27/09 – LES 1 ADVERTISING
HFDSTK 1: SETTING THE SCENE & MARCOM BASICS
SETTING THE SCENE
A lot of advertising = following the mass
® which explains why fake news gets a lot of advertising money because it attracts a lot of eyeballs & if you can
attract the people then you can sell ad spaces for a lot of money.
Eyeballs = attracting people that watch the content
® Elasticity = one dollar invested in advertising results in one dollar and something else in revenue.
® Short-term elasticity = immediate returns.
2 goals of advertising:
1. Immediate effects, driven by marketers that are too much focused on the digital effects (I see an ad, I
click it and I immediately buy something). Advertisers are blind-sided by the idea that advertising from
that moment is about direct effect.
2. But advertising was never about direct effects, the purpose of the ad was just to create some kind of
branding effect (wow what a cool brand, I want that brand and after long-term effectiveness that
person becomes a consument). And when digital came marketers turned to short-term effects.
® long-term effectiveness might be stronger and should not be thought of as actual monitory revenue
(something that you can really measure like ‘now they’re buying my stuff) but the effectiveness is much more
on a attitudinal and evaluative level (that people love you’re brand that might stimulate other behavior and in
the long term does come back to your brand).
A lot of the awards from advertising go to value marketing and not at what advertising is really about. Hardly
any branding campaigns win awards.
Value marketing = social good campaigns.
MARCOM BASICS
Marketing communication is communication for marketing purposes, and you need a medium for that.
Media has different distinctions:
® above-the-line are all those media where an advertising agency could build a client based on the proportion
of the media budget. F.e.: if a major brand asks an ad agency to create a ads for a big media campaign than the
ad agency could build these ads for 15% of the media budget. Most of the advertising money goes to ad
placements and not to advertising production.
® below-the-line are all the other places where you could do marketing communications. Earned media, such
as word-of-mouth is something you cannot really control.
, ð Ad agencies prefer above-the-line because it was big money and they preferred to do ads in a campaign
that had a lot of media budget because they had to do 1 big ad that was really good and nothing else.
The below-the-line version is much more work, so it is much easier to do above-the-line. This idea still
lingers on today.
Advertising or marketing communication always work with different stakeholders.
® For earned and paid media this works with at least 3 stakeholders, most of the time with many more.
® Regular advertising works with these 3 at least: media, consumer & advertiser. But most of the time also with
media agencies involved (that sell media space to the advertiser) and with advertising agencies involved.
ð Ads structure the world: if I’m looking for new sneakers, all the ads I see are sneakers that are suitable
for me and is probably a different one from someone else. This way it structures my reality and yours.
Branding vs campaign
® branding is a long-term perspective on how to build, grow and maintain your brand value. Essential part in
marketing communication!
® campaign is short-term (opportunity or issue right now). Typically, you strive for one basic creative appeal.
Reach vs relevance:
Reach: there is a constant stream of messages. As many people as you can reach out too and as often as you
can. Reach works due to the hardly noticed peripheral cues effects (things that have subtle effects & definitely
when you repeat them; tag line).
ð brands need to have distinctive assets, needs to stand out in communication. (swoosh from Nike, apple
logo)
ð brands need to have constant availability. (Nostalgic brands, apple logo is being shared through earned
media, Starbucks logo with the name is being shared)
2
,Relevance: the best way to make consumers attentive of messages is relevance!
ð Relevance increases the likelihood that people process the message and people get a positive effect
from it if it is a good message. So relevance in itself does not guarantee a positive effect.
ð When aiming for eyeballs (reach), you are satisfied with low involvement, peripheral processing. Keep
it low-key and add a lot of peripheral cues (stand out with the cues that you have: distinctive assets).
ð When aiming for relevance, you use different type of tricks to increase high involvement, central
processing. Don’t forget that the attitude effect should be positive!
® most “new” media start from the relevance position (organic reach) and if successful move into reach media
(broad reach).
The higher the reach you can sell to advertisers, the more expensive it is going to be and within that reach the
more relevance you have, the more expensive it is going to be!
THEORY BEHIND ADVERTISING
= Hierarchy of effects (HOE-model) = intuitive theory of how people should be persuaded for a
brand/product/service.
It assumes that people first need to be persuaded cognitively, then attitudinally, then behaviorally. People first
need to know about the brand, then love it & then buy it. But this is not true!
® The narrowing down thing from the AIDA-model symbolizes the reach vs relevance. You first start with the
reach and in the later it narrows down to relevance. Or symbolizes the mass focus in the beginning and then the
narrowing down to a smaller focus.
ð HoE-models are still useful as a media mix metaphor and are easy to sell. But have no proven academic
value and are therefore replaced by ELM!
Reading:
De Pelsmacker et al. for introduction on marketing basics (book)
3
, 28/09 – LES 2 ADVERTISING
HFDSTK 2: ADVERTISING & AD INDUSTRY
DON SCHULTZ
Schultz is an icon in advertising research, he made sure that advertising research is insightful and useful!
® He prefers to subsume advertising under marketing communications. But we do not!
Advertising = paid-for, non-personal communication delivered through a mass medium (that charges for the
placement) and with an identifiable source.
ð The focus of the communication is on gaining attention and persuading audiences to consider or
purchase the product/service.
ð The messaging is based on some type of psychological model but in most cases, it is based on gut feeling.
ð Advertising is measured in 2 ways: the calculation of returns on the costs of the tactics or the change
in psychological or communication effect.
3 scenarios for the future of advertising:
1. Creeping incrementalism
= every time something new occurs it offers new possibilities, and we accommodate to that new setting
but we don’t know whether we’re stepping in the right direction.
® the new technologies are adopted as the holy grail of advertising (TikTok) but in the end it will turn
into a regular advertising so maybe it is just an eye-balling reach medium in the making.
2. Reversal of buyer/seller roles
= consumers are taking more control of their consumption and even their advertising. Rather than
people being pushed by outbound communication (reach type of communication) you could think of
the people having more control of their advertising and they will consult you if they need you.
3. Reinvention of the field
= media planning is knowing on which medium you have this many people and this many target groups
and how much money you have to spend, and you try to make the ideal mix that you think is the best
fit with your budget and objectives. But with all the data we have today this could be highly automated.
Even the creation of advertising can be automated.
® there is a robotization of people we see in ads, it is not real people.
ADVERTISING & AD INDUSTRY
Smaller countries do better in advertising because they are better to experiment in and they must be more
relevant, and it is easier. In a big country they make one-size-fits-all advertising, and they push outbound
communication as much as possible.
® Larger brands like to experiment in smaller countries because if it fails it doesn’t matter that much if people
don’t like it.
4
HFDSTK 1: SETTING THE SCENE & MARCOM BASICS
SETTING THE SCENE
A lot of advertising = following the mass
® which explains why fake news gets a lot of advertising money because it attracts a lot of eyeballs & if you can
attract the people then you can sell ad spaces for a lot of money.
Eyeballs = attracting people that watch the content
® Elasticity = one dollar invested in advertising results in one dollar and something else in revenue.
® Short-term elasticity = immediate returns.
2 goals of advertising:
1. Immediate effects, driven by marketers that are too much focused on the digital effects (I see an ad, I
click it and I immediately buy something). Advertisers are blind-sided by the idea that advertising from
that moment is about direct effect.
2. But advertising was never about direct effects, the purpose of the ad was just to create some kind of
branding effect (wow what a cool brand, I want that brand and after long-term effectiveness that
person becomes a consument). And when digital came marketers turned to short-term effects.
® long-term effectiveness might be stronger and should not be thought of as actual monitory revenue
(something that you can really measure like ‘now they’re buying my stuff) but the effectiveness is much more
on a attitudinal and evaluative level (that people love you’re brand that might stimulate other behavior and in
the long term does come back to your brand).
A lot of the awards from advertising go to value marketing and not at what advertising is really about. Hardly
any branding campaigns win awards.
Value marketing = social good campaigns.
MARCOM BASICS
Marketing communication is communication for marketing purposes, and you need a medium for that.
Media has different distinctions:
® above-the-line are all those media where an advertising agency could build a client based on the proportion
of the media budget. F.e.: if a major brand asks an ad agency to create a ads for a big media campaign than the
ad agency could build these ads for 15% of the media budget. Most of the advertising money goes to ad
placements and not to advertising production.
® below-the-line are all the other places where you could do marketing communications. Earned media, such
as word-of-mouth is something you cannot really control.
, ð Ad agencies prefer above-the-line because it was big money and they preferred to do ads in a campaign
that had a lot of media budget because they had to do 1 big ad that was really good and nothing else.
The below-the-line version is much more work, so it is much easier to do above-the-line. This idea still
lingers on today.
Advertising or marketing communication always work with different stakeholders.
® For earned and paid media this works with at least 3 stakeholders, most of the time with many more.
® Regular advertising works with these 3 at least: media, consumer & advertiser. But most of the time also with
media agencies involved (that sell media space to the advertiser) and with advertising agencies involved.
ð Ads structure the world: if I’m looking for new sneakers, all the ads I see are sneakers that are suitable
for me and is probably a different one from someone else. This way it structures my reality and yours.
Branding vs campaign
® branding is a long-term perspective on how to build, grow and maintain your brand value. Essential part in
marketing communication!
® campaign is short-term (opportunity or issue right now). Typically, you strive for one basic creative appeal.
Reach vs relevance:
Reach: there is a constant stream of messages. As many people as you can reach out too and as often as you
can. Reach works due to the hardly noticed peripheral cues effects (things that have subtle effects & definitely
when you repeat them; tag line).
ð brands need to have distinctive assets, needs to stand out in communication. (swoosh from Nike, apple
logo)
ð brands need to have constant availability. (Nostalgic brands, apple logo is being shared through earned
media, Starbucks logo with the name is being shared)
2
,Relevance: the best way to make consumers attentive of messages is relevance!
ð Relevance increases the likelihood that people process the message and people get a positive effect
from it if it is a good message. So relevance in itself does not guarantee a positive effect.
ð When aiming for eyeballs (reach), you are satisfied with low involvement, peripheral processing. Keep
it low-key and add a lot of peripheral cues (stand out with the cues that you have: distinctive assets).
ð When aiming for relevance, you use different type of tricks to increase high involvement, central
processing. Don’t forget that the attitude effect should be positive!
® most “new” media start from the relevance position (organic reach) and if successful move into reach media
(broad reach).
The higher the reach you can sell to advertisers, the more expensive it is going to be and within that reach the
more relevance you have, the more expensive it is going to be!
THEORY BEHIND ADVERTISING
= Hierarchy of effects (HOE-model) = intuitive theory of how people should be persuaded for a
brand/product/service.
It assumes that people first need to be persuaded cognitively, then attitudinally, then behaviorally. People first
need to know about the brand, then love it & then buy it. But this is not true!
® The narrowing down thing from the AIDA-model symbolizes the reach vs relevance. You first start with the
reach and in the later it narrows down to relevance. Or symbolizes the mass focus in the beginning and then the
narrowing down to a smaller focus.
ð HoE-models are still useful as a media mix metaphor and are easy to sell. But have no proven academic
value and are therefore replaced by ELM!
Reading:
De Pelsmacker et al. for introduction on marketing basics (book)
3
, 28/09 – LES 2 ADVERTISING
HFDSTK 2: ADVERTISING & AD INDUSTRY
DON SCHULTZ
Schultz is an icon in advertising research, he made sure that advertising research is insightful and useful!
® He prefers to subsume advertising under marketing communications. But we do not!
Advertising = paid-for, non-personal communication delivered through a mass medium (that charges for the
placement) and with an identifiable source.
ð The focus of the communication is on gaining attention and persuading audiences to consider or
purchase the product/service.
ð The messaging is based on some type of psychological model but in most cases, it is based on gut feeling.
ð Advertising is measured in 2 ways: the calculation of returns on the costs of the tactics or the change
in psychological or communication effect.
3 scenarios for the future of advertising:
1. Creeping incrementalism
= every time something new occurs it offers new possibilities, and we accommodate to that new setting
but we don’t know whether we’re stepping in the right direction.
® the new technologies are adopted as the holy grail of advertising (TikTok) but in the end it will turn
into a regular advertising so maybe it is just an eye-balling reach medium in the making.
2. Reversal of buyer/seller roles
= consumers are taking more control of their consumption and even their advertising. Rather than
people being pushed by outbound communication (reach type of communication) you could think of
the people having more control of their advertising and they will consult you if they need you.
3. Reinvention of the field
= media planning is knowing on which medium you have this many people and this many target groups
and how much money you have to spend, and you try to make the ideal mix that you think is the best
fit with your budget and objectives. But with all the data we have today this could be highly automated.
Even the creation of advertising can be automated.
® there is a robotization of people we see in ads, it is not real people.
ADVERTISING & AD INDUSTRY
Smaller countries do better in advertising because they are better to experiment in and they must be more
relevant, and it is easier. In a big country they make one-size-fits-all advertising, and they push outbound
communication as much as possible.
® Larger brands like to experiment in smaller countries because if it fails it doesn’t matter that much if people
don’t like it.
4
