Advertising Intensity in Selected Nations

1. Advertising Intensity in Selected Nations

2. Media Usage in % of Ad Expenditures

3. Top Global Advertisers Figures are in millions of US dollars

4. Top Global Advertisers (cont’d) Figures are in millions of US dollars

5. Top Global Advertising Agencies Figures are in millions of US dollars

6. The Global Ad Agency Job • To coordinate with the global advertiser in terms of final message creation & media selection • To effectively construct a media schedule for the various local markets within its global network • To communicate the global advertisements effectively into various smaller local markets • To account for across-country variability in financial arrangements & payments

7. What Does Advertising Involve? • Creative Strategy (What to say) • Objectives based • Awareness, knowledge, interest, etc. • Positioning • Research based • Creative Execution (How to say it) • Culture based • Media based

8. What Does Global Advertising Involve? • Identical Ads • The ads can be identical usually with localization only in terms of language voice-over changes and simple copy translations • Prototype Advertising • Global prototypes involve voice-over and visuals changed to avoid language and cultural problems • Pattern Standardization • Utilized when the positioning theme is unified but the actual execution of ads differ between markets • Globalization Examples • Coca-Cola develops prototypes of advertising messages and layouts in the U.S. and sends them to representatives abroad

9. Pros and Cons of Global Advertising ADVANTAGES • CONSISTENCY OF BRAND COMMUNICATIONS • MEDIA SPILLOVER • COST SAVINGS • IMPROVED PRODUCTION • LEVERAGING A GREAT IDEA DISADVANTAGES • IMAGES AND SYMBOLS MIGHT NOT BE LOCALLY ACCEPTABLE • APPROPRIATE MEDIA MIGHT NOT BE AVAILABLE • PRODUCT USAGE IS NOT THE SAME • LOCAL CREATIVITY IS STIFLED

10. Drivers of Global Advertising • SUPPLY SIDE • 1) GLOBAL AD AGENCIES • 2) GLOBAL MEDIA • DEMAND SIDE • 3) GLOBAL CUSTOMERS • 4) PREFERENCE CONVERGENCE • 5) GLOBAL COMPETITORS

11. Four Components of Global Advertising • STRATEGY – Global ads involve products &services that are positioned similarly across markets, wherein the product’s appeal is consistent • ORGANIZATION – global ads are typically directed from headquarters with the help of advertising agencies with a global network • MEDIA – with global reach are used, creating spillover that crosses borders to reach customers in different countries & follows traveling customers around the globe • MESSAGE & CREATIVE – copy & visualization may be uniform across markets, uniformity decreases based on how different each local market is from another

12. Global Ad Categories • IDENTICAL ADS – ads are identical, usually with localization only in terms of language voice-over changes & simple copy translations (e.g. the Marlboro cowboy ads) • PROTOTYPE ADVERTISING – the same ads, but the voice-over may be changed to avoid language & cultural problems, & the ad may be re-shot with local celebrities (e.g. Drakkar Noir) • PATTERN STANDARDIZATION– similar but less structured global approach, wherein the positioning theme is unified & some alternative creative concepts are planned, but execution differs between markets (e.g. Xerox)

13. Global Ads: Same everywhere? PROTOTYPE ADVERTISING PATTERN STANDARDIZATION • Brand Name same • Theme same • Visual same • Positioning same • Actors same • Words same • Language (local) • Media same • Materials same • Slogan same • Brand Name same • Theme same • Visual same • Positioning same • Actors not same • Words not same • Language (local) • Media not same • Materials not all same • Slogan same

14. Web Ads Are Naturally Global WEB ADS are those boxed inserts on the screen that appear as you surf the web. They are interactive in the sense that you can click on them to get more information about the product/service. • Types of Web ads: • Banner ads – most common, measured in pixels • Tickers – banner ads that move across the screen • Interstitial ads – ads that flash while a request is being handled, filling up idle loading time. • Pop-up ads – ads that appear once a site has been loaded prior to webpage access • Transactional ads – let you order/request something without leaving the current webpage • Roadblocks – full screen ads that users must pass through to get to other screens • Rich media ads – the web version of a TV commercial, with audio and motion

15. The International Mass Communication Process Producer/marketer/advertiser Sets objectives and advertising budget Advertisingagency Developsmessage(encoding)and selectsmedia Mass Media Carriesthemessage Opinionleaders,individuals Receive themessage andinterpret(decoding) Individuals Think, feeland act(hierarchyof effects) Coordinationandcontrol Generatefeedbackon effects Sender’s cultural setting Receiver’s cultural setting

16. Cultures and Visual vs Verbal Processing VISUAL PROCESSING Low literacy Younger Segments Low Involvement products High context societies VERBAL PROCESSING High Literacy Older segments High involvement products Low context societies TV commercials Magazines Newspapers Radio Ads

17. Global Advertising is Most Powerful When… • • the imagecommunicated can be identical across countries • • the symbols used carry the same meaning across countries • • the product features desired are the same • • the usage conditions are similar across markets

18. Goodyear: Lessons for Global Advertisers • By focusing on regions, it may be possible to reap the scale benefits & cost efficiencies of global advertising without sacrificing too much on the side of local adaptation. • The early involvement of country subsidiaries & agency professionals not only facilitates later acceptance of unified themes but also helps broaden the sources of powerful campaign concepts. • The process by which pattern standardization is arrived at needs to allow open & free exchange. • Even when the company has operated for years in a market, research is still necessary, especially when conditions are changing.