Introduction To Advertising & Advertising and Media Planning II

STIKOM LSPR - JakartaIntroduction to Advertising | Advertising and Media Planning
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STIKOM LSPR - Jakarta
CHAPTER 8
TYPES OF ADVERTISING AGENCIES
CHAPTER OUTLINE
Advertising agents were initially established to sell space on behalf of newspapers in the
early 1800’s in England. As product owners started to realize that they need to draw the
market attention to their products, advertising became a very important part of their business
process. As print media’s technology evolved, illustrators and designers were employed to
make print advertising more interesting.
As the marketing science matured, the whole process of advertising was getting very
complicated, there was more significant need to get impact, attract consumers and convince
them the merits of the products or services. In response to this, advertising agencies took
on more people with specialized skills, and today advertising is a highly specialized industry,
helping marketers all over the world creating winning brands.
This chapter will discuss the basic services of an advertising agency and then described
the different types of advertising agencies, established to cater to the different and complex
needs of the increasingly competitive business environment.
OBJECTIVES:
To understand the basic elements of an advertising agency in providing service to their1.
clients
To understand the different services offered by advertising agencies.2.
To understand the function of associated agencies and consultancies3.
The advertising agency
“An advertising agency is an independent organization of creative and business people
who specialized in developing and preparing advertising plans, advertisements and other
promotional tools. It purchases advertising space and time in the media on behalf of their
client.”
(AAAA- American Advertising Agencies Association)
The basic elements of an agency business

Introduction to Advertising | Advertising and Media Planning STIKOM LSPR - Jakarta
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Account Handling
Competitive business environment demanded more complex marketing communication
process. As a result of this the agency’s clients became more demanding and therefore
there was a need for some kind of coordination and liaison between the client and the
departments of the advertising agency- a need met by the account handler.
Account handling
Production
department
Media
department
Creative
department
Advertising Agencies
This the role of the account handling:
• Advise the client company on how their products can be branded and positioned in the
market place to counter act competitors
• Responsible for all clients contact to establish the broad requirements of the clients.
• Brief the various departments of the advertising agency with regards to client
requirements
• Ensure advertising campaign help to solve the client’s marketing problem
• Manage the advertising budget and ensures costs are justified.
• Ensure clients are happy with agency’s overall service.
Creative Department
Creativity is what really builds an agency reputation. Advertising is about visual and copy
elements that attract attention and convince the market to use the brands advertised. Thus
advertising creativity is about creating messages that will effectively establish positive brand
image and positioning.
The creative department is led by a creative director, backed by an art director and
copywriter.
Media Department
Electronic, telecommunications and computer technology resulted in extensive choice of
media. Therefore, the media department must undertake extensive research to design an

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effective media plan and schedule to deliver advertising messages to the target audience.
Then to ensure the best deal budget wise, the media buyers in the media department must
go through negotiation process with the media houses, as there is no fixed price for media
space and airtime
Production Department
The production department is responsible for the production process if TV, print and radio
commercials. The actual production process itself is not done in the agency, but is outsourced
to production houses, printers and recording studios. The role of the production department
is to select the third parties and supervises their work and coordinates with the creative and
account handling teams.
The full service advertising agency
The full service advertising agency is set up to meet the extended needs of the client
company for advertising and promotions services. Hence the organization consist of the basic
elements of the advertising agency previously mentioned, plus others such as marketing
public relations, brand activation, etc.
Companies using this type of agencies are usually large FMCG manufacturers with large
advertising expenditure. Working with full service advertising agencies is very convenient
for these large companies as all of their promotion needs are under “one roof”, so to speak,
making control and supervision of the advertiser easier. However, a smaller company who
may not have an advertising department, may also seek the benefits of working with a full
service advertising agency.
Specialist agencies
Specialist agencies are emerging for two main reasons:
1. The successful individuals working in advertising agencies see the potential of
establishing their own agencies for the reason of earning more money as business
owners. A creative director for example might go on his own to establish specialist
creative agency sometimes known as “creative boutique”
2. A big a full service agency might choose to fragment itself into several specialist
agencies for several reasons: more efficient and effective business strategy being one
of them. As specialist agencies, they can work together on clients which need full
service, and then can pursue business on their own according to their specialty.
A la carte agencies
A client may choose to work with this type of agency, because it does not need the total
offering of the full service advertising agency. A la carte agency is often the choice of
advertising managers who handle most of the advertising in house or internally. A company
who needs the service of an advertising agency on an occasional basis, for example when
launching a new packaging design, may need the creative resources of the agency to create
the new designs.

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Freelance designers ad copywriters
After gaining several years experience working in an agency, creative people often it is more
exiting to work on their own as freelancers. Their service will be called upon by agencies
when they have more workload then they can handle. This type of working arrangement
suits smaller agencies, as they don’t have to hire full time staff, thus avoiding high overhead
costs. This in turn provide cost advantage for the client, in that the client pays only for what
is used ( after agency’s mark up) rather than having to cover the costs of agencies overhead
with full time staff. Another advantage is that freelance creative may bring a fresh approach
or have a special style that reflects the clients requirement.
Media Independents
Advertising agencies are able to negotiate favorable prices with the media due to the sheer
volume of space and air-time that they purchase on behalf of their own clients. It was realized
that if the media department could buy on behalf of several agencies representing even
more clients there would be further economies of scale by buying in bulk. And so media
specialists set up the media independents.
They are called “media independents” as they act independently of the advertising agencies
and its media department. Media independents agencies are used by full service as well as
a la carte agencies, as they have better buying powers and can negotiate favorable prices,
which they pass on to the agencies, who pass them on, in turn to their clients.
Clients working with creative boutiques or freelance creative may also opt to work with
media independent agencies.
Specialist media agencies
These are agencies which specialize in one particular medium such as outdoor, mobile
advertising or foreign publications. This is so because the buying condition differs than that
of mass media, and often these types of agencies have different trade permit than agencies
previously described.
Associated agencies and consultancies
Sales promotion consultancies
These consultancies specialize in developing sales promotional schemes to meet the
marketing and sales objectives of any company. They have a wide range of skills and
expertise and are able to evolve a proposal aimed at stimulating customers or motivating
intermediaries (including their sales staff). They specialize in media advertising, direct mail
and door-to-door distribution, although they may work with media independents for their
media bookings. They also select the gifts and other incentives needed in the promotion
scheme.
An agency of this type may work with an advertising agency or directly with the marketing
department of a company.

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Direct response marketing agencies
In providing service direct response agencies will consider profiles, market penetration and
wastage, and select the appropriate media to get to their target audience. Direct mail is often
used to mail catalogues and brochures. Much of the work of this type of agency is database
or relationship marketing.
Telemarketing
Another form of direct response is promotion via telephone, which may be operated by the
company in house or outsourced to an agency which specialized in this service. However, this
type of promotion has got a bad reputation, mainly due to the poorly trained telemarketers.
Public relations (PR) consultancies
Public relations consultancies are retained by organizations on a fee basis, usually for a year
at a time. Their job is to inform, create goodwill and communicate the company’s image and
reputation, as well as promote the corporate and brand names. A PR consultant produces
publicity materials such as news releases, articles and feature stories. They conduct press
conferences, briefings and interviews to gain editorial coverage (or so called “free publicity
“ as space for these activities are not purchased).
As media coverage cannot be guaranteed, PR consultants have to develop news writing
skills to increase the likelihood that their stories will be printed. Although marketing public
relations help to promote brands in the market place, but the message carried are informative
rather than persuasive.
PR consultancies also prepare road shows, seminars, exhibitions, to improve relationship
between the companies at its customers.

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POINTS TO REMEMBER
• There are four basic elements to an advertising agency: account handling, creative,
media and production departments.
• Other departments are added to meet clients needs, and this evolved into full service
advertising agencies which offer a number of services to promote all aspects of the
products/services.
• Full service advertising agencies, although most often used by big FMCGs companies,
are sometimes used by smaller companies.
• Specialist agencies emerged to cater to more specialized needs of the client
companies.
• There are supporting consultancies, such as sales promotion, direct response and
public relations, which the client and advertising agencies may call upon as needed.

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CHAPTER 9
AGENCY RECOGNITION AND
REMUNERATION
CHAPTER OUTLINE
As a service provider, an advertising agency’s reputation is one of its selling points. For an
agency reputation means that it is recognized not only for its work, but also for other specific
and technical aspects of the business.
This chapter will explain the concept of recognition and how it relates to the agency
remuneration system.
OBJECTIVES:
To understand the agency recognition system, the criteria, and trade association1.
granting recognition
To understand how agency gain income and profit by the various remuneration2.
methods
Agency recognition
The most important recognition to an agency is that by the media houses. Good business
relations with the media are very important for the agency to carry out its commitment to
its clients. The media must be sure that the agency has a substantial financial strength to
pay the media services used by the agency on behalf of its clients. Once recognized by the
media, agency will receive many privileges from the media houses, such as longer credit
terms, more discounts and bonuses.
Criteria for recognition
To obtain recognition, the agency applies for membership in a recognized trade associations.
Persatuan Perusahaan Periklanan Indonesia (PPPI) is one such organization. Another
assurance is the agency’s clients list and track record in credit payment. If the agency caters
to high profile and big spender client companies, it reflects the agency’s financial strength
and reputation, as it is safe to assume that high profile clients will choose to work with
reputable agencies.
AGENCY RECOGNITION AND REMUNERATION

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Agency income
The commission system
The commission system is based on above the line media expenditure. In the agency –client
contract/agreement, it is decided the percentage the agency will receive from the client’s
above the line expenditure. When using this system, media discounts are rebated to client.
Example:
Rate card price: Rp 10.000.000
Discount 20%: Rp 2.000.000
Cost after disc Rp 8.000.000
Agency com 15% on gross Rp 1.500.000
Cost to client Rp 8.000.000 + Rp 1.500.000 = Rp 9.500.000
In this case, the agency is entitled for 15% ( if this is the % agreed on the agency-client
contract) on gross media costs.
Agency fee
The fee system is income generated by agency for their time and skills, especially as
nowadays many agencies operate increasingly like consultants advising their clients on
marketing communication strategies. Advertisers may accept the fee system if they in turn
receive objective and expert advice from their agencies resulting in agency-client relationship
based on trust and mutual benefits.
Handling charges or “mark-ups”
Handling charges usually applies for below the line activities and production of advertising
materials. For this type of work, agencies usually assigned a third party, and the mark up
is calculated based on a certain percentage of the costs submitted by the supplier. For
instance :
Printing cost Rp 10.000.000
Mark up 15% Rp 1.500.000
Cost to client Rp 11.500.000
The handling fee “mark up” covers the agency time and expertise in overseeing the work
done by the supplier, thus ensuring satisfactory result.
Variation on the commission and fee system
The payment system described above can take any combination. When the agency provides
full service, all 3 may be used: the commission system for media services, fee system for
consultation and concept development and mark ups for jobs where agency supervision of
third party are required such as in producing advertising and other promotion materials.

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Points to remember
• Agency recognition by the media is vital for an agency to buy airtime and space on
behalf of the client
• Criteria for recognition are membership at advertising trade association, such as PPPI,
agency’s client list and track record of media payment.
• Once recognized, agencies are entitled for media commissions (discounted from rate
card price), and other privileges
• The agency income is derived from the agency commission which is generated from
media commissions, agency fee for providing strategic advice to clients and handling
fee or mark ups for supervision of third parties.
• Any of the above payment system can be combined depending on service rendered
and as stipulated in the agency-client contract.
• Agency and client relationships are based on effective service plus cooperation, trust
and respect on both sides.

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CHAPTER 10
FUNCTIONS OF DEPARTMENTS IN
ADVERTISING AGENCIES
CHAPTER OUTLINE
The service provided by an agency to their clients very much depends on how effective
is the teamwork between the departments of the advertising agency. This chapter will
provide an understanding of the advertising agency’s organization, describing the role and
responsibilities of each department, and how they join force to provide satisfactory service
to the client.
OBJECTIVES:
To understand the functions of the main departments of the advertising agency1.
To understand the area of responsibility of the account handling department especially2.
in relation with briefing and coordinating with other departments
To understand how the creative department works, from receiving and interpreting3.
brief
To understand the media planning and buying function4.
To understand the production department’s role in ensuring concept are implemented5.
in publication and broadcasting
Functions of the basic advertising agency
The four main departments in the advertising agency
1. Account handling
2. Creative
3. Production
4. Media
Account handling
The main function of this department is to liaise with the clients and to discuss needs and
wants and to interpret them for the various agency departments. Therefore this department
plays a vital role in maintaining and strengthening agency-client relationship.
FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES

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There three level as follows:
Account director
The account director, the most senior level is concerned with the overall health and strategy
of clients accounts under his responsibilities. He may work on different accounts with different
executives and support teams.
The concern of the account director is to ensure that the work undertaken for the clients meets
their objectives, whether short , medium or long term. He leads the account team and other
departments in the formation of strategy and is responsible for the overall implementation
of the campaign.
Account planner
The account planner is responsible for ensuring that the actions taken by the agency will
support the long term development of the brand. In doing so the account planner studies
market trends, competitors activities and consumer behavior. In small agencies, this function
is undertaken by the account director.
Account executive
The account executive ensures that all aspects of the work are carried out to everyone’s
satisfaction. The tasks associated with this position is liaising with the other three departments
of the advertising agency, making sure that work is performed on time and meets the agency
standard of quality. He also communicates with the client frequently to ensure that line of
communication between agency and client is always open and healthy.
Creative department
the creative department is the producer of ideas and concept and is very important in
establishing and maintaining reputation of the agency.
Creative director
The responsibility of ensuring that the message suits the product, brand or service is that
of the creative director. Creative directors have usually risen through the agency’s structure
from copywriting or art directing. As the head of the creative, he directs the art director
and copywriter in establish creative concept and strategy to meet the requirement of the
campaign outlined in the creative brief.

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Elements of the creative brief
• the reason for advertising : launching of new brand
• the objective of advertising, for example brand awareness for launching of new brand
• target audience: to whom the advertising message is addressed
• communication strategy: positioning, promise, the essence of the advertising
message
• rationale: the supporting factors for the promise so the message is credible
• key benefits of the product or factors that fulfill the needs and wants of the target
audience
• the advertising tone
• the mandatory such as logo, tag line, etc
• media platform
Copy chief/copywriter/ art director/compugraphic designer
The copy chief is a position in the creative department who is responsible for writing the
copy (wordings) of the advertising, and as he is a senior member of the team, he supervises
more junior position, the copywriter.
In making advertising concept, copy chief/copywriter and art director sit down together to
interpret the advertising brief, or the direction/ guidelines provided by the creative director.
The art director will brief the compugraphic designer so he can help the art director in
preparing the visual part of the concept. The next step is to discuss the concept, or copy
platform with the creative director. Once the creative team agrees on the concept, they will
discuss it with the account handling team to ensure that the copy platform addresses the
marketing issue to be resolved by the advertising campaign. If everything is in order, the
creative team prepares the finishing touches to the concept and presentation schedule is
arranged with the client.
Role of the account handlers in the creative process
As the account handlers, of all levels, are in regular contact with the client, they are absorbing
the needs and wants of the client, whether these are expressed formally or merely implied
by the client’s behavior or attitude. They learn to understand what the client will accept and
will reject, and so they form a vital link in communicating what is required without inhibiting
the creative process.
However, the account handler, when presenting the concept, also explains and defends the
creative ideas, to get them accepted by the client, as they have been carefully thought out to
enhance and reinforce the advertiser’s message. If, in fact, the client is not convinced then
it is up to the account handlers to break the news to the creative team. On some occasions,
complete campaigns have been thrown out by the client, but in many cases the campaign
requires only a small change of emphasis.

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Media department
The media department is split into three areas:
• Media research
• Media planning
• Media buying
Media researcher
Media data such as audience data is essential for media department of the advertising agency
in order to select appropriate media to place the advertisements and commercials. Much
of this complicated media data is available on line, by subscription to computer databases
operated by the independent media research organization. The media department can
look at individual publications, radio and television programs which might have audience
profiles similar with the profile of the target audience. This is called intramedia comparison.
If comparison is made between different types of media (newspaper vs magazine), this is
known as intermedia comparison. It is possible off course that several media can target the
same audience, which leaves option to decide on which can be used to deliver different
aspect of the message.
Therefore , the role of media research is to support media planners with providing media
data such as audience data, TV ratings, media penetration, etc. Such data will help provide
a strategic media plan to support the advertising objectives.
Media planners
The media planner takes the statistical research undertaken by the media researcher as
the basis for deciding which media, newspaper, radio, television (intermedia decision) or
which newspaper, which radio station and programs, or which TV channel and programs
(intramedia decision) , will be the most appropriate to carry the advertising. Another factor
that must be considered is the ability of the medium to carry the message, so the media
planner must consider the following characteristic of the medium:
● television advertising, for impact, to gain attention and create awareness as well as
image building
● national newspapers and magazines, to give detailed information such as specifications
and credit details as well as offering the opportunity to include a response coupon
● regional and local newspapers, for co-operative advertising or advertisements to draw
attention to local outlets
● radio, to create image and mood for the product (as well as local stations to draw
attention to local outlets/stockists)
● cinema, to remind as well as give impact (but on a limited basis as people go the
cinema infrequently)
● trade journals, to convince the retailers of the messages being communicated by direct
mail

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The media planner then produce a media plan which provide the media objectives and
strategy, and media schedule to show the selected media, time and frequency and the
budget/costs.
The media plan is presented to the client by the media planner and the account handlers for
discussion and approval.
Media buyer
The final process of the media department is to buy the advertising space and airtime.
The media buyers will negotiate with media houses for discounts and credit terms. One of
the best strategies to secure good discounts is to buy large volume of space or airtime. The
agency credit record is also a factor often considered by media houses to give discounts and
other privileges to the agency.
Production Department
The responsibility of the production department is to make sure that everything that is needed
to produce the final advertisement is prepared cost effectively to the highest quality and then
delivered to the right place at the right time and in the right format.
Since actual production of advertising materials are not done in house at the agency but are
outsourced to the appropriate productions houses, printers, etc so the role of the production
department is coordinating and supervising the work of the selected external production
suppliers.

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Points to remember
● The functions of meeting clients’ needs are coordinated by the account handling team
with the assistance of an account planner.
● Account handling consists of account directors (responsible for strategy) and account
executives (who liaise with the client and other agency departments on getting the
work completed)
.
● The account planner’s role is primarily concerned with the long-term solution of the
client’s needs and wants, but might include attention to details that may affect the well
being of the clients and their accounts.
● Account handling is based on responding to campaign and advertising briefs prepared
by clients outlining the requirements that they want fulfilled.
● The role of the creative department is to find a way that is credible but still has
attractiveness to communicate the benefits and advantages of clients, their products
and services.
● The creative director works with creative teams to develop the key concepts and copy
platform to carry the client’s message, based on a creative brief.
● Concepts are worked up into visuals (by a compugraphic designer) and copy (by a
copywriter) or storyboards and scripts (by a scriptwriter) to a standard that can be
presented to the client.
● The media department is responsible for research to establish the media which would
be best suited to reach the client’s target audience. This would include determining
which were the best slots, positions, locations or sites and not just the overall medium
but the particular publication, television or radio station, or cinema screen.
● The media planner creates detailed media schedules and media expenditure for the
client’s approval.
● Based on the approved schedule, the media buyer negotiates the best deals in terms
of position and location related to the lowest cost.
● The media department negotiates packages with radio stations, television companies
and contractors for outdoor and transport advertising (poster) and cinema advertising
for the benefit of the client.
● The production department ensures that advertisements and commercials are
completed as scheduled and meets the agency standard of quality
● The production department co-ordinates with external production suppliers such as
production houses and printers for the production of all promotional material generated
by the agency,

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CHAPTER 11
CREATION OF ADVERTISEMENTS AND
COMMERCIALS
CHAPTER OUTLINE
The creation of advertisements and commercials requires specific skills. First of all there are
specific skills to interpret information written on the creative brief, which is the basis for the
concept development of advertisements and commercials. Then there are specific skills in
the formulation of creative strategy and message execution in the form of writing copy and
scripts as well as art direction for the visual part of the advertisement and commercial.
This chapter discusses the meaning of creativity in advertising, how concepts are developed
and how creative strategy are realized in the form of storyboard, layout and script.
OBJECTIVES:
To understand what is creativity in advertising1.
To understand the creative process in developing advertising concept2.
To understand how to prepare TV commercials3.
To understand how to prepare print advertisements4.
To understand how to prepare radio commercials5.
Creativity in advertising
Creativity is definitely one the most important aspect in advertising.Aunique advertisement or
commercial always gets the audience’s attention and make the commercial or advertisement
stands out among other advertisements and commercials .However, being different and
getting attention are not the only criteria for creativity in advertising.Advertising is a marketing
problem solving tool. Marketers/advertisers financed the advertising campaign to achieve its
marketing objectives. Therefore advertising must be persuasive and motivates the audience
by providing advertising message that answers to the target audience’s needs and wants.
Creativity in advertising means.
• Effective in helping the advertiser achieve its marketing objectives.
• Provide a unique and effective way to communicate with the target audience
• Creating advertising message which relates and provides answers to the target
audience’s needs and wants
• Persuasive message which motivates the consumers, therefore contributing to sales
• Effective in establishing brand image
• it must be ethical
CREATION OF ADVERTISEMENTS AND COMMERCIALS

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The creative process
Studying the creative brief
The creative brief provides the information required by the creative team and is used to
guide them in developing the concept. The creative team under the direction of the creative
director will study and analyzed the information in the brief, to get the essence of:
• The advertising objective
• The audience needs/ wants/problems
• The aspects of the brand which can fulfill the needs/wants or solve the problems of the
target audience
• The motivation to buy the brand
• The way to communicate effectively.
Brainstorming
Itisthepracticeofthecreativepeopletobrainstormtogethertogetideas.Whenbrainstorming,
all ideas that come are listed and discussed. The ideas might relate to the feature and
benefits of the products or consumer behavior that you want to evoke with your message.
The ones with potentials are short listed and finally the “big” idea is selected.
The creative strategy
The two previous processes will result in finding the “big” idea. The big idea will be formulated
into the creative strategy that is what message to be conveyed, to whom and with what
approach:
• who to influence
• what to say in order in order to influence
• how to say in order to influence
Then the creative strategy is implemented in what is called the message execution which
simply means the technique to convey the advertising message to the target audience. The
message execution should be:
• attractive, attention getting
• simple and easy to understand
• able to create the perception as defined in the creative strategy
Message execution takes the form of storyboard for TV commercials, layout for print
advertisements and script for radio commercials

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TV commercials
Television has other elements over print advertising: visuals, sounds, movements, thus
providing powerful impact to the advertising message.
However the same principle applies, the commercial has to attract, creates interests and
desire, so that potential customers will act in favor of the brand compared to that of the
competitor’s.
The storyboard
The concept of TV commercial is called the storyboard. The storyboard contains the story
line to communicate the “big “idea and visuals are used to explain the story line. The script
for TV commercial is short and concise, and further enriched with music and sound effects to
create interests and get attention. Every scene in the storyboard is framed like a TV screen.
Below each frame is written the dialogues, camera angle, music and sound effects.
The storyboard is used by the agency to explain and sell the advertising concept to the
client.
Print advertisement
Print advertisement refers to advertising placed in magazines, newspapers, tabloids, etc.
Elements of print advertisement are:
• headline
• sub headline
• body copy/main copy
• slogan/tagline
• visual
• layout
Headline
Headlines are used to attract attention to the advertisement, so that it will be read by the
target audience. The format of the headline depends on many factors, among others are the
creative strategy, the media used and how it should relate to the visual and body copy
Sub headline
The sub headline is used to support or enhanced the message in the headline: such as to
provide information and improved understanding.
Body copy
The body copy is an elaboration of the statement or promise made in the headline or sub
headline. Therefore the function of the body copy is to persuade by giving information that
will motivate the target audience to use the brand.

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Slogan/tagline
Slogan or tagline is used to provide the final persuasion, by giving a phrase of reason to
use the brand. Written in only a few words, slogan/ tagline conclude the whole advertising
message. It also strengthens the positioning of the brand. Tagline is usually catchy and easy
to remember.
Visual
The visual of a print advertisement is often the most visible and dominant element. It is
created to get attention and to communicate the concept of the advertisement and to convey
the brand image.
Layout
Layout is how all of the above elements are placed in the advertisement. Again the main
objective is to get attention, to convey the advertising message in a simple way to ensure
comprehension and to establish the brand image.
Radio
After the so-called excitement of the all-singing and all-dancing television, radio may seem
a dull medium for any creativity, yet, despite only having sound, it can be used to create the
most marvelous word-pictures using the listeners’ imaginations. With sound, there are not
only the words but the fact that the words can be dramatic or humorous while sound effects
and music can create exactly the right mood.
The elements of radio commercials are:
• Script containing the main message, the promise and the positioning of the brand.
• Music, to get attention, to enhance the positioning and to create overall mood.
• Sound effects to promote imagination in the listeners mind.

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POINTS TO REMEMBER
• Creativity is a very important aspect of advertising
• A creative advertising means that it is effective in helping the advertisers reach his
advertising objectives, relates to the needs and wants of the consumers, persuasive
and motivating the consumers to use the brand so helps to increase sales.
• The creative process begins with the creative team studying and analyzing the essence
of the brief and brainstorm together to get ideas
• The big idea is formulated in the creative strategy which basically means conveying
what message to whom and using what approach
• The message execution is simply the technique in which to convey the message to the
target audience
• The message execution must be attractive, simple and easy to understand and must
establish the brand positioning.
• For a television commercial, elements such as pictures, movement, sound, and camera
directions have to be included as well as dialogues.
• The storyboard contains the story line to communicate the “big “idea and visuals are
used to explain the story line.
• Storyboards are used by agency to explain the concept of TV commercial to their
clients
• Print advertisement refers to advertising placed in magazines, newspapers, tabloids,
etc.
• The elements of print advertising are : headline, sub headline , body copy, slogan/
tagline, visual and layout
• Although radio only has sound, it can be used imaginatively with music and sounds
effects

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CHAPTER 12
PRODUCTION OF ADVERTISING MATERIALS
IN MEDIA
CHAPTER OUTLINE
The production of advertising material is outsourced to a third party : printing establishments,
recording studios, production houses. The production department of the advertising
agency is mainly responsible for coordinating work between the outside suppliers and the
various departments of the advertising agency such as the account handling and creative
departments.
This chapter will describe the role of the production department to ensure that production
of advertising materials is conducted professionally and on time for the clients advertising
campaign. It will also describe the production process of print advertising , TV and radio
commercials.
OBJECTIVES:
Tounderstandtheroleoftheproductiondepartmentinensuringproductionofadvertising1.
materials are done in a professional manner
To understand the production process of print advertisement and other printed promotion2.
materials
To understand the production process of TV commercial.3.
To understand the production process of radio commercial4.
The role of the production department
Once the concept – copy and layout (visual), or storyboard has been approved by the
client, the producer (in bigger sized agency there are print producer, TV producer and radio
producer, in smaller agency all production process are undertaken by one producer), begins
the production process by allocating a job number and title. The job numbering system is
vital to keep tract of the work through agency and suppliers until completion. Therefore, the
responsibilities of the production department are as follows:
• Coordinating all work required for the production process internally with relevant
departments: creative and account handling ( to handle all communication with client)
and externally with the suppliers. In bigger agencies progressing work to outside
suppliers are monitored by the traffic controller, however in smaller agencies this
function is performed by the production manager.
• Monitoring the production process, ensuring conformation to production schedule
• Ensuring that standard quality is met
PRODUCTION OF ADVERTISING MATERIALS IN MEDIA

69
• Ensuring that all costs borne by agency are allocated to the right job and prepare
invoices for approval to the account handlers.
Throughout the whole workload of the production department, the key elements are quality
control and following tight production schedule. This is to ensure that production of the
agency’s work is to the highest standard and are done on schedule.
Producing printed advertisement and other printed promotional
material.
The print production process begins after the client has approved the copy and layout
(concept). The production process is as follows
Pre production process:
This stage is the preparation stage prior to actually producing the print material. It consists
of appointing the agency print producer, preparing detailed planning such as costing,
timing, appointing photographer, casting, location hunting or studio set up, make up and
wardrobe.
Production
At this stage the finish artwork is prepared by the compugraphic designer who has taken
over tasks of the paste up artists prior to computer technology. All the elements of the print
materials: visuals (photo or illustration), headline, body copy, tag line, etc are all incorporated
in the computerized artwork.
Post production
The next step is taking the final artwork for printing. Since the advancement of computer
technology, the traditional way of producing print materials by way of color separation and
proof prints are no longer practiced. The printing process nowadays uses digital techniques
develop for computer printers such as inkjet or laser printer.
The process is much faster and more cost efficient compared to traditional printing methods.
Every print can be different because printing plates are not required and less waste of
chemical and paper.
The client has to approve the finished product and then the print advertisement is dispatch
to media for placement.
Producing TV commercials
Once the story board and script is completed, the TV producer is asked for advice on the
following

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Pre production
1. feasibility study: The TV producer will check if the storyboard is feasible
technically. The TV producer will also make sure it can be produced within budget
and time frame.
2. initial approval : further checking to ensure that the script will not create problems
legally or ethically.
The next step is presentation of storyboard to client
3. appointing the TV producer: once the storyboard is approved by client and
ready for production, the agency TV producer is appointed. (in bigger sized
agency there may be more than one TV producer, therefore one needs to be
appointed).
4. selecting the production house: as production of TV commercial is outsourced
to a production house, the TV producer will then begin the process of selecting
the production house and the director. The production house will submit detailed
costing and time frame for approval by the agency.
5. detailed planning: once the proposal from the production house is approved,
detailed planning to produce the commercial begins: location hunting, casting,
wardrobe, make up artists, etc. Several meetings between account handlers,
creative team, production team and the production house team are conducted to
ensure the production process will go smoothly. These meetings are called pre
production meetings.
Production
6. filming: studio or on location shooting. Although it is strictly guided by the
planning and the discussions in the pre production meetings, the actual filming
may try different angles and approaches, to be used if the original angles didn’t
work. This will save the expense of re filming. Commercials are still made on
35mm film, and edited by computerized techniques to produce the commercials
on broadcast standard video tapes.
Post production
7. post production editing: this includes recording and dubbing the voice overs,
music and sound effects, as well as color corrections. With computer technology,
some colors can be emphasized, while others toned down. The commercial is
edited into 30”, 15” and 5” duration.
8. approval of censor board: all commercials must be censored to ensure
compliance to ethical regulations.
9. dispatch to media: the TV commercial is transferred into video tapes/ DVD and
dispatch to TV stations.

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Producing radio commercials
The production of radio commercial starts with an approved script.
Pre production
The radio producer prepares the detailed planning such appointing the recording studio,
costing, selecting voice talents, sound effects , copyrights for music if any, producing the
jingle, if any.
Production
At this stage all audio element are mixed and recorded at the recording studio. Durations of
radio commercials are usually 30” to 60’
Post production
Once the sample recording is approved by the client then the commercials are transferred
to CD format and dispatch to radio stations for placement.

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Points to remember
The role of the production department
• The production process begins by allocating a job number and title. The job
numbering system is vital to keep tract of the work through agency and suppliers until
completion.
• The production department coordinates all work required for the production process
internally with relevant departments of the advertising agency.
• It also ensures that works are done as scheduled and meets the agency’s standard of
quality.
Press advertisement
• the production department is in charge of the production process which includes
preparing final artwork and printing process
• final artwork is done by the compugraphic designer and is the conversion of copy and
visual into finished or camera ready artwork
• The finished artwork is processed by way of digital printing process, which is more time
and cost efficient compared to traditional printing process.
TV commercials
The production of a television commercial starts with a feasibility study is based on the script
and perhaps a storyboard.
The stages of producing television commercials are:
1. feasibility study by the head of television production
2. script approval to ensure compliance with ethical board
3. appointment of the producer (and production assistant) from within the agency
4. selection of director from a television commercial production company taking account
of detailed costing
5. detailed planning
6. studio and location filming
7. post-production editing
8. approval by board of censor
9. dispatch of finished commercials to television stations or channels.
Radio commercials
1. the production process begins after the script is approved and the radio producer will
make detail planning
2. all the audio elements such as voice over, music, sound effects are mixed and recorded
at the recording studio
3. once demo or sample recording is approved by client, it is transferred to CD format and
dispatch to radio stations for placement.

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CHAPTER 13
MEDIA IN ADVERTISING AND
PRINTED MEDIA
CHAPTER OUTLINE
Media serves an important role in advertising. It is used to carry and convey advertising
message to the target audience. To do this efficiently and effectively, media planners have
to make several considerations, such as media data, media characteristics, etc.
As one of the chapter about media, this chapter will go through the many categorizations
of media used by advertising agency. It will also show the extent of media available for
advertising and how it is used to achieved optimum result.
OBJECTIVES:
To understand the extend of media available for advertising1.
To understand different types of media and how it used in advertising.2.
To understand the use of print media.3.
The role of media in advertising
Without media, advertising message will not reach the target audience. Media cost is the
largest part of the advertising budget, therefore media planners must be sure that the most
effective and efficient media is selected to carry the advertisements and commercials. Thus
several considerations are undertaken:
• Media costs: what media to be used to accommodate the advertising budget given.
For example, as TV spots are relatively more expensive than other media placements
costs, therefore a rather small budget may not be feasible for buying TV spots
• Media data: who reads it, listen, watch, how many, how often, etc
• Media characteristics:
o Physical
o Restrictions
o Timing for booking
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Media used in advertising
• Press/print – newspapers, magazines, tabloids
• Radio – local and national
• Television- national, local, cable
• Outdoor - billboards, signage
• Mobile - public transport
• Cinema
• Internet
• Direct mail - brochures, catalogues
Above the line and below the line media
This categorization of media is used by agencies to distinguish media which are vital for
the agencies main source of income. Agency commission is gained from above the line
media, thus contributing the agencies main source of income. However, agency will focus
on the client’s promotional objectives, when electing above the line media and below the
line media.
Above the line media
• Provide high reach of the target audience
• Spots and spaces purchased for advertising
• Agencies source of main income from media commissions
• TV, magazines, newspapers,tabloids, radio, outdoor, mobile are in this categorization.
Below the line
• Specific, made for specific purpose
• Limited reach, reach specific audience
• Agencies income limited to design and production
• Leaflets, brochures, posters, are in this category
Primary and secondary media
The principle of primary and secondary media is of greater importance than above the line
and below the line media to the advertiser.
Primary media
The media most often used to carry the advertising message. The main consideration is
reach and costs.
Secondary media
The media used to support the primary media.

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Printed media
Newspapers
• National newspapers- general : Kompas, Republika, etc
• National newspapers-business: Business Indonesia, etc
• National newspapers-English language: Jakarta Post, etc
• National Newspaper-evening: Suara Pembaruan, etc
• Regional/local newspapers: Pikiran Rakyat (Bandung/Jawa Barat, Jawa Post-
Surabaya/Jawa Timur, etc)
The characteristics of newspaper are high reach of the target audience, high in news value,
offers a variety of size for purchase. However, it has a short life only half a day and the
quality of paper may not be suitable for advertisements relying on visual impact such as high
end fashion brand.
Magazines
Magazines are more segmented than newspapers as shown below
• Consumer magazines- women general: Femina, Kartini.
• Consumer magazine-women fashion: Dewi.
• Consumer magazine –parenting: Ayah Bunda.
• Consumer magazine –business: Gatra.
• Consumer magazine teenagers –girls: Cosmo girls.
• Consumer magazine teenagers –boys: Hai.
• Business Magazine: SWA.
• Lifestyle magazine: Prestige.
Beside consumer magazines, various trade magazines are also available usually published
by trade associations. Most magazines are circulated nationwide. Magazines are segmented,
has a longer life and higher duplication of readers than newspaper. It has a better production
quality than newspapers, so advertisements look more attractive.
Tabloids
Tabloids can be said as a cross between newspapers and magazine. In appearance and
paper quality they are more similar to newspapers, but in content and segmentation are
more like magazines. Tabloids are not published daily like newspapers, but weekly. Tabloids
worth mentioning here are: Bola for the soccer fan, Nova for women and Cek & Ricek for
celebrity news.

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Points to remember
• Media is used in advertising to reach the target audience.
• Since there are many types of media, the media planners must refer to media data to
ensure that the media selected is appropriate in that it is the most effective and cost
efficient media to reach the target audience.
• Categorization of media includes, above the line media, below the line media, primary
and secondary media.
• Above the line media and below the line media are initially defined to differentiate which
media generate the most income for the agency. However, the selection of above the
line media and below the line media must take into account the promotion objectives.
• Primary media is media most often used to carry the advertisement, chosen based on
the audience it represents and the costs.
• Secondary media is selected to support the primary media.
• Printed media consists of newspapers, magazines and tabloids.
• Newspapers are further categorized into, national, regional/local, general and
business.
• Magazines represent many segments of the market, such as consumer magazines for
women, teenagers, men, and business/ trade magazines.
• Tabloids are similar to newspapers in terms of paper quality but are similar to magazine
in term of segmentation, content and time of publication (weekly instead of daily).

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CHAPTER 14
BROADCAST MEDIA AND OTHER MEDIA
CHAPTER OUTLINE
Having discussed the role of media in advertising and the printed media, this chapter will
focus on broadcast media: television and radio. It will discuss how these media are used
as advertising media. Other media, also important for many aspects of promotion such as
outdoor media, cinema, direct mail, door to door distribution and POS displays will also be
presented in this chapter.
The previous chapter and this chapter will show the importance of selecting the appropriate
media to achieve specific advertising and promotion objectives, as each media differ in
characteristics and hence have their own strengths and weaknesses.
OBJECTIVES:
To understand the use of television as an advertising medium1.
To understand the use of radio as an advertising medium2.
To understand how profile of television and radio audiences differs according to the3.
channels and stations, the programs and time of day
To understand how the following media deliver advertising messages:4.
Outdoor media»»
Cinema»»
Door to door»»
POS ( point of sales)»»
The broadcast media
Television
Although television is not always a primary medium, it is often the first choice to
advertiseFMCGsandconsumerdurables,especiallyiftheyaretargetedatthesocalled‘mass
audiences’. Television can swiftly and effectively communicate benefits and advantages in
an effortless, lively manner to large target audiences.
Television if can be afforded by the advertiser, has definite advantages. It delivers moving
pictures which can enhance the persuasiveness of the message. Sound effects and music/
jingle are often used to reinforce mood for the brand.
Advertisers will opt to buy spot at peak hours or “ prime time” , where popular high rated
programs are relayed. Many television channels will compete with each other to offer
programs which will command highest viewers.
The revenue from selling advertising spots pays for the production of programs or buying
programs from overseas. Advertisers pay increased air time price for high rated programs.

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Terrestrial television used land based transmitters to relay their programs , whilst satellite
television used high powered electronic beam from an earth station to a satellite in space
which is then reflected back to be collected by receiver dishes outside houses or buildings.
The use of satellites enables the receipt of more channels to the viewers compared to the
use of land based transmitters.
International advertisers benefit from satellite television in that it can reach international
audiences.
Cable television is carried by optical fibers, which are strands of glass along which tiny light
beams are passed to carry the television signal. The optical fibers used are two way, so
there are immense opportunities for advertisers to discuss their products on television for
customers to buy at the press of button on the remote control unit. Thus emerge shopping
channels, using direct response marketing with their target market.
Radio
Radio is broadcast via airwaves, the use of which is controlled by government, so that a
radio station is operated by contractor under license.
Radio covers a local area and most radio stations have developed a distinct programming
format to cater to specific segments of the population. Hence emerge business news radio
stations, stations directed at the female segment of the population, etc.
Advertising spots are 30 seconds or 60 seconds. Prime times are early morning when
people are in their cars to go to work and again early evening when they are going back
from work. One of the advantages or radio, is that it can be listened to anytime, thus the
prime time are usually directed at working people. Lack of pictures is not really a problem,
as the combination of tone and style of voice plus music and sound effects can often paint a
powerful “picture” in the mind of the listeners.
Radio also provides information important to the listeners such as weather forecasts, traffic
condition, latest development on particular news of interests, etc and such information may
be sponsored by the advertiser.
Beside spot advertising and sponsorship, other means of promotion using radio are: Ad
lip, where the announcers relay the advertising message, and creating specific talk show
programs are also gaining popularity among advertisers.
Other media
Outdoor advertising
Outdoor advertising involves putting the advertising message on billboard, pedestrian
crossing bridge and shop signage. Today it has evolved into mobile advertising, using public
transport as advertising medium.

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Billboards are controlled by specialist media agency and advertisers can rent for a period of
time. Billboards are not placed randomly but are selected with care based on research data
indicating the profile of the public, the estimated number that pass each day and how times
a day they pass.
The advantage of outdoor advertising is that people cannot really avoid it. Off course
people don’t stop to look at a billboard, the brand name, colors, the powerful visual and
brief associated message will subconsciously remind them of the television or magazine
campaign they have seen.
Cinema
Most cinemas are complexes, with a number of screens to have several films showing
to different audience. Cinema goers are usually teenagers and young adults, so brands
targeting this segment often find cinema as quite an effective medium for advertising. Cinema
has its own way of delivering the advertising message, it has sounds and movements, and
the large screens in a darkened room with impressive audio system. Moreover, there is the
captive audience, unlike television where people can switch channels or do other activities
during commercial break.
Selection of cinema is based on who will see the film, the location of the cinema, time such
as weekend, etc.
Direct mail
Unfortunately, direct mail has become known as ‘junk mail’ owing to too many
companies are doing it badly. In fact, provided it is addressed correctly (by name, to the
potential buyer or user) with a mailing piece (or promotional leaflet) and a message that
appeals to the customers’ or consumers’ needs and wants, it is highly successful.
Targeting depends on getting the right mailing lists of named individuals, and this has to
be done precisely. This is undertaken by direct mail houses, which build or create lists of
names and addresses within certain categories such as professionals, business owners ,
etc. Companies can now build their own mailing lists on computer databases and code them
in such a way that they can target mail shots to individuals based on goods and services
already bought and the pattern of buying.
Door-to-door distribution
Door-to-door distribution simply means delivering promotion materials to people’s houses.
The areas to receive the door-to-door are mapped according to the profile of the target
audience.
Another variation of door-to-door is inserting the leaflet in the newspaper, providing off course
the target audience has a similar profile to the readers.

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Point of Sales (POS) displays
POS are used at the retail or outlet where the brand is sold and can take the form of :
• Stickers/show cards on counters
• Hanging mobiles suspended from ceiling
• Metal displays, free standing in the store
• Dummy pack (actual size or enlarged)
• Crowners to put on bottle necks
• Open/closed sign
• In store videos
• Shop signs
The purpose is to get customer’s attention and to remind them that the brands are available
in the store. It will also remind them of the key advertising message. As they promote sales,
such materials are welcomed by the retailers. Since competition for space is fierce, POS
displays must be well planned and budgeted.
The media combination
No promotion plan can really be effective by using one medium. To achieve maximum impact,
promotion campaign usually employs various media:
• TV commercial to gain awareness, impact and image
• Newspapers and magazines to provide detailed information such as specifications
• Radio as reminders to a specific segment and create mood for the brand
• Cinema for impact and reminder to a specific segment
• Direct mail to inform retailers about product benefits and to provide detailed information
to consumers.
• POS materials to promote sales of brands in shops where they are sold
Advertising can be supported by other promotion techniques:
• Sales promotion to encourage purchase through incentives
• Personal selling to encourage interaction with customers
• Exhibitions to show product and product demonstration
• Sponsorship to create goodwill.

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Points to remember
• Television is an effective media as it has sound and movement to reinforce the
advertising message.
• Television has prime time showing high rated programs.
• The higher the number of people watching the program, the higher the price for the
spot.
• Different programs attract different profile of audiences, and the type of viewer changes
throughout the day’s programming.
• Radio is an effective advertising medium as it can be listened to anywhere and anytime,
while doing other things.
• Although lacking visuals, radio advertising with sounds and music helps to create a
powerful and personalized image of the brand.
• Outdoor advertising cannot be avoided and carry brief messages, as reminder.
• Cinema is effective to reach young audience and also provide captive audience.
• Cinema provides impact in terms of large screen, sounds and movements.
• Direct mail can be effective provided if executed properly, the right targeting, correctly
addressed, and contain useful and persuasive messages.
• Door-to-door advertisers allow advertisers to deliver leaflet, sales promotion offers, etc
to specific target audiences in certain neighborhoods.
• POS is an effective way to remind customers of the brand image and key advertising
message of brands that are sold in the store.

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CHAPTER 15
MEDIA PLANNING
CHAPTER OUTLINE
Media research is the first and fundamental step in media planning. To understand how
many people buy specific newspapers and magazines, or more importantly, how many read
them and what types of people they are – requires media research. Similar information is
also required for broadcast media such as who watches and listens to television and radio
programs, is very crucial in making a strategic media plan. To fulfill the needs of media data,
agencies employ the services of independent media research companies.
This chapter will discuss how agencies acquire the information needed to make media
plans, what data is needed, and how this data is used for planning media. This chapter will
elaborate the process of media planning and media buying.
OBJECTIVES:
To understand the need of media research for media planning purposes and how it1.
is required
To understand what data is needed for inter media planning of above the line2.
media
To understand what data is needed for below the line media3.
To understand how media data is used in media planning and buying4.
Media research- above the line
As advertising campaigns are being based on integrated marketing communications, media
research is being used to investigate inter media habits, that is to see which radio listeners
are viewers of which TV channels and programs and which newspapers and magazines
they read.
For advertising agencies, media research is important to establish the profile of who receives
the advertising message as well as the depth or penetration in the market place. Penetration
is also called coverage (especially in printed media) and reach in broadcast media.
For media houses, the result of the research allows them to set rates (costs) of advertising
space and airtime, and these are not only based on the size of the space or the duration
of the airtime, but most importantly on how many people will be exposed to the advertising
message and their purchasing power to buy certain goods and services.
Using information regarding audience profile, penetration and media rates, agencies can
select the best media to target the desired market effectively and can calculate the required
budget.
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Independent research organizations
Independent research organizations are used to establish media data to assure advertisers
and advertising agencies that the research is accurate, valid and unbiased. Therefore the
agency’s media department can rely on the data and be assured that the media they buy on
behalf of the clients will reach the advertisers target audience.
Media data can be obtained by working together with a world wide media research
organizationsuchas ACNielson.Localresearchcompaniesareoftenusedbyadvertisersand
advertising agencies to conduct omnibus surveys and competitors advertising expenditures.
The Indonesian advertising trade organization, PPPI, published annually an advertiser and
agency guide to media in Indonesia called the Media Scene.
Research-below the line
Direct mail
There is no media research for direct mail, but there are ways of establishing the number
of potential contacts that a mailing can reach. Mailing lists are classified by names and
addresses, professions, buying power, and also indicate an estimate of the number of people
in each classification. Data base technology allows for cross-tabulation of different criteria to
build a list tailored made to match the audience profile the advertisers want to reach.
Internet and POS
The Internet and World Wide Web are still in their infancy and not readily available to some of
the key target groups that an advertiser wants to reach (e.g. majority of users are young and
may be lacking in buying power). Consequently, they are not fully recognized as mainstream
media and so little research has been undertaken into their effectiveness as advertising
media. However, figures are available on the number of times that a website is “visited”.
Currently there is no research undertaken by independent research organization into
effectiveness of POS materials. Its effectiveness relies upon the evaluation of the advertisers
marketing and promotion team.
Media Planning
Based on the analysis of the media data obtained from above mentioned research, media
planners will select media that will direct advertising messages effectively and efficiently to
the target audience.
In addition, media houses also provide what is called media kit. The media kit contains
interpretation of data collected and analyzed by the independent media research
organizations:
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84
1. Circulation and readership figures (or viewing or listening figures)
2. Profile of readers (or viewers or listeners, etc)
3. Area of coverage (in geographic terms)
4. An editorial schedule of subjects to be covered in the publication so that advertisers
can place their advertisements in special issues, features or sections. For television,
this takes the form of video presentation, while cinema chains issue lists of forthcoming
films
5. Advertising rates (including rates for special positions or peak viewing times)
6. Frequency (daily, weekly or monthly appearance)
7. Mechanical details (e.g. method of printing and requirements for film for printed
media).
The scope of media planning
• Media objective: what is to be achieved , qualitative as well as quantitative
• Media strategy : how is the best way to achieve the above objective
• Media schedule: the implementation of media strategy: when and where to place the
advertisements and commercials
• Media budget: costs required to place the advertisements/commercials.
Media objectives:
• Who to reach with the use of selected media
• How many
• How often (frequency)
• Effective reach needed to get your message across
• Media budget
Media strategy
• Which media to use: (macro media selection and micro media selection)
• Budget allocation for each type of media
• Monthly reach and frequency
• Media efficiency
• Size and duration of advertising
Media schedule
• Showing the most effective and efficient use of media selected
• Showing the reach and frequency as stated in the media objective
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Media budget
• Monthly media budget
• Macro media budget
• Overall campaign budget
Media brief
Media brief is a document prepared by the account handler which contains all relevant
information required by the media planner. It contains the following information:
1. Product/brand information: physical characteristics, use, benefits, etc
2. Marketing objective: what the advertiser wants to achieve with marketing efforts
3. Brand performance in the market: market share and other indication of how the
brand is doing among its competitors
4. Advertising objective: what the advertiser wants to achieve through advertising
campaign
5. Past advertising efforts and result
6. Consumer buying and usage habits
7. Direct competitors: who and what they do, how do they differ with the brand
8. Target audience
9. Why the audience wants to use the brand
10. Market area: the campaign coverage of marketing area.
11. Media recommended by advertiser
12. Duration of campaign
13. Media budget
Media efficiency
As mentioned above, media plan strives to select the most cost efficient media to place
the advertising message. Therefore there are ways to compare media efficiency as shown
below
Cost per thousand (CPT)
The above is used to compare the cost of different media, to determine which is more cost
efficient. The elements are the costs for advertising space/airtime divided by 1000 readers/
audience.
Cost of Space
Cost per thousand= -------------------------------------------
Readership divided by 1000
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Media buying
The media buying is the implementation of media planning, meaning that after the approval
of the media schedule by the client, the media buyer is responsible to purchase space or
airtime for the advertisers. In doing this, they have two interests to achieve:
1. For the advertiser: negotiates the best price ( discounts)
2. For the agency: finds opportunities to earn extra money ( more discounts, flexible
terms of payment)
The media buyer is also responsible for making sure that the advertisement appears in the
media as per media purchase order and that the agency is billed as per agency –media
buying contract. The media buyer also follows up with the account handler to ensure that the
client pays the media bills on time, so that media can be paid on time too.
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Points to remember
• The media process consists of media research, planning and buying
• Media research is crucial as accurate data regarding the media’s audience and media
characteristics such as penetration, rates are important considerations in the media
planning process
• Media research is undertaken by independent media research organizations to ensure,
accurate, valid and unbiased data
• Account handlers prepare media brief containing information to be used as a basis for
formulating media plan.
• Upon receiving the media brief, media planner will create media plan and schedule
consisting of macro media selection and micro media selection. The most effective and
cost efficient media are the main considerations when making a media plan.
• Media efficiency is calculated via various methods such as the CPT (cost per
thousand).
• Media buyers will proceed to buy space and air time once the media schedule is
approved by the advertisers.
• Media buyers will check that advertisements and commercials appear as scheduled
and that media bills are paid on time.
MEDIA PLANNING

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CHAPTER 16
ETHICS AND CODES OF PRACTICE
CHAPTER OUTLINE
Advertising is very powerful and can impact the target audience way of thinking, emotions
and behavior. Therefore, it is important that the advertising message does not impact the
target audience in a negative way.
Most advertisers and advertising agency prefer voluntary control, meaning they themselves
control what should be said and what should not be said in an advertisement or commercial,
bearing in mind the interest of the target audience. The voluntary controls ensure advertisers
maintain the standard of behavior which protect the reputation of the industry and so ensure
by implication, that the customer is being protected.
This chapter discusses the objectives and roles of code of advertising practice and how it
benefits the advertisers, advertising agencies and consumer.
OBJECTIVES:
To understand the objectives and role of advertising code of practice1.
To understand how the advertising code of practice benefits the advertisers,2.
advertising agencies and consumers
Advertising creativity and ethics
Creativity and persuasiveness is the basis of the advertising message. To motivate the
consumers, advertising messages focus on the consumer benefits, be its rational benefits
such as value for money or emotional benefits, promising beauty and image.
An advertisement or commercial is creative not just because it is different than other
advertisements or commercials, but because it motivates the consumers without over
promising and without misconceptions. A creative advertisement or commercial can in its
own unique way make the consumers understand why a certain brand will benefit them.
Advertisers and its target audience must build and maintain a long term relationship to
ensure consumer trust and loyalty. In short, creative advertising is also ethical advertising.
The advertising code of practice strives to ensure that consumers expectation are met, and
that advertisers and advertising agencies work together to fulfill this expectation.

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Advertising code of ethics: objectives
For consumers
• Protect consumers from over promise and misleading information and perception
• Motivates the consumers to use the brand because advertising message answers to
consumers’ needs and wants
• The advertising message is credible, thus establishing consumer’s confidence in using
the brand
• Advertising message is focused and informative, therefore helps the consumer to
select the right brand to serve their needs.
• Educate the consumers by giving examples and appropriate information
For advertisers and advertising agencies
• To use as standard practice in order to uphold professionalism and reputation of the
marketing and advertising business
• To promote healthy competition among advertisers
• To practice corporate social responsibilities
• To provide guidelines in creating concepts with the consumers interests in mind.
The Advertising Code: general
The Advertising Code states that all advertisements should:
be legal (and do not break the law or incite anyone to break the law)•
be fair and promote healthy competition by not exploiting negatively competing•
brands
be decent (and should not cause serious or widespread offence on the grounds of•
race, religion, sex or disability)
be honest (by not exploiting credulity, lack of knowledge or inexperience of•
consumers)
be truthful (by not misleading through inaccuracy, ambiguity, exaggeration, omission,•
etc)
show responsibility to the consumer and to society•
follow business principles of ‘fair competition’•
not bring advertising into disrepute•
apply the Code in spirit as well as in the letter•

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be able to be substantiated•
not exploit or exaggerate fear•
not show or encourage dangerous practices (especially with the young)•
not encourage drinking and driving•
not condone violent or anti-social behavior•
not use people (e.g. personalities) without permission•
use only genuine testimonials related to the product (and have written permission to do•
so from the individuals, publications or organizations involved)
indicate clearly that advertisements are not editorial matter•

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Points to remember
• The advertising industry prefers voluntary control, meaning they themselves control
what should be said and what should not be said in an advertisement or commercial.
• The voluntary controls ensure advertisers maintain the standard of behavior which
protect the reputation of the industry and so ensure by implication, that the customer is
being protected.
• To be creative, an advertisement /commercials must be unique, answers to consumers
needs and also must be ethical.
• The advertising code of practice ensures long term relationship between consumers
and advertisers and also guides advertising agencies to create creative and ethical
advertising.
• The advertising code of practice also aims to promote healthy competition among
advertisers.

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CHAPTER 17
ADVERTISING AND THE LAW
CHAPTER OUTLINE
Like any other service provider, advertising agencies rely on the long term and mutually fruitful
relationship with its clients. This relationship is formalized by the agency –client contract
agreement which guides how each party work together to maintain a professional working
relationship which may lead to a long standing business partnership. Many advertisers have
been known to stay with their agencies for many years.
As agencies act on behalf of their clients with third parties: the media, production houses
and suppliers, agencies also need to formulate contract agreements with third parties to
safeguard their interests as well as their clients.
This chapter will cover the agency- client contract agreement, agency and third party contract,
and discuss the basics of agency and client business relationship.
OBJECTIVES:
To understand contract agreement between agencies and its clients1.
To understand contract agreements between agencies and third parties2.
To understand agency-client business relationship3.
Agency/client contracts and agreement
Every company involved in marketing makes contracts. Contracts are made between
agencies and clients as well as between agencies and suppliers (like the media owners,
freelance compugraphers, copywriters, and photographers as well as printers).
A contract consists of three elements – an offer, an acceptance, and a consideration.
An offer (of goods or services) by one party and an acceptance (of the offer) by a second
party. This is called an agreement and becomes a contract only when
a consideration is included by the first party and accepted by the second.
(A consideration is an old term usually meaning a sum of money.)
Listed below are the areas that a typical contract would cover:
● period of initial contract (usually 1 year)
● length of notice period (usually 3 months)
● clear definition of the services to be provided
● statement of approval procedures for work produced

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● provisions for terminating the contract
● terms of business (regarding payment of the agency, mark-ups and handling
charges (for both the agency’s work and that of third-party suppliers)
● repayments of volume and other discounts, including commissions from the media
owners
● the rights of the advertiser to use other suppliers
● arbitration or means of settling disputes should they arise
● insurance (for professional indemnity, etc)
Termination of contract
Termination of contract may be initiated by the agency or client. The client may terminate the
agency for the following reasons:
• Unsatisfactory service
• Slacking in creativity
• Client’s new management wants to explore other agencies
• Change in agency’s management or personnel
• Agency’s pricing
• Wants fresh new ideas
The following reasons usually lead to termination of contract by agency
• The client doesn’t honor the terms of payment in the contract agreement
• The client’s business is not profitable: agency spends more man hour than it charges
the client but cannot ask for higher fees.
• Conflict of interest: agency has been appointed by client’s direct competitor who has
more promising business potential.
The goal: long term and profitable business partnership
Just like everything else, a business relationship has to pass several cycles to survive:
The introduction cycle
At this stage, agency and client has not formalized their relationship, but they are learning
about each other. The client is impressed with the agency’s skills and experience, its human
resources, its eagerness to serve the client by showing understanding of the client’s business
and market. The agency has a positive feeling about the client: he shows understanding of
how an agency work, his objectives are realistic and clear and he has the financial means.
These positive impressions then lead the relationship to the next cycle.
The development cycle
The relationship is formalized by a contract. Agency will continue to impress clients with
their professionalism and service excellent. Client shows his eagerness by providing the

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information needed by agency. At this stage work rules and condition for team work is
established. Mistakes made at this cycle are usually forgiven.
The maintaining cycle
The key at this cycle is effective communication to support effective teamwork.
As work intensified, expectation increases, problems also arises. As long as effective
solutions are found and the motivation to work together persists, then usually agency and
client can form a very long and successful working relationship. Foote, Cone & Belding
(FCB) worked with Sunkist for 85 years, Konimex and Matahari Advertising has worked
together for 30 years.
The termination cycle
Many factors can lead to termination of business relationship as previously described, and
like so many other things in life, the termination could be amicable or could be a negative
experience for both parties.
Agency/third party contracts and agreements
Agency buys advertising space and airtime from the media houses, it also commissioned
production establishments to produce advertising materials on behalf of its clients. So if
the agency buys space form the media, it makes contract with the media and sells the
space back to its clients. If the client does not pay, agency must foot the bill. The same with
other third parties employed by the agency on behalf of its clients This is why agencies are
required to be creditworthy.
The working relationship between agencies and its third parties, indirectly influenced agency
and client business relationship. if the agency cannot manage its third parties, then the
quality of work that it gives to its clients suffers.
The law of copyright
Anyone who creates something has a right to protect it from being copied or used by other
party. This is an automatic right, with no registration required (unlike a trade mark under
older legislation). Anyone who copies any aspect of an
advertisement without permission can be sued for an injunction and damages by an owner
through a civil action.
The rights to all work done by the agency (including artwork) belong to the agency, even
though the work has been commissioned by and paid for by the client. This is the case
unless the client insists on a clause assigning ownership in the agency/client agreement.

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Other copyrights to be considered
• Work by photographers, free lance designers etc commissioned by the agency on
behalf of its clients
• The use of materials from external source as such the right to use the cartoon character
Mickey Mouse.

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Points to remember
• Agency and client formalized their working relationship with a contract agreement
• A contract consists of an offer ad an acceptance , which forms an agreement, together
with a consideration, usually a sum of money
• A contract can be terminated by either agency or client, as long as provisions for
termination have been met.
• As agency buys many service from other third parties on behalf of its clients, agency
also form contract agreement with third parties.
• Copyright covers the ownership of words, artistic works (photographs, illustrations,
etc), music and many other created elements.
• The goal of agency and client working relationship is long term business partnership.
• A business relationship consists of several cycles which if passed successfully will
ensure a mutually beneficial business relationship between agencies and its clients.

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CHAPTER 18
ADVERTISING TESTING AND EVALUATION
CHAPTER OUTLINE
Market situation is very complex. It is imperative to establish the market situation such
competitive environment, consumer perception and attitudes, before planning and executing
an advertising and promotion campaign. This to ensure that the campaign is effectively
directed at relevant market issues.
This chapter will explain the various methods of testing and evaluation to ensure that
campaigns are planned strategically and executed appropriately. Successful campaigns
will enhance advertiser’s confidence in the methods of advertising as well as on the
professionalism of the advertising agency.
OBJECTIVES:
To understand the reasons for doing testing and evaluation.1.
To understand the methods of pre-campaign testing.2.
To understand continuous research to monitor performance of advertising and3.
promotion.
To understand the methods of evaluating a campaign.4.
Testing the market place
Testing of the market place to discover information such as the level of market response to
the brand, how the company and the brands are perceived by the consumers and customers,
are initially taken by the advertiser’s marketing team. Their findings are then briefed to their
agency.
The agency will then conduct their own research to find other pertinent information which will
guide them to plan an effective campaign. If negative attitudes, motivations and opinion by
the customers and consumers are found, then the agency can find ways to re-position the
brand so it will be perceived in a positive way. On the other hand positive attitudes can also
be discovered and then enhanced in the campaign.
Reasons for testing are:
• Seeing where things may go wrong so can be avoided.
• Highlightingopportunitiesthatcanbeexploitedforfurtherbusinessgrowth,orpositioning
and communicating brands more effectively.
• Showing how to fulfill objectives.
• Indicate short and long term plans.

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Testing and evaluating advertising
Testing an evaluation of advertising takes place before, during and after campaign. Research
methods are qualitative or quantitative.
Qualitative research:
This type of research is used to find out the extent of attitudes and beliefs within the market
place. It involves small number of people therefore requires less funding and easier to set
up. As this type of research provides valuable insights into opinions relating to advertising
research, it is often used to test concepts.
Quantitative research:
On the other hand, quantitative research aims to establish size and mostly demographic
nature of the target or market.
Pre-production testing
The objective of pre-production testing is to ensure that the creative ideas and concept will
get the message across to the target audience. This is important because the advertiser
and advertising agency wants to be sure that the advertising will achieve the objectives,
therefore money and time well spent.
Aspects to be tested:
• What is the impact of the advertisement or the commercial?
• How does the target audience relate to the message. Is it understood?
• Does the message convey the right image?
• Is the message credible?
• Is it persuasive enough?
• Does it stands out among other advertisement/commercial
Discussion and interview methods
• Group discussion
• Depth one-on-one interview
• Semi structured and structured interview
The individuals selected to participate in discussion and interviews have similar profiles to
the target audience. To get the most of these activities, skilled interviewers and facilitators
are used with a well designed questionnaire. A closed questionnaire requires only Yes or
No answer, an open questionnaire requires the respondent to provide more descriptive
answers.
Split-run testing

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A split –run test is done by placing two concepts in different edition of the same publication
and seeing if there is a difference in perception.
Test marketing
This is a rather elaborate and expensive method, as a mini campaign is conducted to assess
brand acceptance and promotional techniques. However, it is equally important that the
likely effectiveness of the advertising campaign should be tested before it is carried out
nationwide.
Post-production testing
Post-production testing means looking if the advertisements are recalled and that the
advertising objectives are met.
Checking the campaign.
This is checking to ensure that the advertisements and commercials appear at the right
time and at the right place. For press advertisements , voucher copy is given to the agency
and for commercials a time table of commercials transmitted in a chronological order is
provided.
Recall testing
The objective of recall testing is to see if people remembered the advertisement among
other advertisements that they have seen the day before.
The recall testing can be either unaided or aided. In the first, the individuals are asked
to respond instantly and recall advertisements and their contents from a test selection of
advertisements, or from memory of actual types of advertising or product classes. With
aided recall, the individuals are shown a selection of advertisements or cards with brand
names and are asked which they have seen.
Reading and noting
This is used to test the percentage of people who look at particular page of a magazine, and
how many percent saw the advertisements and actually read the content.
Checking responses and sales
Increased inquiries and sales are of course the easiest objectives to measure. This is
especially true if some response mechanisms are included in the advertisement, such as
coupon. Coupons are coded, so the advertiser can see from which media the coupons have
cut.
For broadcast media, a free number (toll free number) is often used to measure the number
of responses received.

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Continuous testing ad testing during campaign
Consumer panels
Panels are groups of people who agree to report on their buying behavior either by giving
regular interviews or by completing daily diaries of their purchases. They might also be
chosen to complete questionnaires on a regular but voluntary basis. Members of other panels
use bar-code scanning devices (similar to those used in supermarkets) to record purchases,
with the data being transmitted to the market research company for central processing and
analysis. One of the best-known kinds of panel records the television commercial breaks
and programs that viewers watch. This is a valuable way of determining how many people
may have seen a commercial.
One major advantage of panels is that agencies and advertisers can subscribe to these
services on a continuous basis or immediately prior to a campaign to monitor the purchases
through the life of the advertising or promotion.
Retail and dealer audits
The research involves taking stock levels and accounting for all stock deliveries over a
regular period. It covers a number of products and brands, so that it is possible to see the
effect of an advertising campaign by the variations in stock turnover of a particular brand.
Tracking studies
Advertisers subscribe to this means of continuous research to receive 13 reports produced
every 4 weeks throughout the year. Like retail audits, it concentrates on certain categories of
product, such as confectionery, toiletries, drinks, clothing or consumer durables, or services,
such as travel, retailing or financial services.
This research involves weekly self–completion questionnaires by selected respondents to
monitor how effectively advertised brands are being communicated. It also monitors the
respondent’s media habits.
Opinion polls
A poll or survey is conducted to detect changes in awareness and opinions over a period of
time. Based on this the effect of advertising and promotion can be evaluated. It also can be
used prior to the campaign to get an understanding of the market place.

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