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USA Todays Ad Meter

The Super Bowl's annual adfest has become the biggest marketing

event of the year as advertisers tap in to the biggest TV event of the

year.

USA TODAY created the Super Bowl Ad Meter in 1989 to gauge

consumers' opinions about TV's most expensive commercials.

In 2007 USA TODAY assembled 207 adult volunteers in Phoenix and

McLean, Va., and electronically charted their second-by-second

reactions to ads during the Super Bowl.

Fieldwork Phoenix and Shugoll Research chose the volunteers, who

used handheld meters to register how much they liked each ad.

A computer continuously averaged the scores.

Scores are the highest average for each ad.

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Bud Light Super BowlCommercials The star of the No. 1 ad in 2007: A refrigerator

stocked with Bud Light with the ability to

disappear to keep unwelcome guests from

grabbing the brew. The fridge disappears via arevolving wall that, unbeknownst to the fridge's

owner, spins it into the adjoining apartment.

For the guys next door, it becomes the "magic

fridge" an idol to be worshipped.

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Power of Advertising:Overwhelming? Body Image: Super-thin models, heroin look.

Sources: Magazines, TV shows, movies, fashion shows.

Cigarette use by teens: Marlboro Man, Joe Camel.

Obesity: McDonalds and other fast-food chains.

Consumerism: Promotion of spending.

Advantage to large companies with big advertising budgets

?

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Pepsi Campaign

(ca. 1990)

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FRIDAY, FEBRUARY 14, 1992

Pepsi-Cola Plans Big Effort To Exploit Uh-huh ThemeAs soon as Pepsi-Cola introduced Ray Charles as the spokes-singer for its Diet

Pepsi brand, growling, "You got the right one baby, uh-huh!" it seemed the decision had

indeed been the right one.

Consumers immediately took to the infectiously cheerful advertising created by

BBDO Worldwide, ranking the campaign among the most likable and memorable of1991. The phrase entered the vernacular, appearing on a line of licensed clothing and on

cans and bottles of the soft drink.

There was just one uh-uh amid the uh-huhs: Diet Pepsi's market share ended the

year as flat as day-old cola, according to Beverage Digest, an authoritative industry

newsletter. It ranked fourth among America's leading soft drinks in 1991, with an 8

percent share, unchanged from 1990.

So, eager to translate Diet Pepsi's advertising success into sales, Pepsi executives are

planning one of the industry's most extensive, and expensive, marketing blitzes ever on

behalf of the 28-year-old brand. Beginning during CBS's telecast of the Grammy Awards on

Feb. 25, Diet Pepsi will embark on an elaborate series of events intended to convince

America that this April is "National Uh-huh Month."

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FRIDAY, FEBRUARY 14, 1992

Is Heartbeat Campaign Selling Cars?It is one of the best-known advertising campaigns in the country and yet the product it sells

has experienced a slide in market share since the effort began four years ago.

The television commercials of Lintas Campbell-Ewald's Heartbeat of America campaign

for Chevrolet are famed for slow-motion shots of parents frolicking with their children and the

insistent thump of the Listen to the Heartbeat of America song.Although print ads are often less memorable than television, both Heartbeat executions

have scored consistently high in consumer recall. The Heartbeat campaign scored No. 3 in

Adweek's America's Favorite Print Campaigns, behind Ford and Pepsi-Cola.

Yet Chevrolet is losing ground. According to Ward's Communications Inc., a leading trade

publisher, Chevrolet's share of the American car market in 1986, when Heartbeat began, totaled

about 15 percent. By 1989, it declined to 13.6 percent.

Bob Garfield, a columnist forAdvertising Age, took notice of the gap between the campaign's

visibility and Chevrolet's sales. I may be the only person in the hemisphere to think so, he wrote

recently, but my view is that Heartbeat is simply a glitzy, stylish, somewhat sexy, extremely

catchy, painstakingly cultivated archetype of puffery because Chevrolet is not the heartbeat of

America.

He added, It's a declining entry level car brand, and it desperately needs to communicate

quality and value, not some fading vestige of ubiquity.

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Practitioner Theories

Initially, assumption that people respond rationally toadvertising. Main promise of product basis foradvertising copy.

Doubt about ability to change preferences by rational

argument, led to psychoanalytic approach: productsassociated with unconscious desires. Copy has toaddress these unconscious forces.

Ogilvie: Brand image set of associations to product

that places it in relation to a persons life style. Lannon & Cooper: Cultural context advertising is

effective if it reflects the shared meaning in a socialgroup or society.

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Models of AdvertisingEffectiveness: Price of Product

0

200

400

600

800

1000

1200

1400

1600

Price

SalesVo

lume

Advertising

No advertising

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Models of AdvertisingEffectiveness: Time

0

50

100

150

200

250

300

350

400

450

500

Time

SalesVo

lume

Campaign

begins

Campaign

ends

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Effectiveness: AdvertisingWeight (Number Ads,

Advertising Budget)

0

50

100

150

200

250

300

350

400

450

500

Weight

SalesG

ain

Threshold

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Change in Sales as a Function ofChange in Advertising Budget

-20

-15

-10

-5

0

5

10

15

20

-100 -50 0 50 100 150 200

% Change in Advertising Budget

%ChangeinSales

Budweiser Beer

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The BehaviorScan System: Major Findings(Lodish, et al., 1995)

T.V. advertising alone is not enough.

There is no simple correspondence between increased T.V. advertising and increased

sales, regardless of whether the increased spending is compared to competition or not.

Higher levels of trade display correspond with a reduction in the ability of T.V.

advertising to positively affect sales.

There is no strong relation between measures of T.V. commercial recall and either

persuasion or sales impact for established brands.

New brands or line extensions tend to be more response to T.V. advertising than

established products.Higher boosts in prime time T.V. advertising are correlated with larger increases of

sales for new products, but not for established products.

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Functions of Advertising

Most important: Introduce / inform about a new

product(e.g., direct marketing). Helps companies

sell their products. Benefits economy.

Gain market share: Much more difficult. Benefitto economy less obvious.

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Issues in Advertising

Continued reliance on discredited approach. Source credibility doctors, overheard endorsements.

Source likeability endorsement by well-known

personalities.

Audience factors market segmentation by demographics,

etc.

Uncertainty regarding use of peripheral vs. central

approaches New products often introduced by central route.

For many products (e.g., soft-drinks, difficult to come up

with strong arguments but, example of 7-Up).

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Peripheral Route?

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Central Route?

S bli i l P i ?

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Subliminal Persuasion?Democrats See, and Smell, Rats

in G.O.P. AdSept. 2000: Republican TV commercialcriticizing Al Gores prescription drug plan:

bureaucRATS decide

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Theories of Buying Behavior

Some complex theories proposed, e.g., Howard &

Sheth (next slide).

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Theory of Buyer Behavior(Howard & Sheth, 1969)

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Theories of Buying Behavior

Simpler models (central processing is assumed). Brand attitude determines brand choice.

Multi-attribute (expectancy-value) model of brand attitude.

Focus on brand image, image of corporation.

Simpler choice model: Elimination by aspects (Tversky).

Th f Pl d B h i

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Theory of Planned BehaviorApplied to

Buying Product XBehavioral

Beliefs AboutBuying

Product X

NormativeBeliefs About

BuyingProduct X

ControlBeliefs About

BuyingProduct X

AttitudeTowardBuying

Product X

SubjectiveNorm About

BuyingProduct X

PerceivedControl Over

BuyingProduct X

Intentionto buy

Product X

BuyingProduct X

M Attit d T d Ad d

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Mean Attitudes Toward Ad andToward Brand

(Madden & Ajzen, 1991)

1.5

2

2.5

3

3.5

4

4.5

A-ad A-brand

Attitud

No humor

Humor

M Attit d T d Ad d

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Mean Attitudes Toward Ad andToward Brand

(Madden & Ajzen, 1991)

1.5

2

2.5

3

3.5

4

A-ad A-brand

Attitud

No added info

Added info

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?!!?

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Ford

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Dodge Intrepid

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Setting objectivesSetting objectives

Objectives must flow from a clear positioningObjectives must flow from a clear positioning

statementstatement

What is theWhat is the oneone selling point or niche that theselling point or niche that the

advertiser occupies?advertiser occupies? Price, convenience, quality, value, etc.Price, convenience, quality, value, etc.

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Objectives must address aObjectives must address a communicationcommunication

tasktask RaiseRaise awarenessawareness

ShapeShape attitudesattitudes EnhanceEnhance recallrecall

MotivateMotivate actionaction

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Advertising objectivesAdvertising objectives DO NOTDO NOT addressaddress

sales goalssales goals

Sales goals are part of marketing objectivesSales goals are part of marketing objectives

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What does the market know about theWhat does the market know about the

advertiser?advertiser?

Where is the advertiser on the awarenessWhere is the advertiser on the awareness

curve or product life cycle?curve or product life cycle?

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Awa

re

Awa

re

TimeTime

Raise AwarenessRaise Awareness

Crea

teundersta

nding

Crea

teund

ersta

nding

Enhance Recall & ActionEnhance Recall & Action

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Another schemeAnother scheme AwarenessAwareness

KnowledgeKnowledge

LikingLiking PreferencePreference

ConvictionConviction

ActionAction

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Objectives must be measurableObjectives must be measurable What will be communicatedWhat will be communicated

To whomTo whom

By whenBy when At what costAt what cost

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What will be communicated:What will be communicated: A Communications taskA Communications task

Raise awarenessRaise awareness

Create understandingCreate understanding Enhance recallEnhance recall

Motivate actionMotivate action

OthersOthers

Build brand preference, build brand loyalty, etcBuild brand preference, build brand loyalty, etc..

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To whom:To whom: The audience defined demographicallyThe audience defined demographically

The audience defined geographicallyThe audience defined geographically

The size of the audienceThe size of the audience

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By when:By when: Determine the period of advertisingDetermine the period of advertising

Continuous is sustained over a period of timeContinuous is sustained over a period of time

Short bursts or flights to exploit opportunities or toShort bursts or flights to exploit opportunities or topromote special events - pulsingpromote special events - pulsing

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At what cost:At what cost: How much will it cost to achieve the objectivesHow much will it cost to achieve the objectives

that have been set?that have been set?

Requires obtaining rates from the media, andRequires obtaining rates from the media, andcalculating the cost of reaching the desiredcalculating the cost of reaching the desired

demographic at the frequency necessarydemographic at the frequency necessary

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Objectives allow the advertiser to measureObjectives allow the advertiser to measurethe effectiveness of advertisingthe effectiveness of advertising

Without objectives, one does not knowWithout objectives, one does not know

whether advertising is accomplishingwhether advertising is accomplishinganythinganything From advertising objectives will flowFrom advertising objectives will flow strategystrategy Strategy is a plan for achieving the objectivesStrategy is a plan for achieving the objectives

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From strategy, all creative efforts will flowFrom strategy, all creative efforts will flow

Once objectives are set, and strategy isOnce objectives are set, and strategy is

determined, then creative work beginsdetermined, then creative work begins

Creative begins with stating the copy platformCreative begins with stating the copy platform

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Creative Decisions

Componentsof

CreativeDecisions

Componentsof

CreativeDecisions

Develop and EvaluateAdvertising Appeals

Develop and EvaluateAdvertising Appeals

Executethe Message

Executethe Message

Evaluate theCampaigns Effectiveness

Evaluate theCampaigns Effectiveness

IdentifyProduct Benefits

IdentifyProduct Benefits

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Identify Product Benefits

Sell the Sizzle, not the Steak

Sell products benefits,

not its attributes

A benefit should answer

Whats in it for me?

Ask So?to determineif it is a benefit

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Advertising Appeal

Reason for a person

to buy a product.

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Common Advertising Appeals

ProfitProfit

HealthHealth

Love or romanceLove or romance

FearFear

AdmirationAdmiration

ConvenienceConvenience

Fun and pleasureFun and pleasure

Vanity and egotismVanity and egotism

EnvironmentalConsciousness

EnvironmentalConsciousness

Product saves, makes, or protects moneyProduct saves, makes, or protects money

Appeals to body-conscious or health seekersAppeals to body-conscious or health seekers

Used in selling cosmetics and perfumesUsed in selling cosmetics and perfumes

Social embarrassment, old age, losing healthSocial embarrassment, old age, losing health

Reason for use of celebrity spokespeopleReason for use of celebrity spokespeople

Used for fast foods and microwave foodsUsed for fast foods and microwave foods

Key to advertising vacations, beer, parksKey to advertising vacations, beer, parks

Used for expensive or conspicuous itemsUsed for expensive or conspicuous items

Centers around environmental protectionCenters around environmental protection

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Unique Selling Proposition

Desirable, exclusive, and

believable advertising appealselected as the theme for a

campaign.

Jingles

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Executing theMessage

Mood orImage

Mood orImage

MusicalMusical

Demon-stration

Demon-stration

ScientificScientific

Real/AnimatedProductSymbols

Real/AnimatedProductSymbols

FantasyFantasy

LifestyleLifestyleSlice-of-LifeSlice-of-Life

HumorousHumorous

CommonCommon

ExecutionalExecutional

StylesStyles

CommonCommonExecutionalExecutional

StylesStyles

Spokes-person/

Testimonial

Goodyea r

Docke rs

Marketing Versus Communications Objectives

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Vs.Vs.

MarketingObjectives

Marketing

Objectives

Generally stated in thefirms marketing plan

Achieved through theoverall marketing plan

Quantifiable, such assales, market share, ROI

To be accomplished in agiven period of time

Must be realistic andattainable to be effective

Generally stated in thefirms marketing plan

Achieved through theoverall marketing plan

Quantifiable, such assales, market share, ROI

To be accomplished in agiven period of time

Must be realistic andattainable to be effective

MarketingObjectives

Marketing

Objectives

g j

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

CommunicationsObjectives

Communications

Objectives

Derived from the overallmarketing plan

More narrow thanmarketing objectives

Based on particularcommunications tasks

Designed to deliverappropriate messages

Focused on a specifictarget audience

Derived from the overallmarketing plan

More narrow thanmarketing objectives

Based on particularcommunications tasks

Designed to deliverappropriate messages

Focused on a specifictarget audience

Many Different Factors Affect Sales

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TheEconomy

TheEconomyDistribution

Distribution TechnologyTechnology Price PolicyPrice Policy

PromotionPromotion CompetitionCompetitionProductQuality

ProductQuality

Price PolicyPrice PolicyTechnologyTechnologyDistributionDistribution

ProductQuality

ProductQualityCompetition

CompetitionPromotionPromotion

y


$ALE$$ALE$

Sales As Advertising Objectives

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g j

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin + Direct Response Ads Seek Sales
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p

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin + Many Ads Seek Communications Objectives
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin + Advertising and Movement Toward Action
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g


Teaser campaigns

AffectiveRealm of emotions.Ads change attitudesand feelings

CognitiveRealm of thoughts.Ads provideinformation and facts.

ConativeRealm of motives.Ads stimulate ordirect desires.

Image copyStatus, glamour appeals

Announcements

Descriptive copyClassified adsSlogans, jingles, skywriting

Competitive adsArgumentative copy

Point of purchaseRetail store ads, DealsLast-chance offersPrice appeals, Testimonials

Purchase

Conviction

Preference

Liking

Knowledge

Awareness

Image Ads Can Have a Strongff f

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Effect on Preference

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin + Pyramid of Communications Effects
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20% TrialConative

40% LikingAffectiv

e

90% AwarenessCognit

ive

5% Use

70% Knowledge

25% Preference

90% Awareness

70% Knowledge

40% Liking

25% Preference

20% Trial


The DAGMAR Approach

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DefineAdvertising

Goals forMeasuring

AdvertisingResults

Specific Objective: MembershipS ifi T t A id G lf

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Specific Target: Avid Golfers


*Click outside of the video screen to advance to the next slide

DAGMAR Difficulties

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Attitude - BehaviorRelationship


Response HierarchyProblems






Sales ObjectivesNeeded

Sales ObjectivesNeeded Inhibits Creativity

Inhibits CreativityCostly andImpractical

Costly andImpractical






Legitimate ProblemsLegitimate Problems

Questionable ObjectionsQuestionable Objections

Advertising-Based View of Communications

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Advertising Through Media

Acting on Consumers


The San Diego Zoo's Objective is to AttractVisitors

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Visitors


*Click outside of the video screen to advance to the next slide

Balancing Objectives and Budgets

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Dollars Goals

What werewilling and

able to spend

What we needto achieve our

objectives

BASIC Principle of Marginal Analysis

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IncreaseSpending

IncreaseSpending

DecreaseSpending

DecreaseSpending

HoldSpending

HoldSpending

If the increased cost is lessthan the incremental(marginal) return

If the increased cost is lessthan the incremental(marginal) return

If the increased cost is equalto the incremental (marginal)return.

If the increased cost is equalto the incremental (marginal)return.

If the increased cost is morethan the incremental(marginal) return

If the increased cost is morethan the incremental(marginal) return

Assumptions for Marginal Analysis

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Sales are the

principalobjective ofadvertising

and promotion

Sales are the result of advertising and

promotion, and nothing else

Advertising Sales/Response Functions

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Incr

ementalSale

s

Advertising Expenditures

A. Concave-DownwardResponse Curve

Incr

ementalSale

s

Advertising Expenditures

Range A Range B Range C

B. S-ShapedResponseFunction

Hig

hSpending

Litt

leEffect

Init

ialSpending

LittleEffect

Mid

dleLevel

Hig

hEffect

Top-Down Budgeting

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The Promotion Budget Is Set to Stay Withinthe Spending Limit

The Promotion Budget Is Set to Stay Withinthe Spending Limit

Top Management Sets the Spending LimitTop Management Sets the Spending LimitTop Management Sets the Spending LimitTop Management Sets the Spending Limit


Top-Down Budgeting Methods

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AffordableMethod

AffordableMethod

AffordableMethod

AffordableMethod

CompetitiveParity

CompetitiveParity

Percentageof Sales

Percentageof Sales

Return onInvestment

Return onInvestment

ArbitraryAllocation

ArbitraryAllocation Percentageof Sales

Percentageof Sales

CompetitiveParity

CompetitiveParity

ArbitraryAllocation

ArbitraryAllocation


TopManagement

TopManagement

Bottom-Up Budgeting

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Total Budget Is Approved byTop Management

Total Budget Is Approved byTop Management

Cost of Activities are BudgetedCost of Activities are Budgeted

Activities to Achieve ObjectivesAre Planned


Promotional Objectives Are SetPromotional Objectives Are Set

Cost of Activities are BudgetedCost of Activities are Budgeted



Promotional Objectives Are SetPromotional Objectives Are Set

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