Advertising
Chapter 1: Setting the scene & MarCom basics
Setting the scene
- News article The Guardian
o “Global and market faces ‘car crash’ next year amid cost-of-living crisis”
o Pandemic à blow to advertising industry
o Tv advertising big part of advertising industry
o Influencer advertising small part, not the amount we thought it was going
to be
o Search advertising: google search results that are sponsored
The relevance of an advertising course?
- Article: Tv is dead, long live Facebook tv
- See recording for examples and cases
The ad industry has an identity crisis
- Focus on societal values
o Awards go to societal returns
- #fearlessgirl
o Statue that appeared in Wall Street
o PR fuzz about it: what is this statue? (media attention)
o It’s not advertising
o Won awards for outdoor advertising and PR
o BUT what does it advertise??
§ An index fund boosting gender-diverse companies of the investor
company State Street Global Advisors
An advertising crisis?
- Hardly any branding campaigns (we don’t give awards to them anymore)
- Cannes Lions mostly awarded to social good campaigns or one-oX events
o … hardly any branding campaigns
- Big agencies deciding not to attend the big awards anymore
o They do all the traditional hard work
o They don’t go to the big ‘blowjob’
- Consultancy firms like Deloitte buying their way into advertising
Philip Kotler, godfather of marketing
- Marketing covers everything
- Marketing communication is the part that covers communication within
marketing
1
, - He wrote the ‘bibles’ of marketing
- Marketing 5.0: five phases in marketing (we’re now in the 5th phase)
1. Product-driven
2. Customer-oriented (pulling people in)
3. Human-centric (value-driven approaches, values that people really
support; eg sustainability)
4. Moving to digital New CX
5. Marketing in Digital World New CX x Next Tech
- Information -> message -> tools -> personas & experiences
- See slides for more visuals
The end goal of an academic advertising course
- To become the Flash Gordon, the savior of the advertising industry
- Not all cool ideas are good ideas
- Fewer but better ads are to be preferred
- Science and analysis will boost eXectiveness, also in traditional advertising
- Scientific mindset will help understand what eXects to expect and monitor
- ESPECIALLY true for the non-traditional advertisers: organizations with limited
budget
Approach
- We will study the typical ad communication and reflect on the psychological
underpinnings of persuasion and nudging
- As such, some current “models” in advertising will remain unexplored. These
typically have too little research or are too wide to provide evidence-based and
academic conclusions about their eXects. This is not a what-is-fashionable-in-
advertising course
Marcom basics (De Pelsmacker et al.)
- Marcom media and tools
Mass media ads (tv, internet, radio, newspapers)
Specialized media ads (magazine, movie theatre,
Above-the- blogs)
line Paid media Outdoor advertising (billboard, train station etc)
Sponsorships
Influencers
POP marketing: packaging…
Direct marketing (mail)
Below-the- Sales
line Owned media Trade fairs, webcasts…
Brand websites, fan pages, own social media
Earned media Word-of-mouth (consumers, press, influencers)
2
,- Marcom stakeholder groups
Media <> consumer <> advertiser
o Advertisers want to persuade consumers and need “media” to reach
them.
o Media need advertisers for revenue.
o Tensions/actions from one group can aXect both other groups (eg
dissatisfied customer can blame the medium and/or the advertiser)
- Marcom, branding, campaigns
o Branding = a long-term strategic perspective on how to build, grow and
maintain your brand value. Marcom should always serve the brand
strategy
o Campaign = a strategically planned chronology and collection of
marcoms with a common creative appeal and an appropriate
communication strategy and budget planning per medium
- Marcom dynamics: reach vs relevance
o Cf Elaboration Likelihood model & System 1/System 2
o Reach = hardly noticed peripheral cues aXect us, certainly when repeated
over and over again (Sharp: distinctive assets + constant availability)
o Relevance = the best way to make consumers attentive of your messages
is to make it relevant. This will make them cognitively involved in the
message
- ELM and Reach vs Relevance
o Solid advice based on ELM: there are two important pitfalls, one for each
of the main marcom strategies
1. When aiming for eyeballs, you are typically satisfied with low
involvement, peripheral processing. Do not forget to use appropriate
peripheral cues to lift your ad eXect
3
, 2. When aiming for relevance, you’ll use all kinds of tricks to increase the
odds of high involvement, central processing. Do not forget to make
sure the attitude eXect is positive
- 95% of marcom is reach (80%) vs relevance (15%)
o Media cost: higher reach or higher relevance per reach = more expensive
o Most “new” media start from the relevance position (eg content marketing
on Facebook with organic reach) and, if successful, they then change into
reach media (eg Facebook turned into a big traditional ad platform)
o Brand typically evolve from relevance-based niche players to reach-based
big companies
o Marcom objectives: a lot of reach (recall, TOMA, visits…) and a bit of
relevance (WOM, loyalty…), usually structured in cognitive – attitudes –
behavior
- Train yourself:
o When confronted with a (new) marcom example:
1. Categorize paid – owned – earned costs and potential
2. Analyze the degree of reach and relevance it has
3. Compare this with potential marcom objectives (cognition, attitude,
behavior)
4. Evaluate how much it makes sense
The “theory” behind advertising
- Early models explaining advertising eXects:
o Hierarchy of eXects:
§ Linear evolution from cognitive over aXective to behavioral eXects
§ Examples: AIDA, DAGMAR…
• AIDA = Awareness, Interest, Desire, Action
• DAGMAR = Defining Advertising Goals for Measuring
Advertising Results
§ Wider parts = more people – mass media
§ Later refined into diXerent hierarchies such as the Foote-Cone-
Belding grid
o Funnel metaphor still used extensively
§ Can partly explain the continued focus on eyeballs as a marcom
goal
§ In the end of the funnel, people buy your product
4
Chapter 1: Setting the scene & MarCom basics
Setting the scene
- News article The Guardian
o “Global and market faces ‘car crash’ next year amid cost-of-living crisis”
o Pandemic à blow to advertising industry
o Tv advertising big part of advertising industry
o Influencer advertising small part, not the amount we thought it was going
to be
o Search advertising: google search results that are sponsored
The relevance of an advertising course?
- Article: Tv is dead, long live Facebook tv
- See recording for examples and cases
The ad industry has an identity crisis
- Focus on societal values
o Awards go to societal returns
- #fearlessgirl
o Statue that appeared in Wall Street
o PR fuzz about it: what is this statue? (media attention)
o It’s not advertising
o Won awards for outdoor advertising and PR
o BUT what does it advertise??
§ An index fund boosting gender-diverse companies of the investor
company State Street Global Advisors
An advertising crisis?
- Hardly any branding campaigns (we don’t give awards to them anymore)
- Cannes Lions mostly awarded to social good campaigns or one-oX events
o … hardly any branding campaigns
- Big agencies deciding not to attend the big awards anymore
o They do all the traditional hard work
o They don’t go to the big ‘blowjob’
- Consultancy firms like Deloitte buying their way into advertising
Philip Kotler, godfather of marketing
- Marketing covers everything
- Marketing communication is the part that covers communication within
marketing
1
, - He wrote the ‘bibles’ of marketing
- Marketing 5.0: five phases in marketing (we’re now in the 5th phase)
1. Product-driven
2. Customer-oriented (pulling people in)
3. Human-centric (value-driven approaches, values that people really
support; eg sustainability)
4. Moving to digital New CX
5. Marketing in Digital World New CX x Next Tech
- Information -> message -> tools -> personas & experiences
- See slides for more visuals
The end goal of an academic advertising course
- To become the Flash Gordon, the savior of the advertising industry
- Not all cool ideas are good ideas
- Fewer but better ads are to be preferred
- Science and analysis will boost eXectiveness, also in traditional advertising
- Scientific mindset will help understand what eXects to expect and monitor
- ESPECIALLY true for the non-traditional advertisers: organizations with limited
budget
Approach
- We will study the typical ad communication and reflect on the psychological
underpinnings of persuasion and nudging
- As such, some current “models” in advertising will remain unexplored. These
typically have too little research or are too wide to provide evidence-based and
academic conclusions about their eXects. This is not a what-is-fashionable-in-
advertising course
Marcom basics (De Pelsmacker et al.)
- Marcom media and tools
Mass media ads (tv, internet, radio, newspapers)
Specialized media ads (magazine, movie theatre,
Above-the- blogs)
line Paid media Outdoor advertising (billboard, train station etc)
Sponsorships
Influencers
POP marketing: packaging…
Direct marketing (mail)
Below-the- Sales
line Owned media Trade fairs, webcasts…
Brand websites, fan pages, own social media
Earned media Word-of-mouth (consumers, press, influencers)
2
,- Marcom stakeholder groups
Media <> consumer <> advertiser
o Advertisers want to persuade consumers and need “media” to reach
them.
o Media need advertisers for revenue.
o Tensions/actions from one group can aXect both other groups (eg
dissatisfied customer can blame the medium and/or the advertiser)
- Marcom, branding, campaigns
o Branding = a long-term strategic perspective on how to build, grow and
maintain your brand value. Marcom should always serve the brand
strategy
o Campaign = a strategically planned chronology and collection of
marcoms with a common creative appeal and an appropriate
communication strategy and budget planning per medium
- Marcom dynamics: reach vs relevance
o Cf Elaboration Likelihood model & System 1/System 2
o Reach = hardly noticed peripheral cues aXect us, certainly when repeated
over and over again (Sharp: distinctive assets + constant availability)
o Relevance = the best way to make consumers attentive of your messages
is to make it relevant. This will make them cognitively involved in the
message
- ELM and Reach vs Relevance
o Solid advice based on ELM: there are two important pitfalls, one for each
of the main marcom strategies
1. When aiming for eyeballs, you are typically satisfied with low
involvement, peripheral processing. Do not forget to use appropriate
peripheral cues to lift your ad eXect
3
, 2. When aiming for relevance, you’ll use all kinds of tricks to increase the
odds of high involvement, central processing. Do not forget to make
sure the attitude eXect is positive
- 95% of marcom is reach (80%) vs relevance (15%)
o Media cost: higher reach or higher relevance per reach = more expensive
o Most “new” media start from the relevance position (eg content marketing
on Facebook with organic reach) and, if successful, they then change into
reach media (eg Facebook turned into a big traditional ad platform)
o Brand typically evolve from relevance-based niche players to reach-based
big companies
o Marcom objectives: a lot of reach (recall, TOMA, visits…) and a bit of
relevance (WOM, loyalty…), usually structured in cognitive – attitudes –
behavior
- Train yourself:
o When confronted with a (new) marcom example:
1. Categorize paid – owned – earned costs and potential
2. Analyze the degree of reach and relevance it has
3. Compare this with potential marcom objectives (cognition, attitude,
behavior)
4. Evaluate how much it makes sense
The “theory” behind advertising
- Early models explaining advertising eXects:
o Hierarchy of eXects:
§ Linear evolution from cognitive over aXective to behavioral eXects
§ Examples: AIDA, DAGMAR…
• AIDA = Awareness, Interest, Desire, Action
• DAGMAR = Defining Advertising Goals for Measuring
Advertising Results
§ Wider parts = more people – mass media
§ Later refined into diXerent hierarchies such as the Foote-Cone-
Belding grid
o Funnel metaphor still used extensively
§ Can partly explain the continued focus on eyeballs as a marcom
goal
§ In the end of the funnel, people buy your product
4
