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THE SCOPE OF ADVERTISING FROM LOCAL TO GLOBAL

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Angelica Yap

on 1 December 2013

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Transcript of THE SCOPE OF ADVERTISING FROM LOCAL TO GLOBAL

THE SCOPE OF ADVERTISING FROM LOCAL TO GLOBAL
Local Advertisers: The original integrators
Creating local advertising
Local advertisers should develop a checklist of creative do’s and don’ts.
The Advertising Industry
The organizations in advertising
4 distinct groups:
• Advertisers
• Advertising Agencies
• Suppliers
• Media

Advertisers
- Also called “clients”
- Advertisers are companies like Honda, Coca-Cola or other local shoe store – that sponsor advertising for themselves and their products
- They range in size, from small independent business to huge multinational firms, and in type from service organizations to industrial manufacturers to local charities and political action committees

Advertising Agencies
- Advertising agencies are the one who assist the advertisers to plan, create, and prepare ad campaigns and other promotional materials
Suppliers
- These includes photographers, illustrators, printers, digital service bureaus, color film separators, video production houses, internet web developers, and others who assist both advertisers and agencies in preparing advertising materials
- Also include consultants, research firms and professional services that work with both advertisers and agencies

Media
- They sell time and space to carry the advertiser’s message to the target audience
- They sell time on radios or television and sells space on prints, outdoors, and digital media

The people in Advertising
Majority of people in advertising are actually employed by the advertisers. Variety of people are in advertising, like people in sales, research, management, accounting, computer science, law, specialists in the various communication arts. Suppliers and the media is in advertising too.
The advertisers (The Clients)
• Local advertisers
• Regional advertisers
• National Advertisers

Local Advertising: Where the action is
- Is sometimes called retail advertising because so much is placed by retail stores
- It is used by many businesses like banks, real estate developers, movie theaters, auto machines, plumbers, radio, television stations, funeral homes, museums and local politicians
- Is critically important because most consumer sales are made locally
- It is where the action is, where relationships often start and truly develop

Types of local advertisers:
• Dealers or local franchisees of national companies that specialize in one main product line or service
• Stores
• Specialty business and services
• Governmental, quasi governmental and nonprofit organizations

Institutional advertising
- Attempts to create a favorable long-term perception of the business as a whole
- It makes the public aware of what the business stands for and attempts to build reputation and image

Types of local advertising:

- Promotes a specific product or service and stimulates short-term action while building awareness of the business
- Three major types of ads are the regular price-line, sale, and clearance

Product advertising
3 Major types of ads
Regular price-line advertising informs consumers about services or merchandise offered are regular prices.

Sale advertising is occasionally used by merchants in placing items on sale and offering two-for-one specials or other deals.
Clearance advertising is a special form of sale advertising; it is used to make room for new product lines or new models. Companies going out of business also use this advertising.
Classified advertising
- Is used in newspapers for variety of reasons: to locate and recruit new employees, offer services, sell or lease new and used merchandise
To develop a relationship with the customers and to promote a good word of mouth, we need to use publicity, sales promotion, direct response, and media advertising.
This combination constitutes Integrated Marketing Communications (IMC). IMC is the joining together in a consistent manner everything that communicates with customers.
Local advertisers and local agencies also tend the cash register, deal with customers, prepare mailers, write and place ads, evaluate suppliers’ trade promotions, answer phone inquiries, talk to newspaper editors and coordinate the graphics. Local advertiser can be the consummate integrator of marketing communications.
Checklist:
• Stand out from the competition
• Use a simple layout
• Use a dominant element
• Stress the benefits
• Make the headline count
• Watch your language
• Let white space work for you
• Make the copy complete
• Make your visual powerful and eye-catching
• State price or range of prices

• Specify branded merchandise
• Include related items
• Urge readers to buy now
• Don’t forget the store name and address
• Don’t be too clever
• Don’t use unusual or difficult words
• Don’t generalize
• Don’t make excessive claims
• Plan ad size carefully
• Consider your target customers
• Use tie-ins with local or special news events


Checklist:
Cooperative advertising
- Provide local advertisers with ready-made advertising materials.
Two key purposes:
• To build the manufacturers brand image
• To help its distributors, dealers, or retailers
make more sales

Vertical cooperative advertising
- The manufacturer provides the complete ad and shares the cost of the advertising time or space
- Local newspaper sets the name and address of the local advertiser or the radio station adds tag line with the advertiser’s name, address, and phone number

Horizontal cooperative advertising
- Firms in the same business or in the same part of town advertise jointly
Regional advertisers
Regional and National Advertisers

- Include regional grocery and department store chains, governmental bodies, franchise groups, telephone companies and statewide or multi-state banks.
- Markets exclusively within a particular region

- Sells in several regions or throughout the country
- These include the consumer packaged-goods manufacturers, national airlines, media and entertainment companies, electronics manufacturers
- These firms make up the membership of the Association of National Advertisers (ANA)

National advertisers
How national and local advertisers differ
- The basic principles of advertising are the same in both local and national advertising
- Local advertisers have special challenges stemming from the day-to-day realities of running a small business
- Local and national advertisers differ in terms of focus, time orientation and resources

Focus
- National companies are concerned about building their brands so their advertising tends to focus on the competitive features of one brand over another
- Local merchants or dealers often carry hundreds of different brands or numerous models of an exclusive brand, so they focus on attracting customers to a particular point- their place of business
- National advertisers plan strategically to launch, build and sustain brands while local advertisers think tactically

- The relationship with the customer may be the greatest difference between national and local advertisers
- National advertisers marketing executives rarely see retail customers; instead they traditionally think in terms of large groups of people. They design their strategies and campaigns to appeal to these large groups
- Local advertisers deal with individual customers every day. They interact with their customers in no business ways
- Local advertisers gets feedback everyday on the company’s advertising, prices, product performance, employee service, store décor, and the new sign in front. The national marketer gets occasional feedback- from surveys and from customer complaint lines

Time orientation
- National companies think long term; they develop five-year strategic plans and budget for annual advertising campaigns
- Local advertisers worry that this week’s ad didn’t work as well as last week’s

Resources
- National advertisers have more resources available, both money and people
- A local advertiser has a relatively large budget
- National advertiser has an army of specialists dedicated to the successful marketing brands. The local advertiser may have a small staff or just one person, the owner to market the business

How large companies manage their advertising
Large companies, company owners and top corporate executives make key advertising decisions; sales and marketing personnel often assist in their creative process, help choose the ad agency and evaluate proposed ad programs; artists and writers produce ads, brochures and other materials; product engineers and designers give input to the creative process and provide information about competitive products; administrators evaluate the cost of ad campaigns and help plan budgets; and clerical staff coordinate various promotional activities, including advertising.
Most large advertisers tend to use some mix of two basic management structures: Centralized and Decentralized.
Centralized organization
- Companies are concerned with cost efficiency and continuity in their communications programs
- Many embrace centralized advertising department because it gives the greatest control and offers both efficiency and continuity across divisional boundaries
- In this department, an advertising manager typically reports to a marketing vice president.
- Companies may organize the department in any of five ways
• By product
• By sub function of advertising
• By end user
• By media
• By geography

Decentralized organization
- The company sets up separate ad departments for different subdivisions, subsidiaries, regions, brands, or other categories that suit the company’s needs
- The general manager of each division or brand is responsible for the group’s advertising
- Decentralized advertising is more flexible for large companies with many divisions
- In effect, each division is its own marketing department, with the advertising manager reporting to the division head
- Decentralized departments often concentrate on their own budget, problems, and promotions rather than the good of whole company

Transnational Advertisers
- Companies advertising abroad typically face markets with different value systems, environment, and languages
- Their customers have different purchasing abilities, habits, and motivations
- They face a more basic problem: how should they manage and produce the advertising? Should their US agency or in house advertising department do it? Should they use a foreign agency or set up a local advertising department?

- Advertisers typically view such operations as foreign marketing divisions and use a decentralized international structure, in which the divisions are responsible for their own product lines, marketing operations, and profits, and create customized advertising for each market
- Every brand division has a brand manager who over sees a brand group and directs his or her own ad agency to create the brand’s media advertising
- Brand managers work under marketing manager, who reports to a category manager

- Each division also has an advertising department to help coordinate sales promotion and merchandising programs across brand
- The corporate advertising department provides statistical information and guidance
- The brand’s manager primary goal is to use advertising and promotion to build market share the category manager focuses on sharpening overall strategy and building profits

Multinational corporations
- Usually exerts strong centralized control over all its marketing activities
- Multinationals that use a standardized approach to marketing and advertising in all countries are global marketers. They create global brands, their assumption is that the way the product is used and the needs its satisfies are universal
- Global advertisers include Coca-Cola, British Airways, British Petroleum, TGI Friday’s, FedEx, and Chiclets.

According to J. Walter Thompson, the secret to success in global advertising is, knowing how to tap into basic human emotions and uncover universal appeals that don’t depend solely on language.
Advertising direction a company takes depends in many variables: breadth of product line, quality of management, ability to repeat marketing strategies across countries, costs, and the decision to operate internationally, multi-nationally, and globally.

The Advertising Agency
The role of the advertising agency
- Advertising agency as an independent organization of creative people and business people who specialize in developing and preparing marketing and advertising plans, advertisements, and other promotional tools
- The agency also purchases advertising space and time in various media on behalf of different advertisers, or sellers, to find customers for their goods and services.

Objectives: To introduce the people and groups who sponsor, create, produce and run advertising here and abroad.
This chapter discusses the basic tasks of both the client and the advertising agency, the roles of suppliers and the media, the way agencies acquire clients and are compensated, and the overall relationship between the agency and the client.
Why so many advertisers hire ad agencies?
1. The agency like Muse Cordero Chen is independent. The agency isn’t owned by the advertiser, the media, or the suppliers, so it can bring an outside, objective view point to the advertiser’s business- a state the advertiser can never attain.

2. Like all agency, MCC (Muse Cordero Chen) employs a combination of business people and creative people.

3. They have a day-to-day contact with outside professional suppliers who create illustrations, take photos, retouch art, and shoot commercials, record sound, and print brochures.

4. The agency provide yet another service by researching, negotiating, arranging, and contracting for commercial space and time with the various print, electronic, and digital media. Because of its media expertise, the agency MCC saves its clients time and money.

Agencies don’t work for the media or the suppliers. Their moral, ethical, financial, and legal obligation is to their clients.

Agencies can create more effective advertising and select more effective media than the advertisers can themselves.

5. A good agency serves its clients’ needs because of its daily exposure to a broad spectrum of marketing situations and problems both here and abroad.
Types of Agencies
Agencies are typically classified by their geographic scope, the range of services they offer, and the type of business they handle.
Local Agencies
- Small ad agencies that offer expert assistance to local advertisers.
- Local agency can help:
• Analyze the local advertiser’s business and the product or service being sold.
• Evaluate the markets for the business, including channels of distribution.
• Evaluate the advertiser’s competitive position and offer strategic options.
• Evaluate media alternatives and offer rational recommendations.
• Devise an integrated communications plan and implement it with consistency and creativity.
• Save the advertiser valuable time by taking over media interviewing, analysis, checking, billing and bookkeeping.
• Assist in other aspects of advertising and promotion by implementing sales contests, publicity, grand openings and other activities.

Regional and National Agencies
- Typically participate in either the 4As (American Association of Advertising Agencies) or some similar trade group such as the Western States Advertising Agency Association (WSAA). The Standard Directory of Advertising Agencies (the Red Book) lists these agencies geographically, so they’re east to find.
International Agencies
- The largest national agencies are also international agencies

- They have offices or affiliates in major communications centers around the world and can help their clients market internationally or globally

Full-Service Agencies
- Supplies both advertising and non advertising services in all areas of communications and promotion
- Advertising services includes planning, creating, and producing ads; performing research; and selecting media
- Non-advertising functions run the gamut from packaging to public relations to producing sales promotion materials, annual reports, and trade-show exhibits.
- They may specialize in certain kinds of clients; it can be classified as either general consumer agencies or business-to-business agencies.

General Consumer Agencies
- Represents the wide variety of accounts, but it concentrates on consumer accounts
- Often derive much of their income from these commissions
- General agencies include the international superagency groups, headquartered in communication capitals
- Also include the thousands of smaller entrepreneurial agencies located in every major city across the country

Business-to-business Agencies
- Represents clients that market products to other businesses
- High-tech advertising requires some technical knowledge and the ability to translate that knowledge into precise as well as persuasive communications
- Mostly, this advertising is placed in trade magazines or other business publications
- They typically charge their clients service fee and it can be expensive

Specialized Service Agencies
- Assist their clients with a variety of limited services
- They give impetus to many of the small agency-type groups called creative boutiques and other specialty businesses such as media-buying services and interactive agencies

Creative boutiques
- Graphic designers and copywriters are the ones who set up their own creative services or creative boutique.
- They work for advertisers and occasionally subcontract to ad agencies.
- Their mission is to develop exciting creative concepts and produce fresh, distinctive advertising messages.
- These boutiques may be economical, they usually don’t provide the research, marketing, sales expertise, or deep customer service that full-service agencies offer. Thus, they tend to be limited to the role of creative suppliers.

Media-buying services
- They negotiate a special discount with the media and then sell the time or space to agencies or advertisers.
- They provide customers with a detailed analysis of the media buy. Once the media package is sold, the buying service orders spots, verifies performance, sees the stations for any missed spots and even pays the media bills.

Interactive agencies
- They think of new ideas
- They have specialized experience in designing, creating fun, involving, information-rich, online advertising

What people in an agency do?
The agency’s purpose is to interpret to the public, or to desired segments of the public, information about a legally marketed product or service.
How do agencies do this?
1. It studies the client’s product to determine its strength and weaknesses.
2. It analyzes the product’s present and potential market.
3. Using its knowledge of the channels of distribution and available media, the agency formulates a pant to carry the advertiser’s message to consumers, wholesalers, dealers or contractors
4. The agency writes, designs, and produce ads; contracts for media space and time; verifies media insertions; and bills for services and media used.

The agency also works with the client’s marketing staff to enhance the advertising’s effect through package design, sales research and training and production of sales literature and displays
Account Management
Account executives are responsible for formulating and executing advertising plans, mastering the agency’s services and representing the client’s point of view to the agency.

Account executives needs to be more of a strategist than an advocate, must be well versed in an extraordinary range of media. Account executives must be enterprising and courageous, demanding yet tactful, artistic and articulate, meticulous, forgiving, perceptive, persuasive, ethical and discreet.

Research and Accounting Planning
- Clients and agencies must give their artists and copywriters a wealth of product, market and competitive information because, as its core, advertising is based on information
- Agencies research the uses and advantages of the product, analyze current potential customers
- They try to determine what will influence them to buy
- After the ads are placed, agencies use more research to investigate how the campaign fared

Account planning
- Is a hybrid discipline that uses research to bridge the gap between account management and creatives
- Account planner defends the consumer’s point of view. The creative strategy in the debate between the agency’s creative team and client
- Account planner study consumer needs and desires through phone surveys and focus groups, but primarily through personal interviews
- Account planner balances both elements to make sure the research is reflected in the ads.

Creative concepts
- Most ads rely heavily on copy. The people who create these are called copywriters. They must condense all that can be said about a product into a pertinent succinct point
- Ads also use nonverbal communication. That is the purview if the art directors, graphic designers, and production artists, who determine how the ad’s verbal and visual symbols will fit together

Advertising Production: Print and Broadcast
- For print ads, the production department buys type, photos, illustrations and other components and works with printers, engravers and other suppliers
- For a broadcast commercial, production people work from an approved script or storyboard

Media planning and buying
- Media planning is critical, because the only way advertisers can communicate is through some medium
- Media planning and buying is no longer a simple task
- What advertisers really need are exceptional generalists, who understand how advertising works in coordination with other marketing communication tools.
- Today, many products owe their success more to creative media buying than to clever ads.

Traffic management
- One of the greatest sins in an ad agency is a missed deadline. If an agency missed the deadline for a monthly magazine for example, the agency would have to wait another month to run the ad. And if the product didn’t arrive on time, that could mean lost sales around the country.
- The agency traffic department coordinates all phases of production and makes sure everything is completed before client and/or media deadlines.
- Traffic is often the first stop for entry level college graduates and an excellent place to learn about agency operations

Additional Services
- The growth of IMC caused some agencies to employ specialists who provide services besides advertising.
- Larger agencies may have a fully staffed sales promotion department to produce dealer ads, window posters, point-of-purchase displays and dealer sales material.
- Depending on the nature and needs of their clients, they may employ public relations people and direct-marketing specialists, web page designers, home economics experts or package designers

Agency administration
- In small agencies, administrative functions may be handled by the firm’s principals.
- Large agencies often have departments for accounting, human resources, data processing, purchasing, financial analysis, legal issues, and insurance

How agencies are structured
- Ad agency organizes its functions, operations, and personnel according to the types of accounts it serves, its size and its geographic scope
- Owner usually supervises daily business operations, client services, and new business development

- Account executives generally handle day-to-day client contact, they may also do some creative work such as writing copy
- Most small agencies have production and traffic departments or an employee who fulfills these functions
- But in very small agencies, account executives also purchase media time and space

- Medium and large agencies are usually structured in a departmental or group system.
- In the departmental system, agency organizes various functions, such as account services, creative services, marketing services, and administration
- In the group system, agency is divided into a number of “little” agencies or groups
- An account supervisor heads each group’s staff of account executives, copywriters, art directors, a media director, and any other necessary specialists
- Large agency may have dozens of groups with separate production and traffic units

How agencies are compensated
- Moreover, different clients demand different services, forcing agencies to develop various compensation methods
- There are only three ways for agencies to make money: media commissions, markups, and fees or retainers

Media Commissions
- They purchase on behalf of their client
Markups
- The agency pays the suppliers charge and then adds a markup to the client’s bill
Two methods in the fee system:
Fee Commission combination
- The agency charges a basic monthly fee for all its services to client and retains any media commissions earned
Straight-fee or retainer method
- Agencies charge for all their services, either by the hour or by the month, and credit any media commissions earned to the client
The incentive system
- Is a new type of agency compensation
- The agency earns more if the campaign attains specific, agreed-on goals

Fees
The In-House Agency (or House Agency)
- They are the one who save money and tighten control over their advertising
- They do all the work of an independent full-service agency including creative tasks, production, media placement, publicity and sales promotion
- Advertisers with in-house agencies hope to save money by cutting overhead, keeping the media commission and avoiding markups on outside purchases

- Advertisers also expect more attention from their house agencies, which know the company’s products and markets better and can focus all their resources to meet its deadlines
- Management is often more involved in the advertising when it’s done by the company people, especially “single-business” companies
- Some in-house advertising is outstanding especially in the fashion field
- Outside agencies typically offer greater experience, versatility and talent
- Biggest problem for In-house agencies is loss of objectivity.

The Client/Agency Relationship
- One of the most important relationship is between the advertiser and its agency
- The three most successful ways to develop new business are having clients who strongly champion the agency, having superior presentation skills and cultivating a personal relationship with a network of top executives.

Referrals
- Most good agencies get clients by referral, from existing clients, friends, review consultants, or even other agencies
- The head of one company ask another who’s doing her ads, and the next week the agency gets a call
- If a prospective client presents a conflict of interest with an existing client, the agency may decline the business and refer the prospect to another agency
- Independent agency review consultants often help arrange marriages between agencies and clients
- Sales reps for media and suppliers frequently refer local advertisers to an agency they know. So it’s important for agencies to maintain cordial relations with the media, suppliers, and other agencies and of course their existing clients.

Presentations
- An advertiser may ask an agency to make a presentation, anything from a simple discussion of the agency’s philosophy, experience, personnel and track record to a full-blown audiovisual presentation of a proposal campaign. A successful agencies need excellent presentation skills
- Some advertisers ask for or imply that they want a speculative presentation, meaning they want to see what the agency will do before they sign on. But most agencies prefer to build their presentations around the work they’ve already done, to demonstrate their capabilities without giving away ideas for a new campaign
- The presentation process also allows the agency and the advertiser to get to know each other before they agree to work together. Advertising is a people business, so human qualities-mutual regard; trust and communication play an important role.
Networking & Community Relations
- Agencies frequently find that the best source of new business is people their employees know socially in the community. Some agencies work pro bono (for free) for charities or nonprofit organizations
- Agencies may help local politicians or contribute to the arts, education, religion or the community.
- Some agencies sponsor seminars; others ad clubs or other professional organizations. All these activities help an agency gain visibility and respect in its community.

Soliciting & Advertising foe New Business
- An agency may solicit new business by advertising, writing letters, making cold calls or following up leads from sources in the business.
Stages in the client/agency Relationship

Four distinct stages:
1. The Pre-relationship Stage
- Occurs before an agency and client officially do business. They may know each other by reputation, by previous ads or through social contact
- Through presentation process, the agency tries to give the best impression it can, because it is selling and the client is buying

2. The Development Stage
- During the development, the rules of the relationship are established
- The agency also discovers how receptive the client is to new ideas, how easy the client’s staff is to work with and how well the client pays its bills.
- In this stage the first problem in the relationship also occurs

3. The Maintenance Stage
- It is the year-in, year-out, day-to-day working relationship
4. The Termination Stage
- It is when an irreconcilable difference may occur and the relationship reaches to this stage
- The way a termination is handled will affect both sides for a long time and is an important factor in whether the two ever get back together

Factors Affecting the Client/Agency Relationship
- Many forces influence the client/agency relationship. And they can be grouped into the four Cs:
Chemistry
- Most critical factor is the personal chemistry between the client’s and the agency’s staff. Agencies are very conscious of this factor and wine and dine their clients in hopes of improving
Poor Communication
- A problem often cited by both agencies and advertisers, leads to misunderstandings about objectives, strategies, roles, and expectations-and to poor advertising. An open communication and an explicit agreement on mutual contribution for mutual gain are key to a good relationship.
Conduct
- Is the most commonly cited reason for agency switches in every country
Changes
- It occurs in every relationship. The client’s market position or policies may change or new management may arrive. Agencies may lose key staff people.
- Client conflicts may arise if one agency buys another that handles competing accounts. Legally, and ad agency cannot represent client’s competition without the client’s consent.

The Suppliers in Advertising
- Suppliers are the people and organizations that provide specialized services to the advertising business.
Art Studios
- Produces artwork and illustrations for advertisements. They may supplement the work of an agency’s art department or even take its place for small agencies.
- Art Studios are usually small organizations with as few as three or four employees. Some, though, are large enough to employ several art director, graphics designers, layout artists, production artists and sales reps.
- Most studios are owned and managed by a graphic designer or illustrator, who calls on agencies and advertising manager to sell the studio’s services, takes projects back to the office to be produced, and then delivers them for the client’s approval.
- The work is very time-consuming and requires a talent for organization and management as well as a core competency in art direction and computer graphics.

Web designs
- Employ specialists who understand the intricacies of HTML and Java programming languages and can design ads and Web pages that are both effective and cost efficient.
Printer and Related Specialists
- The printer produces products such as brochures, stationary, business cards, sales promotion materials and point-of-purchase displays are vital to the advertising business.
- Printers employ or contract with highly trained specialists who prepare artwork for reproduction, operate digital scanning machines and run binderies.

Film and Video Houses
- Few agencies have in-house TV production capabilities. Small agencies often work with local TV stations to produce commercials. But large agencies normally work with independent production houses that specialize in film or video production or both.
Research Companies
- Advertisers are concerned about the attitudes of their customers, the size of potentials markets and the acceptability of their products. Agencies want to know what advertising approaches to use, which concepts communicate most efficiently and how effective past campaigns have been.
- The media are concerned with the reading and viewing habits of their audiences, the desired markets of their advertisers-customers and public perceptions toward their own particular medium

- Research is closely allied to advertising and an important tool for marketing professionals. But most firms do not maintain a fully staffed research department. Instead, they use independent research companies/consultants
- Research firms come in all sizes and specialties and they employ statisticians, field interviews and computer programmers as well as analysts with degrees in psychology, sociology and marketing.

The Media of Advertising
- Medium is the one that carries the advertiser’s message is the vital connection between the company that manufactures a product or offers a service and the customer who may wish to buy it.
- Plural term “media” commonly describes channels of mass communication such as television, radio, newspapers, and magazines, and it also refers to other communications vehicle such as direct mail, out-of-home media, specialized media, specialty advertising items and new communication technologies such as digital media. Interactive TV and satellite networks.
6 Major Categories
1. Print Media
- Refers to any commercially published, printed medium. Such as newspaper and magazines that sells advertising space to variety of advertisers.
- They also include directories such as the Yellow Pages; school or church newspaper and yearbooks; and programs used at sporting events and the atrical performances.

2. Electronic Media
- Radio and television used to be called the broadcast media. But with the advent cable TV, many programs are now transmitted electronically through wires rather than broadcast through the air.
3. Digital Interactive Media
- It allows the audience to participate actively and immediately. They are changing the way advertiser’s ad agencies do business. The Internet, for example, suddenly gives tiny companies with scant resources instant access to customers worldwide by creating a marketplace in which they can swap advertising space on their own sites for space on others
- They have to deal with a whole new environment for their ads. It’s an environment where customers may spend 20 minutes or more, not just 30 seconds, and where advertising is a dialog, not a monolog. And on the Internet, advertisers risk getting “flamed” if people don’t like their ads.
4. Out-of-Home Media
- The major categories of out-of-home media are outdoor advertising and transit advertising.
- Outdoor advertising (billboard) companies are local firms, but most of their revenue comes from national advertisers such as liquor and airline companies.
- Transit advertising (bus, taxi, and subway advertising) is an effective and inexpensive medium to reach the public while they’re in the retail neighborhood
- Out-of-home media also include posters in bus shelters and train stations, billboards in airport terminals, stadium scoreboards, flying banners and lights, skywriting and kiosks posters
5. Direct Mail
- When companies mail or e-mail their advertising directly to prospective customers without using one of the commercial media forms
- Direct mailing using the Postal Service (snail mail) is the most expensive medium on a cost-per-exposure basis, but it is also the most effective because marketers can target customers directly without competition from other advertisers.

6. Other Media
- It is the media that can confound even the most knowledgeable media planner and buyer.
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