Answer to advertisement

innovation would lie in

differentiating different
consumers and integrating their
requirements
THE IBM CASE STUDY
Battlefield
Megabucks 09

Submitted by:
Team: Materialistics
Team Members:
1. Abhishek Modi
2. Ankit Kumar Ladha
3. Devender Singh
College: IT-BHU
Contact Number: +91-9453401044 (Devendar Singh)
+91-9919895953 (Abhishek Modi)
E Mail: devender.maun@gmail.com

The Future of Advertising

Marlboro Man, Dancing Nirma Girl, Raymonds, Sachin Tendulkar, Colorful
newspaper half-pages, raucous blurting of hit movie songs all of these
conjures our image of advertising.
Success is one of the most important objectives of a business. To attain
success, it is important that the business gives due consideration to the
advertising and marketing of the products. For effective advertising and
marketing the company needs to choose the right means and people to
do the job.
The overall success depends how well the communication message is
passed on to the target audience. The objective of marketing is to
understand the target customers requirement and to develop a plan
accordingly. The marketing plan should include acquiring customers and
persuading them to buy new product or service. The marketing of the
product involves a variety of methods and advertising is an important
medium to do so.
Advertising helps in developing a targeted message and delivering the
message to the audience. By impressing the audience with the message,
the advertiser increases his customer base. Advertising thus helps in
increasing brand awareness converting it to sales. To effectively market
and advertise a product or service the advertiser should use customized
advertising and marketing strategies.

The future:
Its a new era for advertising agencies. Devising great ad campaignsfor
clients was never easy, but it seems things used to be simpler. TV
advertising was the dominant ad medium, followed by radio, print,
outdoor, and events. All of these delivered predictable mass audiences
and stable demographics to advertisers. Today, audiences are fragmented
and new media abound. Advertisers still expect great creativity, but they
also expect great strategy and an ability to deliver in both the old and
new channels. On top of all this, as media buying has moved to specialty
media-buying houses, agency revenue from media buying has declined,
and more of that revenuenow must come from creative projects.

The Result:
Most agencies have become consulting firms whose profits are dependent
on project and client profitability. Without the financial cushion from
media buying, ad agencies and marketing companies must keep closer
tabs on project economics, maximize employee billings, and manage their
organizations to optimize revenue and profit per employee.To achieve the
twin goals of successful projects and optimal profitability, agencies
require new tools

Balancing Business and Creativity

Ad agencies and marketing firms must perform a difficult
balancing act. They must improve their bottom line while
developing fresh, creative ideas for ad campaigns and strategies
to get the attention of ever-harder-to-reach consumers. Its not
easy. Just as important, the systems that employees use must
support and enhance the creative and collaborative process
rather than constrain it.

To address todays challenges in account

management, successful agencies will do the
following:

1. Account
Management

As always, create inspired ad campaigns and

marketing
strategies
Effectively collaborate with colleagues and
clients
Provide a balanced scorecard of key metrics
to examine feedback on client satisfaction and
manage job, client, and division profitability

To address challenges of competing

companies, successful firms will differentiate
themselves via strategic capability, flawless
execution, or superb creative work. This will
include the following:

2. Competition

Monitoring and measuring client satisfaction

Cost-effectively
effectively delivering the best resources
to the client

To satisfy the needs of increasingly more

demanding and sophisticated clients,
successful agencies will do the following:

3.
Clients/Customers

Work with clients to demonstrate a clear ROI

between their spending and sales
performance.
Become expert at delivering the clients
message in both traditional and new media.

A famous quote by John Wanamaker

Half the money I spend on advertising is wasted; the

trouble is I dont know which half.

The thought process of an advertising organisation should walk along

as follows:
Fueling your organisation with an in-depth knowledge of creative
design and how this can compliment your advertising strategies
Leveraging from the use of online social communities to build a solid
customer base
Capturing your target audience around the clock by investing in
advertising and marketing
Structuring an effective word-of-mouth (WOM) campaign that works
well with brands and products
Revamping your traditional advertising methods and techniques into a
strategy that can grab the attention of the customer
Combining various alternative advertising techniques to form a solid
marketing campaign suitable for your organisation
Understanding the return on investment for alternative advertising and
incorporating this within your advertising budget

The process of advertising involves three major steps:

Creating the
advertisment

The media
used

The
consumer
response

The main aim of this case study will be analyzed be revisiting the basic elements of
advertising and studying the innovation that can be evolved in each of the three
process steps. The future will be marked by innovation, but innovation can only be
brought about by studying each of the steps involved in the process chain.
As in science we say

Only one law is true that no law is true

There will be no law that will govern the future of advertising industry, the ones who
will redefine this industry will revisit and reemphasize the importance of basic
structure of advertisement cycle. Innovation will come in quantised form and will be
associated with each segment, each factor, and each ingredient of advertisement .
In the following pages the emphasis has been laid on
1. The part pertaining to creating the advertisement. This would involve
segmenting the various factors effecting the advertisement to consumer
relationship. Understanding the importance of breaking down each part
involved through proper characterization and further intensified classification
of the sectors of advertisement.
2. The part involving MEDIA SELECTON and CONSUMER RESPONSE. The
analysis is based on the various media used and analysis report under each
media reporting the various customer sentiments involved, the response, the
absorption of each media. The growth and where innovation can be cascaded
in each of them.

The Future
The future of advertisement may have a new look but the core will remain the same,
following expressed points are the basics and most simply expresses the need of the
hour.
The advertisement must adhere to the following rules
1. Innovation:
a. In presentation and script of advertisement
b. In the media chosen and the mode of communication
c. Pre launch and post launch taglines to build proper
brand image
d. Proper taglines to enhance brand value.
2. Cost cutting
a. Cost cutting in the production of ads
b. Cost cutting in the media used
c. Cost cutting via selecting the places to advertise
3. Strategies
a. Beating competitors
b. Shifting from saturation branding to effective
branding
c. Assessment of all media channels neutrally.
d. Deciphering consumer perception.
e. Implementing successful advertisement stories of
one country to another.
f. Target audience
g. Generating publicity for one product if another
product has achieved its target when both products
are of same motherhouse
4. Basic Rules
a. Ads must be impact based rather than descriptive
b. Ads must promote the product and the script of the
ad
c. The products qualities should be clear, easy and
something to which the general use can relate to.
5. And finally the study and dynamic consistency in analyzing the
results of each of the above implemented feature in an
advertisement.

One of the major factors in analyzing the advertisement market would be

continuous characterization of various features of advertisement, various
consumer tastes, geographic consideration, age, economy class; products
target audience, costing etc.

Creating the advertisement

This refers to the thought process that goes into creating an ad, as an old
saying(yes old sayings are still valid) well begun is half done, its
important that proper inputs are poured into ad making.
The advertiser must plan out a strategic way of studying and have proper
reports/knowledge/data on:







The product to be sold

The pricing and profit margins
The target audience
Classification of various factors affecting the sales
The response generation towards an advertisement.
The script and cost of production of advertisement.

One of the secrets of successful message conveyance is speaking in the

language your listener wants to hear.
In the world of empowered consumers who cannot be outsmarted the
companies have to make ads not based on what they want to show, but
plucking out the thoughts of consumer and showing exactly what he
wants to see.
To all advertisers gone are the days when you used to make
advertisement and the viewers used to watch, the era of making only
what the consumer wants to see has knocked silently
The ads in all cost must meet the requirement of the consumer, must be
competitive, and must be such that the viewer can relate himself to the
product.
One of the major factors in analyzing the advertisement market would be
continuous characterization of various features of advertisement, various
consumer tastes, geographic consideration, age, economy class; products
target audience, costing etc.
Shift from just saturating media space to orienting to impact based
advertisement is the key
The data about the heterogeneity of the market would need to be varied
constantly. The changing trends would require instant change in
advertisement plans and strategies according to changing demand.
Strategising, re-strategising and characterization of variables of
advertising industry would take the advertisement industry to meet its
future requirements.

MEDIA CHOICE AND CONSUMER RESPONSE

The media choice of advertisers appears to be driven by four key
factors:

The campaign objectives

The ability of individual media to reach

the target audience

The media coverage/reach (e.g. whether

specific geographic reach or national)

The campaign budget

Media consumption of an average adult in United States

The three major future media that would redefine and would need to be
redefined to generate the output advertisers are seeking

Television

Mobile
phones

Internet

Print media

Television
elevision advertisement
With the options of multichannel, DTH connection the consumer control over
advertisement viewership has exponentially increased.
The time has come when ads which are common to whole nation
nation be personalized to
region specific telecast.. The beauty of advertisement will come if companies start
advertisements that have more one to one feel.
An IDEA!
Why cant we have simultaneous
simultaneous transmission of same product advertisement in
different formats (languages, costume, and regional taste) for different regions of the
same country?
One of the most effective of advertisement are ads that one which depict the Kahani

Ghar Ghat Ki not the family fights but yes something like that, things which are
common to almost every house,
house touching the II am the one in the ad
ad nerve. The
message in such advertisement is conveyed smoothly and
and humorously and stays in
the brains and hearts for a longer period than most others.

The best examples that can be thought are of:

1. Surf excel- which depicts the basic brother sister relationship, the way kids
gets dirty and finally promoting thats its not bad getting dirty because we are
there to take care of your problem and in the end saying SURF EXCEL HAI
NA.
2. The other ad that comes to mind in HARI SADU- NAUKRI.COM, it shows the
common senior junior assumed relation in an office and how the underog
smarts his boss.
3. The one other ad that has been based always on one theme attracting girls in
HULs AXE- THE AXE EFFECT. The company where well understands the
desperation of a man and clearly depicts the same on screen and I am sure
when you go to a store to buy a deodorant.
If we analyze these ads the common thing was they showed exactly what people
expect out of such a brand and the script was in a manner that only exaggerates a
little to make an advertisement look like an advertisement.
The above brands have been successful in understanding the mentality of the
consumer and consumers in mass and the results have shown on the balance
sheets.
The televisions impact as advertising media is unquestionable but its overall usage
is on decline, the advertisers will have to chose smartly to counter the control which
viewers have over the advertisements they are watching. The future of television as
a medium can never be neglected but with the changing trends this will not hold the
key to successful advertising. This will only be one of the levers.

INTERNET
During the past years, the rise of broadband, and the Democratization of tools
(cheaper) get that more people begin to use internet, as a real alternative to
traditional media.
Apart from television the next biggest media and with highest growth rate is the
World Wide Web.
From pop-ups to search-based ads, the $12.5 billion global online advertising
market has come a long way and eMarketers are looking at newer formats to
woo netizens. Buoyed by the rapid growth of broad-band penetration, advertisers are
now tapping the blossoming online video ad market, which is set to reach the $1.5
billion mark by 2009
As video content on the internet increases and high-speed connections force
consumers to look for alternatives to television, online video ads will be seen as
enhancing traditional TV advertising campaigns

Video content on the internet is increasing substantially and all major portals like
AOL and Yahoo are re-investing themselves to showcase more multimedia and
interactive elements. Indiatimes also is in the throes of broadband-enabling its
complete suite of content. Indiatimes Broadband had a soft launch in May and within
the first 15 days, recorded over half a million video views and got about 200,000
unique visitors. The video clips, which can range in length from just a few seconds to
ten minutes, carry ads, typically in the form of 15-second pre-rolls and marketers are
leveraging their brands on this platform.
The future:
Video advertisement segment is one where lot of potential, at least for the next ten
years the demand will not fall. As more and more people are getting trapped in the
World Wide Web, the usage is only increasing and will continue for years with still a
major crowd remaining untouched.

Mobile advertisement
The mobile handset is a unique device in many ways and just the fact that
over 3.7 billion active SIM cards are distributed across the globe shows
how widespread the technology has become. People use the mobile to
make phone calls, send messages and e-mails, browse the Internet, make
payments or transfer money, watch videos and listen to music. This
creates a wealth of opportunities for marketers to develop advertising and
other forms of marketing that target consumers via their mobile handsets.
There is a wide range of channels and formats for mobile advertising.
Messaging and banners are the largest in terms of revenues today but it
is widely believed that mobile search, communities and social networks
and various location-based services will become significant in the future.
Other potential channels include mobile applications such as games, idle
screen and video advertising.
The future:

The present economic downturn will restrain the mobile advertising

industry as marketing budgets decrease and advertisers put their money
on proven channels
Other potential channels include mobile applications such as games, idle
screen and video advertising.
Undoubtedly mobile holds the key to future advertisement. With the
advancement in 3G technology, the convenience of television and internet
both are available on the mobile and hence it brings to the world of
advertising not only the sum of options of advertising that were available
for mobile+ internet +television but a numerous combinations that will
redefine advertising itself.

PRINT MEDIA
How can established media such as printed magazines, newspapers, and printed
inserts survive?
In a study of the top 100 advertisers, higher co relations were found between a
firms sales and the amount of print advertising it bought versus sales and the
amount it spent on broadcast advertising.
Magazine advertising was more effective than network TV advertising for
promoting SUV brands over a 10-year period.
People who were exposed to print newspaper advertising had a higher
recognition of ad content than those who received an online version of the same
advertising message.
For a food franchiser, the best sales resulted from advertising media spent
concurrently on primary direct mail and national TV advertising.
In a Double-click study, the most influential sources of information affecting
purchase decisions, overall, were word-of-mouth and salesperson sources.
For individual product categories, printed advertising was the most influential
source of information for consumers who purchased personal care / home care
products, and the second most influential source for those purchasing consumer
electronics and home improvement products.

The popularity of newspaper advertising is due to its local focus. Run-ofpress ads and pre-printed inserts provide the savvy shopper with local
store specials. Do consumers use newspaper ads? In a survey of 4,500
newspaper readers sponsored by the Newspaper Association of America,
78% of readers reported that they used newspaper inserts to plan
shopping, and 76% felt that these inserts helped them save money
The future:
The competition is getting tougher for print media in the world of electronics. But the
reliability of material printed in print media makes its still the most trusted media.
Hence the future will lie is segmentation of what advertisements are to be shown.
Also the print media gives higher cost efficiency ratio as compared to other media.

CONCLUSION

The process of advertisement in future will not only thank Jim for shopping but will
need to thank him again for shopping again and again.
The advertisement would be driven by impact, direct sales, cost efficiency , media
choice , strategies pertaining to the product.
The dimensions of advertising are increasing and so are the equations that govern.
The basic formula still remains the same. Advertisers would need to characterize
and classify each part of advertisement chain as much as they can and let innovation
innovate itself in these small segments

The future of advertisement is not blurred just that

it itself has not been properly advertised.