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Advertising Overview

Advertising Overview. Ken Homa. Ad Drivers. Intensity … level of spending Efficiency … targeting, media selection Precision … right message Effectiveness … communications. How Much Advertising?. Affordability Industry benchmarks Experimentation Test markets Objective & task

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Advertising Overview

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  1. Advertising Overview Ken Homa

  2. Ad Drivers • Intensity … level of spending • Efficiency … targeting, media selection • Precision … right message • Effectiveness … communications

  3. How Much Advertising? • Affordability • Industry benchmarks • Experimentation Test markets • Objective & task Build awareness Stimulate trial (Support distribution)

  4. Market CommunicationsAdvertising - Share of Voice

  5. Response Curves Subject to: Multiple stimuli Delayed response Alternative patterns Output(e.g. sales, awareness) Input(e.g. Ad $)

  6. Response Curves Practical Ceiling Diminishing Returns Output(e.g. sales, awareness) Critical Mass Threshold Input(e.g. Ad $)

  7. Real World ...

  8. Advertising (6Ms) • Mission • Market • Message • Media • Money • Measurement

  9. Ad Metrics • Reach … how many people? • Frequency … howmanytimes? • GRP (Gross Rating Point)… reach x frequency • Cost per 1000 (CPM) … media-specific

  10. Ad Strategies • Burst • Pulsing • Flighting • Sustaining

  11. Advertising KSF • Don’t underspend • Critical thresholds, continuity • Rule of 3X • Tailor message to audience • Consumer perceptions ! • Match media to objectives • Caution : ego-driven business • Look for market inefficiencies • New media & “value” buys

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