Advertising, Public Relations, and Sales Promotion PDF

iStock.com/Efenzi Chapter 16 Advertising, Public Relations, and Sales Promotion Learning Outcomes After studying this chapter, you will be able to... 16-1 Discuss the effects of advertising on market share 16-4 Describe media selectio...

iStock.com/Efenzi Chapter 16 Advertising, Public Relations, and Sales Promotion Learning Outcomes After studying this chapter, you will be able to... 16-1 Discuss the effects of advertising on market share 16-4 Describe media selection techniques and consumers 16-5 Discuss the role of public relations in the 16-2 List the major types of advertising promotional mix 16-3 Discuss the creative decisions in developing 16-6 Describe the tools used to achieve the an advertising campaign objectives of sales promotion 266 Copyright 2025 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 16-1 The Effects of Advertising are most appropriate for them based on the results of the quiz. There are multiple quizzes for things like founda- 16-1 Discuss the effects of advertising on market share and tion, skincare products, or sunless tanning products. One consumers study indicates that 97 percent of businesses are invest- ing in data analytics and artificial intelligence programs Advertising was defined in Chapter 15 as impersonal, mass believing that such programs are of strategic impor- communication about a product or organization that is tance to their organizations. However, keeping up with paid for by a marketer. It is a popular form of promo- data is a challenge since the average person produces tion, especially for consumer packaged goods and services. 1.7 MB of data per second.4 Increasingly, as more and more marketers consolidate their operations, advertising is seen as an international endeavor. 16-1a Advertising and Market Share Promotion makes up a large part of most brands’ budgets. The five most valuable U.S. brands for 2023 are Amazon Typically, promotional spending is divided into measured ($299.28 billion in brand value), Apple ($297.51 billion), and unmeasured media. Measured media ad spending Google ($281.38 billion), Microsoft ($191.57 billion), and, includes network and cable TV, newspapers, magazines, Walmart ($113.78 billion).5 Four of these brands were the radio, outdoor, and internet (though paid search and social top five brands in 2019, but some shifted in rank. Many of media are not included since these are typically counted these are technology brands and many of these brands were as lead captures which is a part of the pipeline toward built over the years by heavy advertising and by marketing generating revenue).1 investments made long ago. Walmart is the only brand that Unmeasured media spending includes direct market- was not in the top five in 2019. Advertising budgets for ing, promotions, co-op, coupons, catalogs, product place- most successful consumer brands in the United States are ment, and event marketing. Forecasts for 2024 predict a spent on maintaining brand awareness and market share. 5 percent increase in total media spending in the United New brands with a small market share tend to spend States and 7.5 percent worldwide. The Middle East and proportionately more of their promotion budget for adver- North Africa are expected to have the greatest increase of tising and sales promotion than those with a large market 13.5 percent.2 The top 25 largest U.S. advertisers spent share, generally for two reasons. First, beyond a certain level more than $80.56 billion in 2021. Amazon is the largest of spending for advertising and sales promotion, diminish- U.S. advertiser by spending $10.4 billion. Comcast spent ing returns set in. That is, sales and market share improve- $6 billion in the United States alone. Consumer goods ments slow down and eventually decrease no matter how companies like Procter & Gamble (P&G) ($5 billion), much is spent on advertising and sales promotion. This credit card provider American Express ($3.9 billion), and phenomenon is called the advertising response function. entertainment/media companies like Walt Disney ($3.7 Understanding the advertising response function helps billion) are also top spenders. Amazon is the largest global marketers use promotion budgets wisely. A market leader advertiser at $16.9 billion in 2021.3 like Procter & Gamble’s Downy Fabric Softener typically Advertising and marketing services, agencies, and other spends proportionately less on advertising than a newer firms that provide marketing and communications services line, such as EnviroKlenz’s Laundry Enhancer brand. employ millions of people across America. Just as the Downy has already captured the attention of most of its producers of goods and services need marketers to build target market. It only needs to remind customers that its awareness for their products, media outlets such as maga- product is available and where. zines and websites need marketing teams to coordinate The second reason new brands tend to require higher with producers and transmit those messages to customers. spending for advertising and sales promotion is that a cer- The longer one thinks about the business of marketing, tain minimum level of exposure is needed to measurably the more apparent become the unique positions within affect purchase habits. If EnviroKlenz advertised its Laun- the industry. dry Enhancer in only one or two publications and bought One particular area that has continued to experience only one or two television spots, it would not achieve rapid growth is the data side of marketing. Companies are the exposure needed to penetrate consumers’ perceptual collecting huge amounts of information and need skilled, defenses, create awareness, and affect purchase intentions. creative, web-savvy people to interpret the data coming in from web, mobile, and other digital ad campaigns. For example, Il Makiage, a beauty products and makeup brand, advertising response function a phenomenon in which promotes its skincare products on Facebook and Instagram. spending for advertising and sales promotion increases As potential customers go to the website, they are given sales or market share up to a certain level but then pro- the opportunity to take a quiz to find the products that duces diminishing returns Chapter 16: Advertising, Public Relations, and Sales Promotion 267 Copyright 2025 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 16-1b The Effects of Advertising rates. Today, however, credit cards have added loyalty ben- efits and technology like chips and contactless payments. on!Consumers Advertising affects peoples’ daily lives, informing them about products and services and influencing their attitudes, 16-2 Major Types of beliefs, and ultimately their purchases. Advertising affects the movies people watch, the content of the online articles Advertising they read, the politicians they elect, the personal care prod- 16-2 List the major types of advertising ucts they use, and the foods they eat. Consequently, the influence of advertising on the U.S. socioeconomic system A firm’s promotional objectives determine the type of has been the subject of extensive debate in nearly all corners advertising it uses. If the goal of the promotion plan is of society. to improve the image of the company or the industry, Interestingly, despite a proliferation of new digital institutional advertising may be used. In contrast, if the options, consumers still spend a lot of time-consuming advertiser wants to enhance the sales of a specific good or traditional media (where much of advertising exists). The service, product advertising should be used. average person, for example, spends about 180!minutes a day watching live television programming and 397 min- utes a day using digital media devices like smartphones, 16-2a Institutional Advertising desktops, laptops, and tablets.6 Americans report an aver- Historically, advertising in the United States has been prod- age of 5.3 leisure hours a day, and most of it is spent watch- uct and service oriented. Today, however, companies market ing TV. As a result, American consumers are exposed to multiple products and need a different type of advertis- thousands of advertising messages each year.7 ing. Institutional, or corporate, advertising is designed to Though advertising cannot change consumers’ deeply establish, change, or promote the corporation’s identity rooted values and attitudes, advertising may succeed in as a whole. Institutional advertising is also important for transforming a person’s negative attitude toward a product hiring and recruitment. It usually does not ask the audience into a positive one. For instance, serious or dramatic adver- to do anything but maintain a favorable attitude toward tisements are more effective at changing consumers’ nega- the advertiser and its goods or services. A beer company tive attitudes. Humorous ads, on the other hand, are more running a series of television spots advocating the use of a effective at shaping attitudes when consumers already have designated driver is an example of institutional advertising. a positive image of an advertised brand. A form of institutional advertising called advocacy Advertising also reinforces positive attitudes toward advertising is typically used to safeguard against negative brands. A brand with a distinct personality is more likely consumer attitudes and to enhance the company’s credibil- to have a larger base of loyal customers and market share. ity among consumers who already favor its position. Cor- The more consistent a brand’s personality, the more likely porations often use advocacy advertising to express their a customer will build a relationship with that brand over views on controversial issues. Bud Light, owned by parent their lifetime. Consider Apple, for example. Since 2018, company Anheuser-Busch, in an effort to demonstrate its more than 90 percent of iPhone users replace their smart- support of inclusivity, partnered with transgender woman phone with another iPhone.8 This is why market leaders and influencer, Dylan Mulvaney. Bud Light created a com- spend billions of dollars annually to reinforce and remind memorative can with Mulvaney’s image on the can. Mul- their loyal customers about the benefits of their products. vaney posted a video promoting Bud Light showcasing the Advertising can also affect the way consumers rank a can stating, “This month I celebrate my day 365 of wom- brand’s attributes. In years past, credit cards emphasized anhood.” Mulvaney also comments, “Bud Light sent me such brand attributes as global acceptance and interest possibly the best gift ever, a can with my face on it.” While diversity, equity, and inclusion have been topics popular with many organizations, not all members of society are institutional advertising a form of advertising designed as supportive of the LBGTQIA+ population. As a result, to enhance a company’s image rather than promote a par- Mulvaney’s post was met with some anger, and a call was ticular product made to boycott Bud Light. From the brand’s perspective, product advertising a form of advertising that touts the it is hoping to gain the support of younger legal drinkers by benefits of a specific good or service evolving the image of Bud Light by focusing on inclusivity.9 advocacy advertising a form of advertising in which an Alternatively, an advocacy campaign might also refute organization expresses its views on controversial issues or criticism or blame, or ward off increases in regulation, dam- responds to media attacks aging legislation, or the unfavorable outcome of a lawsuit. 268 Part Five: Promotion and Communication Strategies Copyright 2025 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  Source: Samsung/YouTube, LLC A Samsung commercial shows Galaxy S4 users sharing a photo, then an iPhone user wants to do the same but lacks the capability. 16-2b Product Advertising branding begins. Advertisements focus on showing subtle Unlike institutional advertising, product advertising pro- differences between competitive brands, building recall of motes the benefits of a specific good or service. The prod- a brand name, and creating a favorable attitude toward the uct’s stage in its life cycle often determines which type of brand. Hinge, the dating app, uses competitive advertising product advertising is used: pioneering advertising, com- by discussing how Hinge focuses on finding the real thing petitive advertising, or comparative advertising. and won’t need the company any longer. The commercials comically display the Hinge app icon being destroyed as Pioneering Advertising the owner of the app finds “the one.” Hinge campaigns use Pioneering advertising is intended to stimulate primary humor to promote the brand above others in the industry demand for a new product or product category. Heavily but without actively comparing itself with other dating apps. used during the introductory stage of the product life cycle, Comparative Advertising pioneering advertising offers consumers in-depth informa- tion about the benefits of the product class. Pioneering Comparative advertising directly or indirectly compares advertising also seeks to create interest and can be quite two or more competing brands on one or more specific innovative in its own right. For example, Ring, the maker attributes. Some advertisers even use comparative adver- of video doorbells and security cameras, introduced the car tising with their own brands. Products experiencing slow cam. The product utilizes two high-definition cameras that growth or those entering the marketplace against strong record both inside and outside the car when in motion. It competitors are more likely to employ comparative claims also includes night vision detectors when the car is in park in their advertising. A Samsung commercial uses compara- and sends real-time alerts when there is activity in or around tive advertising by displaying the attributes of the Galaxy the vehicle. Ring released an “Install the Ring Car Cam” S4, how calls can be answered without touching the phone, video on Instagram to demonstrate the ease of setting up.10 photos can be shared from one Samsung to another by Competitive Advertising Firms use competitive or brand advertising when a product pioneering advertising a form of advertising designed enters the growth phase of the product life cycle and as other to stimulate primary demand for a new product or product companies begin to enter the marketplace with similar prod- category ucts. Instead of building demand for the product category, competitive advertising a form of advertising designed the goal of competitive advertising is to influence demand to influence demand for a specific brand for a specific brand. In the growth phase, promotion often comparative advertising a form of advertising that com- focuses less on being informative and appeals more to pares two or more specifically named or shown competing emotions. Generally, this phase is where an emphasis on brands on one or more specific attributes Chapter 16: Advertising, Public Relations, and Sales Promotion 269 Copyright 2025 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. touching the phones together, and the ability to control the TV. The commercial uses humor to promote the brand above Apple since Apple iPhone users are shown trying to do the same with their phones and failing. One character asks, “So, some smartphones are smarter than other smart- phones?” to which another responds, “Exactly!”11 Source: Alison Hadley Before the 1970s, comparative advertising was allowed only if the competing brand was veiled and unidentified. In 1971, however, the Federal Trade Commission (FTC) fostered the growth of comparative advertising by saying In an ad campaign titled “Take Your Holiday Seriously,” British that the advertising provided information to the customer Airways uses wi!y out-of-o"ce replies to encourage customers and that advertisers were more skillful than the govern- to get away. ment in communicating this information. Federal rulings prohibit advertisers from falsely describing competitors’ The DAGMAR approach (defining advertising goals products and allow competitors to sue if ads show their for measured advertising results) is one method of setting products or mention their brand names in an incorrect, objectives. According to this method, all advertising objec- misleading, or false manner. FTC rules also apply to adver- tives should precisely define the target audience, the desired tisers making false claims about their own products. percentage change in some specified measure of effective- ness, and the time frame in which that change is to occur. 16-3 Creative Decisions Once objectives are defined, creative work can begin on the advertising campaign. Advertising campaigns in!Advertising often follow the AIDA model, which was discussed in Chapter 15. Depending on where consumers are in the 16-3 Discuss the creative decisions in developing AIDA process, the creative development of an advertis- an advertising campaign ing campaign might focus on creating attention, arousing interest, stimulating desire, and ultimately leading to the Advertising strategies are typically organized around an action of buying the product. Specifically, creative deci- advertising campaign. An advertising campaign is a series sions include identifying product benefits, developing and of related advertisements focusing on a common theme, evaluating advertising appeals, executing the message, and slogan, and set of advertising appeals. It is a specific advertis- evaluating the effectiveness of the campaign. ing effort for a particular product that extends for a defined period. For example, British Airways ran an ad campaign 16-3a Identifying Product Benefits encouraging people to “Take Your Holiday Seriously.” The campaign utilized the email out-of-office reply in the cam- A well-known rule of thumb in the advertising industry paign with comical commentary. This campaign addresses is “Sell the sizzle, not the steak”—that is, in advertising, the eight in ten individuals that desire to completely check the goal is to sell the benefits of the product, not its attri- out when on holiday, but the 61 percent that still check in.12 butes. Customers buy benefits, not attributes. An attri- Before creative work can begin on an advertising cam- bute is simply a feature of the product such as its easy- paign, it is important to determine what goals or objectives open package, special formulation, or new lower price. A the advertising should achieve. An advertising objective benefit is what consumers will receive or achieve by using identifies the specific communication task a campaign the product, such as convenience or ease of use. A benefit should accomplish for a specified target audience during should answer the consumer’s question, “What’s in it for a specified period. The objectives of a specific advertising me?” Benefits might be such things as convenience, plea- campaign often depend on the overall corporate objectives sure, improved health, savings, or relief. A quick test to and the product being advertised. determine whether you are offering attributes or benefits in your advertising is to ask “So?” Consider this example: Attribute: “OLIPOP is a new kind of soda that comes advertising campaign a series of related advertisements in nine flavors containing a blend of seven unique focusing on a common theme, slogan, and set of advertis- botanicals, plant fibers, and prebiotics with between ing appeals 2–5 grams of sugar..” “So... ?” advertising objective a specific communication task that Benefit: “So ….OLIPOP supports your gut health and a campaign should accomplish for!a specified target audi- provides great flavors to fulfill your craving for soda ence during a specified period without adding extra calories from high sugar content.”13 270 Part Five: Promotion and Communication Strategies Copyright 2025 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 16-3b Developing and Evaluating Advertising Appeals An advertising appeal identifies a reason for a person to buy a product. The challenging task of developing adver- tising appeals is typically the responsibility of the creative Source: Patagonia, Inc. team (e.g., art directors and copywriters) in the advertis- ing agency. Advertising appeals are based on findings from data analytics and typically play off consumers’ emotions or address some need or want consumers have. Advertising campaigns focus on one or more advertising Patagonia’s unique selling proposition is its dedication to appeals. Often the appeals are quite general, thus enabling preserving and restoring the planet. the firm to develop several subthemes or mini-campaigns using advertising, sales promotion, and social media. Sev- to the target market. It must also be exclusive or unique. eral possible advertising appeals are listed in Table 16.1. Consumers must be able to distinguish the advertiser’s For example, profit appeals let customers know whether message from competitors’ messages. Most importantly, the product will save them money, make them money, or the appeal should be believable. An appeal that makes keep them from losing money. Health appeals to those extravagant claims not only wastes promotional dollars who are body conscious or who want to be healthy, while but also creates ill will for the advertiser. fear can center around social embarrassment, safety, or The advertising appeal selected for the campaign losing one’s health. Because of the power of fear, it requires becomes what advertisers call its unique selling proposition. advertisers to exercise care in the execution. Environmen- The unique selling proposition often becomes all or part tal centers around protecting the environment and being of the campaign’s slogan. Patagonia proclaims, “We’re in considerate of others which can be used to emphasize a business to save our home planet.” To accentuate this attri- product’s ingredients or packaging. bute, in the ad campaign titled “Buy Less, Demand More,” Choosing the best appeal usually requires market Patagonia emphasizes the durability of its gear made from research and data analytics. Criteria for evaluation include recycled materials. Further, the company asks consumers desirability, exclusiveness, and believability. The appeal when shopping to ask themselves if the product is really first must make a positive impression on and be desirable needed or if can it be used in multiple ways. The company is encouraging people to buy fewer products and make exist- ing products last longer for the good of the planet. This Table 16.1 Common Advertising Appeals move helped the brand stand out in a crowded clothing Appeal Examples market.14 Profit Appliances that promote energy efficiency. 16-3c Executing the Message Products that appeal to an individual’s Message execution is the way an advertisement portrays its Health wellbeing. information. In general, the AIDA plan (refer to Chapter 15) is a good blueprint for executing an advertising message. Vehicles that discuss safety features for the Fear Any ad should immediately draw the attention of the prevention of an accident. reader, viewer, or listener. The advertiser must then use Admiration Ads that utilize celebrity spokespeople. the message to hold interest, create desire for the good or service, and ultimately motivate a purchase. Ready-to-eat meals and delivery services that The style in which the message is executed is one of Convenience promote speed and ease. the most creative elements of an advertisement. Table!16.2 lists some examples of executional styles used by advertisers. Fun and Experiences and vacations that foster good Pleasure times. Vanity and Cars or clothing that are expensive or allow Egotism an individual to stand out from the crowd. advertising appeal a reason for a person to buy a product Environmental Products made from recycled materials or unique selling proposition a desirable, exclusive, and Consciousness reduce the usage of natural resources. believable advertising appeal selected as the theme for a campaign Chapter 16: Advertising, Public Relations, and Sales Promotion 271 Copyright 2025 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  Table 16.2 Ten Common Executional Styles for Advertising Executional Style Description Depicts people in normal settings, such as at the dinner table or in their car. Oreo’s often uses slice-of-life Slice-of-Life styles showing an adult and a child sharing an Oreo cookie by twisting the cookie apart, licking the filling, and then dunking the cookie in milk. Shows how well the product will fit in with the consumer’s lifestyle. Nike commercials often depict indi- Lifestyle viduals that go the extra mile and give it their all, then end the commercial with the tagline, “Just Do It.” Can feature a celebrity, company official, or typical consumer making a testimonial or endorsing a product. Lil Spokesperson/ Nas X represents Coach, while H.E.R. is an ambassador for L’Oréal Paris. Testimonials also include the growing Testimonial area of social media influencers like Charli D’Amelio who promotes brands like Prada, Amazon, and Spotify. Creates a fantasy for the viewer built around the use of the product. Carmakers often use this style to let viewers Fantasy fantasize about how they would feel speeding around tight corners or down long country roads in their cars. Often used by advertisers in their ads, such as Frito Lay’s “Free Doritos” commercial, in which a snow globe Humor used as a crystal ball was thrown into a Doritos vending machine, breaking the glass to access the product. Real/Animated Product Creates a character that represents the product in advertisements, such as Tony the Tiger for Frosted Flakes, Symbols or the M&M spokescharacters. GEICO’s suave gecko has become a cult classic for the insurance company. Builds a mood or image around the product, such as peace, love, or beauty. Coca-Cola ads often depict an Mood or Image emotion of happiness or shared happy memories. Shows consumers the expected benefit. Many consumer products use this technique. Dyson vacuum com- Demonstration mercials demonstrate the high suction power of the machines which allows users to get cleaner floors. Conveys the message of the advertisement through song. For example, T-Mobile enlisted the help of John Tra- Musical volta to sing about the benefits of home internet with T-Mobile in a revised version of Grease’s “Summer Nights.” Uses research or scientific evidence to give a brand superiority over competitors. Allergy relief medicines Scientific like Allegra, Claritin, and Zyrtec use scientific evidence in their ads. Execution styles often dictate what type of media is to be employed to convey the message. For example, scientific 16-3d Postcampaign Evaluation executional styles lend themselves well to print advertis- Evaluating an advertising campaign can be the most demand- ing, where more information can be conveyed. Testimonials ing task facing advertisers. How can an advertiser determine by athletes are one of the more popular executional styles. whether the campaign led to an increase in sales or market This is particularly true for social media influencers whose share or elevated awareness of the product? For traditional following and influence are built on their testimonials for media, this is sometimes difficult. However, digital advertising products and services. and social media generate more data that enable marketers to Injecting humor into an advertisement is a popular and better understand how well campaigns work. For example, effective execution style. Humorous execution styles are Target, a large American retailer, has a large following on Ins- more often used in radio and television advertising than in tagram. Instagram has enhanced its shopping features making print or digital advertising, where humor is less easily com- it easier to drive consumers from Instagram posts to purchases municated. Recall that humorous ads are typically used on the website. Target tags specific items in the post and these for lower-risk, low-involvement, routine purchases such tags lead directly to the landing page. This allows Target to as candy, cigarettes, and casual jeans, than for higher-risk test different options and use marketing analytics to measure purchases or for products that are expensive, durable, or how well its Instagram marketing is working. Marketers spend flamboyant.15 Although 94 percent of Gen Z and millen- considerable time studying advertising effectiveness and its nials prefer brands to be funny, 85 percent of business probable impact on sales, market share, or awareness. leaders do not feel they have the tools or data insights to Testing ad effectiveness can be done before and/or after the successfully carry out humor.16 campaign. Before a campaign is released, marketing managers 272 Part Five: Promotion and Communication Strategies Copyright 2025 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. use pretests to determine the best advertising appeal, layout, and media vehicle. After advertisers implement a campaign, they use several monitoring techniques to determine whether the campaign has met its original goals. Even if a campaign has been highly successful, advertisers still typically do a postcampaign analysis to identify how the campaign might have been more efficient and what factors contributed to its iStock.com/Rawpixel success. 16-4 Media Decisions Digital advertising is growing rapidly, including video ads, display ads, search ads, and banner ads. in!Advertising 16-4 Describe media selection techniques 16-4a Media Types A major decision for advertisers is the choice of medium— Advertising media are channels that advertisers use in the channel used to convey a message to a target market. mass communication. The eight major advertising media Media planning, therefore, is the series of decisions adver- are newspapers, magazines, radio, television, digital, tisers make regarding the selection and use of media, social, mobile, and outdoor media. Table 16.3 summa- enabling the marketer to communicate the message opti- rizes the advantages and disadvantages of some of these mally and cost-effectively to the target audience. Spe- major channels.20 But in recent years alternative media cifically, advertisers use marketing analytics to determine channels have emerged that offer advertisers innovative which types of media will best communicate the benefits ways to reach their target audience and reduce advertising of their product or service to the target audience and when clutter. and for how long the advertisement will run. Newspapers Promotional objectives and the appeal and execu- tional style of the advertising strongly affect the selection Newspapers are one of the oldest forms of media. The of media. Both creative and media decisions are made advantages of newspaper advertising include geographic at the same time: creative work cannot be completed flexibility and timeliness. Although there has been a without knowing which medium will be used to convey decline in circulation as well as in the number of news- the message to the target market. In many cases, the papers, nationally, there are still several major newspapers advertising objectives dictate the medium and the cre- including The Wall Street Journal, USA Today, The New ative approach to be used. For example, if the objective York Times, The Los Angeles Times, and The Washington is to demonstrate how fast a product operates, a televi- Post. Most newspapers, however, are local. Because news- sion commercial that shows this action may be the best papers are generally a mass-market medium, they may choice. not be the best vehicle for marketers trying to reach a In 2026, U.S. advertisers are expected to spend narrow market. Newspaper advertising also encounters $405! billion on paid media: newspapers, magazines, distractions from competing ads and news stories. Fur- radio, television, internet, and outdoor/cinema. 17 This ther, newspapers are not viewed very long after the print represents a 41 percent increase over paid media spend- date or shared with others, which increases the cost per ing in 2021.18 More than 68 percent of every media dollar reader. Therefore, one company’s newspaper ad may not is expected to go toward paid internet advertising, which be particularly visible. is an increase of 81 percent compared to 2021. Other The main sources of newspaper ad revenue are local increasing categories include podcasts ($1.8B projected retailers, classified ads, and cooperative advertising. In for 2026), streaming music ($3.2B), trade magazines ($3.7B), and outdoor ($11B). Television is expected to remain constant at $72 billion along with video games medium the channel used to convey a message to a target ($1.8B), and cinema ($0.6B). Reductions are anticipated market for newspaper ($9.9B) and radio ($16.7B).19 As illus- media planning the series of decisions advertisers make trated, the future growth lies in the digital realm, both in regarding the selection and use of media, allowing the paid media (display ads, video ads, and search ads) as well marketer to communicate the message optimally and cost- as earned media (social media). effectively to the target audience Chapter 16: Advertising, Public Relations, and Sales Promotion 273 Copyright 2025 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  Table 16.3 Advantages and Disadvantages of Major Advertising Media Medium Advantages Disadvantages Geographic selectivity and flexibility" short-term adver- Little demographic selectivity" decreasing readership" tiser commitments" news value and immediacy" year- Newspapers limited color capabilities" low pass-along rate" high cost round readership" high individual market coverage" co-op per reader and local tie-in availability" short lead time Good reproduction, especially for color" demographic Long-term advertiser commitments" slow audience buildup" Magazines selectivity" regional selectivity" local market selectivity" limited demonstration capabilities" lack of urgency" long relatively long advertising life" high pass-along rate lead time" can be expensive for good placement No visual treatment" short advertising life of message" Low cost" immediacy of the message" can be scheduled high frequency required to generate comprehension and on short notice" relatively no seasonal change in audi- Radio retention" distractions from background sound" commer- ence" highly portable" short-term advertiser commitments" cial clutter" decreased listeners due to streaming services entertainment carryover" hyper-local targeting particularly among younger audiences Ability to reach a wide, diverse audience" low cost per The short life of message" some consumer skepticism about thousand" creative opportunities for demonstration" claims" high campaign cost" little demographic selectivity Television immediacy of messages" entertainment carryover" demo- with network stations" long-term advertiser commitments" graphic selectivity with cable stations long lead times required for production" commercial clutter Low cost" highly targetable" able to use programmatic ad Relying completely on marketing analytics may result in Digital buying for audience expansion" measurable performance" questionable ad placement" highly competitive" depen- brand campaign can be managed for omnichannel dent on technology" security and privacy issues. Time-consuming" need for qualified staff" heavy competi- Social Many users" increased brand awareness" cost-effective tion" reputation risk" long-term investment Fastest-growing medium" real-time access" people are spend- Sense of disruption" users must opt-in" costs users to Mobile ing an increasing amount of time on their phones each day receive advertisements Outdoor Repetition" moderate cost" flexibility" geographic Short message" lack of demographic selectivity" high Media selectivity “noise” level distracting audience cooperative advertising, the manufacturer and the retailer split particularly to obtain a favorable placement. The cost per the costs of advertising the manufacturer’s brand. For exam- potential customer may be much lower, however, because ple, Calvin Klein may split the cost of an advertisement with magazines are often targeted at specialized audiences and Dillard’s department store, provided that the ad focuses on thus reach more potential customers. Calvin Klein’s products. One reason manufacturers use coop- erative advertising is the impracticality of listing all their dealers Radio in national advertising. Also, cooperative advertising encour- Radio has several strengths as an advertising medium: hyper- ages retailers to devote more effort to the manufacturer’s lines. local selectivity and audience segmentation, a large out-of- home audience, low unit and production costs, timeliness, Magazines and geographic flexibility. As with newspapers, radio also Magazines are another traditional medium that continues lends itself well to cooperative advertising. With the rise of to be successful. Some of the top magazines according to streaming audio services, radio listening has experienced a circulation include People, Good Housekeeping, Allrecipes, decline over the years, particularly among younger listeners.22 AARP Magazine, Sports Illustrated, and Country Living.21 But the cost per contact in magazine advertising is usually Television high compared with the cost of advertising in other media, Television broadcasting media include network television, independent stations, cable television, and direct broad- cast satellite television. Network television reaches a wide cooperative advertising an arrangement in which the and diverse market, and cable television and direct broad- manufacturer and the retailer split the costs of advertising cast satellite systems, such as DirecTV and DISH Net- the manufacturer’s brand work, broadcast a multitude of channels devoted to highly 274 Part Five: Promotion and Communication Strategies Copyright 2025 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. segmented markets. Because of its targeted channels, cable advertising (e.g., banner ads, video ads), social media adver- television is often characterized as “narrowcasting” by tising (e.g., Instagram ads), email marketing, and mobile media buyers. DirecTV can show ads based on household marketing (including mobile advertising and SMS). Some data (as opposed to demographic and geographic data). To digital channels, like Google, previously offered the ability stay relevant amid new technologies, DirecTV and other to buy a similar audience (whereby advertisers can purchase television-focused companies recognize the need for better ad space targeted to a highly specific group), instead, mar- audience targeting. In addition, an increasing number of keters can optimize targeting or opt into audience expan- adults 18 or over (about 34 percent have become “cord sion. These tools allow organizations to leverage their own cutters” and do not subscribe to traditional legacy cable or data to reach the right audience and optimize their direct satellite TV; instead, they watch TV online.23 message.29 Advertising time on television can be very expensive, Programmatic advertising uses technology to match especially for network and popular cable channels. Special audiences and websites with marketers seeking to purchase events and first-run prime-time shows for top-ranked televi- advertising. It is a rapidly growing and evolving field that sion programs command the highest rates for a typical com- started with the auction model used by Google. Program- mercial. For example, running a 30-second spot during the matic advertising has also been used to purchase display CBS sitcom Young Sheldon costs $160,996, NBC’s The Voice and social media advertising and is beginning to be used costs $220,476, and one spot during NFL Thursday Night with more traditional media purchases. The rise of pro- Football runs $579,391 while NFL Sunday Night Football grammatic ad buying means advertisers can purchase ad costs $828,501.24 A 30-second spot during the Super Bowl space targeting specific groups in real-time, using audience costs approximately $7 million, which equates to $233,333 insights and marketing analytics, thus maximizing reach per second of advertising. Despite its high cost, many brands and return on investment (ROI). Automation tools and feel that a Super Bowl ad is a good investment. One survey AI platforms allow brands to measure their performance indicated that 79 percent of Super Bowl viewers watched the and easily manage their brand campaigns with an empha- commercials. Further, the Super Bowl, for many, is about the sis on omnichannel programmatic advertising. But some shared experience, not necessarily watching the game, but brands have elected to follow “brand safety” guidelines, the commercials.25 An alternative to a commercial spot is the whereby marketers determine a list of websites acceptable infomercial, a 30-minute or longer advertisement, which is for media placement instead of relying completely on mar- relatively inexpensive to produce and air. Advertisers say that keting analytics to determine programmatic advertising. infomercials are an ideal way to present complicated informa- This strategy is a result of ads showing up on websites with tion to potential customers, which other advertising vehicles questionable content. typically do not allow time to do. Approximately 35 percent Popular internet sites and search engines generally sell of infomercials relate to fitness and health products.26 advertising space to marketers to promote their goods and One of the most significant worrisome trends in terms of services. Internet surfers click on these ads to be linked to television advertising is the rise in popularity of on-demand more information about the advertised product or service. viewing and streaming services. For every hour of television Both leading advertisers and companies whose ad bud- programming, an average of 20 minutes is dedicated to gets are not as large have become big digital advertisers. nonprogram material (ads, public service announcements, and network promotions), so the popularity of cloud recording or watching commercial-free streaming programs among ad-weary viewers is hardly surprising. Additionally, streaming services like Netflix and Hulu have allowed con- sumers to bypass cable TV altogether (along with much of the advertising should they desire by paying for the ad- Prostock-studio/Shutterstock.com free streaming service). With increased inflation, many budget-cautious households may find available streaming ad-supported options appealing and further shaping the way TV ads will be created and distributed in the future.27 Digital Americans check their phone an average of once per ten Note that global digital advertising spending reached minutes, or 96 times per day.30 $567.59 billion in 2022, eclipsing television’s $101 bil- lion.28 Digital advertising includes search engine mar- infomercial a 30-minute or longer advertisement that keting (e.g., pay-per-click ads like Google Ads), display looks more like a television talk show than a sales pitch Chapter 16: Advertising, Public Relations, and Sales Promotion 275 Copyright 2025 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Because of the relatively low cost and high targetability, search engines generate nearly half of all internet ad rev- enue. However, because of the low cost, this space is also highly competitive. It also is dependent on technology to operate and the possibility of a technological interruption. Another popular digital advertising format is advergaming, sitthiphong/Shutterstock.com whereby companies put ad messages in web-based, mobile, console, or handheld video games to advertise or promote a product, service, organization, or issue. Gamification, the process of using game mechanics and a gaming mindset to engage an audience, is increasingly important for marketers to know about and utilize. Challenges, rewards, incentives, Smartphones and other mobile devices are the most popular choice and competition are all important aspects of social media among gamers in the United States and the United Kingdom. games like Criminal Case, Candy Crush Saga, and Pet Rescue Saga.31 Some games amount to virtual commercials. Other games encourage players to buy in-game items and power- Mobile ups to advance, while still others allow advertisers to spon- The fastest-growing platform for digital advertising is sor games or buy ad space for product placements. Many mobile. In fact, mobile advertising is expected to make up of these are social games, played on Facebook, YouTube, 70 percent of all U.S. digital advertising by 2026.34 About Amazon Twitch or other mobile networks, where players can 97 percent of Americans have mobile phones, 85 percent interact with one another, locally or globally. Social gaming of which are smartphones. Approximately 47 percent of all has a global audience with gamers from the United States U.S. web traffic originates from a mobile device.35 Mobile and the United Kingdom, and Germany playing mostly to ads account for nearly all growth in digital advertising. The pass the time, while South Koreans play to relieve stress.32 primary reason for this incredible growth is that people are Privacy and security issues are a concern for all compa- spending more of their time (almost 5.5 hours per day) on nies with a digital presence. Given the amount of personal mobile devices.36 And this trend is not just in the United information being collected by brands from consumers, States. Globally, mobile advertising has substantial upside protection from a data breach is an ongoing concern for potential, given the more than 7.33 billion mobile phone companies with an online presence. users in the world, which equates to 91.4 percent of the global population, of which 86.29 percent have smart- Social phones with internet access.37 As advanced mobile devices With more than 3.5 billion social media users worldwide, continue to grow in popularity around the world, so too it is no surprise that 73 percent of marketers are finding will mobile ad spending. success by using social advertising. As one of the meth- When using mobile advertising, companies have access ods of digital advertising, social media are a cost-effective to customers in real time. Therefore, if customers opt-in for means of gaining brand awareness. When positioned prop- mobile advertising, companies can send ads at the same time erly, social media marketers can gain insights into their a customer enters a specific area or at a precise time to which industry and their target market. This fast-paced environ- the company may feel has the greatest impact based on a ment can be very rewarding for those with the skills to uti- customer’s shopping behavior. The downfall of course is that lize the data being collected but it can also be detrimental customers must opt-in to these advertisements. Furthermore, for companies if negative information is spread. Therefore, the customer may incur a charge for the receipt of the adver- companies looking to tap this highly competitive market tisement based on their mobile carrier plan. If ads are not need to hire individuals that are qualified and familiar with what the customer expected, they can easily opt out as well.38 how to advance their brands on the various platforms avail- able. Opting for social advertising should be done with a Outdoor Media long-term investment in mind and an understanding that Outdoor media, also referred to as outdoor advertising, are this medium is very time-consuming. Increases to inbound a flexible, low-cost option that may take a variety of forms. web traffic is the most likely outcome of social advertising Examples include billboards, skywriting, giant inflatables, to convert the visit into a sale.33 mini billboards in malls and on bus stop shelters, signs in sports arenas, and lighted moving signs in bus terminals advergaming placing advertising messages in web-based, and airports, as well as ads painted on cars, trucks, buses, mobile, console, or handheld video games to advertise or water towers, manhole covers, drinking glass coasters, promote a product, service, organization, or issue and even people, called “living advertising.” The plywood 276 Part Five: Promotion and Communication Strategies Copyright 2025 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  mix decisions are typically based on several factors: cost per contact, cost per click, reach, frequency, target audience considerations, flexibility of the medium, noise level, and the life span of the medium. Cost per contact, also referred to as cost per thousand iStock.com/EvgeniyShkolenko or cost per mille (CPM), is the cost of reaching one member of the target market. Naturally, as the size of the audience increases, so does the total cost. Cost per con- tact enables an advertiser to compare the relative costs of specific media vehicles (such as television versus radio Alternative media like virtual reality, augmented reality, and or online advertising versus social media), or more spe- holographic displays are other ways for companies to create cifically, within a media category (such as Facebook versus awareness and stimulate interest in their target markets. Instagram). Thus, an advertiser debating whether to spend local advertising dollars for television spots or radio spots scaffolding surrounding downtown construction sites could consider the cost per contact of each. Alternatively, often holds ads, which in places like Manhattan’s Times if the question is which magazine to advertise in, the Square, can reach over a million viewers a day. advertiser might choose the one with the greater reach. Outdoor advertising reaches a broad and diverse market In either case, the advertiser can pick the vehicle with the and is therefore ideal for promoting convenience products lowest cost per contact to maximize advertising punch for and services as well as for directing consumers to local busi- the money spent. Cost per click is the cost associated with nesses. One of the main advantages of outdoor advertising a consumer clicking on a display or banner ad. Although over other media is that its exposure frequency is very high, there are several variations, this option enables the mar- yet the amount of clutter from competing ads is very low. keter to pay only for “engaged” consumers—those who Outdoor advertising also can be customized to local mar- opted to click on an ad. Reach is the number of target customers who are keting needs, which is why local businesses are the leading outdoor advertisers in any given region. At the same time, exposed to a commercial at least once during a specific outdoor advertising is noticing a lot of innovation by link- period, usually four weeks. Media plans for product ing these ads to mobile phones and social media. introductions and attempts at increasing brand aware- ness usually emphasize reach. For example, an advertiser Alternative Media might try to reach 70 percent of! the target audience To cut through the clutter of traditional advertising media, during the!first three months of the campaign. Reach advertisers are developing new media vehicles, like shop- is related to a medium’s ratings, generally referred to in ping carts in grocery stores, computer screen savers, inter- the industry as gross rating points, or GRP. A television active kiosks in department stores, advertisements run program with a higher GRP means that more people are before movies at the cinema, posters on bathroom stalls, tuning in to the show and the reach is higher. Accord- and advertainments—mini-movies that promote a product ingly, as GRP increases for a particular medium, so does and are shown online. cost per contact. Marketers are looking for additional innovative ways to Because the typical ad is short-lived, and often only a small reach captive and often bored commuters. For instance, portion of an ad may be perceived at one time, advertisers subway systems are now showing ads via lighted boxes repeat their ads so that potential customers will remember the installed along tunnel walls. Other advertisers seek consumers at home. Some marketers have begun replacing hold music on customer service lines with advertisements and movie media mix the combination of media to be used for a trailers. This strategy generates revenue for the company promotional campaign being called and catches undistracted consumers for adver- cost per contact (cost per thousand or cost per mille tisers. The trick is to amuse and interest this captive audience [CPM]) the cost of reaching one member of the target without