ADV 318J Study Guide - Midterm Guide: Cost Per Mille, Geotargeting, Branded Content
Chapter 12
Introduction Scenario
• Advertising is not dead, but is thriving in some places and struggling in others
• Further, advertising has merged, morphed, and meaningfully mingles with all sorts of other
forms of brand communication
Very Important Changes
• The 15% ad agency media commission system is gone, replaced by fee-for-service
basis
• New media options have been springing up with a blurring of the line between PR and
advertising,
o Lots of news stories are being written by marketers
• Ad agencies have become leaner operations since becoming publicly traded
companies
o In the ad world, the two quickest routes to greater short-term profit are to 1) fire staff
or 2) to make more money on fees and media buys
• Globalization is becoming more and more the wave of the present
• Free content via the internet is threatening traditional media
• Consumers are generating content like ads
• Consumers are increasingly in control and have more power via information available
using the internet
• Hyper ad clutter is more of a concern when consumers have ways of avoiding it (e.g.,
TiVo type devices)
• Two biggest consumer changes spawned by the internet:
o Deal-proneness and price/cost transparency
• The implications of marketing a brand in an environment of transparency are huge
The Big Pie
• Above-The-Line Promotion: traditional measured media advertising (ex: TV, radio, magazines,
outdoor)
• Below-The-Line Promotion: everything else (desirable retail shelving, in-store promotions,
coupons, and events)
o Referred to as unmeasured media
• Of total pie of everything that companies spend to promote their brands:
o Above the line—with measured = 56%
o Below the line—unmeasured = 44%
▪ Growing at the expense of the measured
• In class, Murphy talks about the migration of dollars away from traditional adv to PR
Media Planning
• Media planning requires creativity and strategic thinking
• Media Plan: specifies the media in which advertising messages will be placed to reach the
desired target audience
• Media Mix: the blend of different media that will be used to effectively reach the target
audience
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