Advertising How does it work?
Types of Advertisement • TV commercials • Billboards • Internet ads • Radio commercials • Pop-Ups • Magazine ads
Target Audience • Who is the ad supposed to affect? Adults, children, women, men? • How can you create an ad specifically for this audience? • Know if you’re targeting new or old consumers
Loyalty Strategies • Gaining new customers loyalty • Taking a loyal customer from a company and converting them to your own • Reinforcement of existing current customers
Loyalty Strategies Keep in mind: • Converting customers is the hardest strategy; people generally don’t like change • Keeping your loyal customers is where most companies make most of their money • Putting all three strategies in one ad will save the company money and generate more profit, though it could be long term
Analyzing the ad • In order to analyze an ad correctly, you need a lot of time • Gives companies very detailed and specific information to help improve their advertisements for future needs • If done right, analyzing an ad can boost profit immensely
Short Term VS Long Term • Most advertisement works in the long term • People go through numerous steps before committing to a product • Short term advertisement isn’t as common • EX. ads seen shortly before purchase
Sources • Barnard, Neil, and Andrew Ehrenberg. "Advertising: strongly persuasive or nudging?" Journal of Advertising Research Jan.- Feb. 1997: 21+.Business Insights: Essentials. Web. 27 Mar. 2013. • Jones, John P. When Ads Work: New Proof That Advertising Triggers Sales. Armonk, New York: M.E. Sharpe, 2007. Web. 27 Mar. 2013. • Lavidge, Robert J. "A Model for Predictive Measurements of Advertising Effectiveness." Journal of Marketing 6th ser. 25 (1961): 59-62. Google Scholar. Web. 27 Mar. 2013. • MacKenzie, Scott B. "The Role of Attitude toward the Ad as a Mediator of Advertising Effectiveness: A Test of Competing Explanations." American Marketing Association 2nd ser. 23 (1986): 1130-43. Google Scholar. Web. 27 Mar. 2013