THE PUBLICITY INDUSTRY PDF

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It contains topics from the advertising industry, consumer power, media fragmentation, digital marketing, alliances and advertising structures....

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THE PUBLICITY INDUSTRY

Another way for consumers to control their information is through blogs. Blogs, websites frequented by people with common interests where they can publish facts, opinions and personal experiences, have become sophisticated sources of product and brand information, although they do not are generally not very objective. Once criticized as ephemeral scribbles of 13-year-old girls and chatter of tech junkies, today blogs have greater recognition and organization, with two-thirds of Internet users in the United States regularly Blogging. Web service companies like Bogdrive and Blogger make it easy to create, use and make crowds available. Analysts estimate that the number of active blogs is 133 million, with 346 million people visiting blog sites worldwide. Advertisers should pay attention not only to the popularity of social media sites and blogs, but also to the power of their communications. Research has shown that such "verbal recommendation" communication between consumers results in more lasting impressions and more acquisition effects from new customers than traditional marketing efforts. Or a good example of consumer control is the increase in the use of digital video recorders (DVRs) like TiVo and devices like Slingbox. Analysts expect the use of DVRs to reduce ad audience by about 30%. This means reducing advertising industry revenues in the United States by nearly $20 billion. And advertisers and their agencies expect that by 2010 about 39% of all TV homes in the United States will have the ability to "bypass ads." Clearly, advertisers and their agencies are trying to adapt to the concept that consumers have more control over the information they choose to receive. How will they adapt? Creativity is an answer. The more entertaining and informative information is, the more likely consumers are to see it. Another technique, less creative but certainly effective, is to transmit commercials along the bottom of the programming. In the end, TiVo already introduces a service that, until recently, seemed odd: ads on demand. TiVo offers advertisers the ability to include their brands in the company's "showcase" service, allowing TiVo owners to watch promotional videos and purchase products through their DV. Consumers who are about to buy expensive items such as cars, appliances or holidays may need information about alternative brands. Proliferation and consolidation of "multiplatform" media and media organizations At another level of the industry, the level of media, proliferation and consolidation has occurred simultaneously. The proliferation of cable television channels, direct marketing technology, web options and new alternative media (e.g. mobile marketing) has significantly increased media options. The diversity of media options and the advertising money they attract have always been a driving force behind many media companies. Traditionally, there has always been a legal barrier to the control that a single media company could obtain.

Media companies of all types tend to look for more and more "properties" if they can do so legally, creating a "multiplatform" media organization. Consider the evolution of the media giant News Corp. and its holdings, which include television stations (Fox), newspapers (more than 20 worldwide), magazines (Gemstar-TV Guide International) and satellite and cable systems (Fox News). News Corp.'s shares generate more than $30 billion in revenue and reach the world. Now the company is the proud owner of MySpace in the world of social media and has a huge interest in acquiring Hulu, the online video service. Despite the size of News Corp., the largest multiple platform may be Disney, which owns the ABC and ESPN television network, as well as many other cable stations, 15 radio stations, a couple of dozens of websites, eight podcasting operations, videos, books and magazines on demand; no matter what you choose, Disney uses it to reach the audience. As if that weren't enough, the Web has its own media conglomerates. InterActiveCorp (IAC) has built a media empire of websites as diverse as they are successful. IAC is an Internet conglomerate with a huge bag of online offerings, including search engine Ask.com, online dating service Match.com, ServiceMagic (a site that connects customers with home service professionals), several Home services companies, several newly created Internet home services businesses and several small properties. Together, these sites generate revenues of approximately $1 billion. Other Internet companies such as Google have nearly $7 billion in revenue, but they are not as diversified. In turn, the evolution of media options has led to new specialized agencies to sell, manage and consult these new media options. The fact is that over the past decade, media companies, in an effort to reach the public in the best way, have used all the resources at their disposal to attract consumers in every way possible, traditional media (television broadcasts, newspapers, radio sets and magazines) to cable and satellite broadcasts, as well as all forms of Internet communication. Saturation and media fragmentation mean more integrated brand advertising (PIM) Although at the media and agency level, the industry may be focusing on fewer and fewer companies, which does not mean that there are fewer media options. On the contrary, there are more ways to try to reach consumers than ever before. In 1994, the consumer had access to about 27 television channels. Today, the average household in the United States has access to more than 100 channels. In 1995, three properly programmed television commercials were enough to reach 80% of viewers. In 2003, 97 television commercials were needed to reach the same audience. From TV commercials to spectacular virtual commercials, Internet ads and ad-go podcasts, news and larger media options have caused so much saturation that the likelihood of an ad reaching and make a real difference continues to decline. Advertisers no longer rely solely on the use of advertising, so promotional options such as online communication, branding on movies and television, point-of-sale shows, and sponsorships are more attractive to Advertisers. For example, some companies that used to advertise in the Super

Bowl, known for the saturation and high price of their ads (between $2.5 million and $3 million for a 30-second ad), preferred to link their products at the event to improve the effect of advertisements. To combat saturation and reduce his spending in the Super Bowl, Miller Brewing distributed thousands of Miller Lite inflatable chairs for game day. The chairs were derived from a national advertising campaign that began during the regular season before the Super Bowl. Because of the negative effects that saturation can have on advertising, advertisers and their agencies are rethinking how they try to target consumers. Fundamentally, the focus is more on integrating more tools into the overall promotion effort, with the aim of reaching more consumers in a more varied way. This advertiser approach is wreaking havoc on traditional media spending. Consider Johnson and Johnson's decision. In 2007, the company announced that it had reduced traditional media spending (television, magazines, newspapers) by $250 million to invest in "digital media," such as the Internet and blogs. Advertisers relegate traditional media and have found the best complement to promotional opportunities in promotions (such as Miller chairs), event sponsorship, new media options and school relations public; it is about finding ways to support and improve the primary advertising effort for brands. In fact, some advertisers are using Hollywood talent agencies to make their mark on TV shows and movies. The reward for strategic placement in a movie or TV show can be huge. Getting CocaCola glasses to be placed on American Idol is worth $20 million in traditional media advertising. production Crowdsourcing concepts and user-generated content are relatively simple. Crowdsourcing is about distributing certain tasks online to groups of experts, enthusiasts or even consumers. Dell launched the "Idea Storm" website to ask the public for new ideas about computing. "MyStarbucksIdea" asks Starbucks fans to recommend new goods and services to Starbucks locations. The idea behind crowdsourcing is to engage consumers and engage with a brand in a way that passive and intrusive advertising simply cannot. Consumers help "build the brand" with recommendations for new features and can also publicize the benefits of the brand in a way that seems natural and credible (something extremely difficult for corporate advertising). Consider the elaborate crowdsourcing effort designed by Ford Motor Company. Ford started the Fiesta movement to draw attention to its compact Fiesta car. The program consisted of 100 Fiesta "agents" (chosen from a set of more than 4,000 candidates) who spent 6 months behind the flyer of their own Fiesta and broadcast their experiences live. Each month, agents posted videos and comments on their experiences related to thematic missions: travel, adventure, social activism and technology. Unsurprisingly, Fiesta encouraged the public to watch the agents' videos and "follow everything through the social networks you already use." However, crowdsourcing is not without risks for advertisers. When Kraft Foods appealed to people to help the company find an

easier-to-spread name for Australia's favorite Vegamite, 48,000 people made suggestions for a product name. However, the project generated a negative reaction on behalf of the product, snack 2.0. Mobile Marketing/Mobile Media Among trends affecting the advertising and promotion industry, mobile media may become the longest, or at least the most relevant, range. It all depends on the consumer's reaction. The technology has given advertisers an excellent opportunity to reach consumers with messages directed at their mobile devices, mainly smartphones, tablets like Apple's iPads, and e-readers like the Amazon Kindle; However, personal navigation devices (known as PND or GPS systems) can also position messages in the wireless world. Of course, this directly affects consumer control. The marketing and mobile media process is relatively simple. Because all these devices have wireless capability, advertisers can negotiate ways to include branded edift messages that will be displayed on devices. The obvious opportunity is to send ads directly to the devices, which is likely to be encountered with annoying consumer reactions. But there are other, more subtle opportunities. One would be to sponsor content and applications in e-readers. Another would be to integrate brandimages into the multimedia content that tablets can receive. But analysts warn advertisers, perhaps obviously: "This has nothing to do with what I can buy. It's about thinking about how consumers behave, and the role devices play in how they behave. So far, consumers don't seem too disappointed. AdMob, a company that offers graphic ads and text links for mobile devices, receives 10 billion ad requests per month. And two months after Google's Android bone, more than a billion ad requests were received each month. Advertisers seem eager to use this new modality. Mobile marketing spending is expected to reach more than $1.2 billion per year by 2014, behind social media spending and the interactive marketing category alone. In the coming decades, these trends and the changes they bring with them will force advertisers to think differently about advertising and PIM. Similarly, advertising agencies will need to think about how they serve their clients and how communications are delivered to audiences. As you have read, large companies such as Procter and Gamble, Starbucks, Miller Brewing and Ford Motor Company are now demanding innovative new programs to improve the impact of their advertising and promotional money. The objective of creating persuasive communication remains intact (attracting attention and developing a preference for the brand), and therefore, the dynamics of the newly analyzed communication environment directly impact this overall objective. The scope and structure of the advertising and promotion industry To fully appreciate the structure of the advertising and promotion industry, let us first consider absolute size. The advertising industry is huge: more than $300 billion spent in the United States alone in various advertising categories, with

nearly $600 billion spent worldwide. Spending on other forms of integrated brand promotion is no less impressive. Spending on all forms of integrated brand promotion, including advertising, exceeds $1 trillion per year. Another perspective on the scope of advertising and promotion is the amount spent on advertising by individual companies. In 2008 and 2007, the top 20 advertisers in the United States: they spent hundreds of millions of dollars, and even billions of dollars a year; it's really a huge amount of money to spend on advertising. But we need to realize that the $2.9 billion general motors spent on advertising represents only 2.6% of GM's total sales. Procter and Gamble spent about $4.8 billion, but that represented only about 6% of its sales. Thus, although absolute money seems huge, relative spending is often much more modest. Also note that the top 20 advertisers showed a decrease in ad spending. Structure of the advertising and promotion industry Beyond the scope of spending, the structure of the industry is really the key issue. When we understand the structure of the advertising and promotion industry, we know who does what and in what order during the process. The industry is a collection of very talented people, who have expertise and perform a wide variety of tasks in planning, preparing and placing advertising. Advertisers (such as Kellogg) may use the services of organizations (such as Grey Global Group) that they may (or may not) contract specialized services with various third-party facilitators (such as Simmons Market Research Bureau), resulting in advertising and promotion that is directed with the help of various media organizations (such as the TSP cable station and Google) to one or more target audiences (like you). Neither advertisers nor agencies are always looking for the services of external facilitators. Some advertisers deal directly with the media and Internet portals to place their ads or implement their promotions. This is either when an advertiser has an internal advertising/promotion service that prepares all the material for the process, or when media organizations (particularly radio, television and newspapers) aid technical preparation of materials. New mobile and interactive media formats also offer advertisers the opportunity to work directly with entertainment programming companies such as Walt Disney, Sony and LiveNation to deliver programming which presents brand placement in movies and television shows or in entertainment events. And as you'll see, many new media agencies provide the creative and technical support advertisers need to run campaigns through new media. Each level of the industry structure is complex. So, let's look at each level, with a focus on the nature and activities of the organizations. When you need to design a fully integrated advertising or brand promotion, no source will be more valuable than the advertising or promotion agency you work with. Advertising and promotion

agencies provide the creative power essential to the process and represent a very important link in the structure. Advertisers In the structure of advertising, there are first the advertisers themselves. From your local pet store to multinationals, organizations of all types and sizes are looking to benefit from the effects of advertising. Advertisers are businesses, not-for-profit organizations and government agencies that use advertising and other promotional techniques to communicate with target markets and stimulate awareness and demand for their marks. Advertisers are also known as customers by their partners in advertising and promotion agencies. Different types of advertisers use advertising and promotion differently, depending on the type of product or service they market. The following categories are described with the different types of advertisers and the role that advertising plays for them. Manufacturers and service companies. Major national manufacturers of consumer goods and services are the largest users of advertising and promotion, and often spend billions of dollars on these items. Procter and Gamble, General Foods, Verizon and Anheuser-Busch InBev have domestic or global markets for their goods and services. The use of advertising, especially mass media, by these companies is essential to create awareness and a preference for their brands. But advertising is useful not only for national or multinational companies; regional and local producers of goods and services are also heavily dependent on advertising. For example, some regional dairy companies sell milk, cheese and other dairy products in areas that usually cover a few states. These companies often use advertisements placed in newspapers and regional magazine editions. In addition, sending coupons and product samples is a way to communicate with target markets through the most appropriate MIF for a regional application. Some breweries and vineyards also serve only regional markets. Manufacturers of local products are rare, but local service organizations are common. Medical facilities, beauty salons, restaurants, car dealerships and arts organizations are examples of local service providers using advertising to raise awareness and stimulate demand. Which U.S. car dealership did not advertise a holiday event or use a local remote radio show to attract attention? Commercial dealers. The term commercial reseller is simply a preview for all organizations in the marketing distribution channel that purchase products for resale to customers. Retailers may be retailers, wholesalers or distributors. These resellers deal with end consumers and business buyers at all geographic levels of the market. Retailers that sell in domestic or global markets are the most visible reseller advertisers and the main users of promotions. Walmart, The Gap and McDonald's are examples of national and global companies using various forms of integrated brand promotion to communicate with their customers. Regional retail chains,

usually grocery chains such as Albertson's or department stores such as Dillard's, serve markets in several states and use appropriate advertising for their regional customers. Locally, small retailers of all kinds rely on newspaper, radio, television and spectacular advertising, and special promotional events to reach a relatively small geographic area. Wholesalers and distributors, such as Ideal Supply, Inc. (a company that provides survey and drilling equipment contractors), are a completely different type of reseller. Technically, these companies only deal with business customers, as their position in the distribution channel indicates that they will sell products either to manufacturers (who buy goods to produce other goods) or to resellers. (which resell goods to end-users). Wholesalers and distributors have little need for advertising in mass media such as television and radio. Instead, they use commercial publications, advertising in directories such as yellow pages and business directories, direct mail, personal sales and their web pages as their main advertisement. Federal, state and local governments. At first you may think it's strange to include governments as advertising users, but every year government agencies invest millions of dollars in advertising. The U.S. government generally ranks among the top 50 advertisers in the country, with spending typically exceeding $1 billion per year. And it's just in advertising. If you add other PIM expenses such as brochures, recruitment fairs, and personal sales expenses to recruitment offices, the U.S. government easily spends more than $2 billion each year. The federal government's advertising and promotion spending focuses on two areas: armed force recruitment and social issues. For example, the U.S. government often hires powerful adver...