Types of Advertising

• Advertising is a form of communication used to persuade an audience to take some action with respect to products, services, ideas, or organizations
• Advertising is typically sponsored by identified advertisers and delivered through various media

Types of Advertising

• Product advertising promotes specific products or services to create demand and brand preference
• Institutional advertising aims to build goodwill and enhance the reputation of an organization rather than promoting specific products
• Informative advertising provides consumers with factual information about a product's features, benefits, and availability
• Persuasive advertising attempts to convince consumers that a particular product or service is superior to its competitors
• Reminder advertising keeps a brand top-of-mind for consumers and reinforces previous advertising campaigns
• Comparative advertising directly compares a product or service to its competitors, highlighting its advantages
• Advocacy advertising promotes a particular cause or viewpoint
• Interactive advertising allows consumers to engage directly with the advertisement, often through digital channels

Advertising Channels

• Television advertising uses broadcast and cable networks to reach a broad audience with visual and auditory messages
• Radio advertising uses audio messages to reach listeners while they are driving, working, or engaging in other activities
• Print advertising includes newspapers, magazines, and brochures, offering a tangible medium for conveying detailed information
• Outdoor advertising uses billboards, posters, and transit ads to reach consumers while they are outside their homes
• Digital advertising encompasses online display ads, search engine marketing, social media advertising, and email marketing, providing targeted and measurable reach
• Mobile advertising targets consumers on their smartphones and tablets through apps, mobile websites, and SMS messaging
• Direct mail advertising sends promotional materials directly to consumers' homes or businesses
• Point-of-purchase (POP) advertising places promotional displays near the checkout area in retail stores to influence purchase decisions
• Guerilla advertising uses unconventional and unexpected tactics to create buzz and generate attention

Key Advertising Concepts

• Target audience is the specific group of people that an advertising campaign is designed to reach
• Advertising appeal refers to the central theme or message of an ad, such as fear, humor, or sex appeal
• Advertising objective is a specific, measurable, achievable, relevant, and time-bound (SMART) goal that an advertising campaign aims to achieve
• Advertising budget is the amount of money allocated to an advertising campaign, which can be determined using various methods such as percentage of sales, competitive parity, or objective and task
• Creative strategy is the overall approach and message that an advertising campaign uses to communicate with the target audience
• Media planning involves selecting the most appropriate media channels to reach the target audience and achieve the advertising objectives
• Advertising execution is the process of creating and producing the actual advertisements, including copywriting, design, and production
• Advertising evaluation is the process of measuring the effectiveness of an advertising campaign, using metrics such as reach, frequency, and impact

Advertising Regulation

• Advertising is regulated by government agencies and industry self-regulatory bodies to ensure that it is truthful, fair, and not misleading
• Federal Trade Commission (FTC) is the primary federal agency responsible for regulating advertising in the United States
• Self-regulatory bodies include the National Advertising Division (NAD) and the Children's Advertising Review Unit (CARU), which review and evaluate advertising claims
• Common advertising regulations include prohibitions against false advertising, deceptive pricing, and unsubstantiated product claims
• Advertising to children is subject to special regulations, including restrictions on the use of premiums and endorsements

The Advertising Process

• Identify the target audience: Determine the specific group of people the advertising campaign is intended to reach, involving understanding their demographics, psychographics, needs, and media consumption habits
• Set advertising objectives: Define what the advertising campaign aims to achieve, such as increasing brand awareness, generating leads, or driving sales; objectives should be SMART (Specific, Measurable, Achievable, Relevant, Time-bound)
• Determine the advertising budget: Allocate the appropriate amount of money to the advertising campaign, using methods like percentage of sales, competitive parity, objective and task, and affordability
• Develop the creative strategy: Create the overall message and approach that the advertising campaign will use to communicate with the target audience, including selecting the right advertising appeal, tone, and style
• Select media channels: Choose the most effective media channels to reach the target audience and achieve the advertising objectives, considering factors such as reach, frequency, cost, and audience demographics
• Create advertising executions: Produce the actual advertisements, including writing copy, designing visuals, and recording audio or video, while ensuring that the executions are consistent with the creative strategy and media plan
• Implement the advertising campaign: Place the advertisements in the selected media channels and monitor their performance, tracking key metrics such as impressions, click-through rates, and conversions
• Evaluate the advertising campaign: Measure the effectiveness of the advertising campaign and make adjustments as needed, using tools such as surveys, focus groups, and sales data to assess the impact of the advertising on the target audience

Key Roles in Advertising

• Advertisers are the companies or organizations that pay to advertise their products or services
• Advertising agencies are firms that specialize in creating and executing advertising campaigns on behalf of advertisers
• Media companies own and operate the various media channels through which advertising is delivered
• Advertising professionals work in a variety of roles, including account managers, creative directors, copywriters, art directors, media planners, and media buyers

Measuring Advertising Effectiveness

• Reach is the number of people in the target audience who are exposed to an advertisement during a specific period
• Frequency is the number of times that the average person in the target audience is exposed to an advertisement during a specific period
• Impact is the effect that an advertisement has on the target audience, such as changes in brand awareness, attitudes, or purchase intentions
• Click-through rate (CTR) is the percentage of people who click on an online advertisement after seeing it
• Conversion rate is the percentage of people who take a desired action after clicking on an online advertisement, such as making a purchase or filling out a form
• Return on investment (ROI) is the ratio of the profit generated by an advertising campaign to the cost of the campaign

Current Trends in Advertising

• Programmatic advertising uses automated technology to buy and sell advertising space in real-time
• Native advertising integrates advertising content into the look and feel of the surrounding media
• Influencer marketing involves partnering with social media influencers to promote products or services
• Personalization uses data and technology to deliver customized advertising messages to individual consumers
• Mobile advertising is growing rapidly as more consumers use smartphones and tablets to access the internet
• Video advertising is becoming increasingly popular, especially on platforms like YouTube and social media

Evolving Privacy Regulations

• Increasing consumer awareness and concern over data privacy are leading to stricter regulations, such as GDPR and CCPA
• Advertisers must adapt by being more transparent about data collection practices and obtaining explicit consent from consumers for data usage

Advertising is a form of communication used to persuade an audience. This lesson lists different types of advertising, like product, institutional, and informative advertising. It also considers persuasive and comparative advertising.