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New Trends in Advertising A Report Presented to the class of Atty. Thyrone Sanchez Lyceum of the Philippines – University in Partial Fulfillment of the Requirement for the Subject Mktg. Sem. By: Leonel M. Carurucan Edward Kervin B. Mojares January 9, 2010 Lyceum of the Philippines ??? University College of Business Administration Batangas City Topic: NEW STRATEGIES, TECHNIQUES, AND APPROACHES IN ADVERTISING I. OBJECTIVES At the end of our report our classmates should be able to: 1. Know the new opportunities that sprout in the world of advertising; 2.
Determine the importance of establishing advertising objectives and conducting advertising research in order to reach out the growing online audiences; and 3. Know on how to select the right advertising approach for a particular product or service. II. INTRODUCTION Advertising is a form of communication intended to persuade its viewers, readers or listeners to take some action. It usually includes the name of a product or service and how that product or service could benefit the consumer, to persuade potential customers, to purchase or to consume that particular brand.
Different types of media can be used to deliver these messages, including traditional media such as newspapers, magazines, television, radio, and billboards. But the trends in advertising are changing over time. The competition is going tough day by day. Thus, marketers are trying to find out more effective ways to reach the target audience. But these changes have not occurred suddenly. There is a continuous growth in advertising trends with the passing time. While some old trends have been modified some new trends have evolved.
The old advertising trends indicate a very simple equation i. e. more people=more sale. In the previous years the marketers were concerned about reaching more target audience. According to the market trend of the earlier days the marketers equate more customers with more business. But this had been an outdated policy for 2009. As the advertising trend reports of 2009 show, marketers are concentrating on customer satisfaction these days. Instead of attracting more customers they are interested in retaining their existing customers. This differs from the earlier market trends.
The marketers are working hard to offer better customer satisfaction. They are focusing on the niche because being focused can earn them better return on investment. Marketers are no more concentrating on a single medium. They are exploring various avenues to reach their target market. In fact the marketers are looking for more personalized ways to reach the consumers. They have started preferring one to one solution instead of the same solution for all. In addition to this the new advertising trends concentrate on quality than on quantity.
Nowadays, the business owners have realized the necessity of taking action to save the earth and performing their social responsibility. Therefore most of the companies are running Go Green campaign. This has affected all the areas of the market but specially food, skin care products, cars, baby products etc. According to the advertising trend reports marketers are not only trying to satisfy the customers with quality products or concentrating on their sale but at the same time playing a great role to save the environment.
For them, when you think you’ve seen everything advertising has to offer, something comes along that sounds so unbelievable it just might work. III. NARRATIVE REPORT Increasingly, other media are overtaking many of the “traditional” media such as television, radio and newspaper because of a shift toward consumer’s usage of the Internet. With the dawn of the Internet came many new advertising opportunities. In the last three quarters of 2009 mobile and internet advertising grew by 18. 1% and 9. 2% respectively. Older media advertising saw declines: -10. 1% (TV), -11. % (radio), -14. 8% (magazines) and -18. 7% (newspapers). Particularly since the rise of “entertaining” advertising, some people may like an advertisement enough to wish to watch it later or show a friend. In general, the advertising community has not yet made this easy, although some have used the Internet to widely distribute their ads to anyone willing to see or hear them. If advertising is through billboards, TV commercials and radio, it remains restricted, but through the internet it is possible to cross borders and cultures and reach out globally.
The basic trend today is to be able to choose the type of advertisement and information that you are looking for. But even the trend has changed; competition has also turned fierce and aggressive. There are several new forms of advertising to reach out to the growing online audiences, and they are the following: A. Advergaming Advergaming is the practice of using video games to advertise a product, organization or viewpoint. The term “advergames” was coined in January 2000 by Anthony Giallourakis, and later mentioned by Wired’s “Jargon Watch” column in 2001.
It has been applied to various free online games commissioned by major companies. With the growth of the internet, advergames have proliferated, often becoming the most visited aspect of brand websites and becoming an integrated part of brand media planning in an increasingly fractured media environment. Advergames theoretically promote repeated traffic to websites and reinforce brands. Users choosing to register to be eligible for prizes can help marketers collect customer data. Gamers may also invite their friends to participate, which could assist promotion by word of mouth, or “viral marketing. ” B.
Transit Advertising Transit advertising–placement of print ads on buses and other vehicles and in bus shelters and train stations–is an important medium for reaching an audience of all ages, backgrounds and incomes. Promotions placed in public locations. Transit advertising includes billboards, displays on buildings or public transportation vehicles, and signs in terminals or on the inside of buses or subways. Why use transit advertising? 1. You can’t zap it. 2. You can’t ignore it. 3. It can’t be turned off like television. 4. It reaches drivers and passengers no matter what radio stations they’re listening to. . The large, colorful, innovative designs demand attention. 6. You have exclusivity in your space. 7. It delivers a varied audience. 8. It offers flexibility of ad size and location. C. Banner ad/ Banner Advertising Banner Ads are the Web equivalent of commercials. More specifically, a banner ad is a rectangular graphic, often animated, advertising a product or service Web site from its position on certain high traffic Web sites. Banner Ads are a very important form of Web advertising and generate a considerable amount of traffic for commercial Web site (second only to search engines and emailing campaigns ).
Banner ads are text and pictures that are placed on high traffic web sites. When you click on a banner ad, it sends you to the advertised web site. They are largely anchoring or branding devices just like a jingle on a radio- when you hear the jingle over and over; you eventually develop awareness of the business or its product. Most banner ads are generally not designed to generate immediate click-through but to be an awareness and anchoring device. Instead of placing a traditional focus on the demographics (gender, age, income etc. , banner ads let you narrow and hence intensify your target audience to people who have an acute intellectual interest in your product. It is a form of Psychographic Internet marketing when you promote your website with a banner ad on a high-traffic website that has content related to the product or service you sell. D. Pop-up ads Pop-up ads or pop-ups are a form of online advertising on the World Wide Web intended to attract web traffic or capture email addresses. It works when certain web sites open a new web browser window to display advertisements.
The pop-up window containing an advertisement is usually generated by JavaScript, but can be generated by other means as well. A type of window that appears on top of (over) the browser window of a Web site that a user has visited. A pop-up ad is more obtrusive as it covers other windows, particularly the window that the user is trying to read. Pop-ups ads are used extensively in advertising on the Web, though advertising is not the only application for pop-up windows. E. Covert or Guerrilla advertising Covert advertising, also known as guerrilla advertising, is when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand, as in the movie Minority Report, where Tom Cruise’s character John Anderton owns a phone with the Nokia logo clearly written in the top corner, or his watch engraved with the Bulgari logo. F. E-mail Marketing E-mail marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial or fundraising messages to an audience. In its broadest sense, every e-mail sent to a potential or current customer could be considered e-mail marketing.
However, the term is usually used to refer to: ?? sending e-mails with the purpose of enhancing the relationship of a merchant with its current or previous customers and to encourage customer loyalty and repeat business, ?? sending e-mails with the purpose of acquiring new customers or convincing current customers to purchase something immediately, ?? adding advertisements to e-mails sent by other companies to their customers, and ??sending e-mails over the Internet, as e-mail did and does exist outside the Internet (e. g. , network e-mail and FIDO). G. Pay Per Click Advertising
Pay per click (PPC) is an Internet advertising model used on websites, in which advertisers pay their host only when their ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system. Pay-Per-Click is a simple type of paid advertising that most search engines, including some of the largest ones, now offer. It requires a bid for a “per-click” basis, which translates to your company paying the bid amount every time the search engine directs a visitor to your site.
There is the added bonus that when a per-click site sends your website traffic, your site often appears in the results of other prevalent search engines. As with all marketing campaigns, there are advantages and disadvantages. If you understand the process and monitor your pay-per-click campaign frequently, it can be very effective. One of the greatest advantages is that you never have to tweak your web pages to change your position in search engine results, as you must do in a typical SEO campaign. What you do have to do in a pay-per-click campaign is pay a fee.
Another advantage is the simplicity of the pay-per-click process. You just bid and you’re up and running. It doesn’t demand any specific technical knowledge, though the more you know about search engines and keywords, the easier – and more effective – the process will be. The downside is that pay-per-click is essentially a bidding war. A higher bid than yours will lower your position on search engine results. This means that you will have to raise your bid to regain your position – which can obviously become quite expensive, especially if you are bidding on a popular keyword. Pay Per Click Marketing – How Does It Work?
Pay Per Click (PPC) advertising, as the name suggests, charges a fee every time someone clicks to your website from an ad we’ve placed in a search engine’s results. This type of search engine marketing enables your industrial or B2B company to place their marketing message in the form of text-based links on the top, right-side, and bottom of today’s leading Search Engine pages (see the following screen shots). H. Mobile Advertising Mobile advertising is a form of advertising via mobile (wireless) phones or other mobile devices. It is a subset of mobile marketing. Example is Multimedia Messaging Service or MMS. I. Tryvertising
TRYVERTISING, which is all about consumers becoming familiar with new products by actually trying them out. It is an innovative way to reach a cross between advertising, product promotion and marketing communication. Tryvertising essentially takes product placement to the real world, integrating products into the daily life of consumers so they can make up their minds based on their actual experience with the products. Tryvertising is more effective because it directly targets end users, in contrast to indirect, viral campaigns in which celebrities or influencers’ trial new products and then talks to others about them.
Tryvertising comprises activities that are a natural fit with consumers. And when the consumer actually tries the product, their experience is much stronger than just hearing about it or seeing someone else uses it in the media. An example below relates to well-known brands, but you could just as easily apply the concept to your own situation. The examples could help to stimulate your ideas on ways to team up with others to capitalize on tryvertising: Car manufacturers like Mercedes-Benz, Porsche and Mini Cooper partner with luxury hotels to offer guests the use of a car with unlimited mileage during their stay; a full tank of petrol each morning and overnight valet parking. According to Ritz Carlton Hotels, dozens of guests have bought a new car based on these integrated test-drives. J. Digital Signage Digital signage is a form of electronic display that shows information, advertising and other messages. Digital signs (such as LCD, LED, plasma displays, or projected images) can be found in public and private environments, such as retail stores and corporate buildings.
Advertising using digital signage is a form of out-of-home advertising in which content and messages are displayed on digital signs with a common goal of delivering targeted messages to specific locations at specific times. This is often called “digital out of home” or abbreviated as DOOH. [1] The benefits of digital signage over traditional static signs are that the content can be exchanged more easily, animations can be shown, and the signs can adapt to the context and audience, even interactively. Digital signage also offers superior return on investment compared to traditional printed signs
Digital signage is used for many different purposes and there is no definitive list. However, below are some of the most common applications of digital signage: 1. Public information ??? news, weather and local (location specific) information, such as fire exits and traveler information 2. Internal information – corporate messages, health & safety, news, etc 3. Advertising ??? either related to the location the signage is in or just using the audience reach of the screens for general advertising 4. Brand building ??? in-store digital signage to promote the brand and build a brand identity 5.
Influencing customer behavior ??? directing customers to different areas, increasing the dwell time on the store premises 6. Enhancing customer experience ??? applications include the reduction of perceived wait time in restaurant waiting areas, bank queues, etc. , as well as recipe demonstrations in food stores K. Elevator Ad One of the most attractive aspects of elevator advertising is the sheer number of people it reaches. So how does it work? Simply put, elevators in high traffic buildings are equipped with screens displaying high-resolution ads from paying sponsors.
If you think about it, the advantages of elevator advertising are obvious. Unlike TV or web-based forms of advertising, elevator ads can be turned off. Similarly, elevator ads can’t be viewed once and then thrown away like newspaper or magazine ads. In essence, elevator ads guarantee a captive audience, and if the elevator is located in an apartment building or office complex, some people will see your ad every single day. Elevator Ad Formats Elevator ad formats are usually similar to high quality print ads. The big wildcard is the size of the ad which range from business card size to 5×7 inch ads or even larger.
If you need help designing an ad, elevator advertising firms almost always offer design assistance services. On the other hand, if you have a nice looking business card already and only want a business card size ad, you can probably arrange to have your existing design transferred to screen format. Elevator Ad Pricing The pricing for elevator ads is based on a number of factors including the size of the ad, the number of elevators it appears in, elevator traffic, and term of contract. Since it’s not cost effective for elevator advertising firms to change the ads on a continuous basis, minimum contract terms (e. g. ix months) are common. However, advertisers who are willing to commit to a twelve month term or longer should expect to receive a discount. L. Contextual Ad Contextual advertising is a form of targeted advertising for advertisements appearing on websites or other media, such as content displayed in mobile browsers. The advertisements themselves are selected and served by automated systems based on the content displayed to the user. How contextual advertising works A contextual advertising system scans the text of a website for keywords and returns advertisements to the webpage based on what the user is viewing. 1] The advertisements may be displayed on the webpage or as pop-up ads. For example, if the user is viewing a website pertaining to sports and that website uses contextual advertising, the user may see advertisements for sports-related companies, such as memorabilia dealers or ticket sellers. Contextual advertising is also used by search engines to display advertisements on their search results pages based on the keywords in the user’s query. M. Ad Spinning It is a new form of advertising that uses board or signboards with a shape of an arrow. It is commonly done on street.
The person doing this type of ad is called an ad spinner. Ad spinners bring the business to the forefront with live entertainment advertising. It is an act of calling something to the attention f the public via animated human directional’s. Spinners can range anywhere between 1-12 at a time. Depending on campaign size and type. Rates are hourly based depending on total package. Speak to a representative for a quote, we service clients of all sizes. Prices usually range from 500 to 2500. N. Green Marketing Green marketing refers to the process of selling products and/or services based on their environmental benefits.
Such a product or service may be environmentally friendly in it or produced and/or packaged in an environmentally friendly way. It is the marketing of products that are presumed to be environmentally safe. Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. Yet defining green marketing is not a simple task where several meanings intersect and contradict each other; an example of this will be the existence of varying social, environmental and retail definitions attached to this term.
Other similar terms used are Environmental Marketing and Ecological Marketing. The obvious assumption of green marketing is that potential consumers will view a product or service’s “greenness” as a benefit and base their buying decision accordingly. The not-so-obvious assumption of green marketing is that consumers will be willing to pay more for green products than they would for a less-green comparable alternative product – an assumption that, in my opinion, has not been proven conclusively. Green marketing can be a very powerful marketing strategy though when it’s done right O. Tarpaulin Printing
A tarpaulin or tarp is a large sheet of strong, flexible, water-resistant or waterproof material, often cloth such as canvas or polyester coated with urethane, or made of plastics such as polyethylene. Nowadays, it is being used to promote products and services, which is much cheaper as compared to other existing signboards and promotional products. But before having these new trends in advertising, advertisers also undergo series of steps just like in the old trend of advertising, such as conducting an advertising research, establishing advertising objectives and finally evaluating these advertising strategies.
Advertising research is a specialized form of research that works to improve the effectiveness and efficiency of advertising. It entails numerous forms of research which employ different methodologies. Advertising research includes pre-testing (also known as copy testing) and post-testing of ads and/or campaigns???pre-testing is done before an ad airs to gauge how well it will perform and post-testing is done after an ad airs to determine the in-market impact of the ad or campaign on the consumer.
Advertising objectives are the communication tasks to be accomplished with specific customers that a company is trying to reach during a particular time frame. A company that advertises usually strives to achieve one of four advertising objectives: trial, continuity, brand switching, and switchback. Which of the four advertising objectives is selected usually depends on where the product is in its life cycle. Trial The purpose of the trial objective is to encourage customers to make an initial purchase of a new product.
Companies will typically employ creative advertising strategies in order to cut through other competing advertisements. The reason is simple: Without that first trial of a product by customers, there will not be any re peat purchases. Continuity Continuity advertising is a strategy to keep current customers using a particular product. Existing customers are targeted and are usually provided new and different information about a product that is designed to build consumer loyalty. Brand Switching Companies adopt brand switching as an objective when they want customers to switch from competitors’ brands to their brands.
A common strategy is for a company to compare product price or quality in order to convince customers to switch to its product brand. Switchback Companies subscribe to this advertising objective when they want to get back former users of their product brand. A company might highlight new product features, price reductions, or other important product information in order to get former customers of its product to switchback. Advertising Budget Once an advertising objective has been selected, companies must then set an advertising budget for each product.
Developing such a budget can be a difficult process because brand managers want to receive a large resource allocation to promote their products. Overall, the advertising budget should be established so as to be congruent with overall company objectives. Before establishing an advertising budget, companies must take into consideration other market factors, such as advertising frequency, competition and clutter, market share, product differentiation, and stage in the product life cycle. Advertising Frequency Advertising frequency refers to the number f times an advertisement is repeated during a given time period to promote a product’s name, message, and other important information. A larger advertising budget is required in order to achieve a high advertising frequency: Estimates have been put forward that a consumer needs to come in contact with an advertising message nine times before it will be remembered. Competition and Clutter Highly competitive product markets, such as the soft-drink industry, require higher advertising budgets just to stay even with competitors. If a company wants to be a leader in an industry, then a substantial advertising budget must be earmarked every year.
Examples abound of companies that spend millions of dollars on advertising in order to be key players in their respective industries (e. g. , Coca Cola and General Motors). Market Share Desired market share is also an important factor in establishing an advertising budget. Increasing market share normally requires a large advertising budget because a company’s competitors counterattack with their own advertising blitz. Successfully increasing market share depends on advertisement quality, competitor responses, and product demand and quality.
Product Differentiation How customers perceive products is also important to the budget-setting process. Product differentiation is often necessary in competitive markets where customers have a hard time differentiating between products. For example, product differentiation might be necessary when a new laundry detergent is advertised: Since so many brands of detergent already exist, an aggressive advertising campaign would be required. Without this aggressive advertising, customers would not be aware of the product’s availability and how it differs from other products on the market.
The advertising budget is higher in order to pay for the additional advertising. Stage in the Product Life Cycle New product offerings require considerably more advertising to make customers aware of their existence. As a product moves through the product life cycle, fewer and fewer advertising resources are needed because the product has become known and has developed an established buyer base. Advertising budgets are typically highest for a particular product during the introduction stage and gradually decline as the product matures. Selecting the Right Advertising Approach
Once a company decides what type of specific advertising campaign it wants to use, it must decide what approach should carry the message. A company is interested in a number of areas regarding advertising, such as frequency, media impact, media timing, and reach. Frequency Frequency refers to the average number of times that an average consumer is exposed to the advertising campaign. A company usually establishes frequency goals, which can vary for each advertising campaign. For example, a company might want to have the average consumer exposed to the message at least six times during the advertising campaign.
This number might seem high, but in a crowded and competitive market repetition is one of the best methods to increase the product’s visibility and to increase company sales. The more exposure a company desires for its product, the more expensive the advertising campaign. Thus, often only large companies can afford to have high-frequency advertisements during a campaign. Media Impact Media impact generally refers to how effective advertising will be through the various media outlets (e. g. , television, Internet, print).
A company must decide, based on its product, the best method to maximize consumer interest and awareness. For example, a company promoting a new laundry detergent might fare better with television commercials rather than simple print ads because more consumers are likely to see the television commercial. Similarly, a company such as Mercedes-Benz, which markets expensive products, might advertise in specialty car magazines to reach a high percentage of its potential customers. Before any money is spent on any advertising media, a thorough analysis is done of each one’s strengths and weaknesses in comparison to the cost.
Once the analysis is done, the company will make the best decision possible and embark on its advertising campaign. Media Timing Another major consideration for any company engaging in an advertising campaign is when to run the advertisements. For example, some companies run ads during the holidays to promote season-specific products. The other major consideration for a company is whether it wants to employ a continuous or pulsing pattern of advertisements. Continuous refers to advertisements that are run on a scheduled basis for a given time period.
The advantage of this tactic is that an advertising campaign can run longer and might provide more exposure over time. For example, a company could run an advertising campaign for a particular product that lasts years with the hope of keeping the product in the minds of customers. Pulsing indicates that advertisements will be scheduled in a disproportionate manner within a given time frame. Thus, a company could run thirty-two television commercials over a three-or six-month period to promote the specific product is wants to sell. The advantage with the pulsing strategy is twofold.
The company could spend less money on advertising over a shorter time period but still gain the same recognition because the advertising campaign is more intense. Reach Reach refers to the percentage of customers in the target market who are exposed to the advertising campaign for a given time period. A company might have a goal of reaching at least 80 percent of its target audience during a given time frame. The goal is to be as close to 100 percent as possible, because the more the target audience is exposed to the message, the higher the chance of future sales.
Advertising Evaluation Once the advertising campaign is over, companies normally evaluate it compared to the established goals. An effective tactic in measuring the usefulness of the advertising campaign is to measure the pre-and post-sales of the company’s product. In order to make this more effective, some companies divide up the country into regions and run the advertising campaigns only in some areas. The different geographic areas are then compared (advertising versus nonadvertising), and a detailed analysis is performed to provide an evaluation of the campaign’s effectiveness.
Depending on the results, a company will modify future advertising efforts in order to maximize effectiveness. IV. CONCLUSION I therefore conclude that: 1. Advertising products and services on the Internet is effective and extremely competitive. 2. The internet has proven to be a very reliable source in finding what was deemed to be a very unsearchable product. 3. Advertising Research is a key to determining the success of an ad in any country or region. 4. Even that advertising can be successful at getting the message out it does have several limitations such as providing in-depth information about a product.
V. RECOMMENDATION A thorough study of my report led to the promotion of the following recommendations: 1. In spending resources on marketing, it makes sense to first find out what is going to work. 2. It is important to recognize the advertisements as information and creativity, but avoid the feeling of compulsion to go out there and make use of everything that the advertisements proclaim. 3. It is important for a company to consider the different factors affecting the effectivity of its advertisement such as objectives, budgets and evaluation method. . Advertisers have to cater to multiple touch points so that their product is known to all. VI. APPENDIX A. AdvergamingB. Transit Advertising [pic][pic] C. Banner Ad / Banner Advertising [pic] [pic] D. Pop-up Ads E. Covert Advertising/Guerrilla Marketing [pic][pic] This is a smart idea. This bus stop ad starts working at midnigths. The board reflects to the glass of the??bus stop and becomes the Mc Donald’s logo. F. E-mail Advertising [pic] G. Pay-per Click The sequence below illustrates how an effective Pay Per Click advertisement works. Step #1: |[pic] | |A person searches on either the Google or Yahoo search engine using a keyword or | | |keyword phrase affiliated with your Pay Per Click marketing campaign. | | |?? |[pic] | Step #2: |[pic] | |Next, your company’s Pay Per Click advertisement appears on the results page of | | |either Google’s or Yahoo ‘s (Overture) search network. | | |The prospective customer clicks on your company’s advertisement and is sent | | |directly to your website. | |?? |[pic] | |Step #3: |[pic] | |The prospective customer arrives on your company’s website and finds the products | | |or services they need. | H. MobileI. Tryvertising [pic][pic] J. Digital SignageK. Elevator Ad [pic][pic] L. Contextual Ad [pic] M. Ad SpinningN. Green Marketing [pic][pic] VII. BIBLIOGRAPHY Http// www. yahoo. com Http// google. com Http// www. youtube. com Http// www. information. com