Concept and process of advertising
Advertising is any paid form of non-personal presentation of ideas, goods or services by an identified sponsor. Paid: the firm buys space or time. Non-personal: one message for many people. Identified sponsor: we know who is speaking.
The process
- Set the aim (inform, persuade, remind) and the target audience.
- Fix the budget.
- Create the message (words, pictures, slogan).
- Choose media and exact supports.
- Run the campaign.
- Measure feedback: recall, clicks, sales.
Aims and targets
The target audience is the group the firm wants to reach. It may be buyers, users, or people who influence the purchase (like parents for a child's product). Communication aims follow three levels: know (make people aware), feel (make them like the brand), do (make them act).
Functions of advertising and the AIDA model
- Inform: tell people about a new product, price or use.
- Persuade: give reasons to choose this brand over others.
- Remind: keep a known brand in people's minds.
- Build brand image: create a feeling or personality.
- Support sales staff and dealers: customers arrive already knowing the product.
- For society: it funds free media and can spread public messages, but it can also mislead or encourage over-spending.
AIDA
A good ad takes people through four steps: Attention (catch the eye), Interest (show why it matters), Desire (make them want it), Action (tell them exactly what to do: buy, call, click).
Types and forms of advertising
Types (by purpose)
- Product advertising: sells one product.
- Institutional (corporate) advertising: builds the image of the whole company.
- Public service advertising: social messages like road safety or saving water.
- Comparative advertising: compares with a rival (must be fair and true).
- Informative, persuasive and reminder ads, by stage of the product's life.
Forms (by medium)
- Print: newspapers, magazines, leaflets.
- Broadcast: television and radio.
- Outdoor and transit: billboards, bus and metro ads.
- Online: search ads, social media, video, banner ads.
- Point of sale: displays inside shops.
- Cinema and product placement: a brand shown inside a film or show.
Advertising media and supports
A medium is a type of channel (TV, press, radio, outdoor, internet, cinema). A support (vehicle) is one exact outlet inside it: one newspaper title, one TV channel, one app.
How to choose
- Reach: how many people see it.
- Target fit: do the right people see it?
- Frequency: how often they see it.
- Cost and cost per thousand (CPM) = cost ÷ audience × 1,000.
- Message type: TV for sound and motion, print for detail, online for clicks.
A media plan mixes several media to meet the aim within the budget.
Direct marketing, promotions, sponsorship and events
Direct marketing
Talks to one named person and asks for a reply: emails, SMS, catalogues, phone calls, app notifications. It uses a customer database, is easy to measure, but must respect privacy and consent.
Sales promotion
A short-term reason to buy now: discounts, coupons, free samples, buy-2-get-1, contests, loyalty points, cashback. It gives a quick rise in sales but too much can cheapen the brand.
Sponsorship
A brand pays money or goods to support a sports team, event, show or cause and gets its name seen. It builds image and goodwill, not instant sales.
Events
The firm creates its own experience: a product launch, trade fair stall, road show or festival. People can try the product and meet the brand.
Public relations
Building good relations with the public and media through news stories and press releases, without paying for space.
Try it
Find one ad at home (TV, paper or phone). Write its target audience and mark each AIDA step in it. Then, in the 3D free play, tap every medium and find the lowest CPM. Ask: would the cheapest medium reach the people this ad wants?
Key formulas and definitions
- Advertising = paid + non-personal + identified sponsor + mass media
- Process: aim & target → budget → message → media → run → feedback
- AIDA: Attention → Interest → Desire → Action
- CPM (cost per thousand) = cost ÷ audience × 1,000
- Medium = type of channel; support = one exact outlet
- Promotion tools: advertising, direct marketing, sales promotion, sponsorship, events, PR
Worked examples
1. A newspaper ad costs ₹60,000 and reaches 2,00,000 readers. Find the CPM.
CPM = 60,000 ÷ 2,00,000 × 1,000 = ₹300 per thousand readers.
2. A city bus company shows 'Wear a helmet' ads. Which type of advertising is this?
Public service advertising, because it carries a social message, not a product.
3. A new sunscreen ad: a bright beach photo, a line on 'no sunburn for 8 hours', a happy family, and 'Order today, 20% off'. Mark AIDA.
Attention = bright beach photo. Interest = '8 hours' fact. Desire = happy family enjoying the sun. Action = 'Order today, 20% off'.
4. Radio: ₹40,000 for 2,00,000 listeners. Social media: ₹50,000 for 5,00,000 viewers. Which has the lower CPM?
Radio CPM = 40,000 ÷ 2,00,000 × 1,000 = ₹200. Social CPM = 50,000 ÷ 5,00,000 × 1,000 = ₹100. Social media is lower.
5. A juice brand gives a free glass at a marathon and puts its logo on the runners' bibs. Name both tools.
Free glass = sales promotion (free sample) at an event. Logo on bibs = sponsorship.
6. A shampoo that has been sold for 20 years shows a short ad: 'Still the one.' Which kind of ad is this and why?
A reminder ad. The product is well known (mature stage), so the aim is to keep it in mind, not to explain it.
Common mistakes
- Calling every promotion 'advertising'. A discount coupon is sales promotion; a logo on a shirt is sponsorship.
- Choosing the medium with the biggest reach only. The target must see it, and the cost must fit.
- Mixing up medium and support: 'newspapers' is a medium; one named newspaper is a support.
- Forgetting the 'Action' step. An ad without a clear next step wastes attention.