Thursday, January 5, 2012
Wednesday, December 22, 2010
The Perfect Solution–Participative Matrix Marketing
Need of the hour is to get the viewers attention. Advertisers are going through a tough time in doing so. Viewers today have unlimited choices for their entertainment. It is very difficult to hold them to view ads. It is not even sure if the entire message has been put across It is very simple. Advertisers want that you should watch their advertisements and they pay for that today whenever you watch television, listen to the radio, read a newspaper, see a billboard, or any of dozens of other methods. These all traditional advertising methods are not very effective as they once were. TV's now have DVR's where people can fast forward over commercials. Radios are getting replaced with MP3 players and newspapers with the Internet.
Industry Challenges
Owing to the widespread popularity of TV, the TV commercials are generally considered the most effective mass-market advertising form but with the introduction of digital video recorders (also known as digital television recorders or DTRs), such as TiVo, and services like Sky+, Dish Network and Astro MAX, which allow the recording of television programs onto a hard drive, also enable viewers to fast-forward or automatically skip through advertisements of recorded programs. Television advertisements appearbetween shows, but also interrupt them at intervals giving the break to the viewer and also capitalize on their interest. This method of screening advertisements is intended to pull the attention of the audience, keeping the viewers focused on the television show so that they will not want to change the channel; instead, they will (hopefully) watch the advertisements while waiting for the next segment of the show. However, remote have now made it easier for audiences to "tune out" advertisements simply by allowing them to turn down the volume or even switch channels when the advertisement comes on. Also people tend to do other things while the advertisements are on, while waiting for the program to resume. Additionally, television recording mechanisms such as DVR and TiVo have also allowed viewers to skip advertising completely during television programming.
Advertisements take airtime away from programs. Commercial breaks have also become longer. In the 1960s a typical hour-long American show would run for 51 minutes excluding advertisements. Today, a similar program would only be 42 minutes long; a typical 30-minute block of time now includes 22 minutes of programming with six minutes of national advertising and two minutes of local. Some networks even use an 18 minutes of show/12 minutes of commercial split. A television broadcast of the 101-minute film The Wizard of Oz (1939) for instance, could, in the early to mid-1960s, take two hours even with commercials. Today, a telecast of the same film would last approximately two hours and 15 minutes including commercials. In other words, over the courses of 10 hours, American viewers will see approximately three hours of advertisements, twice what they would have seen in the 1960s. Furthermore, if a 1960s show is rerun today it may be cut by nine minutes to make room for the extra advertisements In the 1950s and 1960s, the average advertisement's length was one minute. As the years passed, the average length shrank to 30 seconds (and often 10 seconds, depending on the television station's purchase of ad time), but more of them are now shown during the break, while in the '60's, only one or two advertisements would be shown at each break. However, today a majority of advertisements run in 15-second increments (often known as "hooks").
Advertisements take airtime away from programs. Commercial breaks have also become longer. In the 1960s a typical hour-long American show would run for 51 minutes excluding advertisements. Today, a similar program would only be 42 minutes long; a typical 30-minute block of time now includes 22 minutes of programming with six minutes of national advertising and two minutes of local. Some networks even use an 18 minutes of show/12 minutes of commercial split. A television broadcast of the 101-minute film The Wizard of Oz (1939) for instance, could, in the early to mid-1960s, take two hours even with commercials. Today, a telecast of the same film would last approximately two hours and 15 minutes including commercials. In other words, over the courses of 10 hours, American viewers will see approximately three hours of advertisements, twice what they would have seen in the 1960s. Furthermore, if a 1960s show is rerun today it may be cut by nine minutes to make room for the extra advertisements In the 1950s and 1960s, the average advertisement's length was one minute. As the years passed, the average length shrank to 30 seconds (and often 10 seconds, depending on the television station's purchase of ad time), but more of them are now shown during the break, while in the '60's, only one or two advertisements would be shown at each break. However, today a majority of advertisements run in 15-second increments (often known as "hooks").
Types of Advertising !!!!
Today virtually any medium is being used for advertising. Even media is being innovated all the time. Outdoor and transit media options are increasing immensely. Commercial advertising media can include wall paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and television adverts, web banners, mobile telephone screens, shopping carts, web popup, skywriting, bus stop benches, human caricature cutouts, magazines, newspapers, town criers, side panels of buses, banners attached to or sides of airplanes ("logojets"), in-flight advertisements on seatback tray tables or overhead storage bins, taxicab doors, roof mounts and passenger screens, musical stage shows, subway platforms and trains, elastic bands on disposable diapers, doors of bathroom stalls, stickers on apples in supermarkets, shopping cart handles (grabertising), the opening section of streaming audio and video, posters, and the backs of event tickets and supermarket receipts. Any place an "identified" sponsor pays to deliver their message through a medium is advertising.
Most popular modes of advertising today are TV, Radio, News paper,
Hoardings and Internet.
Broadly advertising is divided into two main categories.
Digital Advertising
Television Advertising / Music in Advertising :
The TV owing to its power and reach is generally considered the most effective mass-market advertising medium, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events. The annual Super Bowl football game in the United States is known as the most prominent advertising event on television. The average cost of a single thirty-second TV spot during this game has reached US$3 million (as of 2009). The majority of television commercials serve as a lively break to the programming and provide humour along with information in a highly creative manner. Infomercials: An infomercial is a long-format television commercial, typically five minutes or longer. The word "infomercial" combining the words "information" & "commercial". The main objective in an infomercial is to create an impulse purchase, so that the consumer sees the presentation and then immediately buys the product through the advertised toll or website. Infomercials arrange information in a 'to the point' manner so that the vitals of the products and their features are conveyed effectively and subsequently results in purchase.
Radio Advertising :
Radio advertisements are broadcast as radio waves to the air from a transmitter to an antenna and then to a receiving device. Airtime is purchased from a radio station or the numerous channels today in exchange for airing the commercials. While radio has the obvious limitation of being restricted to sound, proponents of radio advertising often cite this as an advantage and is often used while on transit.
Online Advertising :
Online advertising as is evident from the name uses the massive platform of the Internet and its potential for the expressed purpose of delivering marketing messages to attract customers. Examples of online advertising include contextual ads that appear on search engine results pages, banner ads, in text ads, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including e-mail spam.
Product placements :
In film advertising, also known as guerrilla or covert advertising is when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand, as in the movie Minority Report, where Tom Cruise's character John Anderton owns a phone with the Nokia logo clearly written in the top corner, or his watch engraved with the Bulgari logo. Another example of advertising in film is in I, Robot, where main character played by Will Smith mentions his Converse shoes several times, calling them "classics," because the film is set far in the future. I, Robot and Spaceballs also showcase futuristic cars with the Audi and Mercedes-Benz logos clearly displayed on the front of the vehicles. Cadillac chose to advertise in the movie The Matrix Reloaded, which as a result contained many scenes in which Cadillac cars were used. Similarly, product placement for Omega Watches, Ford, VAIO,BMW and Aston Martin cars are featured in recent James Bond films, most notably Casino Royale. In "Fantastic Four: Rise of the Silver Surfer", the main transport vehicle shows a large Dodge logo on the front. Blade Runner includes some of the most obvious product placement; the whole film stops to show a Coca-Cola billboard.
Press advertising :
Press and the print media, the most common form of advertising consists of advertising in a printed medium such as a newspaper, magazine, or trade journal. This encompasses everything from media with a very broad readership base, such as a major national newspaper or magazine, to more narrowly targeted media or special interest tools such as newspapers and trade magazines on very specialized topics. A form of press advertising is classified advertising, which allows private individuals or companies to purchase a small, narrowly targeted ad for a low fee, advertising a product or service. Another form of press advertising is the Display Ad, which is a larger ad (can include art) that typically occupies a larger space of a newspaper and is priced high. This comprises the mainline advertising in print media. Outdoor advertising: Hoardings are large structures located in public places which display advertisements to passing pedestrians and motorists. Most often, they are located on main roads largely busy with vehicular traffic; however, they can be placed in any location with large amounts of viewers, such as on mass transit vehicles and in stations, in shopping malls or office buildings, and in stadiums.
Mobile billboard advertising :
Mobile billboards are generally vehicle mounted billboards or digital screens which are mobile and go around preselected areas by the client, mostly those areas which are inhabited by its target audience. This vehicle creates interest by its peculiarity and also passes on the message effectively. These dedicated vehicles mounted by billboards are often lighted; some being backlit, and others employing spotlights. Some billboard displays are constant, while others change; for example, continuously or periodically rotating among a set of advertisements. Mobile displays are used for various situations in metropolitan areas throughout the world, including: Target advertising, one-day, and long-term campaigns, Conventions, Sporting events, Store openings and similar promotional events, and Big advertisements from smaller companies.
In-store advertising :
In-store advertising is any advertisement placed in a retail store. It includes placement of a product in visible locations in a store, such as at eye level, at the ends of aisles and near checkout counters, eye-catching displays promoting a specific product, and advertisements in such places as shopping carts and in-store video displays.
Celebrity branding :
This type of advertising takes help of celebrity power, fame, money, popularity to gain recognition for their products and promote specific stores or products. Celebrities often endorse their products, announcing or suggesting that the concerned brand is their favourite brand. Celebrities are often involved in advertising campaigns such as television or print adverts to advertise specific or general products. The use of celebrities to endorse a brand can also be sometimes detrimental to the brand. One mistake by a celebrity can be detrimental to the public relations of a brand. For example, following his performance of eight gold medals at the 2008 Olympic Games in Beijing, China, swimmer Michael Phelps' contract with Kellogg's was terminated, as Kellogg's did not want to affiliate with him after he was photographed smoking marijuana.
Most popular modes of advertising today are TV, Radio, News paper,
Hoardings and Internet.
Broadly advertising is divided into two main categories.
Digital Advertising
Television Advertising / Music in Advertising :
The TV owing to its power and reach is generally considered the most effective mass-market advertising medium, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events. The annual Super Bowl football game in the United States is known as the most prominent advertising event on television. The average cost of a single thirty-second TV spot during this game has reached US$3 million (as of 2009). The majority of television commercials serve as a lively break to the programming and provide humour along with information in a highly creative manner. Infomercials: An infomercial is a long-format television commercial, typically five minutes or longer. The word "infomercial" combining the words "information" & "commercial". The main objective in an infomercial is to create an impulse purchase, so that the consumer sees the presentation and then immediately buys the product through the advertised toll or website. Infomercials arrange information in a 'to the point' manner so that the vitals of the products and their features are conveyed effectively and subsequently results in purchase.
Radio Advertising :
Radio advertisements are broadcast as radio waves to the air from a transmitter to an antenna and then to a receiving device. Airtime is purchased from a radio station or the numerous channels today in exchange for airing the commercials. While radio has the obvious limitation of being restricted to sound, proponents of radio advertising often cite this as an advantage and is often used while on transit.
Online Advertising :
Online advertising as is evident from the name uses the massive platform of the Internet and its potential for the expressed purpose of delivering marketing messages to attract customers. Examples of online advertising include contextual ads that appear on search engine results pages, banner ads, in text ads, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including e-mail spam.
Product placements :
In film advertising, also known as guerrilla or covert advertising is when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand, as in the movie Minority Report, where Tom Cruise's character John Anderton owns a phone with the Nokia logo clearly written in the top corner, or his watch engraved with the Bulgari logo. Another example of advertising in film is in I, Robot, where main character played by Will Smith mentions his Converse shoes several times, calling them "classics," because the film is set far in the future. I, Robot and Spaceballs also showcase futuristic cars with the Audi and Mercedes-Benz logos clearly displayed on the front of the vehicles. Cadillac chose to advertise in the movie The Matrix Reloaded, which as a result contained many scenes in which Cadillac cars were used. Similarly, product placement for Omega Watches, Ford, VAIO,BMW and Aston Martin cars are featured in recent James Bond films, most notably Casino Royale. In "Fantastic Four: Rise of the Silver Surfer", the main transport vehicle shows a large Dodge logo on the front. Blade Runner includes some of the most obvious product placement; the whole film stops to show a Coca-Cola billboard.
Press advertising :
Press and the print media, the most common form of advertising consists of advertising in a printed medium such as a newspaper, magazine, or trade journal. This encompasses everything from media with a very broad readership base, such as a major national newspaper or magazine, to more narrowly targeted media or special interest tools such as newspapers and trade magazines on very specialized topics. A form of press advertising is classified advertising, which allows private individuals or companies to purchase a small, narrowly targeted ad for a low fee, advertising a product or service. Another form of press advertising is the Display Ad, which is a larger ad (can include art) that typically occupies a larger space of a newspaper and is priced high. This comprises the mainline advertising in print media. Outdoor advertising: Hoardings are large structures located in public places which display advertisements to passing pedestrians and motorists. Most often, they are located on main roads largely busy with vehicular traffic; however, they can be placed in any location with large amounts of viewers, such as on mass transit vehicles and in stations, in shopping malls or office buildings, and in stadiums.
Mobile billboard advertising :
Mobile billboards are generally vehicle mounted billboards or digital screens which are mobile and go around preselected areas by the client, mostly those areas which are inhabited by its target audience. This vehicle creates interest by its peculiarity and also passes on the message effectively. These dedicated vehicles mounted by billboards are often lighted; some being backlit, and others employing spotlights. Some billboard displays are constant, while others change; for example, continuously or periodically rotating among a set of advertisements. Mobile displays are used for various situations in metropolitan areas throughout the world, including: Target advertising, one-day, and long-term campaigns, Conventions, Sporting events, Store openings and similar promotional events, and Big advertisements from smaller companies.
In-store advertising :
In-store advertising is any advertisement placed in a retail store. It includes placement of a product in visible locations in a store, such as at eye level, at the ends of aisles and near checkout counters, eye-catching displays promoting a specific product, and advertisements in such places as shopping carts and in-store video displays.
Celebrity branding :
This type of advertising takes help of celebrity power, fame, money, popularity to gain recognition for their products and promote specific stores or products. Celebrities often endorse their products, announcing or suggesting that the concerned brand is their favourite brand. Celebrities are often involved in advertising campaigns such as television or print adverts to advertise specific or general products. The use of celebrities to endorse a brand can also be sometimes detrimental to the brand. One mistake by a celebrity can be detrimental to the public relations of a brand. For example, following his performance of eight gold medals at the 2008 Olympic Games in Beijing, China, swimmer Michael Phelps' contract with Kellogg's was terminated, as Kellogg's did not want to affiliate with him after he was photographed smoking marijuana.
The Advertising Cycle !!!!
The process of advertising starts with companies to ad agencies, ad agencies to broadcasters and broadcasters to viewers. In this cycle everyone makes money apart from the viewers. Where as they make money because of the viewers only. But now its your turn to make money in this $500 Billion Industry.
Who's Who In Advertise?
Let’s have an over view of the kind of money spend by companies. As you can see they spend billions of dollars each year to reach out to their customers.
Worldwide Advertising Expenditures of Industry Giants
1 Procter & Gamble Co. US$4,479 million
2 Unilever US$3,315 million
3 General Motors Corp. US$ 3,218 million
4 Toyota Motor Corp. US$2,405 million
5 Ford Motor Co. US$2,387 million
6 Time Warner. US$2349 million
7 Daimler Chrysler. US$1,800 million
8 L'Oreal. US$1,683 million
9 Nestle SA. US$1,547 million
10 Sony Corp. US$1,513 million
Worldwide Advertising Expenditures of Industry Giants
1 Procter & Gamble Co. US$4,479 million
2 Unilever US$3,315 million
3 General Motors Corp. US$ 3,218 million
4 Toyota Motor Corp. US$2,405 million
5 Ford Motor Co. US$2,387 million
6 Time Warner. US$2349 million
7 Daimler Chrysler. US$1,800 million
8 L'Oreal. US$1,683 million
9 Nestle SA. US$1,547 million
10 Sony Corp. US$1,513 million
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