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CHAPTER8
TYPES OF ADVERTISING AGENCIESCHAPTER OUTLINE
Advertising agents were initially established to sell space on behalf of newspapers in the
early 1800s in England. As product owners started to realize that they need to draw the
market attention to their products, advertising became a very important part of their business
process. As print medias technology evolved, illustrators and designers were employed to
make print advertising more interesting.
As the marketing science matured, the whole process of advertising was getting very
complicated,therewasmoresignicantneedtogetimpact,attractconsumersandconvince
them the merits of the products or services. In response to this, advertising agencies took
on more people with specialized skills, and today advertising is a highly specialized industry,
helping marketers all over the world creating winning brands.
This chapter will discuss the basic services of an advertising agency and then described
the different types of advertising agencies, established to cater to the different and complex
needs of the increasingly competitive business environment.
OBJECTIVES:
To understand the basic elements of an advertising agency in providing service to their1.
clients
To understand the different services offered by advertising agencies.2.
To understand the function of associated agencies and consultancies3.
The advertising agency
An advertising agency is an independent organization of creative and business people
who specialized in developing and preparing advertising plans, advertisements and other
promotional tools. It purchases advertising space and time in the media on behalf of their
client.
(AAAA- American Advertising Agencies Association)
The basic elements of an agency business
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AccountHandling
Competitive business environment demanded more complex marketing communicationprocess. As a result of this the agencys clients became more demanding and therefore
there was a need for some kind of coordination and liaison between the client and the
departments of the advertising agency- a need met by the account handler.
Account handling
Production
department
Media
department
Creative
de artment
Advertising Agencies
This the role of the account handling:
Advisetheclientcompanyonhowtheirproductscanbebrandedandpositionedinthe
market place to counter act competitors
Responsibleforallclientscontacttoestablishthebroadrequirementsoftheclients.
Brief the various departments of the advertising agency with regards to client
requirements
Ensureadvertisingcampaignhelptosolvetheclientsmarketingproblem
Managetheadvertisingbudgetandensurescostsarejustied.
Ensureclientsarehappywithagencysoverallservice.
Creative Department
Creativity is what really builds an agency reputation. Advertising is about visual and copy
elements that attract attention and convince the market to use the brands advertised. Thus
advertising creativity is about creating messages that will effectively establish positive brand
image and positioning.
The creative department is led by a creative director, backed by an art director and
copywriter.
Media Department
Electronic, telecommunications and computer technology resulted in extensive choice of
media. Therefore, the media department must undertake extensive research to design an
TYPES OF ADVERTISING AGENCIES
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effective media plan and schedule to deliver advertising messages to the target audience.
Then to ensure the best deal budget wise, the media buyers in the media department must
gothroughnegotiationprocesswiththemediahouses,asthereisnoxedpriceformediaspace and airtime
Production Department
TheproductiondepartmentisresponsiblefortheproductionprocessifTV,printandradio
commercials. The actual production process itself is not done in the agency, but is outsourced
to production houses, printers and recording studios. The role of the production department
is to select the third parties and supervises their work and coordinates with the creative and
account handling teams.
The full service advertising agency
The full service advertising agency is set up to meet the extended needs of the client
company for advertising and promotions services. Hence the organization consist of the basic
elements of the advertising agency previously mentioned, plus others such as marketing
public relations, brand activation, etc.
Companies using this type of agencies are usually large FMCG manufacturers with large
advertising expenditure. Working with full service advertising agencies is very convenient
for these large companies as all of their promotion needs are under one roof, so to speak,
making control and supervision of the advertiser easier. However, a smaller company whomaynothaveanadvertisingdepartment,mayalsoseekthebenetsofworkingwithafull
service advertising agency.
Specialist agencies
Specialist agencies are emerging for two main reasons:
1. The successful individuals working in advertising agencies see the potential of
establishing their own agencies for the reason of earning more money as business
owners. A creative director for example might go on his own to establish specialist
creative agency sometimes known as creative boutique2. A big a full service agency might choose to fragment itself into several specialist
agenciesforseveralreasons:moreefcientandeffectivebusinessstrategybeingone
of them. As specialist agencies, they can work together on clients which need full
service, and then can pursue business on their own according to their specialty.
A la carte agencies
A client may choose to work with this type of agency, because it does not need the total
offering of the full service advertising agency. A la carte agency is often the choice of
advertising managers who handle most of the advertising in house or internally. A companywho needs the service of an advertising agency on an occasional basis, for example when
launching a new packaging design, may need the creative resources of the agency to create
the new designs.
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Freelancedesignersadcopywriters
After gaining several years experience working in an agency, creative people often it is moreexiting to work on their own as freelancers. Their service will be called upon by agencies
when they have more workload then they can handle. This type of working arrangement
suits smaller agencies, as they dont have to hire full time staff, thus avoiding high overhead
costs. This in turn provide cost advantage for the client, in that the client pays only for what
is used ( after agencys mark up) rather than having to cover the costs of agencies overhead
with full time staff. Another advantage is that freelance creative may bring a fresh approach
orhaveaspecialstylethatreectstheclientsrequirement.
Media Independents
Advertising agencies are able to negotiate favorable prices with the media due to the sheer
volume of space and air-time that they purchase on behalf of their own clients. It was realized
that if the media department could buy on behalf of several agencies representing even
more clients there would be further economies of scale by buying in bulk. And so media
specialists set up the media independents.
They are called media independents as they act independently of the advertising agencies
and its media department. Media independents agencies are used by full service as well as
a la carte agencies, as they have better buying powers and can negotiate favorable prices,
which they pass on to the agencies, who pass them on, in turn to their clients.
Clients working with creative boutiques or freelance creative may also opt to work with
media independent agencies.
Specialist media agencies
These are agencies which specialize in one particular medium such as outdoor, mobile
advertising or foreign publications. This is so because the buying condition differs than that
of mass media, and often these types of agencies have different trade permit than agencies
previously described.
Associated agencies and consultancies
Sales promotion consultancies
These consultancies specialize in developing sales promotional schemes to meet the
marketing and sales objectives of any company. They have a wide range of skills and
expertise and are able to evolve a proposal aimed at stimulating customers or motivating
intermediaries (including their sales staff). They specialize in media advertising, direct mail
and door-to-door distribution, although they may work with media independents for their
media bookings. They also select the gifts and other incentives needed in the promotion
scheme.
An agency of this type may work with an advertising agency or directly with the marketing
department of a company.
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Direct response marketing agencies
Inprovidingservicedirectresponseagencieswillconsiderproles,marketpenetrationandwastage,andselecttheappropriatemediatogettotheirtargetaudience.Directmailisoften
used to mail catalogues and brochures. Much of the work of this type of agency is database
or relationship marketing.
Telemarketing
Another form of direct response is promotion via telephone, which may be operated by the
company in house or outsourced to an agency which specialized in this service. However, this
type of promotion has got a bad reputation, mainly due to the poorly trained telemarketers.
Public relations (PR) consultancies
Public relations consultancies are retained by organizations on a fee basis, usually for a year
at a time. Their job is to inform, create goodwill and communicate the companys image and
reputation, as well as promote the corporate and brand names. A PR consultant produces
publicity materials such as news releases, articles and feature stories. They conduct press
conferences,briengsandinterviewstogaineditorialcoverage(orsocalledfreepublicity
as space for these activities are not purchased).
As media coverage cannot be guaranteed, PR consultants have to develop news writingskills to increase the likelihood that their stories will be printed. Although marketing public
relations help to promote brands in the market place, but the message carried are informative
rather than persuasive.
PR consultancies also prepare road shows, seminars, exhibitions, to improve relationship
between the companies at its customers.
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POINTS TO REMEMBER
Therearefourbasicelementstoanadvertisingagency:accounthandling,creative,media and production departments.
Otherdepartmentsareaddedtomeetclientsneeds,andthisevolvedintofullservice
advertising agencies which offer a number of services to promote all aspects of the
products/services.
Fullserviceadvertisingagencies,althoughmostoftenusedbybigFMCGscompanies,
are sometimes used by smaller companies.
Specialist agencies emerged to cater to more specialized needs of the clientcompanies.
Therearesupportingconsultancies, such as salespromotion, direct response and
public relations, which the client and advertising agencies may call upon as needed.
TYPES OF ADVERTISING AGENCIES
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CHAPTER9
AGENCY RECOGNITION ANDREMUNERATIONCHAPTER OUTLINE
As a service provider, an advertising agencys reputation is one of its selling points. For an
agencyreputationmeansthatitisrecognizednotonlyforitswork,butalsoforotherspecic
and technical aspects of the business.
This chapter will explain the concept of recognition and how it relates to the agency
remuneration system.
OBJECTIVES:
To understand the agency recognition system, the criteria, and trade association1.
granting recognition
To understand how agency gain income and prot by the various remuneration2.
methods
Agency recognition
The most important recognition to an agency is that by the media houses. Good business
relations with the media are very important for the agency to carry out its commitment to
itsclients.Themediamustbesurethattheagencyhasasubstantialnancialstrengthto
pay the media services used by the agency on behalf of its clients. Once recognized by the
media, agency will receive many privileges from the media houses, such as longer credit
terms, more discounts and bonuses.
Criteria for recognition
To obtain recognition, the agency applies for membership in a recognized trade associations.
Persatuan Perusahaan Periklanan Indonesia (PPPI) is one such organization. Another
assurance is the agencys clients list and track record in credit payment. If the agency caters
tohighproleandbigspenderclientcompanies,itreectstheagencysnancialstrength
and reputation,asit issafe toassume thathighprole clientswill choose toworkwith
reputable agencies.
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Agency income
The commission system
The commission system is based on above the line media expenditure. In the agency client
contract/agreement, it is decided the percentage the agency will receive from the clients
above the line expenditure. When using this system, media discounts are rebated to client.
Example:
Rate card price: Rp 10.000.000
Discount20%: Rp2.000.000
Cost after disc Rp 8.000.000
Agency com 15% on gross Rp 1.500.000Cost to client Rp 8.000.000 + Rp 1.500.000 = Rp 9.500.000
In this case, the agency is entitled for 15% ( if this is the % agreed on the agency-client
contract) on gross media costs.
Agency fee
The fee system is income generated by agency for their time and skills, especially as
nowadays many agencies operate increasingly like consultants advising their clients on
marketing communication strategies. Advertisers may accept the fee system if they in turn
receive objective and expert advice from their agencies resulting in agency-client relationshipbasedontrustandmutualbenets.
Handlingchargesormark-ups
Handling charges usually applies for below the line activities and production of advertising
materials. For this type of work, agencies usually assigned a third party, and the mark up
is calculated based on a certain percentage of the costs submitted by the supplier. For
instance :
Printing cost Rp 10.000.000Mark up 15% Rp 1.500.000
Cost to client Rp 11.500.000
The handling fee mark up covers the agency time and expertise in overseeing the work
done by the supplier, thus ensuring satisfactory result.
Variation on the commission and fee system
The payment system described above can take any combination. When the agency provides
full service, all 3 may be used: the commission system for media services, fee system forconsultation and concept development and mark ups for jobs where agency supervision of
third party are required such as in producing advertising and other promotion materials.
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Points to remember
Agencyrecognitionbythemediaisvitalforanagencytobuyairtimeandspaceonbehalf of the client
Criteriaforrecognitionaremembershipatadvertisingtradeassociation,suchasPPPI,
agencys client list and track record of media payment.
Oncerecognized,agenciesareentitledformediacommissions(discountedfromrate
card price), and other privileges
Theagencyincomeisderivedfromtheagencycommissionwhichisgeneratedfrom
media commissions, agency fee for providing strategic advice to clients and handlingfee or mark ups for supervision of third parties.
Anyoftheabovepaymentsystemcanbecombineddependingonservicerendered
and as stipulated in the agency-client contract.
Agencyandclientrelationshipsarebasedoneffectiveservicepluscooperation,trust
and respect on both sides.
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There three level as follows:
Account director
The account director, the most senior level is concerned with the overall health and strategy
of clients accounts under his responsibilities. He may work on different accounts with different
executives and support teams.
The concern of the account director is to ensure that the work undertaken for the clients meets
their objectives, whether short , medium or long term. He leads the account team and other
departments in the formation of strategy and is responsible for the overall implementation
of the campaign.
Account planner
The account planner is responsible for ensuring that the actions taken by the agency will
support the long term development of the brand. In doing so the account planner studies
market trends, competitors activities and consumer behavior. In small agencies, this function
is undertaken by the account director.
Account executive
The account executive ensures that all aspects of the work are carried out to everyones
satisfaction. The tasks associated with this position is liaising with the other three departmentsof the advertising agency, making sure that work is performed on time and meets the agency
standard of quality. He also communicates with the client frequently to ensure that line of
communication between agency and client is always open and healthy.
Creative department
the creative department is the producer of ideas and concept and is very important in
establishing and maintaining reputation of the agency.
Creative director
The responsibility of ensuring that the message suits the product, brand or service is that
of the creative director. Creative directors have usually risen through the agencys structure
from copywriting or art directing. As the head of the creative, he directs the art director
and copywriter in establish creative concept and strategy to meet the requirement of the
campaign outlined in the creative brief.
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Elements of the creative brief
thereasonforadvertising:launchingofnewbrand theobjectiveofadvertising,forexamplebrandawarenessforlaunchingofnewbrand
targetaudience:towhomtheadvertisingmessageisaddressed
communication strategy: positioning, promise, the essence of the advertising
message
rationale:thesupportingfactorsforthepromisesothemessageiscredible
keybenetsof theproductor factors that fulll theneedsandwantsof the target
audience
theadvertisingtone
themandatorysuchaslogo,tagline,etc
mediaplatform
Copy chief/copywriter/ art director/compugraphic designer
The copy chief is a position in the creative department who is responsible for writing the
copy (wordings) of the advertising, and as he is a senior member of the team, he supervises
more junior position, the copywriter.
In making advertising concept, copy chief/copywriter and art director sit down together to
interpret the advertising brief, or the direction/ guidelines provided by the creative director.
The art director will brief the compugraphic designer so he can help the art director in
preparing the visual part of the concept. The next step is to discuss the concept, or copyplatform with the creative director. Once the creative team agrees on the concept, they will
discuss it with the account handling team to ensure that the copy platform addresses the
marketing issue to be resolved by the advertising campaign. If everything is in order, the
creativeteampreparesthenishingtouchestotheconceptandpresentationscheduleis
arranged with the client.
Role of the account handlers in the creative process
As the account handlers, of all levels, are in regular contact with the client, they are absorbing
the needs and wants of the client, whether these are expressed formally or merely impliedby the clients behavior or attitude. They learn to understand what the client will accept and
will reject, and so they form a vital link in communicating what is required without inhibiting
the creative process.
However, the account handler, when presenting the concept, also explains and defends the
creative ideas, to get them accepted by the client, as they have been carefully thought out to
enhance and reinforce the advertisers message. If, in fact, the client is not convinced then
it is up to the account handlers to break the news to the creative team. On some occasions,
complete campaigns have been thrown out by the client, but in many cases the campaign
requires only a small change of emphasis.
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Media department
The media department is split into three areas:
Mediaresearch
Mediaplanning
Mediabuying
Media researcher
Media data such as audience data is essential for media department of the advertising agency
in order to select appropriate media to place the advertisements and commercials. Much
of this complicated media data is available on line, by subscription to computer databases
operated by the independent media research organization. The media department can
look at individual publications, radio and television programs which might have audience
prolessimilarwiththeproleofthetargetaudience.Thisiscalledintramedia comparison.
If comparison is made between different types of media (newspaper vs magazine), this is
known as intermedia comparison. It is possible off course that several media can target the
same audience, which leaves option to decide on which can be used to deliver different
aspect of the message.
Therefore , the role of media research is to support media planners with providing media
datasuchasaudiencedata,TVratings,mediapenetration,etc.Suchdatawillhelpprovide
a strategic media plan to support the advertising objectives.
Media planners
The media planner takes the statistical research undertaken by the media researcher as
the basis for deciding which media, newspaper, radio, television (intermedia decision) or
whichnewspaper,whichradiostationandprograms,orwhichTVchannelandprograms
(intramedia decision) , will be the most appropriate to carry the advertising. Another factor
that must be considered is the ability of the medium to carry the message, so the media
planner must consider the following characteristic of the medium:
televisionadvertising,forimpact,togainattentionandcreateawarenessaswellas
image building
nationalnewspapersandmagazines,togivedetailedinformationsuchasspecications
and credit details as well as offering the opportunity to include a response coupon
regionalandlocalnewspapers,forco-operativeadvertisingoradvertisementstodraw
attention to local outlets
radio, tocreate imageandmoodfor theproduct (aswellas localstationstodraw
attention to local outlets/stockists)
cinema, to remindaswell asgive impact (but ona limitedbasisas peoplego the
cinema infrequently)
tradejournals,toconvincetheretailersofthemessagesbeingcommunicatedbydirect
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The media planner then produce a media plan which provide the media objectives and
strategy, and media schedule to show the selected media, time and frequency and the
budget/costs.
The media plan is presented to the client by the media planner and the account handlers for
discussion and approval.
Media buyer
Thenalprocessofthemediadepartmentistobuytheadvertisingspaceandairtime.
The media buyers will negotiate with media houses for discounts and credit terms. One of
the best strategies to secure good discounts is to buy large volume of space or airtime. The
agency credit record is also a factor often considered by media houses to give discounts and
other privileges to the agency.
Production Department
The responsibility of the production department is to make sure that everything that is needed
toproducethenaladvertisementispreparedcosteffectivelytothehighestqualityandthen
delivered to the right place at the right time and in the right format.
Since actual production of advertising materials are not done in house at the agency but are
outsourced to the appropriate productions houses, printers, etc so the role of the productiondepartment is coordinating and supervising the work of the selected external production
suppliers.
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Points to remember
Thefunctionsofmeetingclientsneedsarecoordinatedbytheaccounthandlingteam
with the assistance of an account planner.
Accounthandlingconsistsofaccountdirectors(responsibleforstrategy)andaccount
executives (who liaise with the client and other agency departments on getting the
work completed)
.
Theaccountplannersroleisprimarilyconcernedwith the long-termsolutionof the
clients needs and wants, but might include attention to details that may affect the well
being of the clients and their accounts.
Accounthandlingisbasedonrespondingtocampaignandadvertisingbriefsprepared
byclientsoutliningtherequirementsthattheywantfullled.
The role of the creative department is to nd away that is credible but still has
attractivenesstocommunicatethebenetsandadvantagesofclients,theirproducts
and services.
Thecreativedirectorworkswithcreativeteamstodevelopthekeyconceptsandcopy
platform to carry the clients message, based on a creative brief.
Conceptsareworkedupintovisuals (byacompugraphicdesigner)andcopy(bya
copywriter) or storyboards and scripts (by a scriptwriter) to a standard that can bepresented to the client.
Themediadepartmentisresponsibleforresearchtoestablishthemediawhichwould
be best suited to reach the clients target audience. This would include determining
which were the best slots, positions, locations or sites and not just the overall medium
but the particular publication, television or radio station, or cinema screen.
Themediaplannercreatesdetailedmediaschedulesandmediaexpenditureforthe
clients approval.
Basedontheapprovedschedule,themediabuyernegotiatesthebestdealsinterms
of position and location related to the lowest cost.
Themediadepartmentnegotiatespackageswithradiostations,televisioncompanies
and contractors for outdoor and transport advertising (poster) and cinema advertising
forthebenetoftheclient.
The production department ensures that advertisements and commercials are
completed as scheduled and meets the agency standard of quality
Theproductiondepartmentco-ordinateswithexternalproductionsuppliers suchasproduction houses and printers for the production of all promotional material generated
by the agency,
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CHAPTER11
CREATION OF ADVERTISEMENTS ANDCOMMERCIALSCHAPTER OUTLINE
Thecreationofadvertisementsandcommercialsrequiresspecicskills.Firstofallthereare
specicskillstointerpretinformationwrittenonthecreativebrief,whichisthebasisforthe
conceptdevelopmentofadvertisementsandcommercials.Thentherearespecicskillsin
the formulation of creative strategy and message execution in the form of writing copy andscripts as well as art direction for the visual part of the advertisement and commercial.
This chapter discusses the meaning of creativity in advertising, how concepts are developed
and how creative strategy are realized in the form of storyboard, layout and script.
OBJECTIVES:
To understand what is creativity in advertising1.
To understand the creative process in developing advertising concept2.
TounderstandhowtoprepareTVcommercials3.To understand how to prepare print advertisements4.
To understand how to prepare radio commercials5.
Creativity in advertising
Creativityisdenitelyonethemostimportantaspectinadvertising.Auniqueadvertisementor
commercial always gets the audiences attention and make the commercial or advertisement
stands out among other advertisements and commercials .However, being different and
getting attention are not the only criteria for creativity in advertising. Advertising is a marketing
problemsolvingtool.Marketers/advertisersnancedtheadvertisingcampaigntoachieveits
marketing objectives. Therefore advertising must be persuasive and motivates the audience
by providing advertising message that answers to the target audiences needs and wants.
Creativity in advertising means.
Effectiveinhelpingtheadvertiserachieveitsmarketingobjectives.
Provideauniqueandeffectivewaytocommunicatewiththetargetaudience
Creating advertising message which relates and provides answers to the target
audiences needs and wants
Persuasivemessagewhichmotivatestheconsumers,thereforecontributingtosales
Effectiveinestablishingbrandimage itmustbeethical
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The creative process
Studying the creative brief
The creative brief provides the information required by the creative team and is used to
guide them in developing the concept. The creative team under the direction of the creative
director will study and analyzed the information in the brief, to get the essence of:
Theadvertisingobjective
Theaudienceneeds/wants/problems
Theaspectsofthebrandwhichcanfullltheneeds/wantsorsolvetheproblemsofthe
target audience
Themotivationtobuythebrand
Thewaytocommunicateeffectively.
Brainstorming
It is the practice of the creative people to brainstorm together to get ideas. When brainstorming,
all ideas that come are listed and discussed. The ideas might relate to the feature and
benetsoftheproductsorconsumerbehaviorthatyouwanttoevokewithyourmessage.
Theoneswithpotentialsareshortlistedandnallythebigideaisselected.
The creative strategy
Thetwopreviousprocesseswillresultinndingthebigidea.Thebigideawillbeformulated
into the creative strategy that is what message to be conveyed, to whom and with what
approach:
whotoinuence
whattosayinorderinordertoinuence
howtosayinordertoinuence
Then the creative strategy is implemented in what is called the message execution which
simply means the technique to convey the advertising message to the target audience. Themessage execution should be:
attractive,attentiongetting
simpleandeasytounderstand
abletocreatetheperceptionasdenedinthecreativestrategy
Message execution takes the form of storyboard for TV commercials, layout for print
advertisements and script for radio commercials
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TV commercials
Television has other elements over print advertising: visuals, sounds, movements, thusproviding powerful impact to the advertising message.
However the same principle applies, the commercial has to attract, creates interests and
desire, so that potential customers will act in favor of the brand compared to that of the
competitors.
The storyboard
TheconceptofTVcommercialiscalledthestoryboard.Thestoryboardcontainsthestory
line to communicate the big idea and visuals are used to explain the story line. The script
forTVcommercialisshortandconcise,andfurtherenrichedwithmusicandsoundeffectsto
createinterestsandgetattention.EverysceneinthestoryboardisframedlikeaTVscreen.
Beloweachframeiswrittenthedialogues,cameraangle,musicandsoundeffects.
The storyboard is used by the agency to explain and sell the advertising concept to the
client.
Print advertisement
Print advertisement refers to advertising placed in magazines, newspapers, tabloids, etc.
Elements of print advertisement are:
headline
subheadline
bodycopy/maincopy
slogan/tagline
visual
layout
Headline
Headlines are used to attract attention to the advertisement, so that it will be read by thetarget audience. The format of the headline depends on many factors, among others are the
creative strategy, the media used and how it should relate to the visual and body copy
Sub headline
The sub headline is used to support or enhanced the message in the headline: such as to
provide information and improved understanding.
Body copy
The body copy is an elaboration of the statement or promise made in the headline or sub
headline. Therefore the function of the body copy is to persuade by giving information that
will motivate the target audience to use the brand.
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Slogan/tagline
Sloganortaglineisusedtoprovidethenalpersuasion,bygivingaphraseofreasontouse the brand. Written in only a few words, slogan/ tagline conclude the whole advertising
message. It also strengthens the positioning of the brand. Tagline is usually catchy and easy
to remember.
Visual
The visual of a print advertisement is often the most visible and dominant element. It is
created to get attention and to communicate the concept of the advertisement and to convey
the brand image.
Layout
Layout is how all of the above elements are placed in the advertisement. Again the main
objective is to get attention, to convey the advertising message in a simple way to ensure
comprehension and to establish the brand image.
Radio
After the so-called excitement of the all-singing and all-dancing television, radio may seem
a dull medium for any creativity, yet, despite only having sound, it can be used to create the
most marvelous word-pictures using the listeners imaginations. With sound, there are notonly the words but the fact that the words can be dramatic or humorous while sound effects
and music can create exactly the right mood.
The elements of radio commercials are:
Scriptcontainingthemainmessage,thepromiseandthepositioningofthebrand.
Music,togetattention,toenhancethepositioningandtocreateoverallmood.
Soundeffectstopromoteimaginationinthelistenersmind.
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POINTS TO REMEMBER
Creativityisaveryimportantaspectofadvertising
Acreativeadvertisingmeansthat itiseffectiveinhelpingtheadvertisers reachhis
advertising objectives, relates to the needs and wants of the consumers, persuasive
and motivating the consumers to use the brand so helps to increase sales.
Thecreativeprocessbeginswiththecreativeteamstudyingandanalyzingtheessence
of the brief and brainstorm together to get ideas
Thebigideaisformulatedinthecreativestrategywhichbasicallymeansconveying
what message to whom and using what approach
Themessageexecutionissimplythetechniqueinwhichtoconveythemessagetothe
target audience
Themessageexecutionmustbeattractive,simpleandeasytounderstandandmust
establish the brand positioning.
Foratelevisioncommercial,elementssuchaspictures,movement,sound,andcamera
directions have to be included as well as dialogues.
Thestoryboardcontainsthestorylinetocommunicatethebigideaandvisualsare
used to explain the story line.
Storyboardsareused by agency to explain theconceptofTV commercial to their
clients
Printadvertisementreferstoadvertisingplacedinmagazines,newspapers,tabloids,
etc.
Theelementsofprintadvertisingare:headline,subheadline ,bodycopy,slogan/
tagline, visual and layout
Althoughradioonlyhassound,itcanbeusedimaginativelywithmusicandsounds
effects
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CHAPTER12
PRODUCTION OF ADVERTISING MATERIALSIN MEDIACHAPTER OUTLINE
The production of advertising material is outsourced to a third party : printing establishments,
recording studios, production houses. The production department of the advertising
agency is mainly responsible for coordinating work between the outside suppliers and the
various departments of the advertising agency such as the account handling and creativedepartments.
This chapter will describe the role of the production department to ensure that production
of advertising materials is conducted professionally and on time for the clients advertising
campaign.Itwillalsodescribetheproductionprocessofprintadvertising,TVandradio
commercials.
OBJECTIVES:
To understand the role of the production department in ensuring production of advertising1.materials are done in a professional manner
To understand the production process of print advertisement and other printed promotion2.
materials
TounderstandtheproductionprocessofTVcommercial.3.
To understand the production process of radio commercial4.
The role of the production department
Once the concept copy and layout (visual), or storyboard has been approved by the
client,theproducer(inbiggersizedagencythereareprintproducer,TVproducerandradioproducer, in smaller agency all production process are undertaken by one producer), begins
the production process by allocating a job number and title. The job numbering system is
vital to keep tract of the work through agency and suppliers until completion. Therefore, the
responsibilities of the production department are as follows:
Coordinating all work required for the production process internally with relevant
departments: creative and account handling ( to handle all communication with client)
and externally with the suppliers. In bigger agencies progressing work to outside
suppliers are monitored by the trafc controller, however in smaller agencies this
function is performed by the production manager. Monitoringtheproductionprocess,ensuringconformationtoproductionschedule
Ensuringthatstandardqualityismet
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Ensuring that allcostsbornebyagency areallocated to theright jobandprepare
invoices for approval to the account handlers.
Throughout the whole workload of the production department, the key elements are quality
control and following tight production schedule. This is to ensure that production of the
agencys work is to the highest standard and are done on schedule.
Producing printed advertisement and other printed promotional
material.
The print production process begins after the client has approved the copy and layout
(concept). The production process is as follows
Pre production process:
This stage is the preparation stage prior to actually producing the print material. It consists
of appointing the agency print producer, preparing detailed planning such as costing,
timing, appointing photographer, casting, location hunting or studio set up, make up and
wardrobe.
Production
Atthisstagethenishartworkispreparedbythecompugraphicdesignerwhohastaken
over tasks of the paste up artists prior to computer technology. All the elements of the print
materials: visuals (photo or illustration), headline, body copy, tag line, etc are all incorporated
in the computerized artwork.
Post production
Thenextstepistakingthenalartworkforprinting.Sincetheadvancementofcomputer
technology, the traditional way of producing print materials by way of color separation and
proof prints are no longer practiced. The printing process nowadays uses digital techniques
develop for computer printers such as inkjet or laser printer.
Theprocessismuchfasterandmorecostefcientcomparedtotraditionalprintingmethods.
Every print can be different because printing plates are not required and less waste of
chemical and paper.
Theclienthastoapprovethenishedproductandthentheprintadvertisementisdispatch
to media for placement.
Producing TV commercials
Oncethestoryboardandscriptiscompleted,theTVproducerisaskedforadviceonthefollowing
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Producing radio commercials
The production of radio commercial starts with an approved script.
Pre production
The radio producer prepares the detailed planning such appointing the recording studio,
costing, selecting voice talents, sound effects , copyrights for music if any, producing the
jingle, if any.
Production
Atthisstageallaudioelementaremixedandrecordedattherecordingstudio.Durationsofradio commercials are usually 30 to 60
Post production
Once the sample recording is approved by the client then the commercials are transferred
toCDformatanddispatchtoradiostationsforplacement.
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Points to remember
The role of the production department
The production process begins by allocating a job number and title. The job
numbering system is vital to keep tract of the work through agency and suppliers until
completion.
Theproductiondepartmentcoordinatesallworkrequiredfortheproductionprocess
internally with relevant departments of the advertising agency.
Italsoensuresthatworksaredoneasscheduledandmeetstheagencysstandardof
quality.
Press advertisement
the production department is in charge of the production process which includes
preparingnalartworkandprintingprocess
nalartworkisdonebythecompugraphicdesignerandistheconversionofcopyand
visualintonishedorcamerareadyartwork
Thenishedartworkisprocessedbywayofdigitalprintingprocess,whichismoretime
andcostefcientcomparedtotraditionalprintingprocess.
TV commercials
The production of a television commercial starts with a feasibility study is based on the scriptand perhaps a storyboard.
The stages of producing television commercials are:
1. feasibility study by the head of television production
2. script approval to ensure compliance with ethical board
3. appointment of the producer (and production assistant) from within the agency
4. selection of director from a television commercial production company taking account
of detailed costing
5. detailed planning6.studioandlocationlming
7. post-production editing
8. approval by board of censor
9.dispatchofnishedcommercialstotelevisionstationsorchannels.
Radio commercials
1. the production process begins after the script is approved and the radio producer will
make detail planning
2. all the audio elements such as voice over, music, sound effects are mixed and recordedat the recording studio
3.oncedemoorsamplerecordingisapprovedbyclient,itistransferredtoCDformatand
dispatch to radio stations for placement.
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CHAPTER13
MEDIA IN ADVERTISING ANDPRINTED MEDIACHAPTER OUTLINE
Media serves an important role in advertising. It is used to carry and convey advertising
messagetothetargetaudience.Todothisefcientlyandeffectively,mediaplannershave
to make several considerations, such as media data, media characteristics, etc.
As one of the chapter about media, this chapter will go through the many categorizations
of media used by advertising agency. It will also show the extent of media available for
advertising and how it is used to achieved optimum result.
OBJECTIVES:
To understand the extend of media available for advertising1.
To understand different types of media and how it used in advertising.2.
To understand the use of print media.3.
The role of media in advertising
Without media, advertising message will not reach the target audience. Media cost is the
largest part of the advertising budget, therefore media planners must be sure that the most
effectiveandefcientmediaisselectedtocarrytheadvertisementsandcommercials.Thus
several considerations are undertaken:
Mediacosts:whatmediatobeusedtoaccommodatetheadvertisingbudgetgiven.
Forexample,asTVspotsarerelativelymoreexpensivethanothermediaplacements
costs,thereforearathersmallbudgetmaynotbefeasibleforbuyingTVspots Mediadata:whoreadsit,listen,watch,howmany,howoften,etc
Mediacharacteristics:
o Physical
o Restrictions
o Timing for booking
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Media used in advertising
Press/printnewspapers,magazines,tabloids Radiolocalandnational
Television-national,local,cable
Outdoor-billboards,signage
Mobile-publictransport
Cinema
Internet
Directmail-brochures,catalogues
Abovethelineandbelowthelinemedia
This categorization of media is used by agencies to distinguish media which are vital for
the agencies main source of income. Agency commission is gained from above the line
media, thus contributing the agencies main source of income. However, agency will focus
on the clients promotional objectives, when electing above the line media and below the
line media.
Above the line media
Providehighreachofthetargetaudience
Spotsandspacespurchasedforadvertising
Agenciessourceofmainincomefrommediacommissions
TV,magazines,newspapers,tabloids,radio,outdoor,mobileareinthiscategorization.
Belowtheline
Specic,madeforspecicpurpose
Limitedreach,reachspecicaudience
Agenciesincomelimitedtodesignandproduction
Leaets,brochures,posters,areinthiscategory
Primary and secondary media
The principle of primary and secondary media is of greater importance than above the line
and below the line media to the advertiser.
Primary media
The media most often used to carry the advertising message. The main consideration is
reach and costs.
Secondary media
The media used to support the primary media.
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Printed media
Newspapers
Nationalnewspapers-general:Kompas,Republika,etc
Nationalnewspapers-business:BusinessIndonesia,etc
Nationalnewspapers-Englishlanguage:JakartaPost,etc
NationalNewspaper-evening:SuaraPembaruan,etc
Regional/local newspapers: Pikiran Rakyat (Bandung/Jawa Barat, Jawa Post-
Surabaya/Jawa Timur, etc)
The characteristics of newspaper are high reach of the target audience, high in news value,
offers a variety of size for purchase. However, it has a short life only half a day and thequality of paper may not be suitable for advertisements relying on visual impact such as high
end fashion brand.
Magazines
Magazines are more segmented than newspapers as shown below
Consumermagazines-womengeneral:Femina,Kartini.
Consumermagazine-womenfashion:Dewi.
Consumermagazineparenting:AyahBunda.
Consumermagazinebusiness:Gatra. Consumermagazineteenagersgirls:Cosmogirls.
Consumermagazineteenagersboys:Hai.
BusinessMagazine:SWA.
Lifestylemagazine:Prestige.
Besideconsumermagazines,varioustrademagazinesarealsoavailableusuallypublished
by trade associations. Most magazines are circulated nationwide. Magazines are segmented,
has a longer life and higher duplication of readers than newspaper. It has a better production
quality than newspapers, so advertisements look more attractive.
Tabloids
Tabloids can be said as a cross between newspapers and magazine. In appearance and
paper quality they are more similar to newspapers, but in content and segmentation are
more like magazines. Tabloids are not published daily like newspapers, but weekly. Tabloids
worthmentioninghereare:Bolaforthesoccerfan,NovaforwomenandCek&Ricekfor
celebrity news.
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Points to remember
Mediaisusedinadvertisingtoreachthetargetaudience.
Sincetherearemanytypesofmedia,themediaplannersmustrefertomediadatato
ensure that the media selected is appropriate in that it is the most effective and cost
efcientmediatoreachthetargetaudience.
Categorizationofmediaincludes,abovethelinemedia,belowthelinemedia,primary
and secondary media.
Abovethelinemediaandbelowthelinemediaareinitiallydenedtodifferentiatewhich
media generate the most income for the agency. However, the selection of above theline media and below the line media must take into account the promotion objectives.
Primarymediaismediamostoftenusedtocarrytheadvertisement,chosenbasedon
the audience it represents and the costs.
Secondarymediaisselectedtosupporttheprimarymedia.
Printedmediaconsistsofnewspapers,magazinesandtabloids.
Newspapers are further categorized into, national, regional/local, general and
business.
Magazinesrepresentmanysegmentsofthemarket,suchasconsumermagazinesfor
women, teenagers, men, and business/ trade magazines.
Tabloidsaresimilartonewspapersintermsofpaperqualitybutaresimilartomagazine
in term of segmentation, content and time of publication (weekly instead of daily).
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CHAPTER14
BROADCAST MEDIA AND OTHER MEDIACHAPTER OUTLINE
Having discussed the role of media in advertising and the printed media, this chapter will
focus on broadcast media: television and radio. It will discuss how these media are used
as advertising media. Other media, also important for many aspects of promotion such as
outdoor media, cinema, direct mail, door to door distribution and POS displays will also be
presented in this chapter.
The previous chapter and this chapter will show the importance of selecting the appropriatemedia toachievespecicadvertisingand promotionobjectives,aseachmedia differ in
characteristics and hence have their own strengths and weaknesses.
OBJECTIVES:
To understand the use of television as an advertising medium1.
To understand the use of radio as an advertising medium2.
Tounderstandhowproleoftelevisionandradioaudiencesdiffersaccordingtothe3.
channels and stations, the programs and time of dayTo understand how the following media deliver advertising messages:4.
Outdoor media
Cinema
Doortodoor
POS ( point of sales)
The broadcast media
Television
Althoughtelevisionisnotalwaysaprimarymedium,itisoftentherstchoiceto
advertise FMCGs and consumer durables, especially if they are targeted at the so called mass
audiences.Televisioncanswiftlyandeffectivelycommunicatebenetsandadvantagesin
an effortless, lively manner to large target audiences.
Televisionifcanbeaffordedbytheadvertiser,hasdeniteadvantages.Itdeliversmoving
pictures which can enhance the persuasiveness of the message. Sound effects and music/
jingle are often used to reinforce mood for the brand.
Advertisers will opt to buy spot at peak hours or prime time , where popular high rated
programs are relayed. Many television channels will compete with each other to offerprograms which will command highest viewers.
The revenue from selling advertising spots pays for the production of programs or buying
programs from overseas. Advertisers pay increased air time price for high rated programs.
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Terrestrial television used land based transmitters to relay their programs , whilst satellite
television used high powered electronic beam from an earth station to a satellite in space
whichisthenreectedbacktobecollectedbyreceiverdishesoutsidehousesorbuildings.The use of satellites enables the receipt of more channels to the viewers compared to the
use of land based transmitters.
Internationaladvertisersbenet from satellite television in that it canreach international
audiences.
Cabletelevisioniscarriedbyopticalbers,whicharestrandsofglassalongwhichtinylight
beamsarepassedtocarrythetelevisionsignal.Theopticalbersusedaretwoway,so
there are immense opportunities for advertisers to discuss their products on television for
customers to buy at the press of button on the remote control unit. Thus emerge shopping
channels, using direct response marketing with their target market.
Radio
Radio is broadcast via airwaves, the use of which is controlled by government, so that a
radio station is operated by contractor under license.
Radio covers a local area and most radio stations have developed a distinct programming
formattocatertospecicsegmentsofthepopulation.Henceemergebusinessnewsradio
stations, stations directed at the female segment of the population, etc.
Advertising spots are 30 seconds or 60 seconds. Prime times are early morning when
people are in their cars to go to work and again early evening when they are going back
from work. One of the advantages or radio, is that it can be listened to anytime, thus the
prime time are usually directed at working people. Lack of pictures is not really a problem,
as the combination of tone and style of voice plus music and sound effects can often paint a
powerful picture in the mind of the listeners.
Radioalsoprovidesinformationimportanttothelistenerssuchasweatherforecasts,trafc
condition, latest development on particular news of interests, etc and such information may
be sponsored by the advertiser.
Besidespotadvertisingandsponsorship,othermeansofpromotionusing radioare:Ad
lip,wheretheannouncersrelaytheadvertisingmessage,andcreatingspecictalkshow
programs are also gaining popularity among advertisers.
Other media
Outdoor advertising
Outdoor advertising involves putting the advertising message on billboard, pedestrian
crossing bridge and shop signage. Today it has evolved into mobile advertising, using public
transport as advertising medium.
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Billboardsarecontrolledbyspecialistmediaagencyandadvertiserscanrentforaperiodof
time.Billboardsarenotplacedrandomlybutareselectedwithcarebasedonresearchdata
indicatingtheproleofthepublic,theestimatednumberthatpasseachdayandhowtimesa day they pass.
The advantage of outdoor advertising is that people cannot really avoid it. Off course
people dont stop to look at a billboard, the brand name, colors, the powerful visual and
brief associated message will subconsciously remind them of the television or magazine
campaign they have seen.
Cinema
Mostcinemasarecomplexes,withanumberofscreenstohaveseverallmsshowing
to different audience. Cinema goers are usually teenagers and young adults, so brands
targetingthissegmentoftenndcinemaasquiteaneffectivemediumforadvertising.Cinema
has its own way of delivering the advertising message, it has sounds and movements, and
the large screens in a darkened room with impressive audio system. Moreover, there is the
captive audience, unlike television where people can switch channels or do other activities
during commercial break.
Selectionofcinemaisbasedonwhowillseethelm,thelocationofthecinema,timesuch
as weekend, etc.
Direct mail
Unfortunately,directmailhasbecomeknownasjunkmailowingtotoomany
companies are doing it badly. In fact, provided it is addressed correctly (by name, to the
potentialbuyeroruser)withamailingpiece(orpromotionalleaet)andamessagethat
appeals to the customers or consumers needs and wants, it is highly successful.
Targeting depends on getting the right mailing lists of named individuals, and this has to
be done precisely. This is undertaken by direct mail houses, which build or create lists of
names and addresses within certain categories such as professionals, business owners ,
etc. Companies can now build their own mailing lists on computer databases and code themin such a way that they can target mail shots to individuals based on goods and services
already bought and the pattern of buying.
Door-to-door distribution
Door-to-doordistributionsimplymeansdeliveringpromotionmaterialstopeopleshouses.
Theareastoreceive thedoor-to-dooraremappedaccording tothe proleof the target
audience.
Anothervariationofdoor-to-doorisinsertingtheleaetinthenewspaper,providingoffcourse
thetargetaudiencehasasimilarproletothereaders.
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Point of Sales (POS) displays
POS are used at the retail or outlet where the brand is sold and can take the form of :
Stickers/showcardsoncounters
Hangingmobilessuspendedfromceiling
Metaldisplays,freestandinginthestore
Dummypack(actualsizeorenlarged)
Crownerstoputonbottlenecks
Open/closedsign
Instorevideos
Shopsigns
The purpose is to get customers attention and to remind them that the brands are available
in the store. It will also remind them of the key advertising message. As they promote sales,
suchmaterialsarewelcomedbytheretailers.Sincecompetitionforspaceiserce,POS
displays must be well planned and budgeted.
The media combination
No promotion plan can really be effective by using one medium. To achieve maximum impact,
promotion campaign usually employs various media:
TVcommercialtogainawareness,impactandimage Newspapersandmagazinestoprovidedetailedinformationsuchasspecications
Radioasreminderstoaspecicsegmentandcreatemoodforthebrand
Cinemaforimpactandremindertoaspecicsegment
Directmailtoinformretailersaboutproductbenetsandtoprovidedetailedinformation
to consumers.
POSmaterialstopromotesalesofbrandsinshopswheretheyaresold
Advertising can be supported by other promotion techniques:
Salespromotiontoencouragepurchasethroughincentives Personalsellingtoencourageinteractionwithcustomers
Exhibitionstoshowproductandproductdemonstration
Sponsorshiptocreategoodwill.
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Points to remember
Television is an effective media as it has sound and movement to reinforce theadvertising message.
Televisionhasprimetimeshowinghighratedprograms.
Thehigherthenumberofpeoplewatchingtheprogram,thehigherthepriceforthe
spot.
Differentprogramsattractdifferentproleofaudiences,andthetypeofviewerchanges
throughout the days programming.
Radioisaneffectiveadvertisingmediumasitcanbelistenedtoanywhereandanytime,
while doing other things.
Althoughlackingvisuals,radioadvertisingwithsoundsandmusichelpstocreatea
powerful and personalized image of the brand.
Outdooradvertisingcannotbeavoidedandcarrybriefmessages,asreminder.
Cinemaiseffectivetoreachyoungaudienceandalsoprovidecaptiveaudience.
Cinemaprovidesimpactintermsoflargescreen,soundsandmovements.
Directmailcanbeeffectiveprovidedifexecutedproperly,therighttargeting,correctly
addressed, and contain useful and persuasive messages.
Door-to-dooradvertisersallowadvertiserstodeliverleaet,salespromotionoffers,etc
tospecictargetaudiencesincertainneighborhoods.
POSisaneffectivewaytoremindcustomersofthebrandimageandkeyadvertising
message of brands that are sold in the store.
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CHAPTER15
MEDIA PLANNINGCHAPTER OUTLINE
Mediaresearchis therstand fundamentalstep inmediaplanning.Tounderstandhow
manypeoplebuyspecicnewspapersandmagazines,ormoreimportantly,howmanyread
them and what types of people they are requires media research. Similar information is
also required for broadcast media such as who watches and listens to television and radio
programs,isverycrucialinmakingastrategicmediaplan.Tofullltheneedsofmediadata,
agencies employ the services of independent media research companies.
This chapter will discuss how agencies acquire the information needed to make media
plans, what data is needed, and how this data is used for planning media. This chapter will
elaborate the process of media planning and media buying.
OBJECTIVES:
To understand the need of media research for media planning purposes and how it1.
is required
To understand what data is needed for inter media planning of above the line2.media
To understand what data is needed for below the line media3.
To understand how media data is used in media planning and buying4.
Media research- above the line
As advertising campaigns are being based on integrated marketing communications, media
research is being used to investigate inter media habits, that is to see which radio listeners
areviewersofwhichTVchannelsandprogramsandwhichnewspapersandmagazines
they read.
Foradvertisingagencies,mediaresearchisimportanttoestablishtheproleofwhoreceives
the advertising message as well as the depth or penetration in the market place. Penetration
is also called coverage (especially in printed media) and reach in broadcast media.
For media houses, the result of the research allows them to set rates (costs) of advertising
space and airtime, and these are not only based on the size of the space or the duration
of the airtime, but most importantly on how many people will be exposed to the advertising
message and their purchasing power to buy certain goods and services.
Usinginformationregardingaudienceprole,penetrationandmediarates,agenciescan
select the best media to target the desired market effectively and can calculate the required
budget.
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Independent research organizations
Independent research organizations are used to establish media data to assure advertisersand advertising agencies that the research is accurate, valid and unbiased. Therefore the
agencys media department can rely on the data and be assured that the media they buy on
behalf of the clients will reach the advertisers target audience.
Media data can be obtained by working together with a world wide media research
organization such as AC Nielson. Local research companies are often used by advertisers and
advertising agencies to conduct omnibus surveys and competitors advertising expenditures.
The Indonesian advertising trade organization, PPPI, published annually an advertiser and
agency guide to media in Indonesia called the Media Scene.
Research-belowtheline
Direct mail
There is no media research for direct mail, but there are ways of establishing the number
ofpotential contactsthatamailingcan reach.Mailing listsare classiedbynamesand
addresses, professions, buying power, and also indicate an estimate of the number of people
ineachclassication.Databasetechnologyallowsforcross-tabulationofdifferentcriteriato
buildalisttailoredmadetomatchtheaudienceproletheadvertiserswanttoreach.
Internet and POS
The Internet and World Wide Web are still in their infancy and not readily available to some of
the key target groups that an advertiser wants to reach (e.g. majority of users are young and
may be lacking in buying power). Consequently, they are not fully recognized as mainstream
media and so little research has been undertaken into their effectiveness as advertising
media.However,guresareavailableonthenumberoftimesthatawebsiteisvisited.
Currently there is no research undertaken by independent research organization into
effectiveness of POS materials. Its effectiveness relies upon the evaluation of the advertisers
marketing and promotion team.
Media Planning
Basedontheanalysisofthemediadataobtainedfromabovementionedresearch,media
plannerswillselectmediathatwilldirectadvertisingmessageseffectivelyandefcientlyto
the target audience.
In addition, media houses also provide what is called media kit. The media kit contains
interpretation of data collected and analyzed by the independent media research
organizations:
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1.Circulationandreadershipgures(orviewingorlisteninggures)
2.Proleofreaders(orviewersorlisteners,etc)
3. Area of coverage (in geographic terms)
4. An editorial schedule of subjects to be covered in the publication so that advertisers
can place their advertisements in special issues, features or sections. For television,
this takes the form of video presentation, while cinema chains issue lists of forthcoming
lms
5. Advertising rates (including rates for special positions or peak viewing times)
6. Frequency (daily, weekly or monthly appearance)
7. Mechanical details (e.g. method of printing and requirements for lm for printed
media).
The scope of media planning
Mediaobjective:whatistobeachieved,qualitativeaswellasquantitative
Mediastrategy:howisthebestwaytoachievetheaboveobjective
Mediaschedule:theimplementationofmediastrategy:whenandwheretoplacethe
advertisements and commercials Mediabudget:costsrequiredtoplacetheadvertisements/commercials.
Media objectives:
Whotoreachwiththeuseofselectedmedia
Howmany
Howoften(frequency)
Effectivereachneededtogetyourmessageacross
Mediabudget
Media strategy
Whichmediatouse:(macromediaselectionandmicromediaselection)
Budgetallocationforeachtypeofmedia
Monthlyreachandfrequency
Mediaefciency
Sizeanddurationofadvertising
Media schedule
Showingthemosteffectiveandefcientuseofmediaselected
Showingthereachandfrequencyasstatedinthemediaobjective
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Media buying
The media buying is the implementation of media planning, meaning that after the approvalof the media schedule by the client, the media buyer is responsible to purchase space or
airtime for the advertisers. In doing this, they have two interests to achieve:
1. For the advertiser: negotiates the best price ( discounts)
2.For the agency: ndsopportunities toearnextramoney(morediscounts, exible
terms of payment)
The media buyer is also responsible for making sure that the advertisement appears in the
media as per media purchase order and that the agency is billed as per agency media
buying contract. The media buyer also follows up with the account handler to ensure that the
client pays the media bills on time, so that media can be paid on time too.
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Points to remember
Themediaprocessconsistsofmediaresearch,planningandbuying
Mediaresearchiscrucialasaccuratedataregardingthemediasaudienceandmedia
characteristics such as penetration, rates are important considerations in the media
planning process
Mediaresearchisundertakenbyindependentmediaresearchorganizationstoensure,
accurate, valid and unbiased data
Accounthandlerspreparemediabriefcontaininginformationtobeusedasabasisfor
formulating media plan.
Uponreceivingthemediabrief,mediaplannerwillcreatemediaplanandschedule
consisting of macro media selection and micro media selection. The most effective and
costefcientmediaarethemainconsiderationswhenmakingamediaplan.
Media efciency is calculated via various methods such as the CPT (cost per
thousand).
Mediabuyers will proceed to buyspaceandair time once themediaschedule is
approved by the advertisers.
Mediabuyerswillcheckthatadvertisementsandcommercialsappearasscheduled
and that media bills are paid on time.
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CHAPTER16
ETHICS AND CODES OF PRACTICECHAPTER OUTLINE
Advertising is very powerful and can impact the target audience way of thinking, emotions
and behavior. Therefore, it is important that the advertising message does not impact the
target audience in a negative way.
Most advertisers and advertising agency prefer voluntary control, meaning they themselves
control what should be said and what should not be said in an advertisement or commercial,
bearing in mind the interest of the target audience. The voluntary controls ensure advertisersmaintain the standard of behavior which protect the reputation of the industry and so ensure
by implication, that the customer is being protected.
This chapter discusses the objectives and roles of code of advertising practice and how it
benetstheadvertisers,advertisingagenciesandconsumer.
OBJECTIVES:
To understand the objectives and role of advertising code of practice1.To understand how the advertising code of practice benets the advertisers,2.
advertising agencies and consumers
Advertising creativity and ethics
Creativity and persuasiveness is the basis of the advertising message. To motivate the
consumers,advertisingmessagesfocusontheconsumerbenets,beitsrationalbenets
suchasvalueformoneyoremotionalbenets,promisingbeautyandimage.
An advertisement or commercial is creative not just because it is different than other
advertisements or commercials, but because it motivates the consumers without over
promising and without misconceptions. A creative advertisement or commercial can in its
ownuniquewaymaketheconsumersunderstandwhyacertainbrandwillbenetthem.
Advertisers and its target audience must build and maintain a long term relationship to
ensure consumer trust and loyalty. In short, creative advertising is also ethical advertising.
The advertising code of practice strives to ensure that consumers expectation are met, and
thatadvertisersandadvertisingagenciesworktogethertofulllthisexpectation.
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Advertising code of ethics: objectives
For consumers
Protectconsumersfromoverpromiseandmisleadinginformationandperception
Motivatestheconsumerstousethebrandbecauseadvertisingmessageanswersto
consumers needs and wants
Theadvertisingmessageiscredible,thusestablishingconsumerscondenceinusing
the brand
Advertising message is focused and informative, therefore helps the consumer to
select the right brand to serve their needs.
Educatetheconsumersbygivingexamplesandappropriateinformation
For advertisers and advertising agencies
Touseasstandardpracticeinordertoupholdprofessionalismandreputationofthe
marketing and advertising business
Topromotehealthycompetitionamongadvertisers
Topracticecorporatesocialresponsibilities
Toprovideguidelinesincreatingconceptswiththeconsumersinterestsinmind.
The Advertising Code: general
The Advertising Code states that all advertisements should:
be legal (and do not break the law or incite anyone to break the law)
be fair and promote healthy competition by not exploiting negatively competing
brands
be decent (and should not cause serious or widespread offence on the grounds of
race, religion, sex or disability)
be honest (by not exploiting credulity, lack of knowledge or inexperience ofconsumers)
be truthful (by not misleading through inaccuracy, ambiguity, exaggeration, omission,
etc)
show responsibility to the consumer and to society
follow business principles of fair competition
not bring advertising into disrepute
apply the Code in spirit as well as in the letter
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be able to be substantiated
not exploit or exaggerate fear
not show or encourage dangerous practices (especially with the young)
not encourage drinking and driving
not condone violent or anti-social behavior
not use people (e.g. personalities) without permission
use only genuine testimonials related to the product (and have written permission to do so from the individuals, publications or organizations involved)
indicate clearly that advertisements are not editorial matter
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provisionsforterminatingthecontract
termsofbusiness(regardingpaymentoftheagency,mark-upsandhandling
charges (for both the agencys work and that of third-party suppliers) repaymentsofvolume and otherdiscounts, including commissions from themedia
owners
therightsoftheadvertisertouseothersuppliers
arbitrationormeansofsettlingdisputesshouldtheyarise
insurance(forprofessionalindemnity,etc)
Termination of contract
Termination of contract may be initiated by the agency or client. The client may terminate the
agency for the following reasons:
Unsatisfactoryservice
Slackingincreativity
Clientsnewmanagementwantstoexploreotheragencies
Changeinagencysmanagementorpersonnel
Agencyspricing
Wantsfreshnewideas
The following reasons usually lead to termination of contract by agency
Theclientdoesnthonorthetermsofpaymentinthecontractagreement Theclientsbusinessisnotprotable:agencyspendsmoremanhourthanitcharges
the client but cannot ask for higher fees.
Conictofinterest:agencyhasbeenappointedbyclientsdirectcompetitorwhohas
more promising business potential.
Thegoal:longtermandprotablebusinesspartnership
Just like everything else, a business relationship has to pass several cycles to survive:
The introduction cycle
At this stage, agency and client has not formalized their relationship, but they are learning
about each other. The client is impressed with the agencys skills and experience, its human
resources, its eagerness to serve the client by showing understanding of the clients business
and market. The agency has a positive feeling about the client: he shows understanding of
howanagencywork,hisobjectivesarerealisticandclearandhehasthenancialmeans.
These positive impressions then lead the relationship to the next cycle.
The development cycle
The relationship is formalized by a contract. Agency will continue to impress clients with
their professionalism and service excellent. Client shows his eagerness by providing the
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information needed by agency. At this stage work rules and condition for team work is
established. Mistakes made at this cycle are usually forgiven.
The maintaining cycle
The key at this cycle is effective communication to support effective teamwork.
As work intensied, expectation increases, problems also arises. As long as effective
solutions are found and the motivation to work together persists, then usually agency and
client can formavery longand successfulworking relationship.Foote,Cone&Belding
(FCB)workedwithSunkistfor85years,KonimexandMatahariAdvertisinghasworked
together for 30 years.
The termination cycle
Many factors can lead to termination of business relationship as previously described, and
like so many other things in life, the termination could be amicable or could be a negative
experience for both parties.
Agency/third party contracts and agreements
Agency buys advertising space and airtime from the media houses, it also commissioned
production establishments to produce advertising materials on behalf of its clients. So if
the agency buys space form the media, it makes contract with the media and sells the
space back to its clients. If the client does not pay, agency must foot the bill. The same with
other third parties employed by the agency on behalf of its clients This is why agencies are
required to be creditworthy.
Theworkingrelationshipbetweenagenciesanditsthirdparties,indirectlyinuencedagency
and client business relationship. if the agency cannot manage its third parties, then the
quality of work that it gives to its clients suffers.
Thelawofcopyright
Anyone who creates something has a right to protect it from being copied or used by otherparty. This is an automatic right, with no registration required (unlike a trade mark under
older legislation). Anyone who copies any aspect of an
advertisement without permission can be sued for an injunction and damages by an owner
through a civil action.
The rights to all work done by the agency (including artwork) belong to the agency, even
though the work has been commissioned by and paid for by the client. This is the case
unless the client insists on a clause assigning ownership in the agency/client agreement.
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Other copyrights to be considered
Workbyphotographers, free lancedesigners etc commissioned bythe agency onbehalf of its clients
Theuseofmaterialsfromexternalsourceassuchtherighttousethecartooncharacter
Mickey Mouse.
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Points to remember
Agencyandclientformalizedtheirworkingrelationshipwithacontractagreement
Acontractconsistsofanofferadanacceptance,whichformsanagreement,together
with a consideration, usually a sum of money
A contract canbe terminated by either agency or client,as long as provisions for
termination have been met.
Asagencybuysmanyservicefromotherthirdpartiesonbehalfofitsclients,agency
also form contract agreement with third parties.
Copyright covers theownershipofwords, artisticworks (photographs, illustrations,
etc), music and many other created elements.
Thegoalofagencyandclientworkingrelationshipislongtermbusinesspartnership.
Abusiness relationshipconsists of severalcycleswhich if passed successfullywill
ensureamutuallybenecialbusinessrelationshipbetweenagenciesanditsclients.
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CHAPTER18
ADVERTISING TESTING AND EVALUATIONCHAPTER OUTLINE
Market situation is very complex. It is imperative to establish the market situation such
competitive environment, consumer perception and attitudes, before planning and executing
an advertising and promotion campaign. This to ensure that the campaign is effectively
directed at relevant market issues.
This chapter will explain the various methods of testing and evaluation to ensure that
campaigns are planned strategically and executed appropriately. Successful campaignswill enhance advertisers condence in the methods of advertising as well as on the
professionalism of the advertising agency.
OBJECTIVES:
To understand the reasons for doing testing and evaluation.1.
To understand the methods of pre-campaign testing.2.
To understand continuous research to monitor performance of advertising and3.
promotion.To understand the methods of evaluating a campaign.4.
Testing the market place
Testing of the market place to discover information such as the level of market response to
the brand, how the company and the brands are perceived by the consumers and customers,
areinitiallytakenbytheadvertisersmarketingteam.Theirndingsarethenbriefedtotheir
agency.
Theagencywillthenconducttheirownresearchtondotherpertinentinformationwhichwillguide them to plan an effective campaign. If negative attitudes, motivations and opinion by
thecustomersandconsumersarefound,thentheagencycanndwaystore-positionthe
brand so it will be perceived in a positive way. On the other hand positive attitudes can also
be discovered and then enhanced in the campaign.
Reasons for testing are:
Seei