to be the appearance of brand Nokia which
is displayed on Tom Cruise's phone in the movie
Minority Report, or the use of Cadillac cars in
the movie Matrix Reloaded. Pay attention next
time, you're sure to come across a lot of such
examples.
Surrogate Advertising - Advertising
Indirectly
Surrogate advertising is prominently seen in
cases where advertising a particular product is
banned by law. Advertisement for products like
cigarettes or alcohol which are injurious to

health are prohibited by law in several countries.
Hence these companies come up with several
other products that have the same brand name
and indirectly remind people of the cigarettes or
alcohol of the same brand by advertising the
other products. Common examples include
Fosters and Kingfisher beer brands, which are
often seen to promote their brand with the help
of surrogate advertising.
Public Service Advertising - Advertising for
Social Causes
Public service advertising is a technique that
makes use of advertising as an effective
communication medium to convey socially
relevant messages about important matters and
social causes like AIDS, energy conservation,

political integrity, deforestation, illiteracy, poverty
and so on.
David Ogilvy who is considered to be one of the
pioneers of advertising and marketing concepts
had reportedly encouraged the use of the
advertising field for a social cause. Ogilvy once
said, "Advertising justifies its existence when
used in the public interest - it is much too
powerful a tool to use solely for commercial
purposes."
Today, public service advertising has been
increasingly used in a non-commercial fashion in
several countries across the world in order to
promote various social causes. In the United
States, radio and television stations are granted
to bidders on the basis of a fixed amount of
public service advertisements aired by the
channel.

Celebrity Advertising
Although the audience is getting smarter and
smarter and the modern-day consumer is getting
immune to the exaggerated claims made in a
majority of advertisements, there exists a
section of advertisers that still bank upon
celebrities and their popularity for advertising
their products. Using celebrities for advertising
involves signing up celebrities for campaigns,
which consist of all sorts of advertising including,
television ads or even print advertisements. How
effective these ads are, is something that each
consumer himself can determine.
Each of the advertisement types mentioned has
its own sub-types and rates of effectiveness. It is
the job of advertising department to figure out
which type of which medium is the best and the
most feasible for the company.

Role of advertising in Brand Building
Function
The model suggests that there are six steps a
consumer or a business buyer moves through when
making a purchase.
1.Awareness
2.Knowledge
3.Liking
4.Preference
5.Conviction
6.Purchase
AIDA Model
A ---------
I ----------
D ---------
A ----------
Brand Building process

 Create Awareness
 Information/Knowledge
Advertising informs the buyers about the
benefits they would get when they purchase a
particular product. However, the information
given should be complete and true.
 Recognition
The advertiser expects to create a favorable
attitude which will lead to favorable actions. Any
advertising process attempts at converting the
prospects into customers. It is thus an indirect
salesmanship and essentially a persuasion
technique.
 Acceptance
 Preference/Choice
Advertising facilitates consumer choice. It
enables consumers to purchase goods as per
their budget requirement and choice. Right
choice makes consumer happy and satisfied.

 Usage
 Satisfaction
 Word of mouth
Advertising and Brand building
Brands are the identification that
differentiates one business from another
(through name, symbol etc.). However,
today brands can also be defined as the
personality they reflect to people in relation
to status, emotional characteristics and
subjective quality.
They give the consumers a perceived
knowledge of the product, its quality and
uniqueness before they buy it.
Brands Ensure delivery of service as
promised by them. For example, Pizza
Company A claims to deliver pizza within a

certain time and Pizza company B claims to
deliver most delicious Pizzas.
It makes easy for the consumers to identify
what they want and which brand to choose
for it. It is important for a brand to
accomplish the claim advertised to retain
Brand Image.
Brand personality acts as a potent brand
differentiator and offers sustainable
competitive advantage.
Advertising by creating or reinforcing brand's
personality enhances brand value or equity
which in turn can be leveraged through
brand extension.
Brand personality also helps brands to gain
market share, command price premium and
insulates from discounting Brands.

Building a strong brand name is key factor
for business success. In the competitive
business environment of today, consumer
sophistication has altered business
practices.
Organizations are forced to anticipate
customers' needs and convey clear
messages to consumers by establishing
strong brand names and focusing on brand
building.
A brand's practical attributes and symbolic
values are inherent elements that help the
brand appeal on consumers' minds and
emotion.
When consumers relate brands with
symbols, it becomes easier for an

organization to raise consumer interest. For
instance, Lexus is known for luxury, or Apple
is known for innovation.
Therefore, in consumers' minds, a brand is more
than just a recognizable name: it is a promise
that needs to be met on a regular basis.
Advertising is important for building brand
awareness. By raising consumer interest and
making consumers awareness of their products
and services, firms not only expand their
customer base, but they also keep their loyal
customers and increase their market share. In
other words, the more aware consumers are of a
brand, the more likely they are to buy from a
particular business.
Approaches in Brand building:

To make brand distinctive: brand building can be
done through repetitive advertising. Also by
highlighting unique selling proposition one can
distinguish brand from one another.
1. Constant innovation: Consumers need
continuous innovation and new products. It is
not always a new product even an improvement
on the existing product is acceptable to the
consumers. Through intensive advertising such
brands are build which is time consuming.
2. Domination of brand: brand building largely
depends on the domination is creates on the
competitors. Domination can take place either in
national market or in niche market.
3. Prompt availability: Prompt delivery of the
product is one of the factors that ensure brand

building. This is possible if there is proper
coordination between the finance, production,
and marketing department.
4. Integration of new and old media:
Consumers have ever changing demand. Due to
availability of various media option the seller can
push the product in the market by blend multiple
media option .Thus advertising message are
flashed to consumers through media mix.
Advertising and Clutter
Advertising or marketing clutter refers to the
large volume of advertising messages that the
average consumer is exposed to on a daily
basis. This phenomenon results from a

marketplace that is overcrowded with products
leading to huge competition for customers.
Marketing clutter is a major problem for
marketers and advertisers, as it is becoming
increasingly difficult to be noticed using
conventional mass-media. This intense
competition has led to the emergence of more
innovative methods of promoting businesses.
Effect of advertising clutter on consumers
Consumers were always able to avoid mass
media advertising. Television breaks would
be the time to make snacks or go to the
toilet, magazine readers could turn the page
and newspapers could have entire sections
tossed aside by readers.
Since the advent of preset buttons on car
radios five decades ago, commuter
audiences would shift between alternative

stations as the string of commercials outran
the listener's ability to tolerate the repetitive
messages.
And today, advertising avoidance becomes
increasingly easy. Televisions all have
remote controls, many people watch only
shows that were recorded earlier so the
commercials can be skipped, or many
broadcast services are now by subscription
and commercial-free.
Yet it appears that the advertisers' "solution"
to audience avoidance of their messages is
to increase the number of messages, so
even the effort of commercial avoidance
becomes a source of audience frustration.
Television commercial breaks are longer
and the commercials are shorter, so there

are more spots appearing per break. Even
when time-shifting favorite television
programs, the zapping of the increasing
quantity and length of commercial breaks
gets tedious.
Broadcast radio often seems to have more
advertising than entertainment or news,
sending the formerly captive audiences of
automotive commuters to satellite radio,
prerecorded music and the less-than-safe
alternative of talking on a cell phone.
Magazines have multiple pages of
advertising before you even get to the table
of contents while newspapers' free-standing
inserts alone fill their own recycling box.
Increasing advertising-to-editorial ratio is
really a function of simple media economics.

With the decline of the former mass media
into more segmented and targeted options,
the total audience size of even the largest
vehicles is greatly reduced. With smaller
audiences, the vehicles need to sell more
time or space to make the same amount of
money. And yet, if the clutter were less,
each message would have greater impact
and the advertisers should be willing to pay
more per audience member reached, or so
you would intuitively think, assuming it is
well targeted.
The puzzle to even the most casual
audience member is how much of this
advertising is wasted, as their children watch
advertising for pickup truck tops during
"Power Puff Girls" or "The Fairly
Oddparents" cartoon programs. Despite

claims to a highly targeted media
environment, advertising is still often placed
without much regard for each vehicle's
audience, resulting in the mass media
equivalence of Internet spam for audiences.
Too many advertising plans make the
purchase of time or space done by little
more than counting the size of audiences
instead of considering the thoughts and
desires of consumers (Miller 2004).
Demographic data remain the predominant
basis for how vehicles' audiences are
defined, despite them being poor predictors
of how audiences think or act in the
marketplace. And even the numbers
available are not used. Most newspaper
advertising appears run-of-paper, without
regard for which audiences read each

section, while many broadcast and cable
commercials are placed run-of-schedule on
a variety of stations or programs whose total
audiences are an agreed upon size but may
or may not be potential consumers for the
advertisers' products.
But aside from issues of vehicle selection,
the quantity of commercials alone creates
the feeling of overwhelming mass media
spam. As noted, the problem is increasing
but not necessarily new. The audience
complaints and advertiser persuasion
problems of message clutter with repetitive
messages was frequently criticized
To some, advertising's future lies in doing a
better job of hiding the sales message in the
news or editorial content of the media (e.g.

Donaton 2004). Numerous detail how
product placement generated publicity that
drove increased product sales for various
companies. Unfortunately, the alternative is
too restrictive and depends too much on
sales driven by simple name recognition,
since the format does not allow for providing
much of detailed product information in the
message.
In reality, the solution for advertising might
be to turn back the clock, to a time of
sponsorships and fewer commercials. Basic
philosophy of advertising stressed the
importance of a single advertising message
delivered with respect for the intelligence
and values of its audience. An advertiser
who prepares a targeted, interesting and
entertaining ad would no more have to run it

multiple times than the newspaper has a
need to run the same page one headline
day after day. After all, he noted that
"Nobody reads ads per se. People read
what interests them, and sometimes it's an
ad."
Advertising writers say that the solution is
more creative advertising that breaks out
from the advertising clutter. They are
partially right, since the problems of clutter
are compounded when the exact same, dull
message is seen multiple times within the
same vehicle. But for advertisers, they need
to realize that a less cluttered environment is
worth more money. A sponsored vehicle
with a greatly reduced number of advertising
messages means that each message would
have a greater impact, assuming they

provide information that the audiences
would like to receive.
People throw out direct mail messages
because it is irrelevant to them; spam is the
plethora of email you'd never want to read.
The solution for clutter is for advertisers to
be willing to pay the price for messages
surrounded by less of it.
Breaking advertising clutter
What do bras on trays, a fund-raising
campaign for hospitalized veterans and
overseas soldiers, and an art contest in a
bank branch have in common?
Marketers are experimenting with ways to
allow consumers to experience -- touch,
smell, even taste -- their products, services

and brands. They believe that if people
actually "experience" the brand, there's a
better chance the experience will result in a
sale.
From bathroom walls and the sides of city
buses to the Internet, advertising has
exploded beyond its traditional forms -- print,
broadcast and billboards -- and taken up
residence in an ever-widening array of
media. And consumers, for their part, have
gotten better at tuning it out -- buying digital
video recorders that enable them to fast-
forward through commercials, tuning into
commercial-free satellite radio channels and
simply ignoring ads.

Getting creative
Triad companies are trying some unusual
techniques to sell their wares and get their
messages across.
Marketers of the Wonderbra, made by
Winston-Salem-based Sara Lee Branded
Apparel, trucked a mobile "Wonderbra
Lounge" to San Diego, Phoenix and Fort
Lauderdale, Fla., in March. Workers hit
areas rich in nightlife and invited 20-
something women inside the lounge to try
on Wonderbra Light Lift bras. The lounge
not only drew potential customers, but also
plenty of news coverage.
At cigarette maker Reynolds American in
Winston-Salem, marketers are long
accustomed to working with restrictions on
their advertising, which has forced them to

find different ways to convince people to
choose their cigarettes over competitors
from Philip Morris and Greensboro's
Lorillard.
Narrowing the focus
Marketers are interested in identifying who
their potential customers are and honing in
on them hitting consumers where it's
relevant to them." That's not to say
traditional advertising isn't used, TV
commercials, billboards and the like are still
useful for creating brand awareness are
increasingly focused on getting buyers to
connect emotionally with their brands.
"It's understanding consumers' motivations --
when, how and where they make their decisions.

And if you can narrow into that then you know
where to touch them," she said.
For example, when Winston-Salem's
Piedmont Federal Savings & Loan was
opening a branch in April, Woodbine
arranged a student art contest. Students
from three high schools were invited to
submit art, which was displayed in the new
branch. They, plus their parents, relatives
and friends, were invited to stop in at the
branch and look at the art, and ultimately
vote for the best pieces.
The winners will hang in the branch
permanently.
The contest not only got people into the new
branch, it also ties into Piedmont Federal's
"hometown" brand. Much of the bank's

advertising focuses on the idea that the
company doesn't sell its mortgage loans, as
many lenders do, Hall says.
Opportunities, challenges
re-examine the concept of ad clutter
propose a new analytical framework for
online ad clutter that incorporates the
differences between the online and offline
media environments
differentiate the physical presence of ad
clutter and perceived ad clutter
explain perceived ad clutter by consumers‘
attitudes towards advertising in general, and
in specific media contexts and task
orientations, to form an integrated model of
ad clutter.
Time delay affects perceived online ad
clutter level: a user perceives lower ad

clutter when the display of online ads is
delayed or non-compulsive, such as static
banner ads, than when their display is
immediate and compulsive, such as pop-up
ads.
Editorial page type affects perceived online
ad clutter level: a user perceives higher ad
clutter levels on navigational web pages
than on destination pages.
The location and size of ads affects
perceived online ad clutter level: centrally
located ads or large-sized ads in an editorial
unit lead to higher perceived ad clutter levels
than ads shown in other locations and at
smaller sizes.
The frequency of ads affects perceived ad
clutter level: the higher the number of ads on
a web page in online media, the higher is
the consumer-perceived ad clutter level

When consumers perceive a high level of
advertising clutter, online negative
advertising effects will occur, such as
advertising avoidance, advertising memory
reduction and perception of
lower-quality editorial content.
Facts and figures
30% of adults immediately leave website
having clutter of advert
75% of them who stay on website pay
less attention
52.6% of respondents are in favor of
advert
27.3% agreed on single advert per page
25.3% agreed on 2 advert per page

56.4% of women accepted negative
impact of clutter advert as compared to
male counter parts 48.5%
Women who most likely to quite website
32.1% as compared to male 27.3%
Age group 18-24 has negative impact of
46.8% of advertising clutter above the
age 55 negative impact is 63.2%
Making of an Advertisement
Set the stage
Come up with a catchy, snappy tagline.
Keep it short and sweet; the average product
needs no more than six or seven words. If you
say it out loud and it sounds like a mouthful,
edit it down. Whatever it is, it should grab the
consumer's attention and convince him or her

that your product is different from everyone
else‘s.
o Rhyme – ―Do you Yahoo?‖
o Humor – ―Dirty mouth? Clean it with
Orbit chewing gum!‖
o A play on words – ―Every kiss begins
with ‗Kay‘‖
o Creative imagery – Yellow Pages: ―Let
your fingers do the walking‖
o Metaphor – ―Red Bull gives you wings‖
o Alliteration – ―Intel Inside‖
o A personal pledge – Motel 6: ―We leave
the light on for you‖
o Dry understatement – Carlsberg beer
has a big sign in downtown Copenhagen
that reads, ―Probably the best beer in town‖.
Avoid the same old. The key to a good
advertisement is being memorable. The

second your ad borrows a familiar advertising
phrase (for example, ―new and improved,‖
―guaranteed,‖ or ―free gift‖––is there any other
kind?), it becomes interchangeable with
thousands of others. What‘s more, listeners
are so used to ad clichés that they don‘t even
hear them anymore. (Just listen to Tom
Waits‘s Step Right Up to hear how
meaningless clichés sound when strung
together.)
Startling the reader into paying attention is
especially useful if you have a lot to say. For
example, this long, environmentally-oriented
announcement wouldn‘t turn many heads if it
weren‘t for the unusual, confrontational
tagline; if the reader wants to get the joke, she
or he has to read more.

Know how to walk the line between
controversial and entertaining. Pushing the
limits of good taste to help your ad grab
attention is common practice, but don't go too
far––you want your product to be recognized
on its own merits, not because it was tied to a
tasteless advertisement.
 Use a persuasive technique. There are tried
and true methods that advertisers rely on to
make their ads stick.
 Common sense: Challenging the consumer
to think of a good reason why not to purchase
a product or service.

 Humor: Making the consumer laugh,
thereby making yourself more likeable
and memorable. This pairs especially
well with refreshing honesty. Not the
most successful business in your class?
Advertise that your lines are shorter.

Repetition: Getting your product to stick
by repeating key elements. Jingles are the
most obvious way to do this, but unless
they‘re very good, they‘re also the most
annoying. If you go this route, brainstorm
a more creative, less obvious repetition
technique such as the one that was used
in the Budweiser frog commercials (―bud-
weis-er-bud-weis-er-bud-weis-er‖).
Exigency: Convincing the consumer that
time is of the essence. Limited-time only
offers, fire sales, and the like are the

commonest ways to do this, but again,
avoid meaningless phrases that will slip
under your customers‘ radar.
Know thy customer. Even the cleverest
ad won‘t work if it doesn‘t appeal to the
target audience. Are you looking for a
certain age group? Do you want people
with a set income level? Or maybe you're
looking for a population with a special
interest? Whatever it is, try to get a clear
picture of who your dream consumer is
and why he or she would be interested in
what you're advertising.
Keep your target consumer in mind when
you're developing the tone and look of your

ad. Remember: it needs to appeal to your
audience as much as possible and avoid
offending or talking down to them. Kids tend to
be over-stimulated, meaning you will need to
grab their attention on multiple levels (color,
sound, imagery). Young adults appreciate
humor and tend to respond to trendiness and
peer influence. Adults will be more discerning
and respond to quality, sophisticated humor,
and value.
what you're advertising. Think of it this way:
the ad should be a bridge between what your
dream consumer wants or needs and your
product.

Brainstorm about what your consumer would
want, as well as some of the suggestions
below. Don't edit your ideas immediately, just
write them down––you'll have plenty of time to
pick over them later.
Ask yourself if your product or event is
aspirational. Are you selling something that
people would buy in order to feel better about
their social or economic status? For instance,
you might be selling tickets to a benefit gala
that is designed to feel elegant and luxurious,
even if the ticket price is well below what most

wealthy people would be able to pay. If you
are selling an inspirational product, try to make
your advertisement exude an air of
indulgence.
Determine whether or not your product is for
practical means. If you're selling something
like a vacuum cleaner, designed to perform
common tasks or make life easier for the
consumer, spin it in a different direction.
Instead of emphasizing luxury, focus on how
the product or event will provide relaxation and
peace of mind to your consumer.
Focus on the most appealing aspect of your
product. Why should it entice people? What
sets it apart from other similar products? What
do you like best about it? These can all be
good starting points for an advertisement.
Is there an unmet desire or need, any
frustration in the mind of your consumer, that

will create a market for your particular
product? Assess the need gap that exists for
the product or service
Try to make sure your advertisement will age
well. You don't want people looking back at your
ad in 10 years and being shocked at its content.
For good examples of how common social
tropes can look terrible in older ads, search for
cigarette or diet pill ads from the 1950s and '60s.

Make sure all the relevant information is
included. If your consumer needs to know
your location, phone number, or website (or all
three) in order to have access to your product,
provide this information somewhere in the ad.
If you're advertising an event, include the
location, date, time and ticket price.
Decide where and when to advertise. If
you're advertising for an event, start promoting
it at least 6 to 8 weeks beforehand if it's going
to accommodate more than 100 people; if it's

less than that, start advertising 3 to 4 weeks
ahead. If you're advertising a product, think
about the time of year when people are more
apt to buy what you're selling. For instance, if
you're promoting a vacuum cleaner, it might
sell better in the spring, when people are
undertaking spring cleaning.
Designing an advertisement
Choose a memorable image. Simple but
unexpected is often the best route to take. For
example, these stark, colorful silhouette ads that

barely even show the iPods they‘re peddling
couldn‘t get much more straightforward, but
because they don‘t look like any other ads, they
are instantly recognizable.
Distinguish yourself from your top
competitor(s). A burger is a burger is a burger,
but if you let yourself think like that, you‘ll never
make your sale. Use your ad to highlight your
product‘s advantages over that of your
competitors. To avoid lawsuits, keep to

statements about your product, not theirs. For
example, this Burger King ad mocks the size of
the Big Mac while speaking the literal truth: that
is a Big Mac box, after all, leaving McDonalds no
legal ground from which to retaliate.
1. Design a business logo (optional). A
picture says a thousand words, and if a logo is
effective enough, it can render text unnecessary
(the backwards Nike checkmark, the Apple
bitten apple, the McDonalds arches, the
Chevron shell). If you're running a print or
television advertisement, try to develop a simple,
appealing image that will stick in the minds of
viewers. Consider these points:
o Do you already have a logo? If you can,
think of fresh and creative ways of
reimagining it.

o Do you have a commonly-used color
scheme to work with? If your brand is
instantly recognizable by the colors in the ad
or the logo, use this to your advantage.
McDonalds, Google, and Coca-Cola are
good examples.
Find a software or technique creating your
advertisement. How you create your ad will
depend on which medium you're using to
advertise. Here are some basic suggestions to
get you started:
If you're making a small-scale print ad (such
as a flyer or magazine advertisement), try
using a program such as Adobe InDesign or
Photoshop. Or, if you're looking for a free
option, you can use GIMP or Pixlr.

If you're making a video ad, try working with
iMovie, Picasa, or Windows Media Player.
For an audio ad, you can work with Audacity
or iTunes.
For a large-scale print ad (such as a banner or
billboard), you'll probably have to contact a
print shop to get the work done. Ask which
software they recommend using.
Testing an advertisement
Tell customers to ask for someone by name. If
customers have the option of calling your
establishment in response to an ad, for example,
direct them to ―ask for Mike.‖ On another ad, direct
them to ―ask for Laura.‖ It doesn‘t matter if Mike or
Laura even exist; what does matter is that the
person taking these calls records how many

people ask for whom. This is a free way to track
which ads are bringing people in and which aren‘t.
Direct customers to different URLs on your
page. Set up your website to have a different
landing page for each ad you‘re testing, then
track how many people go to which. Again, this
is a simple, unobtrusive way to see which
strategies draw the most people.
Offer coupons in different colors. If couponing
is part of your ad strategy, make sure each ad
has a different color coupon so that you can tally
them separately.
Gauge the overall response to your ad. Did
sales seem to spike after your ad, or did they
drop? Did your ad contribute to the new
numbers, or were they due to forces out of your

control? Evaluate how well your first effort went
and take a lesson for next time
Socio-Cultural-Ethical Issues in
Advertising
Social Role of Advertising
Advertising, like public relations, is an aspect of
corporate organizational life in an open society.
By definition, it is associated with market
choices in which citizens and consumers are
able to freely select among various competing
brands and products, services and ideas.
Advertising offers a variety of benefits.
�Benefit to Consumers. Good advertising is
focused on consumer wants and needs, and it
relies on communication developed from the
consumer‘s perspective. It helps consumers
learn about and understand various alternatives

in the marketplace so they can make rational
and informed decisions.
�Benefit to Business. Advertising helps
businesses translate goods into profits by
creating new customers and maintaining existing
customers for those goods and Sometime
advertising helps to create new uses for existing
products.
�Benefits to Society. In addition to stimulating
the overall economy through increased
production and sales, advertising also can
stimulate people to become more informed and
discerning consumers, to support social causes,
and to act on behalf of religious, cultural,
environmental or other issues.
Ethical Issues in Advertising
Advertising has attracted much social criticism. It
is difficult to challenge criticism of unethical

advertising, but it is important to understand the
difference between ethical and unethical
practices. Here are some of the common
criticisms of advertising and the counter-
argument based on ethical advertising practices.
�Criticism: Advertising persuades people to buy
things they don’t want.
Counter-argument: Ethical advertising informs
people about things they might want if they knew
about them, but it is unlikely that advertising can
persuade people to buy anything they don‘t
want.
�Criticism: Advertising persuades people to buy
things they don’t need. (The formal terms for this
is acquisitiveness, sometimes called
conspicuous consumption.)
Counter-argument: As society moved beyond
subsistence-level existence, most consumer
purchases are not absolutely necessary. But

social and economic development brings with it
the ability of people to make discretionary
purchased based on their wants rather than their
needs.
This is a result not of advertising but of
economic advancement.
�Criticism: Advertising exaggerates the
differences among products.
Counter-argument: Ethical advertising points out
the differences so that consumer can make
informed decisions as to which product best
serves the consumer‘s needs. If there are only
small differences among products, this is the
function of manufacturing and the marketplace,
not of advertising (which does not design
products but rather promotes their use).
Criticism: Advertising favors existing brands
because of the high cost of launching new
products.

Counter-argument: This is not a function of
advertising but rather part of the entire economic
structure, in which the launching of new
companies and organizations, as well as their
products and services, is both difficult and
expensive.
�Criticism: Advertising raises the price of
products.
Counter-argument: Although advertising adds to
the cost of some heavily promoted consumer
items, it also can create mass markets for
products, thus reducing manufacturing and
distribution costs, ultimately saving money for
the consumer.
�Criticism: Advertising promotes questionable
products and services.
Counter-argument: Critics sometimes point to
advertising for gambling, harmful products such
as cigarettes, products or services of a personal

or sexual nature. However, every advertised
product or service is legal in the geographic area
in which it is advertised. The criticism against
such advertising is misplaced; critics instead
should focus on changing laws that allow such
products or services to remain legal.
�Criticism: Advertising presents messages of
questionable taste.
Counter-argument: Undoubtedly this is true in
some situations, which advertising professionals
view as inappropriate for a particular audiences
as well as unethical in a given social situation.
However, effective advertising is targeted to a
particular audience and tailored to its interests,
tastes and needs, so advertising that is confined
to its intended audience is unlikely to be
considered offensive or in poor taste by that
audience. The ethical as well as practical

challenge is to limit the exposure of advertising
to its intended audience.
�Criticism: Advertising uses sex appeal to
promote products.
Counter-argument: This is related to the
previous criticism. Sometimes this is true,
though advertising interested in both ethics as
well as effectiveness will confine the use of sex
appeal to those audiences and those cultures
that are not offended by such appeals. In this
and other content appeals, advertisers say that
they don‘t change culture and taste but rather
reflect it, though research suggests that
advertising both reflects and impacts social
standards.
�Criticism: Advertising marginalizes and
stereotypes people.
Counter-argument: Because it operates
essentially in one-page or 30-second formats,

advertising must simplify messages. But
stereotyping and simple images are not
necessarily bad. Increasingly ads are being
aimed at specific demographic groups, such as
senior citizens, ethnic minorities, and others.
Such ads tend to portray people in those groups
in positive and respectful ways.
Criticism: Advertising aims at vulnerable
children.
Counter-argument: Some ads are aimed at the
demographic group of children. In the past,
some irresponsible advertisers exploited a
child‘s naiveté and ignorance of consumer rights
and practices. However, both internal standards
within the advertising industry and external
regulations are leading advertisers to treat
children fairly, and educators are helping
children learn to be better consumers. In the

United States, the Children‘s Television Act
passed by
Congress in 1990 and amended in 1996 is an
example of the increasing standards about
advertising to children.
�Criticism: Political advertising increasingly is
negative and mean-spirited.
Counter-argument: The content of political
advertising is set by the politicians and their
supporters. Undoubtedly political advertising
sometimes is quite negative, but this is not the
fault of advertising but rather of a
political/electoral system that places no
restraints on the statements and claims that
political candidates can make and that ultimately
are endorsed by voters.
Ethical issues within advertising often are
addressed by codes and standards prepared in
various countries. Some national codes are

quite specific. For example, in Malaysia, a
deeply religious Islamic country, the advertising
code bans advertising of alcohol and blue
denims, and it restricts the use of sports-related
clothing such as swimming suits to athletic
scenes with no close photography. Japan calls
for advertising to be honest, contributive to a
healthy life, scientifically accurate, unbiased,
dignified and educational. In Hungary, the code
bans ads that are misleading, that use insults or
misuse religious symbols, or that promote fear
or mistrust among people.
International and Intercultural Issues in
Advertising
Advertising has become a global activity,
spanning national boundaries and cultural
borders. This began significantly in the 1940s
when American and European companies

began expanding their products into other
countries and when, at the same time,
advertising agencies began establishing foreign
branches.
There is also caution against oversimplification
in approaching nations and cultures. Language
alone does not make a cohesive cultural bond.
Within Hispanic culture, for example, there are
significant differences among Spanish-speaking
people in Spain, Argentina, Mexico, Puerto Rico
and the Philippines. Likewise, geography is not
the only indicator of social unity. The Middle
East, for example, is not a single advertising
market but rather a variety of markets with some
common elements. Advertising concepts and
deliveries that might work in Egypt or the United
Arab Emirates may not be appropriate in Saudi
Arabia or Jordan.

International media buying may be global with
some level of advertising on a global basis; pan-
regional with buys concentrated in specific large
regions such as Asia or South America;
regional, with buys associated with a few
neighboring countries; or local, with media
purchased in specific countries. Some U.S.-
based companies such as Procter and Gamble,
Coca-Cola, Ford and McDonald‘s spend about
half of their advertising budgets outside the U.S.
Internationally, each of the top 10 advertising
agencies operate in an average of 53 nations.
Advertising in an international arena brings with
it several special issues. Some of these
concerns are related to ethical standards for
advertising in various countries. Others are more
reflective of the social or corporate environment
associated with different cultures.

�Business concerns reflect the unique way
that business is conducted in particular areas.
For example, American and British business
meetings between advertising agencies and
clients generally include small talk in order for
the parties to get acquainted. In Holland,
however, meetings are kept to a strict schedule
with little small talk. Meetings in Mexico and
Malaysia may be quite informal, often held at the
host‘s home.
�Creative concerns reflect the differences in
cultures. For example, most international
advertisers warn against the use of humor,
which is viewed differently in various cultures
and which simply does not translate well
between both languages and cultures. Likewise,
the social interpretation of color varies among
cultures

�Legal concerns grow from restrictions
against certain products such as tobacco or
alcohol, or the use of children in advertisements.
�Media use patterns lead advertisers to focus
on how people in different countries use the
media. Note, for example, the significant
differences in the use of advertising dollars in
various media.
Newspaper Television Magazine
Germany- 45% 23% 24%
US- 34% 39% 12%
Arab states 2% 87% 10%
Japan 27% 45% 10%
Media concerns also deal with media use in
various countries. In Japan, for example, daily
television viewing is eight hours, compared with
three hours in Britain.

Industry observers note that advertising
spending is rising globally. Arab spending on
advertising, for example, has been increasing in
recent years. The Arab Research Center
reported that combined Arab spending reached
$2.3 billion in 2000, led by the Gulf Cooperation
Council states of Kuwait, Saudi Arabia, Qatar,
Oman, Bahrain and the United Arab Emirates.
Operation of an advertising agency
Advertising agencies are structured to integrate
the various services and tasks involved in
creating and placing advertising. Large agencies
often have big staffs and departments assigned
to develop the strategy, conduct research,
create the ads, and select the media. Many of
the leading agencies are owned report to
international conglomerates. Smaller, regional

agencies are typically independently owned and
operated; yet provide the same fundamental
tasks of account services, creative and media.
Account Services
The account services (or client services)
department members are accountable for
maintaining a strong and productive
relationship between the agency and its
clients.
The account team develops the advertising
strategy, approves the selection of media to
place the advertisement, and oversees the
budget. Titles rank (in progression) from
account executive (AE), to senior account
executive, vice president account services to
senior vice president.

Creative Services
The creative department is composed of
writers and art directors. It is headed by the
creative director in most agencies, or by an
executive creative director in large agencies.
The department is composed of teams of
copywriters and art directors who are
assigned to work on specific accounts. The
teams develop ideas based on the media to
be used (television, radio, online, billboards,
etc.). They incorporate input from the
account services team, prepare final layouts,
and present the work to the client.
Production Services
Once the client approves the work it goes
into production. Production services are
generally divided into two divisions --- print

production and broadcast production. Print
production finalizes layouts and materials for
newspapers, magazines, billboards, and
online publications. The broadcast
production department concentrates on
radio and television commercials and
producing videos used for online advertising.
Production services members in both
departments work closely with the creative
department.
Marketing Research
This department conducts research to define
the target audience in terms of buying
behaviors, interests, opinions and attitudes.
Data and findings are used by the account
services team to develop the strategy and
by the creative team to develop and design
the communications that effectively resonate

with the target audience. Research
techniques include focus groups, surveys
and questionnaires. Ads are often tested on
prospective consumers prior to production.
Media Planning and Buying
Media planners make recommendations on
the best media to use to reach the target for
the advertising. For example, they might
recommend outdoor billboards to reach
working moms to advertise frozen pizza.
The media buyers would then negotiate with
companies to get the best rates and
locations for billboards to place the ads for
the pizza. Planners and buyers collaborate
and work closely with the account services
and marketing research teams.

Organizational Structure of an Advertising
Agency
1. The Advertising Agency
2. The ‘Full Service’ Advertising Agency
The ‗full service‘ agency typically has four
main departments or functions: Account
Handling Creative Services Media
Department Production
3. Account Handling Manages the
relationship between the Client and the
Agency Within the Agency – represents
interests of Client Represents interests of
Agency when talking to the Client Usually
responsible for finding and developing new
business
4. Account Handling Key roles: Account
Director Account Planner Account Executive
/ Account Manager

5. Account Director Usually board level
director Expertise in a product or market
sector Strategic overview of account
Regular contact with client at director level
6. Account Planner May or may not be
separate role from Account Director ‗ Brand
Manager‘ type role developing strategies for
account over the long term Should have a
direct role in helping to develop creative and
media strategies
7. Account Manager or Account
Executive Day-to-day liaison and running of
account Daily contact with client marketing
dept Co-ordinates agency departments –
creative, media, production Fulfils short term
objectives May work on several accounts
Responsible to Account Director
8. The Creative Department Creates ideas,
concepts and sometimes finished art for

advertising, literature and other marketing
materials Should represent point of view of
the consumer May liaise with outside
suppliers such as illustrators,
photographers, writers, web designers and
film producers
9. The Creative Director Should be a board
level director Responsible for quality of
agency‘s creative output Selects which
creative solutions should be presented to
client May work on own accounts as well as
supervise department
10. The Creative Team Copywriter and
Art Director team Produce the initial
concept is response to Creative Brief
Probably work on several accounts Some
agencies team Account Handler with
Creative Team to form an Account Team
Responsible to Creative Director

11. The Media Department Most agencies
today use an outside consultancy for the
media requirements. Three functions need
to be addressed. Media Research Identify
which media reach your target audience
most effectively Media Planning the best
media mix and timings to achieve the client‘s
marketing objectives Media Buying Getting
the best value for money out of the client‘s
media budget. Involves considerable
negotiating skills
12. The Production Department Ensures
that finished artwork is delivered to the
appropriate media by the deadlines May
also source specialist materials and
suppliers e.g. specialist printers and paper
May include a Traffic Department which
progresses jobs through the agency to
ensure jobs are completed on schedule May

include Studio Manager, Mac Operators,
Finished Artists etc
13. Other Marketing Services Each agency
is unique and may offer other specialist
service departments. Some of the most
common are: Public Relations Direct
Marketing Recruitment Advertising Industrial
or Business to Business
Advertising agency and advertiser
An Advertising Agency is selected by a
manufacture or trader to present the
advertisement on his behalf. The advertiser who
does not have the capacity of carrying out
advertising activities take the help on services of
advertising agencies who are specialized in
those fields.

MEANING AND DEFINITION
The advertising agency carry out the activity on
behalf of their client against remuneration called
fees. They conduct market research, consumer
research, product research etc. They advice
the manufacturer on product design or package
design, pricing of product channels of
distribution. Besides, they advice on the market
condition from time to time.
Advertising agency conduct the production
activities of visualization, layout, illustration,
headlines, copy etc. They also help
in the selection of proper media and the
frequency at which the advertisement should be
presented.
Thus, the advertising agency relieves the burden
of the trader or manufacturer of the responsibility
of advertising, production and distribution.
Definition :

The American Association of Advertising
Agencies (AAAA) defines an advertising agency
as : ―An independent business organization,
composed of creative and business people, who
develop, repair and place advertisements in
advertising media for sellers seeking to find
customers for their goods and services‖.
SERVICE RENDERED BY AN AD AGENCY
The main function of advertising agency is to
see that its clients advertising leads to greater
profits in the long run. The agency thus plans,
prepares and places with advertising with the
objective. The main function of a full-service
advertising agency are as follows :
Selection of Clients : The first and the foremost
function of an advertising agency is to contact
and select clients who are desirous of
advertising their products, services or anything

which they want to sell. The preference in
contacting and choosing the clients is
given to those firms which have sound values,
able management, efficient operative products
and services. The financial position,
size and nature of business, efficient
management and operative products etc. must
be given due weight.
2. Media Selection : Media selection is another
major function of the advertising agency. In
making a media selection several factors
such as cost, circulation, population which it
serves, audiences, nature of the product, types
of customers and above all needs of
the clients should be kept in mind.
3. Advertising Planning : The third as well as
the major function of advertising agency is the
advertising planning for its clients. For this

purpose, the advertising agency requires a
detailed knowledge of the firms products, its
advertising history, market conditions,
channel of distribution, knowledge of
competitors products and their advertising
techniques, field to be covered, nature and type
of consumers etc.
Next planning job is to decide about the
advertising medium in which the advertisement
is to appear. The advertising message
must be adapted to the medium in which it is to
appear.
4. Creative Function : The creative function
starts when the planning function ends. It
includes the preparation of an advertising
copy, layout, illustration, photographs,
advertising messages, theme of advertisement
etc. These functions are performed by a

varied group of creative people including writers,
designers, artists, producers, photographers and
graphic art specialists employed by
the advertising agency.
5. Research Function : It is the fifth major
function of an advertising agency. It supports the
decisions taken in the media
and creative areas. In this connection the
advertising agency gathers and analyse actual
information about the product, extent of
market, competitors strategies and buyers habits
etc. that may help the creative personnel to
make the advertising copy more
attractive and effective.
6. Approval of the Client : As soon as the
advertising copy etc. are prepared, the next
function of the advertising agency is to show
the copy to his client and obtain his approval. In
case if any changes are suggested by the client,

the same may be incorporated and thus the final
approval should be taken from the
client.
7. Marketing Function : The advertising agency
also performs marketing functions such as
selecting target consumers, designing
products and packages, developing channels of
distribution strategy, determining prices and rate
of discount etc. It gives useful advice to its
clients with regard to the nature and trend of the
market conditions. Accordingly, the client
produces goods keeping in his mind the
prevailing conditions in the market.
8. Evaluation Function : Simply drafting
advertising copy and handing over the same to
the media is not enough. The next major
function of the advertising agency is to have an
exhaustive evaluation of the advertising effects
for the benefit of his client. In case of any

deficiency, necessary suggestions should be
given and the same be made effective after
approval of the client.
9. Coordination Function : The last but not the
least important function of the advertising
agency is to establish effective coordination with
clients sales force and distribution network to
ensure the long running success of the
advertising campaign. Each time the advertising
agency contacts the client regarding
advertising media to be used and the number of
times the advertisement is to be repeated after
giving effect to changes, if any, as suggested by
the advertiser.
AGENCY SELECTION CRITERION
Following are some points to be taken in
account while selecting the advertising agency:

1. Suitability : The advertising agency which
suits the requirement of manufacturer or trader
is selected depending upon the type of
advertisement, location of agency, credit
policies, etc. Normally, an agency which is
located near the advertisers place is selected.
This helps in approaching the agency. Secondly,
the size of agency in terms of personnel,
projects, and services provided is considered.
Thirdly, the connections and relations with
the various media. Fourthly, the policies like
conservative policy, outgoing policies etc. are
taken into account. Finally, the advertising
also considers whether the agency has
competitors account or not.
2. Facilities and Services Provided : Some
agencies have modern facilities of photography,
type setting, printing, filming etc.

The agencies which provide maximum services
with minimum costing preferred.
3. Imagination : Imaginations and creative skills
of the personnel of agency is duely considered.
Creativity in photography, layout,
copy writing, media etc. creates an identity and
unique for the products and services of the
advertiser.
4. Past Record : Past records of the agency in
terms of number of clients, effectiveness, credit
reputation etc. helps in selecting the
agency. The advertiser enquires about the
agencys timeliners, punctuality, past record
helps to show whether the agency is
reliable or not.
5. Reputation : The reputation of the advertising
agency helps in selection. The popularity of the
agency depends upon timeliners, successful

presentation, good relations, prompt services
etc.
6. Management : Proper selection of advertising
agency depends on the ownership and
management and their policies. Their policies
may be either conservative or dynamic which
influence the selection.
7. Rates Charged : The advertiser considers
the rates charged by the agency. Normally, the
rates depend on reputation, facilities
provided techniques adopted etc. Therefore, an
advertiser will select such agency which will
provide facility according to his
requirement and which suits its budget.
8. Size of the Agency : The size of the
advertising agency must be considered. The
larger the size, the more it is preferred, however,

at times, small is beautiful because a small
agency may give more attention to its clients
work.
AGENCY CLIENT RELATIONSHIP
Agency client relationship must be that of mutual
trust and confidence. The perfect relationship
results in optimum advertising effectiveness at a
reasonable cost and reasonable compensation
for the agency. It is characterized by continuous
and complete two way communication between
individuals in the two organizations in
an atmosphere of mutual trust. Interdependency
of the advertiser and the agency helps in
creating effective advertising as part of the
companys marketing effort.
What the clients have to do? :
1. Treat the agency with courtesy at all times.

2. Provide all possible information about the
product that is to be
advertised and about the organization. This
facilitates the
agency to do their job much better.
3. Not unnecessarily bargain for the fees
charged by the agency.
4. Motivate the agency to do a good work.
Agency charges such as
media bills, fees and other costs must be paid
well in time. In no
way the client should wait for the agency to
remind of payment.
5. Not change the agency for the sake of
change.
6. Approve the proposals submitted by the
agency. The client
should not argue for the sake of arguing.

7. Give sufficient time to the agency to develop a
good advertising
campaign. The client should not put the agency
unnecessarily in
deadline crisis.
8. Reduce disputes to a minimum.
9. Finalise well in advance the charges for a
particular plan or
campaign.
10. Up-date the agency with any information
from his side that
would help the agency to serve the client better.
Yet, whenever something goes wrong, the brunt
of criticism
comes on the agency and many times the
relationship terminates.
Many a times, there is a change just for the sake
of change.

Advertisers prefer an agency that is currently
popular in the market,
such as the Lintas and the Everest in India.
Sometimes the agency
itself voluntarily resigns from an account on
some ground or the
other. There may be different puritans, opinions,
thoughts, etc., or
the agency may be wanting to accept another
competitive account.
Usually an agency keeps on abandoning
consistently losing
accounts, i.e. those advertisers who make
losses over the years. It
may also resign when a client becomes over-
bearing. May creative
people in the field of advertising do not like to be
simply dictated by

their clients about their own professional work. If
things go too far,
such clients may be abandoned. However, client
turnover is not a
healthy practice as it puts both the parties to a
loss. But under the
unavoidable circumstances, there may be no
other alternative but
to turnover too another client.
METHODS OF REMUNERATING AN
ADVERTISING AGENCY
The method of remunerating the advertising
agency has been
a subject of much discussion now-a-days at
almost all the meetings
of advertising agency associations and
advertisement clubs. There

are basically the following three methods of
remunerating an
advertising-agency in practice in our country :
1. Commission Method : This is the oldest, and
most common
method of remunerating an advertising agency.
Under this method
the advertising agency has a fixed commission
by the media
owners on the advertising bill for the advertising
space bought by
the respective advertising agency. The fixed rate
of commission is
15% in India as well as in U.S.A. Though the
rate of commission
varies from media to media and from country to
country but the rate

of 15% is almost universal. For example, an
advertising agency
places a full age advertisement in a magazine at
an agreed charge
of Rs. 50,000. The magazine will bill the agency
for Rs. 50,000 less
15% i.e., Rs. 42,500 net. The advertising agency
will bill the
advertiser for Rs. 50,000 (cost of advertisement
charged by the
media). Thus the difference of Rs. 7,500 will be
treated as the
remuneration of the advertising agency.
Generally, a cash discount
@ Rs. 2% is also offered by the media for
prompt payment within a
stated period. This cash discount is usually
passed on to the

advertiser on similar terms by the advertising
agency. The general
criticism of this method is that the advertising
agency is always
tempted to recommend expensive media in
order to draw a higher
remuneration.
2. Fee System : The fee system came into
effect following a
controversy between the advertiser and the
advertising agency.
The former argued that 15% commission was
too high a rate,
whereas the agency took the stand that it was
unremunerative in
view of many services rendered to the client by
the advertising

agency. Under fee system, the agency payment
consists only the
service charges which are to be computed on
the basis of cost plus
system. Under the system a certain fixed
percentage (flat rate) on
cost may be charged from the client as fee to be
paid to the agency
along with the bill. This system enables the
advertising agency to
make fair profits on services rendered by it and,
in turn, the
advertiser pays for what he gets - nothing more
and nothing less.
The fee system is generally used in radio and
televisionadvertising.
3. Service Charges : Under this method,
service charges are

added to the cost of materials and services
bought by the
advertising agency for the client in art work,
photography,
typography, plates etc. Normally, it is cost plus
15%.
In actual practice one of the above methods of
compensation
or a combination of the fee-and-media-
commission plan or a
method by which commission granted by the
media are credited
against profession fee, is used. When a new
product advertising is
involved, the advertising agencies are
remunerated on a special fee
basis.

CHANGING ADVERTISING AGENCY OR
CLIENT
TURNOVER
Meaning :
When an advertiser leaves one advertising
agency, and shifts
to another, this practice is termed as client
turnover. Highly frequent
rate of client turnover results in great loss to
advertisers. When an
agency is changed the advertiser suffers on two
counts, on having
to do away with the old agency and another with
the new one. It is
very much like an employer suffering financial
and other kinds of
losses on account of high „rate of labour
turnover in his enterprise.

Productivity is the main factor of loss of the
employer as well
advertiser. Just as the old employees
experience with organization
is an important factor in policy decisions and
implementation.
Similarly the old agency experience in
advertising the company
product lines is a total loss in case of turnover to
another agency.
The old agency must have already collected
considerable data
about the company product, the market, the
nature and the extent
of competition the consumers and host of other
subjects. Such a
mass of information and data cannot be easily
transferred to the

new agency. Researchers have identified as
many as forty factors
that influence the sale of a product, advertising
being one of them.
When an advertiser leaves one advertising
agency and
switches over to another, it is known as
„changing of advertising
agency‟ or „client turnover‟ . The tendency to
change advertising
agencies now and then is most common
amongst many
advertisers. This may result in an reduction of
the effectiveness of
their advertising campaign.
The main reason for changing the
advertising agencies
may be summarized as under :

1. Dissatisfaction to the advertiser from the
services of the
advertising agency.
2. The advertiser is interested in a new criteria
with which the
present agency is not familiar.
3. The client and agency perceive the
advertisement strategy in a
drastically different manner.
4. Change for the sake of change.
5. Lack of coordination between the top
executives of the client
and the agency.
6. Loss of confidence.
7. Staff changes also lead to change of
advertising agency.
8. Perceived unreasonabless of the other party.
9. Politics and nepotism also result in change of
advertising

agency.
Changing of advertising agency is not always
fruitful. The loss
might be more as compared to gain on account
of the change. In
the first year the new agency has to digest the
problems of the
advertiser, the nature of the products and the
competitive situation
that exists. The first year of change may be
referred to as the study
year. Thus change of agency amounts to leaving
one which is quite
familiar with the advertiser‟ s problems and
going to a stranger at
least as far as the advertiser is concerned. In
case of any
dissatisfaction with the existing agency, it is
better to find out and

discuss it with the top management team of the
agency so that the
misunderstanding, if any, may be removed and
also to give a
chance to the agency for improving its services.
The selection of an
advertising agency should be made carefully so
as to avoid a
subsequent change. It should be kept in mind
that the agency
advertiser relationship is like the physician-
patient or the lawyerclient
relationship. The patient pays fee to the
physician whether he
gets relief or not. The lawyer too takes fee,
irrespective of the
judgement in the case. However, in both the
cases they perform

their duties faithfully and therefore why make a
change ? This fact
should be given due weight while taking any
decision to change the
advertising agency.
Role of Advertiser
1. To differentiate the product from their
competitors
2. To communicate product information
3. To urge product used
4. To expand the product distribution
5. Too increase brand preference and loyalty

6. To reduce overall sales cost
7. Creates new demands
To differentiate the product from their
competitors
An important function of advertiser is the
identification function, that is, to identify a
product and differentiate it from others; this
creates an awareness of the product and
provides a basis for consumers to choose the
advertised product over other products this
creates an awareness of the product and
provides a basis for consumers to choose the
advertised product over other products.
The identification function of advertising includes
the ability of advertising to differentiate a product
so that it has its own unique identity or
personality.

There are four additional ways to differentiate
your offering from the competition and increase
your differentiation: leveraging the brand,
innovating your service offering, as well as
designing product and packaging in a way
that creates an aesthetic beyond the functional.
None of these methods are expensive. All are
ways that can increase your perceived value to
the customer and increase your market share.
Example: GARNIER FRUTICS (shampoo) the
shampoo bottle have the different color from all
other shampoo available in the shelf. The bottle
of the shampoo is unique from all others.
Example: apple laptops make them different
from others as the WHITE color and logo of
APPLE on back of the screen.
To communicate product information

Another function of advertiser is to communicate
information about the product, its attributes, and
its location of sale; this is the information
function. Product information communicated to
the customers in manner that meets their
information needs. Most consumers tend to
discount the information in advertising because
they understand that the purpose of the
advertising is to persuade. Making an
advertising message believable is not easy;
though often it is sufficient to make the
consumer curious enough to try the product.
Such curiosity is often referred to as interested
disbelief. Advertisers use a variety of devices to
increase the believability of their advertising:
celebrities or experts who are the
spokespersons for the product, user
testimonials, product demonstrations, research
results, and endorsements.

Example:
Ponds age miracle, in that ad the celebrity
HADIQA KAYANI is informing the consumers
about the benefits of it. That how the old women
can look younger by using it continuously. It will
make you fair cream plus it reduces freckles
plus it can be used as a sun block as well it will
make you look young.
To urge product used
The third function of advertiser is to induce
consumers to try new products and to suggest
reuse of the product as well as new uses; this is
the persuasion function.
The basic function of advertiser is to provide
constant reminders and reinforcements to
generate the desired behavior the advertiser
wants from them. This is a particularly effective

function in the long run as reminders and
reinforcements register in the consumers' minds,
becoming the base on which they shape their
future decisions. Sampling in the way to urge the
product using.
Example:
Fair and lovely as we know that it will make a girl
look fair and prettier in 4 weeks.
Example: Neutrogena acne treatment cream
will remove your pimple is 24 hours.
NEUTROGENA say no to pimples!!
To expand the product distribution
When the consumer comes to know about the
particular product from the advertisement he/she
wants to try that new product. They go to shops
to buy the product; if the new product is not
available in a shop then the shopkeeper

consults the distributor to make that product
available in his shop. It is basically to provide the
product all over market. It is necessary to make
sure that product should be accessible to
everyone. Availability of product effect the
distribution.
Example:
Wateen telecom and Motorola Partner to
Expand Distribution of Videoconferencing
Product Line. So as many people are getting to
know about this facility they are running towards
the franchises to avail it. So for that Wateen
should expand their distribution all around the
cities.
Accessibility is major factor for successful
product
To increase brand preference and loyalty

Marketing is a moving thing. As your needs are
changed your preferences are changed. When
the product delivers the promised quality,
service and value, it creates satisfied customers
who become instrumental in spreading a
favorable word-of-mouth. Satisfied customers
also develop brand preference; each product
features and uses are written on the product.
Example: 99% girls who are not married will not
look at the ad of pampers or any milk powder for
children but when they will get married their
interest will automatically move towards such ad'
Brand loyalty
Brand loyalty is a long-term customer preference
for a particular product or service. Brand loyalty
can be produced by factors such as customer
satisfaction with the performance or price of a

specific product or service, or through identifying
with a brand image. It can be encouraged by
advertising.
People often make purchasing decisions based
on how a brand makes them feel emotionally
rather than based on quality or other objective
evaluations. If "Just Do it" strikes a chord with
an athlete, he'll buy Nike; the decision may have
little to do with quality.
Example: For instance, when one buys a tube
of Colgate toothpaste and finds it ok, one will not
have to spend any valuable time on looking for
other toothpaste brands.
To reduce overall sales cost
When a product is selling you have to teach the
people about the product.

Like if we would advertise through newspapers,
TV, broachers and internet, it would cater huge
sum of masses and if you do individually it would
be more costly and time consuming.
Example: Coke targets their consumers on a
very large scale through mass media whereas
Makka cola advertise on smaller scale or go
door to door to advertise their product.
Creates new demands
Advertising have to create new demands they
should educate the people about more and more
new things coming up in the market. Each year
new products, including line extensions and new
brands are introduced into groceries and
drugstores.
Example: Wateen telecom is offering wireless
internet chips, video conferencing and WIMAX

services as they are introducing new services in
market its creating new demands
Agency Setup
Agency set up of highly personalized nature of
the advertising business depends on effective
functioning of all the departments equally. , it is
difficult to say which types of advertising agency
fulfill A to Z demand of client and would it be
suitable for it. Many agencies are organized
according to the personal preferences of the
management. Most large and medium sized
agencies followed one of the two systems, the
group system and the departmental system and
some combine them.
1. Group System: Under this system the
writers, artist, media planners, buyers and other
specialists are assigned to a group of accounts.

All are under the general direction of an account
executive or group head.
2. Departmental System: Under the
departmental system, same type of specialists
are grouped in the same department. For
instance, all the writers in the copy department,
all artists in the art department and so on.
10.7.2 Organization and Working of an
Advertising Agency :
Since advertising agency is an independent
business organisation, it may be in the form of a
sole proprietorship, partnership or joint stock
company form of organisation. However, an
advertising agency of reasonable size may
naturally adopt the Joint Stock Company form of
organisation. In such a case, it may have a
Board of Directors under the Managing Director.
Under the Board of Directors we may have
General Manager and the General

Manager may have a number of Departmental
Managers under his control. The number of
Departmental Managers will vary from one
advertising agency to another advertising
agency as per the nature and size of business.
The organisational structure of a large sized or
reasonably sized advertising agency is as
follows:
Departments of an Advertising Agency
The organisation of an advertising agency may
be divided in various departments entrusted with
a specialised function to be performed under
each departmental manager who is specialised
in the task allotted to him. The main
departments of a large sized or reasonably sized
advertising agency are as follows :
1. Contact Department : Contact department
works under a senior executive officer known as

the departmental manager. The main function of
this department is to contact the new clients on
the one hand and maintain the existing clients
on the other hand. A number of contact men
work under him. They function as the liaison
people between the agency and the client. The
contact men represent the agency when in the
advertiser‟ s office, they study the advertiser‟ s
need and inform the various departments what
is required by the respective clients.
2. Art Department : This department is headed
by the art manager who is assisted by artists,
layout men and visualisers. A visualiser is a
person who prepares the rough layout of the
advertisement which is later developed into a
comprehensive layout. The art department is
responsible for the physical appearance of the
advertisement for preparing layouts, illustrations,
photos and for specifying the types to be used.

3. Media Department : This is a very important
department which works under the supervision
and control of a media manager. This
department is entrusted with the work of
selection of media for the advertiser according to
the needs, directions and budget of the client.
He remains in constant touch with different
medias.
4. Mechanical Production Department : It is
also a very important department which works
under the control of a technical manager.
The main function of this department is to look
after block-making, printing, proof-reading and
such other technical jobs.
5. Copy Department : This department is
headed by a copy manager and is duly assisted
by a number of copy-writers. This department is
concerned with the preparation of a copy for all
advertisements. Copy-writing requires flair and

fluency of language, imagination and a method
of representation. The department works closely
with the art, research and accounts
departments. It is also an important department.
6. Research Department : In case of large
sized advertising agencies a separate research
department is established under the supervision
and control of a research manager. The
research manager is assisted by a number of
analysts, investigators, marketing assistants,
statistical clerks and librarians etc. The main
function of this department is to study markets,
medias and other subjects of interest to the
advertising agency. It helps better advertising for
clients.
7. Radio and T.V. Production Department : In
case the advertising agency provides
advertisements on the radio and television, it

would have a separate department for this
purpose.
This department works under the supervision
and control of a manager who is duly assisted
by a number of assistants, musical consultants,
script-writers etc.
8. Finance Department : The main function of
finance department is to arrange and control
finance. Thus this department is responsible for
maintaining proper accounts, billing and
collection of dues from the clients, verifying
whether the advertisement in the different media
actually appeared on the days it was scheduled,
if so whether correctly, and whether the text was
properly printed and also looking after all the
routine matters relating to accounting, recording
etc.
9. Merchandising Department : In case of
large sized advertising agency, a separate

merchandising department is established under
the supervision and control of a merchandising
manager which is specialist in displays, exhibits
and preparation of various advertising aids.
10. Public Relation Department : In case of a
large sized advertising agency, a separate
public relation department is established under
the supervision and control of a public relation
officer - manager. The main function of this
department is to establish and maintain contact
and mutual understanding between the
organisation and the public. It performs a liaison
work between the clients and the various
sections of the public - customers, employees
and shareholders etc.
Role of Agency
Role of Advertising Agencies

1.Creating an advertise on the basis of
information gathered about product
2.Doing research on the company and the
product and reactions of the customers.
3.Planning for type of media to be used, when
and where to be used, and for how much
time to be used.
4.Taking the feedbacks from the clients as
well as the customers and then deciding the
further line of action
All companies can do this work by themselves.
They can make ads, print or advertise them on
televisions or other media places; they can
manage the accounts also. Then why do they
need advertising agencies? The reasons behind
hiring the advertising agencies by the
companies are:

 The agencies are expert in this field. They
have a team of different people for different
functions like copywriters, art directors,
planners, etc.
 The agencies make optimum use of these
people, their experience and their
knowledge.
 They work with an objective and are very
professionals.
 Hiring them leads in saving the costs up to
some extent.
The major role as advertising agency is to work
alongside the clients to develop and sustain the
brands that they mutually serve, through
consumer understanding and insight and
through creative and media delivery skills to
provide best advice and the best execution

thereof to those clients for the advertising of
those brands.
“Buildings age and become dilapidated.
Machines wear out. People die. But what live on
are the brands.”
Brands are much more than mere products and
services. Brands, if successful, are clearly
differentiated entities with which consumers can
and do form a mutually beneficial relationship
over time, because of the values – rational and
emotional, physical and aesthetic – that
consumers derive from them. The importance
can be summed up as follows:
” A product is something that is made, in a
factory: a brand is something that is bought, by a
customer. A competitor can copy a product; a

brand is unique. A product can be quickly out-
dated; a successful brand is timeless.”
The role of advertising and the advertising
agency is to help effect this transformation from
product or service to brand by clearly positioning
the offering to the consumer – its role and its
benefits – and by communicating the brand‘s
own personality. In short its role is to provide
meaningful differentiation via the consumer
connection.
As one wise head in advertising once said,
―nothing kills a bad product faster than good
advertising‖. Typically advertising is playing this
role, along with other parts of what we call the
marketing mix, in highly competitive market
places.

Most advertisers assign this job of informing the
target audience and creating images to
advertising agencies. Thus, the advertising
agencies plan, prepare and place ads in the
media. But even an advertiser can do all these
things. The management can do planning of ad
campaigns. For preparing ads, creative personal
can be hires. And the advertiser for placing the
ads can buy media space or time. So, why hire
an advertising agency?
The reason can be enlisted as follows:
Expertise and experience- An advertising
agency brings together people with the
required expertise and experience of the
various sub-disciplines of advertising. Thus,
it has the copywriters, visualizes,
researchers, photographers, directors,
planners and people who get business and

deal with clients working in ad agencies. An
agency moulds all these people into a team
and gives them a highly conducive work
atmosphere. The agency makes the best
use of their talents and experience to deliver
rapidly, efficiently and in greater depth than
a company or organization could do on its
own.
Objectivity and professionalism-
Advertising agencies are highly professional.
Objectivity is a major virtue of ad agency.
They operate in a strange way. While they
take up advertising for others, agencies
hardly advertise themselves. Ad agencies
being outside intermediaries can be
objective. They thus will offer independent
and detached viewpoints and suggestions
based on objective analysis.

Cost effective- If an organization wants to
hire people to do its advertising, it can not
provide them work all through the year. Also
most experts in the fields of advertising like
directors, musicians, photographers, charge
huge amounts and are often not affordable.
Moreover, hiring, organizing and managing
all talents required to produce advertising
campaigns is not an easy thing. And the fact
that 98% of advertisers the worlds over hire
as agencies is proof enough about the cost
effectiveness of the agencies. Also the kind
of consistent, powerful and compelling
advertising that can be created by using the
expertise, experience, objectivity and
professionalism of ad agencies cannot be
measured economically.
PROCESS OF PLANNING THE ADVERTISING

CAMPAIGN
The campaign planning is the joint effort of both
the advertiser and his ad Agency. The advertiser
supplies much information about the product,
the channel of distribution, competition the
product, and the firm. The agency may collect
other information from the market, in respect of
target audience etc.
Advertising campaign planning simply means
planning the advertising campaign. Advertising
campaign planning concerns many people in the
advertising agency, but mainly concerns the
advertising manager (for the client), account
executive, marketing manager, creative director,
media planner, and PR manager. They
design and plan advertising campaign for the
client.

11.2.2 Steps in Advertising Campaign
Planning : The main steps in advertising
campaign planning are as follows :
1. Prototype Stage : Let us assume that a
manufacturer has the prototype of a new
product. The basic product has been thoroughly
tested, but the packaging has not been
determined, it has no name, no price, and
perhaps no defined market. In some respects
this seems to contradict modern marketing
principles. This situation is not uncommon. The
company now wish to advertise its new
product and appoints an advertising agency and
calls it to explore the possibilities to promote the
sales.
2. Initial Briefing by Client : The most likely
procedure is for the managing director to ask his
advertising manager to fix up a meeting with the
account executive of the advertising agency.

This first meeting may be held at the factory, at
the company‟ s head office, or at the advertising
agency. Probably the best venue will be
where the account executive can see the
product and meet the people who have been
involved in its development. The factory
might be the best place, but much depends on
how the company is organized.
For this initial discussion, the right choice of
venue can be important to the account
executive‟ s clear understanding of the
proposition. It can be dangerous for the
advertising agency to start off on the wrong foot
because of inadequate or faulty interpretation
of policy and problems. The need then is for
best possible understanding at the beginning.
This is the joint responsibility of the
advertising manager and the account executive.

3. Contact Report : Whenever a meeting has
been held with a client a contact report should
be written at once and circulated to all
those present at the meeting, with additional
copies for others not in attendance who should
be informed, both inside the company and
inside the agency.
The importance of a contact report lies in its
confirmation of agreed action, so that nothing
depends on people‟ s memories, and
if it is submitted directly after the event it serves
to remind of necessary action that must be taken
by people present at the meeting. Agreed
contact reports, when placed in a file or binder
as instructions to proceed, may be referred to as
the facts book.
Should a dispute occur, reference can be made
to the respective contact report: at the end of the

year these reports from the basis of a report to
the client on the year‟ s work.
4. Account Executive‟ s Report to Agency
Management : The account executive will also
give his superiors - the account director
and perhaps the agency managing director - a
verbal report. If new business is coming into the
agency it may be necessary to make
changes in the deployment of staff, engage
extra staff, and consider the use or expansion of
equipment and premises.
5. Account Executive‟ s Briefing to Agency
Department Heads :
The account executive now writes up a detailed,
factual but as far as possible unbiased report on
the assignment, setting out his understanding of
the product and the client‟ s requirements. In
this

report he should try to avoid expressing any
personal observations because the object is to
inform others whose ideas and opinions
are being sought. Each department head is
asked to study the report and to attend a plans
board meeting.
6. Proposition : At this stage, the account
executive invites the managing director of the
client company to attend a meeting at
which the scheme is presented in report form
with a presentation of ideas in rough visual form.
At this meeting the client party may
consist of the managing director, marketing
manager, sales manager and advertising
manager and the members of the agency
party may include the account director, account
executive and the marketing director. Once the
scheme is approved and adopted in

principle the agency will be instructed to prepare
a full visual presentation at the client‟ s
expense.
Now, the agency will engage in actual
copywriting, photography and drawing. Detailed
media scheduling will now be done by the media
buyer.
7. Presentation to Client : At this stage the
complete campaign is demonstrated to the
client. The campaign is presented visually.
Advertising campaign planning must be flexible.
Moreover, at such a meeting with the client there
will be a number of company directors and
executives present who disagree with one
another as well as with the agency over what
makes an advertising campaign.
Everyone likes to argue about advertising! The
account executive, supported by the advertising
manager in deal circumstances, must

sell his campaign on the basis of sales and
readership figures of publications, show the
results of copy testing, and offer alternative
media plans with evidence of the reasoning
behind them. Much of the comment and criticism
from the client side will often represent
arguments which were considered and rejected
in the agency much earlier. This has to be
expected, accepted courteously and gently
dismissed by means by persuasive reasoning
and statistics which reveal that the agency has
really taken pains to produce not just a
clever scheme but one based on businesslike
thinking.
Once the scheme has been approved, the
account executive and his companions will
return to the agency, ready to execute the

campaign. At this stage when the media start
buyers, creative staff, print buying production
and traffic takeover, working under the
direction of the account executive.
Factors Influencing the Planning of an
Advertising Campaign :
1. The Organisation its reputation, position in the
market.
2. The product e.g. Consumer (Perishable,
durable or speciality)
goods, or industrial goods etc.
3. The market the nature of customers, their
income, their buying behavior, and their location.
4. The competition.
5. The absolute price of the product,
Competitor‟ s price etc.
6. The channels of distribution.
7. The budget, the advertising theme, etc.
8. The media, the advertising schedule etc.

9. The Govt. regulations and controls, restriction
on certain products, restriction on certain media
to carry out certain ads.
Advertising Issues
Advertising agencies around the country are
trying to figure out social media. How do we do
it? How do we sell it? Do we have to?
The answer is probably yes, you do have to if
you want to continue to offer a full range of
marketing services to your clients, and bill
appropriately. Some agencies are doing a good
job adjusting, hiring smart social media thinkers
and getting smart about social media quickly.
Others are still cocking their head sideways like
a puppy trying to figure out a vacuum cleaner.
Many agencies and their respective creatives
(art directors, copywriters, designers) and clients
services and their problem is that there exists a

culture clash between ad agencies and social
media marketing. The difficulty is the result of
both philosophical and tactical problems. The
good news is problems can be solved. But it will
take some work.
The Philosophical Problems
Social media is, in many ways, the antithesis of
advertising. Advertising is one-way
communications aimed at large groups of
consumers. Social media is two-way
communications that requires listening as well
as speaking. It can also be said that social
media is a multiple-way communications method
as brands can speak and listen, but also watch
other consumers talk to each other. An agency‘s
creatives and strategic planners suddenly
having to factor in listening and observing to
their communications process after decades of

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