MODULE 3

1. Advertising: Definitions; Importance; Objectives

2. Advertising in Various Media: TV; News paper; Magazines
3. Budgeting of advertising
4. Timing of advertising
5. Advertising Agencies: Functions, Compensation, Appraisal
6. Ad Campaign planning
7. Advertisement Copy preparation and testing
8. Evaluation of advertising
9. Regulatory framework for advertising
10. Ethics in advertising
11. Media planning
12. Selection of advertising
13. Building of advertising program- Message, headlines, Copy, Logo,
illustration, Appeals, Layout
14. Creativity in advertising 1
 ADVERTISING
• Advertising is a paid form of non-personal presentation
and promotion of ideas, goods, or services by an
identified sponsor. (PHILIP KOTLER)

• Advertising is a paid form of non-personal

communication or information about products or ideas by
an identified sponsor through the media to influence /
persuade behaviour of the potential customers.

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 Features of

Advertising has three main intentions:

(i) INFORM, (ii) EDUCATE, and (iii) PERSUADE.
 INFORM potential customers about products, services, & events.
 EDUCATE about a specific product, service, event, theme, etc.
 PERSUADE to act as per plan and accomplish the objective of ads.
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 IMPORTANCE OF ADVERTISING
1. Awareness and Information
 Creating awareness about products, services, or brands.
 Provides information to consumers on features & benefits.

2. Brand Building
 Contributes to good will creation and brand building.
 Lead to increased brand loyalty and trust among consumers.

3. Market Expansion
 Reach a wider audience and tap into new markets.
 Expand geographically & target different demographic segments

4. Revenue Generation
 Financial success of business - Increase sales and revenue.

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 IMPORTANCE OF ADVERTISING
5. Competitive Edge
 Helps companies to highlight its Unique Selling Propositions.
 Differentiate their products / services from that of competitors
6. Economic Growth
 Stimulates economic activity by creating demand for products.
 Leads to Increased employment, and overall economic growth.
7. Educational role & Social Impact
 Inform about health & hygiene related issues.
 Power to influence societal norms and behaviors.
 Promote social causes, national interests & positive social change.
8. Support for Media
 Revenue from advertisements funds the operations of Media
 Revenue from Ads helps support journalism & entertainment.6
IMPORTANCE OF ADVERTISING

• Refers to shortsighted decision, and impracticality of an action.

• Cutting costs on essential activities like advertising may save
money in the short term; but it can have detrimental effects on
the overall success and longevity of the business.
• Consistent & continuous marketing efforts ensure long term
success and growth for a business.
• Advertising expenses is not an expense, but an investment.
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 OBJECTIVES OF ADVERTISING
• IMPORTANCE refers to OVERALL value and role of advertising
in the business landscape. Why advertising matters?
• OBJECTIVES refers to SPECIFIC outcomes / goals [roadmaps]
that companies aim to achieve through their advertising campaigns.

• Introduce a product or brand

• Awareness creation • Educate & inform
• Generate Leads • Customer loyalty & retention
• Acquire customers • Change Perceptions
• Target Specific Audiences • Promote Special Offers / Events
• Market Positioning • Social Responsibility
• Create desire • Differentiation
• Call to action (Sale) • Brand building
• Increase Sales & profits 8
 ADVERTISING MEDIA
Right mix of various advertising media (Traditional & Digital media)
depends on:
 Target audience
 Available budget
 Specific goals of the campaign
 Nature of the product or service.

POPULAR MEDIA
Television (TV), Radio Website, Mail
Print (Newspapers & Magazines) Cinema Advertising
Outdoor / Billboards Event Sponsorship
Online / Digital Advertising Public Relations (PR)
Social Media Advertising Influencer Marketing
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 ADVANTAGES & DISADVANTAGES
OF EACH ADVERTISING MEDIA

1. TELEVISION (TV)
[+] Wide reach, Visual and auditory impact,
Ability to convey emotions effectively.
[-] Effectiveness may vary based on time slots, Cost can be
high.
2. RADIO
[+] Cost-effective, Reaches local audiences,
Can target specific demographics.
[-] Limited by lack of visual impact compared to TV,
Relies solely on auditory communication.
3. PRINT (Newspapers & Magazines)
[+] Tangible and can be kept for reference, Local targeting,
Diverse readership options.
[-] Declining readership in some markets,
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Limited space for detailed information.
 ADVANTAGES & DISADVANTAGES
OF EACH ADVERTISING MEDIA

4. OUTDOOR/BILLBOARDS
[+] High visibility, Constant exposure, Apt for local targeting.
[-] Limited space for information, Short exposure time.

5. ONLINE / DIGITAL ADVERTISING

[+] Targeted advertising, Measurable results, Diverse
formats (banner ads, social
media, search engine ads).
[-] Ad-blockers, Potential for ad fatigue,
Rapid changes in digital trends.
6. SOCIAL MEDIA ADVERTISING
[+] Highly targeted, Interactive, Cost-effective,
Real-time engagement.
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[-] Requires active management, potential for negative
 ADVANTAGES & DISADVANTAGES
OF EACH ADVERTISING MEDIA

7. SEARCH ENGINE MARKETING (SEM)

[+] Targets users actively searching for specific products,
Measurable results.
[-] Cost-per-click can vary, Competition for popular
keywords.

8. DIRECT MAIL
[+] Highly targeted, Tangible, Personalized, Measurable.
[-] Can be considered as junk mail, Environmental
concerns, Potential for high
printing and postage costs.
9. CINEMA ADVERTISING
[+] Captive audience, High-quality visuals and sound.
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[-] Limited reach compared to TV,
 ADVANTAGES & DISADVANTAGES
OF EACH ADVERTISING MEDIA
10. EVENT SPONSORSHIP
[+] Builds brand association, Targets specific audiences,
Opportunities for direct
engagement.
[-] Effectiveness depends on the relevance of the event,
Costs can vary,
11. PUBLIC RELATIONS (PR)
[+] Builds credibility, Manages public perception,
Often includes editorial coverage.
[-] Results may take time, Limited control over messaging.
12. INFLUENCER MARKETING
[+] Leverages the influence of individuals, authentic
endorsements, and targeted audiences.
[-] Potential for influencer controversies, Difficult to measure
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 PROPER PLACEMENT OF
ADVERTISEMENT IN MEDIA
• Success of Advertisement depends on the selection of suitable
PLATFORM (MEDIA) where an advertisement is released.

• Before placing an AD on any mass media, the advertiser must:

(i) Determine the POTENTIAL CUSTOMERS to target.
(ii) Decide on the TYPE OF MARKET to target, and to penetrate.
(iii) Decide TOTAL NUMBER of potential customers to reach.
(iv) Prepare Advertisement BUDGET.

• The success rate of an Advertisement Campaign can increase, if

advertiser takes correct decisions on crucial matters like:
Where, When, How, How Long, etc.
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 ADVERTISING BUDGET
 Advertising budget is a financial document that shows the estimate of
the total amount to be spent on advertising by a company over a certain
period to achieve its marketing objectives.
 Translates the advertising plan into money to be spend
 The cost of ad expenses must be weighed against the recognized
potential revenues that advertising expenses will generate.
 Ad budget is an investment for company’s future growth.
 Advertising activities include:
 Conducting a market survey,
 Getting advertisement creatives made and printed,
 Promotion by way of print media, digital media, and social media
 Running advertising campaigns, etc. 16
 ADVERTISING BUDGETING
PROCESS
• Advertising budgeting process refers to the process of determining
the amount of money that will be allocated to advertising
initiatives by a company within a specific time frame.
• Helps companies plan and execute effective advertising
campaigns.
• Ensure the resources are utilized efficiently.
• Developing a well-structured advertising budget supports the
company to achieve marketing goals and ensures a positive return
on investment.

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1 6 7

2 5 8

3 9
4

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STEPS IN ADVERTISING BUDGETING PROCESS
• Clearly define the Advertising Objectives
• Understand Target Audience
• Conduct Market Research
• Define Key Performance Indicators (KPIs)
• Determine the Budgeting Method
• Preparing the Advertising Budget
• Approval of top Management
• Estimate the cost of advertising in various media
• Allocate Budget to different Media / Channels
• Seasonal Considerations
• Monitor, Review and Adjust
• Evaluation of the ad performance in various media
• Flexibility - Changes in existing budgeting strategy
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 ADVERTISING BUDGETING PROCESS
1. Set Clear Objectives: Clearly define the marketing and ad objectives of the advertising campaigns,
whether it's brand awareness, lead generation, sales promotion, or customer retention.
2. Understand Target Audience: Identify and understand your target audience. Knowing the targeted
audience helps in choosing the right channels and crafting messages that resonate with them.
3. Conduct Market Research: Gather relevant data and insights about your industry, competitors, and
market trends. This information will help you make informed decisions about the budget allocation.
4. Define Key Performance Indicators (KPIs): Establish measurable KPIs that align with the
advertising objectives. Common KPIs include return on investment (ROI), customer acquisition cost
(CAC), conversion rates, and brand metrics.
5. Determine the Budgeting Method: Choose an appropriate budgeting method.
6. Allocate Budget Across Channels: Decide how to distribute the budget across various advertising
channels, such as online advertising, social media, print, TV, radio, and events. Consider the effectiveness
and reach of each channel in reaching your target audience.
7. Seasonal Considerations: Take into account any seasonality or specific events that might impact your
business. Allocate more budget during peak seasons or strategic periods.
8. Review and Adjust: Regularly review the performance of your advertising campaigns and adjust the
budget as needed. Use analytics and feedback to optimize your spending for better results.
9. Integrated Marketing Communications (IMC): Ensure that the ad budget aligns with the overall
marketing strategy and is integrated with other communication efforts to maintain a consistent brand message.
10. Flexibility: Be open to adjusting the budget if market conditions, consumer behavior, or other factors
change. Flexibility is crucial for adapting to dynamic environments.
11. Monitor and Measure: Implement tracking and measurement tools to monitor the performance of ad
campaigns against the established KPIs. Regularly assess the effectiveness of the budget allocation. 20
 ADVERTISING BUDGETING
METHODS
• The choice of ad budgeting method depends on:
(i) Business goals, (ii) Industry dynamics, (iii) Available
resources
(iv) Nature of the products / services being promoted.
• Companies often use a combination of methods
• Companies adjust their approach over time based on changing
circumstances.

COMMON METHODS:
1. Percentage of Sales 5. Affordability
2. Historical Method 6. Return on Investment (ROI)
3. Objective - Task Method 7. Hybrid Methods
4. Competitive Parity 21
 ADVERTISING BUDGETING METHODS
COMMON METHODS
1. Percentage of Sales Method
Allocate a fixed % of projected sales revenue to the ad
budget.
B2B companies: 2% - 5% of their sales revenues for ads.
B2C companies: 5% - 10% of their sales revenues for ads.
Formula: Ad Budget = (Percentage of Sales) x (Total Sales)
[+] Easy to calculate, Directly tied to sales performance.
[-] Doesn't consider market conditions or competitors.
2. Historical Method
It is an ad budgeting approach based on past expenditure
patterns.
Looks at its historical ad expenses and uses it as a reference
point for determining the ad budget for the future.
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[+] Straightforward way to determine the advertising budget.
 ADVERTISING BUDGETING METHODS

3. Objective - Task method

- Determine advertising objectives (product launch, new market
entry)
- Outline tasks needed to achieve them, and
- Allocate budget accordingly.
[+] Aligns with specific goals, Encourages strategic
planning.
[-] Requires a clear understanding of tasks and objectives,
More time-consuming (detailed planning).
4. Competitive Parity Method
- Set the competitor ad budget & spending as a benchmark
for a company’s own spending.
[+] Provides a reference point
[-] Assumes competitors have sound budgeting strategies, 23
 ADVERTISING BUDGETING METHODS
5. Affordability
- Allocate funds based on what the company can afford after
covering other expenses.
[+] Ensures budget aligns with financial capabilities,
Simple to implement.
[-] May not support growth objectives,
may result in insufficient advertising.
6. Return on Investment (ROI)
- Allocate budget based on the expected return on investment
from advertising efforts.
[+] Emphasizes performance and results, encourages
efficiency.
[-] Requires accurate ROI predictions,
Challenging for new or untested campaigns.
7. Hybrid Method 24
ADVERTISING BUDGETING METHODS

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 TIMING AND SCHEDULING OF ADS
 Advertising scheduling refers to the strategic planning and
optimization of timing (when) and frequency (how often) of ads
placements to a target audience.
 Determine the timing, frequency, and duration of ad placements.
GOAL:
 Optimize the impact and effectiveness of ads by presenting
them to the target audience at the right time in right frequency
to maximize the impact of the ad message.
 Maximize reach, engagement, & overall campaign effectiveness.
 Effective ad scheduling requires a deep understanding of the
target audience, market trends, and the goals of the ad campaign.
 Crucial for a successful marketing strategy & ads strategy
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 TIMING & SCHEDULING OF ADS
CONSIDERATIONS
1. Understand the Media Consumption Habits:
Identify when the target audience are most active & receptive to ads.
2. Consider the seasonality of products:
Higher demand during specific seasons, holidays, or events.
3. Align with Seasons:
Align ads with relevant events & holidays of the target audience.
4. Frequency Capping:
Use frequency capping to control the number of times a user sees
the advertisements within a specific time frame.
5. Digital Analytics:
Use digital analytical tools to monitor real time performance of ads.
Adjust as per most engagement and conversions.
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SCHEDULING MODELS FOR AD CAMPAIGNS
1. CONTINUITY
 Ad scheduling is evenly spread over a specified time period.
 Suitable for products / services with consistent demand and
where a continuous presence in the market is essential.
Eg: Household goods or staple items

2. FLIGHTING (Intermittent)
 Ad scheduling involves alternating periods of advertisements
with periods of no advertising.
 Intermittent, with gaps in advertising
 Common for products with seasonal demand

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SCHEDULING MODELS FOR AD CAMPAIGNS

3. PULSING SCHEDULING
 Combines elements of Continuous and Flighting scheduling.
 Maintains a base level of advertising throughout the campaign;
but with heavier weight of ads in some periods.
Eg: Movies: Baseline level of promotion @ all times.
Intensified efforts around key release dates.

4. SEASONAL SCHEDULING
Scheduling focuses on specific seasons, holidays, or events that
are relevant to the product or service. Eg: Christmas - cakes
5. GEOGRAPHIC SCHEDULING
Scheduling based on geographic considerations
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TIMING PATTERN IN ADVERTISING

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 TIMING PATTERN IN ADVERTISING

1. CONCENTRATED: Focus ad efforts during specific periods.

2. CONTINUOUS: Maintain a steady and consistent level of ads
over an extended period without significant breaks.
3. INTERMITTENT: Occasional bursts of advertising activity with
breaks in between.
4. LEVEL: A consistent and uniform level of advertising throughout
the campaign.
5. RISING: Gradual increase in the intensity or frequency of
advertising over time.
6. FALLING: Gradual reduction in ads intensity or frequency.
7. ALTERNATING: Alternating between periods of high and low
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advertising activity.
 ADVERTISING AGENCY
• Advertising Agency is an independent professional service firm
comprising creative and business professionals who specialize in
preparing advertising plans, and developing & managing
advertisements and other promotional tools for their clients.
• Consists of professionals with expertise in various areas such as
Creative writing, Graphic design, Marketing strategy, Media
planning, etc.
• PRIMARY GOAL: Help business firms to effectively communicate
their messages to their target audience and achieve their marketing
objectives. This can involve:
(i) creating advertising campaigns,
(ii) designing visual materials,
(iii) selecting appropriate media channels, and
(iv) analyzing the performance of the advertisements.
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 ALTERNATIVE WAYS TO PERFORM
ADVERTISING FUNCTION
1. Use an in-house advertising operation
2. Select a full-service advertising agency
3. Purchase advertising services on need basis
(as and when advertisements are required)

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ADVERTISING AGENCIES

IN INDIA GLOBAL LEVEL

 Ogilvy & Mather  WPP (WPP plc)
 JWT India  Omnicom Group
 Lowe Lintas  Interpublic Group
 McCann Erickson India  Publicis Groupe
 Dentsu Group
 DDB Mudra
 Havas Group
 BBDO India
 BBDO Worldwide
 Grey Worldwide India
 Leo Burnett Worldwide
 Leo Burnett India  Saatchi & Saatchi
 Cheil India  TBWA Worldwide
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 FUNCTIONS OF AD AGENCIES
• Ad agencies play a crucial role in the development and execution
of advertising campaigns for businesses and organizations by
creating impactful and targeted campaigns.

FUNCTIONS
1. Market Research 7. Public Relations (PR)
2. Strategic Planning 8. Analytics and Measurement
3. Creative Development 9. Client Relations
4. Media Planning and Buying 10. Creative Consultation
5. Campaign Implementation 11. Budget Management
6. Digital Marketing 12. Market Trend Analysis

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FUNCTIONS OF AD AGENCIES

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FUNCTIONS OF AD AGENCIES

1. Market Research
To gather information about the target audience, industry trends, and
competitive landscape.

2. Strategic Planning
Develop a comprehensive advertising strategy which involves Defining the
campaign objectives, Identifying the target audience, and Determining the key
message and positioning.

3. Creative Development:
Create effective ad materials which includes Designing print ads, Producing
TV and radio commercials, Developing online content, etc.

4. Media Planning and Buying:

Choose the right media channels to reach their target audience.
Selection of appropriate platforms - TV, radio, print, online, social media .
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Negotiate and purchase advertising space or time.
FUNCTIONS OF AD AGENCIES

5. Campaign Implementation
Execute the ad campaign across various channels including
Coordinating the production of materials, Scheduling media
placements, and Monitoring the campaign's performance.
6. Digital Marketing:
Social media management, Search engine optimization (SEO),
Online advertising, and Content marketing.
7. Public Relations (PR):
Help clients manage their public image involving writing press
releases, organizing events, and handling crisis communication.
8. Analytics and Measurement:
Use analytics tools to measure the effectiveness of ad campaigns.
Analyze KPIs to determine the impact of the campaign
and make adjustments as needed. 38
FUNCTIONS OF AD AGENCIES

9. Client Relations:
Building and maintaining strong relationships with clients.
Collaborate closely with clients to understand their business goals,
provide updates on campaign progress, and address any concerns.
10. Creative Consultation:
Offer expertise on design, messaging, and branding to enhance the
overall impact of the advertising materials.
11. Budget Management:
Prepare advertising budgets, ensure best possible ROI is achieved.
Ensure that campaigns are executed within the allocated resources.
12. Market Trend Analysis:
Mapping the current industry trends helps to provide clients with
innovative and effective strategies.
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 Criteria for Selecting the Ad
Agency
1. Location: Locally located
2. Size of Agency: Large size agencies serves big clients @ high price
3. Rates charged
4. Creativity, and Compatibility
5. Range of Services rendered by Ad-agency
6. Clientele: Inquire about current and past clientele.
7. Agency working for competitors
8. Expertise: Past performance of the agency give an idea about the
way they work and the end result which is delivered
9. Credibility, Applauds and recognition in delivering services.
10. Experience of agency: Familiarity with competitors’ policies,
Taste of consumer, Consumer responses, Fashions and trends,
Reputation of different media etc. 40
COMPENSATION METHODS OF AD AGENCY

Choice of a particular compensation method depends:

(i) the scope of work,
(ii) the level of effort required, and
(iii) the preferences of both the agency and the client.

NECESSITY: Ad Agency Client shall have a clear understanding of

the compensation method and to establish transparent
communication regarding costs, expectations, and deliverables.

The choice of compensation method can significantly impact the

dynamics of the client-agency relationship.

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COMPENSATION METHODS OF AD AGENCY

1. COMMISSIONS BASED
Ad agencies charge the clients a commission based on media space /
time purchased for a campaign.
Standard commission - around 15%; It is a traditional model.

2. COST-PLUS AGREEMENT
Client agrees to pay the agency a fee based on the costs of its work,
hours spent PLUS mutually agreed profit / margin.

3. FEE BASED COMPENSATION

Agency charges a basic monthly fee / project based fee for its services
Fee is determined based on the scope of work, the amount of time and
resources required, and the expertise of the agency.

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COMPENSATION METHODS OF AD AGENCY
4. PERFORMANCE BASED
Agency is compensated based on the basis of the performance and
results of the ad campaigns, i.e. Leads generated, Sales increase.
Based on achieving certain key performance indicators (KPIs) or
meeting specific business goals.
Aligns the interests of the agency with the success of the client.

5. HOURLY RATES BASED

Agencies can charge clients based on the number of hours worked by
their team members. Different roles within the agency may have
different hourly rates.

6. PROJECT BASED
Agencies may charge a flat fee for a specific project; not dependent
on the time / resources expended.
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 ADVERTISEMENT CAMPAIGN
Advertisement campaign refers to a coordinated series of promotional
activities, designed to reach a target audience through various
channels and media over a specified period.

STEPS IN AD CAMPAIGN
1. Define Advertising Goals & Objectives
2. Identify & define the target audience
3. Determine Advertisement Budget
4. Create a message and creative elements
5. Choose Advertising media channel (platform )
6. Develop Media Planning & buying
7. Create Advertisement Message
8. Production of Ads and execution of Ad Campaign
9. Real-time Monitoring of the campaign
10. Evaluate Advertisement effectiveness (Post-testing) 44
 5Ws & 1H of Advertising Campaign

Effective ad campaign must answer 5Ws & 1H

• WHO: The target audience
• WHAT: What content to say to create the desired response?
• WHY: Objective of the advertising / marketing campaign.
• WHEN: Timing & Scheduling of ad campaign.
• WHERE: Where is the target audience?
Use proper media channel to reach the location.
• HOW: Strategy from creative and media angle.
How to attain objectives?
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 ADVERTISING COPY
• Advertising copy refers to the written or spoken materials, which includes the headlines,
main body, sub-heads, pictures, images, captions, slogans, information about brand
names, trademarks, claims, advertisers name, logo, websites, etc. to attract the reader's
attention and be convincing.

• Ad copy aims to persuade and influence the audience to take some action, such as
audience’s attention, build interest, create desire, buying a product, subscribing to a
service, or engaging with a brand.

• Copywriting, the art and skill of writing persuasive advertising copy, plays a crucial role
in the success of marketing campaigns.

• Copywriters aim to
(i) Craft messages that convey the features and benefits of a product
(ii) Connect with the emotions and needs of the target audience.

• The tone, style, and language used in advertising copy can vary based on the product,
target demographic, and overall marketing strategy.
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 TECHNIQUES USED IN AD COPY
Commonly used techniques used by the ad copywriters in advertising copy
to persuade and influence potential customers are the following:

1. COMPLIMENTS: The people who purchase the product are smarter or

better than those who don’t.

2. COST SAVINGS: How investing in the product or service can save the
consumer money long-term.

3. DISCOUNTS: Offering deals (‘buy one, get one’) or Discounts (50%

off) can encourage potential buyers to make the purchase.

4. FREE TRIALS: A free trial of the product / service can entice the
potential leads into signing up.
5. INFLUENCER: Communicate that the influencers love the product or
service you are offering 47
TECHNIQUES USED IN AD COPY
6. OPTIONS: The product offers more options and customization for the
consumer than a competitor's products.
7. SCARCITY / URGENCY: Only Limited stock available. If you wait too
long to purchase, you may lose the chance to purchase.
8. TESTIMONIALS / REVIEWS: Sharing testimony / + reviews of satisfied
customers build trust & credibility. How customers have enjoyed your product and add
value to the lives of existing consumers.
9. TIME SAVINGS: Demonstrate to the customer how your product or
service can save the time by using the product.
10. UNIQUE SELLING PROPOSITION (USP): What makes your
product stand out from others? State the unique features and benefits of a
product differentiating it from competitors.
11. HUMOUR / ENTERTAINMENT FACTOR: Humorous elements in ads
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can make the content more enjoyable and memorable.
TECHNIQUES USED IN AD COPY
12. EMOTIONAL APPEAL: Connecting the product with emotions
(Happiness, Love, Fear, Excitement) helps create a memorable impact.
13. STORYTELLING / NARRATIVE APPROACH: Telling a
story can engage the audience and create a more memorable experience.
14. USE OF IMAGERY / VISUAL APPEAL: Incorporating
visually striking images and videos can capture attention quickly.
15. CELEBRITY ENDORSEMENTS: Associating a product with
a well-known celebrity can attract attention and enhance credibility.
16. ALIGNING WITH VALUES: Connecting the product / brand
with the values and beliefs of the target audience.
17. COMPARISONS: Comparing the product with competitors
and demonstrate superiority. Highlight the differences.
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 CHARACTERISTICS of Good Ad Copy
1. Clarity: Easily understandable, Self-explanatory.
2. Brief & Concise: Keep focused. Get straight to the point.
3. Persuasive: Capture attention with a compelling headline.
4. Relevance: Relevant to the target audience. Address the needs,
interests, or pain points of the targeted customers.
5. Unique Selling Proposition (USP): Unique features or benefits
of your product.
6. Emotional Appeal: Evoke emotions in target audience.
7. Visual Appeal: High-quality images and appealing graphics.
8. Proof of Claims: Evidence and validations using statistics,and
testimonials.
9. Call-to-Action (CTA): What action the audience to do next.
Eg: Make a purchase, signing up, or visiting a website
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 EVALUATION OF ADVERTISING
 Evaluation of advertising s refers to the managerial exercise
of assessing the effectiveness and impact of an ad campaign.
 The real value of ads are assessed by compares the various
aspects of advertisement to the intended goals & objectives.
 Advertising effectiveness is a method used to determine
whether a brand’s marketing efforts are hitting its target
audience and whether it’s getting the best returns.
 It enables brands to measure the strengths, weaknesses, and
Return On Investment of specific advertising campaigns, so
the company can adjust accordingly.

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 EVALUATION OF ADVERTISING

The evaluation of ads involves measuring factors such as:

1. Reach and Exposure: How many people have been exposed to the ads
through different channels?
2. Message Effectiveness: Message conveyed in the ad - is it clear,
memorable, and aligns with the intended brand image?
3. Audience Response: How the target audience reacts to the ads? Surveys,
focus groups, or interviews
4. Sales and Conversions: Actual sales increased? Track changes in sales
and other metrics like website visits, clicks, etc.
5. Brand Awareness: Increase in brand recognition among customer.
6. Return on Investment (ROI): Compare the expenses incurred and
increase in sales.
7. Media Effectiveness: Assess the performance of different media channels
and platforms used for the ads. 52
 EVALUATION OF ADVERTISING
2 distinct aspects of evaluating the impact of advertising campaigns.
(i) Communication effects, (ii) Sales
effects

1. COMMUNICATION EFFECTS
How well an ad campaign communicates its intended message and
influences the target audience’s perceptions, attitudes & awareness.

Key indicators of Communication Effects

Message Recall: How well the key messages in ad is remembered?
Brand Awareness: Level of brand awareness of the brand before and after.
Message Association: Associates the product with the desired qualities.
Attitude Change: Shift in the audience's attitudes towards the brand.
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Engagement Metrics: (context - digital ads) Likes, Shares, Comments.
 EVALUATION OF ADVERTISING

2. SALES EFFECTS
Direct impact of ads on actual sales & revenue generation.
Compare Current sales & profit with Past sales & profit

Key indicators of Sales Effects

Sales Volume: Changes in the quantity sold before, during and after
Conversion Rates: % of people who make a purchase / signing up.
Return on Investment (ROI): Compare the revenue generated
from the ad campaign with the costs incurred.
Customer Acquisition: Acquire new / Retain existing customers.
Promotional Codes and Offers: Track the usage of codes / offers.
Market Share: Changes in market share
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 METHODS OF TESTING AD
EFFECTIVENESS
2 broad types of testing advertisement effectiveness are:
1. Pre-testing 2. Post-testing.

1. PRE­TESTING
Pre-testing refers to the evaluation and assessment of an ad before
the ad is officially launched / exposed to the target
audience.
Pre-testing allows advertisers to make necessary adjustments to
improve the overall effectiveness of the ad campaign.
The primary purpose is to identify and rectify potential issues in
the ad materials before they reach the broader audience.
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METHODS OF TESTING AD EFFECTIVENESS

2. POST-TESTING
Post-testing occurs after the advertising campaign has been
launched and exposed to the target audience.

The primary purpose is to measure the actual impact and

effectiveness of the campaign in real-world conditions.

Post-testing helps advertisers understand how well the campaign

achieved its objectives.

It provides insights for future campaigns.

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 1. PRE-TESTING METHODS
1. CHECK LIST TEST
* A Checklist is prepared on the list of good qualities to be possessed by an
effective ad.
* Qualities are Honesty, Attention getting, Readability, Reliability, Convincing
ability, Selling ability, etc.
• Different ads are ranked on a Likert scale in terms of qualities.
The ad with highest score is considered as the best ad.

2. OPINION TEST / CONSUMER JURY TEST

• Feedbacks and preferences are gathered from a sample group of typical
prospective consumers (jury) of the product
• Members of the jury rate the ads to their headlines, themes, illustrations,
slogans, by direct comparisons.
• Jury rate - which is the most convincing ad? interesting ad? The top ranking
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ads get selected.
 PRE-TESTING METHODS

3. DUMMY MAGAZINE TEST

• Dummy magazine refers to a prototype / mock copy of a magazine that
is created for testing purposes.
• It assess the effectiveness of ads under conditions that resemble normal
exposure in a magazine or print media context.
• Dummy magazine contains both (i) the control ads that have been
already tested, and (ii) the ads to be tested.

4. PORTFOLIO TEST
• Portfolio test evaluate and compare multiple ads by presenting them
together in a portfolio or folder.
• This approach allows researchers to compare the effectiveness of
different ads, and select the most impactful one.
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 PRE-TESTING METHODS

5. INQUIRY TEST
• It is a method used to assess the effectiveness of an ad campaign by
measuring the level of interest generated from the audience.
• It focuses on the audience's inquiries, such as product samples, catalogs,
requests for additional information,, or other forms of engagement initiated
by consumers in response to the ad.

6. MECHANICAL TEST
• It refers to objective tests that measure physiological or mechanical
responses of individuals to an advertising stimuli.
• These tests provide insights into how individuals react to ads on a
subconscious or physiological level, beyond what may be captured
through traditional self-reported methods. 59
 2. POST - TESTING METHODS

Ways to measure the effectiveness of ad or promotional campaigns:

1. AIDED RECALL TEST: Respondents are provided with cues
or prompts to help them remember a specific ad / brand.
2. UNAIDED RECALL TESTS: It requires the respondents to
remember ads / brands without any prompts or cues. T
3. SALES RESULT TESTS: It involves analyzing sales data
before, during, and after a marketing campaign.
4. ENQUIRY TESTS: It involve tracking the number and nature
of inquiries or responses generated by a specific campaign.
5. ATTITUDE TESTS: It measures changes in consumer
attitudes or perceptions before and after exposure to an ad
campaign. 60
 ADVERTISING REGULATIONS
• Ad regulations refer to the rules, laws, and guidelines that govern the
creation, distribution, and display of advertisements.
• These regulations are formulated and enforced by governments,
industry bodies, and other regulatory authorities to ensure that ad
practices are fair, transparent, and do not mislead / harm consumers.
• Non-compliance with ad regulations can result in various
consequences, including fines, legal action, or restrictions on ads.
• Advertising Regulatory Bodies
INDIA: Advertisement Standards Council of India (ASCI)
US: Federal Trade Commission (FTC) for US
UK: Advertising standards Authority (ASA) for UK 61
 ADVERTISING REGULATIONS

KEY ASPECTS
1. Truthfulness and Accuracy: Not contain any false / misleading
information.

2. Fair Competition: Prevent unfair business practices among competitors.

3. Consumer Protection: Protect them from deceptive advertising practices.
4. Privacy: Consent for using personal data / information of consumes.
5. Health and Safety: Ads does not compromise public health and safety.
6. Children's Advertising: Avoid inappropriate or harmful to children.
7. Environmental Considerations: Ads does not lead to environmental harm
8. Ethical Standards: Ads adhere to ethical standards in their messaging.
62
9. Avoid Offensive contents: Avoid promoting socially irresponsible content.
 OBJECTIVES OF AD REGULATIONS
Advertising laws & regulation protects

TO CONSUMERS
 Protecting consumers from false or deceptive advertising.
 Provide true information on products / services to consumers.

TO BUSINESSES
 Promote fair competition among businesses.
 Not to be offensive towards competitors
 Within the bounds of generally accepted standards of public decency.

TO SOCIETY
 Address issues related to public health and safety.
 Ads are not used indiscriminately for the promotion of products.
 No hazardous / harmful products to individuals / society. 63
 Laws governing the Advertising in
India
• The Consumer Protection Act, 2019
• The Cable Television Network Rules, 1994
• The Cable Television Networks (Regulation) Act, 1995
• Drugs & Magic Remedies (Objectionable Advertisements) Act, 1954
• The Indecent Representation of Women (Prohibition) Act, 1986
• The Trade Marks Act, 1999
• The Copyright, Designs and Patents Act, 1988
• The Control of Misleading Advertisements Regulations, 1988
• The Food Safety & Standards Act, 2006
Self- Regulatory Bodies
• The Advertising Standards Council of India (ASCI)
64
 SELF - REGULATORY BODY FOR ADS IN
INDIA
Advertising Standards Council of India (ASCI)

• ASCI is a voluntary self-regulatory council formed in 1985.

• ASCI regulates the content of ads (published / broadcasted) in India.
• ASCI is efficient and effective redressal machinery for the stoppage
of misleading, untruthful, indecent or unfair ads.
• Overarching Goal:
To maintain and enhance the public’s confidence in advertising
• ASCI is formed through the association of
 The Indian Society of Advertisers
 The Advertising Agencies Association of India
 The Indian Newspapers Society
65
 Advertising Standards Council of India (ASCI)
 ASCI consists of
1. Board of Governors
2. Consumer Complaints Council (CCC)
 BOARD OF GOVERNORS
It consists of 16 elected members, constituted as:
4 from Advertisers, 4 from Advertising Agencies,
4 from Media, 4 from Allied
professions
 CONSUMER COMPLAINTS COUNCIL (CCC)
- BOG set up CCC to examine complaints received by ASCI
- 9 from the ad industry representing advertisers, ad
agencies, media owners and allied professionals.
- 12 from society at large, consists of eminent consumer activists,
66
educationalists, journalists, lawers, engineers, doctors, etc.
67
 ETHICAL ISSUES IN ADVERTISING
Ethical issues arises in the process of creating & disseminating ads.
Addressing these ethical issues in ads involves adherence to
industry standards, transparency, honesty, and
commitment to socially responsible practices.
Ethical advertising contributes to positive brand perception,
builds trust with consumers, and fosters a healthier ad
industry.
SOME COMMON ETHICAL ISSUES IN ADS
1. Deceptive Advertising: Intentionally mislead consumers.
False claims, exaggerated benefits, & manipulated visuals.
2. Manipulative Techniques: Use of psychological tactics to
manipulate emotions, fears, or insecurities to sell a product.
3. Stereotyping Portrayals: Ads perpetuating stereotypes
based on gender, race, ethnicity, etc. 68
ETHICAL ISSUES IN ADVERTISING
4. Privacy Concerns: Collecting personal data violating
consumers’ privacy. Private information is used publicly without
consent.
5. Children as a Target Audience: Exploit children's lack
of understanding / use manipulative tactics to influence their
choices.
6. Cultural Sensitivity: Respecting cultural differences.
Creating insensitive or offensive content to certain groups.
7. Environmental Impact: Ads promoting products that
contribute to environmental degradation or harm
8. Social Issues: Brands taking a stance on political / social
issues.
9. Addictive Products: Ads of addictive or harmful products,
69
such as certain types of foods, tobacco, or gambling.
 COPY APPROACH IN ADVERTISING
• Copy approach refers to the overall strategy or method used to
create the written content (copy) of an advertisement.
• It involves determining how the message will be presented to the
target audience and what tone or style will be employed to achieve
the desired impact.
• The copy approach encompasses decisions regarding the writing
style, language tone, structure, and content of the advertising
copy.
• Ad copy will be prepared based on:
(i) Specific characteristics of products / service;
(ii) Preferences of the target audiences, and
(iii) Marketing objectives (sale of products)
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COPY APPROACHES IN ADVERTISING

Copy approaches include:

(i) Factual approaches,
(ii) Imaginative approaches,
(iii) Emotional approaches, and
(iv) Combination

1. FACTUAL APPROACH:
Copy starts with facts / any factual information such as a product
related fact, historic issues or market information, etc.
Straightforward presentation of accurate information about product.
Emphasis on features, specifications, benefits of the products

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COPY APPROACHES IN AD
2. IMAGINATIVE APPROACH:
Uses creativity and imaginative elements to capture the audience’s
attention and create a memorable impression.
To convey the message, uses Storytelling, Creativity; Striking visuals,
graphics / designs; Creative language, Symbols and
metaphors, Humor and Entertainments, Play of words, etc.

3. EMOTIONAL APPROACH:
Uses the emotions, feelings and sentiments to create a strong and
memorable connection between the consumer & the brand.
Connect with the audience on an emotional level.

Eg: Relationships, Social belongingness, Respect, Love, Affection.

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