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					Project on advertising

What is advertising? What are its important dimensions?
First, advertising is a paid form of communication,
although some forms of advertising, such as public service
announcements, use donated space and time. Second, not
only is the message paid for, but the sponsor is identified.
Third, most advertising tries to persuade or influence the
consumer to do something, although in some cases the
point of the message is simply to make consumers aware
of the product or company.

Fourth and fifth, the message is conveyed through many
different kinds of mass media reaching a large audience of
potential consumers. Finally, because advertising is a
form of mass communication, it also non-personal. A
definition of advertising, then, includes all six features.
Advertising is paid non-personal communication from an
sponsor using mass media to persuade or influence an

The content of communication is composed of signs,
symbols, and signals. The Nissan Frontier television
advertisement consisted mainly of symbols and signals,
with symbols dominating.
For this discussion, signs will be described as words. The
signs in the ad were the Nissan: Shift Logo with the
company's words "toughness, power, capability, tradition,


and utility" flashing at the bottom. Due to the heavy
of visual stimuli in this ad shots, words were not as much
emphasized to help with the context, as symbols were
messages help reinforce the customers decision. Most
advertising seems to provide this function.

Types of Advertising:-
     Advertising is a form of selling. It tries to make
consumers buy goods or services. Advertisers must be
aware of the factors that influence people's buying habits
and then use advertising strategies based on this
knowledge. Advertising can be classified in number of
ways. According to one such way there exist four basic
categories: lifestyle, testimonial, informative, or

     Advertising may also be classified on basis of public
relations practice as in-house ads, public service
announcements and institutional advertising used for
issues, advocacy and identity. Three other types are used
less often, but do occur: specialty, cooperative and
professional advertising. One should note the fact that
these classifications are not distinct and may overlap
each other. Let us look each individual category in details.
  In- house ads:-
In- house add is what an organization prepares for is in its


own medium or in another medium controlled by the same
owner. For instance, a newspaper that is a part of a chain
of print and broadcast media might promote a special
subscription offer or announce a new "lifestyles" section
by running an add or promo o the chain's television
stations. No money is exchanged, although space
allotments or “budgets" are established.

 Public service
Psas are sales or promotional pieces - not news stories -
in the form of announcements. Generally, broadcast
stations give unsold airtime for psas, which are prepared
just like commercials, from organizations such as the
united way, the American heart association.

Print psas are generally, but not always found toward the
back of magazines and occasionally in newspapers.
Leftover space is made available for free display ads.

Commercial parternership with non profits are not new,
but they have increased dramatically as advertising costs
have accelerated while the ability to reach audiences has
dropped. The intent is to serve the public, but the
commercial partnership takes the message statement out
of the realm of public service announcements and into the
area of cooperative advertising and promotion.


   Institutional advertising:-
The objective of some institutional advertising is to
convey a particular message. Issue ads are used by an
organization as a forum for its views on a topic or

Companies seeking public support for corporate policies
and programs have begun to invest more in advocacy
advertising. Advocacy ads are a form of lobbying to
influence public opinion. They go beyond offering a
general comment on issues to urging support for a
position that benefits the organization specifically.

Corporate advocacy advertising often looks like editorial
although it may be clearly identified as an ad. Some corpo
advocacy is done in partnership with nonprofit
organization and
becomes a form of cooperative advertising.

Specialty advertising: without looking can you recall the
company whose name is on the pen you use or on your
desk calendar? Advertising specialties are useful,
inexpensive items, such as pens or calendars, imprinted
with an organizations name, logo or message. These are
given away to customers or perhaps as souvenirs to those
who attend a special event.


   Cooperative advertising:-
cooperative advertising offers almost as many advantages
as advertising placed by a single organization. When one
advertiser shares a message with other - such as when
cheese dip manufacturer combines with a potato chip
manufacturer to buy advertising space and time - it also
shares the production and space / time costs. This
enables each to participate in both the production and the

   Advertising by professionals:-
Both advertising agencies and pr firms are now learning to
deal with advertising by lawyers, dentists, doctors, and
other professionals, who used to be prohibited by their
professional codes of conduct from engaging in such
commercial activities. As these professional codes of
conduct from engaging in such commercial activities. As
these professionals began putting their names in print and
their faces on television, a new market for public relations
practitioners opened.

  Lifestyle advertising is used
Attractive people are featured doing enjoyable or
interesting things

that either involve a particular product or service or


somehow relate to it. For example, a television

advertisement might open with a skiing scene - healthy;
good-looking people dressed in the latest ski styles and
using the best equipment, swooping down a scenic
mountain. Then the camera cuts to a soft drink nestled in
the snow at the foot of the hill- the real star of the

There are many variations of this type of advertising but
the suggested message is basically the same: Use this
product or service and you too will enjoy life as much as
the people in the advertisement do.

Smart consumers are not taken in by the unrealistic
expectations these
ads are designed to arouse.
  Testimonial advertising:-
Testimonial advertising uses celebrities, such as movie or
television stars or professional athletes, to endorse
products or services. The intention is to leave you with
the impression that the item must be good if these famous
people endorse it.

Sometimes testimonial advertising features people whose
appearance gives the impression of authority on a subject.
For example, a woman in a white lab coat talking about a
headache remedy could be assumed to be a doctor.


variation of testimonial advertising involves ordinary

interviewed at shopping malls or in their homes or
workplaces, who claim that a certain product or service is
better than competing ones.

Institutions also sometimes endorse products. Ads for
toothpaste, for example, might feature a statement by the
Canadian Dental Association. Some advertisers purchase
the right to display the five- circle world Olympic symbol
in their ads, which signifies endorsement by the Olympic
organizing committee

Informative advertising presents practical, and usually
detailed, information about a product or service, such as
prices, guarantees, ingredients, and applications of the
product. Sometimes this type of advertising involves a lot
of text in a printed advertisement or television program
that runs for half an hour or more. A toll-free number is
usually provided for placing orders, since many of the
products and services promoted are not available through
retail outlets. Called infomercials, when used on
television, shorter versions of this type of advertising
(usually 15 or 30s) are used to promote every imaginable
type of product and service.

  Repetitive advertising:-
Repetitive advertising involves the frequent repetition of a
product or business name or of the advertisement itself
during a program. The advertiser's goal is to implant that
name firmly in your. Mind. Companies that offer items that

differ little from their competitors' often use repetitive
advertising to "help" you remember their particular brand

 Advertising Agency :-
     Getting the best out of advertising is a highly skilled
job. It requires the inputs of experts in many different
fields like writers, artists, photographers, designers,
television production crews and many others. Even the
biggest advertisers cannot afford to employ all these
experts. Almost all advertising is therefore arranged
through an advertising agency which provides the
necessary skill to turn the message into a memorable and
effective advertisement. Advertising has not only come to
reflect pop culture but has also become an important
element of economic growth. Today, every person
connected with the Indian economy or public should be
fully aware what advertising really is and why effective
advertising campaigns can be performed by full-service
advertising agencies.

     Advertising agency is one of the most important
components of advertising industry. It has played
significant role in the development of modern
advertising.The advertising agency has evolved to provide
the specialized knowledge, skills and experience needed
to produce effective advertising campaigns. It provides a
quality range of service greater than any single advertiser
could afford or would need to employ. An advertising


     agency is a firm that specializes in the creation,
design and placement of advertisements, and in the
planning and execution of promotional campaigns for
products and services of their clients.

The Association of Advertising Agencies of America
(AAAA) defines
advertising agency as “An independent business
organization composed of creative
and business people who develop, prepare and place
advertising media for sellers
seeking to find customers for their goods and services.”

     The glamour, the unlimited expense accounts, and
the exhilarating lifestyle - all these popular portraits of life
in the big-time advertising agency are misleading.
Advertising is demanding, challenging, hard work. It is
also interesting and fulfilling. Advertising requires a mix of
personal abilities, considerable business skills, and an
ability to work under pressure to meet deadlines.
Compared to larger industries, there are never many entry-
level positions open in

     advertising agencies (dozens rather than hundreds).
And competition is stiff. The industry, however, is
constantly on the look
out for skilled, bright, articulate, creative and personable
men and women with a well-
rounded education and a good business sense. An
advertising agency or ad agency is a service business


dedicated to creating, planning and handling advertising
(and sometimes other forms of promotion) for their clients.
An ad agency is independent from the client and provides
an outside point of view to the effort of selling the client's
products or services. An agency can also handle overall
marketing and branding strategies and sales promotions
for its clients. Typical ad agency clients include
businesses and corporations, non-profit organizations and
government agencies. Agencies may be hired to produce
single ads or, more commonly, ongoing series of related
ads, called an advertising campaign.

Types of advertising agencies :-
     Ad agencies come in alls izes, from small one- or two-
person shops to large multi-national, multi-agency
conglomerates such as Omnicom Group, WPP Group,
Interpublic Group of Companies and Havas.

     Some agenciess pecialize in particular types of

     advertising, such as print ads or television
commercials. Other agencies, especially larger ones,
produce work for many types of media. Lately, Search
Engine Marketing (SEM) and Search Engine Optimization
(SEO) firms have been classified by some as 'agencies'
due to the fact that they are creating media and
implementing media purchases of text


based (or image based in some instances of search
marketing) ads. This relatively young industry has been

     slow to adopt the term 'agency' however with the
creation of ads (either text or image) and media purchases
they do qualify technically as an 'advertising agency' as
well as recent studies suggest that both SEO and SEM are
set to outpace magazine spending in the next 3-5 years.

     Not all advertising is created by agencies.
Companies that create and plan their own advertising are
said to do their work in house. Todays election of ad-
agency is very difficult. The advertiser should make list of
all possible agencies that can serve his purpose and the
agency best qualified to provide required and effective
services are selected. Some advertiser may select more
than one advertising agency to handle effectively the
various product lines.

Following are major types of advertising agencies that are
currently serving
the advertising industry. Full Service Agencies
     A full service ad agency is one that provides a range
of marketing services. A full services agency provides
services that are directly related to advertising such as
copywriting, artwork, production of ads, media planning
etc. It also provides such services in respect of pricing,
distribution, packaging, product design etc.


Modular agencies :-
     A modular agency is a full service agency that sells
its services on a piece meal basis. Thus an advertiser may
commission an agency’s creative department to develop
an ad campaign while obtaining other agency services
elsewhere. Or, an advertiser may hire an agencies media
department to plan and execute a program for advertising
that another agency has developed. Fees are charged for
actual work undertaken.

In House agencies :-
     Those companies, which prefer to have closer
control over advertising, have their own in-house agency.
This type is owned completely by the advertiser. It
performs almost all functions that an outside advertising
agency would perform and that’s why some people refer to
it as full-service advertising department of the advertiser.
However, the difference between an in-house agency and
an advvertising department is that the in-house agency
can undertake to serve several other clients, if the owner
so desires, but an advertising department solely
undertakes that work of its owner and not of outside
clients . Secondly an advertising department may not be
equipped the personnel and facilities, which an in-house
agency would posses. In- house agency not only provides
control over advertising schedule and costs, but also


     convenience for its owner, because it is just
available in the same building as that of the head office of

     Such in-house agency also benefits the owner as it
can bring revenue through agency commission that are
offered by the media and by way of fees that are collected
from outside parties for undertaking their advertising
work. Such revenue increases the funds and profits of the
company. There is another version of in-house agency
whereby advertiser handles the total agency functions by
buying service unit to buy time, space and place the ads.
Such an In-house agency is an administrative center
(under the direction of an advertising director) that
gathers and directs varying outside for its operation.

Creative Boutiques :-
These are shop agencies that provides only creative
functions and not full- service. The specialized creative
functions include copy writing, artwork and production of
ads, they charge a fee or percentage of full service
agencies, and as such most of them convert into a full
service agency or merge with other agencies to provide a
wide range of services.

Mega agencies :-A significant of 1980’s is
the development of mega agency. Agencies worldwide
merge with each other to serve their clients in much


better way. It was in 1986, Saachi & Saachi, a London
based agency who started the movement and at present it
is the third largest agency network in the world.

The Specialists Agency :-
     There are some agencies who undertake advertising
work only in certain areas. there are agencies that
specialize only in financial services or only in publicity or
only in point-of-purchase material etc. for instance
Soubhagya advertising agency concentrate on specialized
in financial advertisin

The functions of an advertising
To accelerate economic growth and create public
To provide a total, professional, experienced service
which is very

personal in its nature
To take the advertiser's message and convert it into an
effective and
memorable communication
The Benefits of Using an Advertising Agency
• Added Expertise

Media Knowledge and Unbiased Advice
Easier Administration
Media Buying
Quality Control
Fending off the media

And when things go wrong
Cost Saving
Time Saving

Advertising Agency's Role:-
Suppose you are a company with a product. It may be a
totally new product. As a company with a product or
service to sell, designing and making that item is only part
of the battle. People are not going to beat a path to your
door. You have to seek a channel of communication.

Ad agency need to consider, for example:
For whom is the product or service designed?
Who would use it?

Who is the "target group"?
What's special about the product? In what way is it
distinct? Unique?
What's its "position" in relation to other similar products?
What do you want to convey to the public about your
How should your company contact the public?

• What medium should it use? Radio? TV? Newspapers?
Billboards? Bus/subway ads? Direct mail? etc.
How extensive a region should your company try to cover?
How often?
  Communication and marketing decisions involve
specialized expertise. Many companies that design and
produce products or offer services lack these specific
capabilities. This is where advertising agencies fit in.
Advertising agencies exist to help companies to
communicate with the public, Market the company's

The process of advertising involves considerable
specialized knowledge and expertise


about people - their interests, preferences, needs, wants,
about media - their reach, their effectiveness, their
specific appeal
about the company and its product – and about competing
companies and
their products

Services offered by ad agency :-
Total Advertising Services

     Strategic planning, creative development and media
services for advertising, particularly in television,
newspapers, magazines and radio; providing the best
creative designed to capture the imagination of

Marketing Services
Provision of a number of advertising related services,
including sales
promotion, market research, PR and event marketing.
e-Solution Services
e-solution services, including system integration services,
consulting and customer relationship management(CRM),
Search Engine Marketing                                   19
(SEM) and Search Engine Optimization (SEO) and e-
promotions using the Internet
and mobile.
Content Business Sales of sponsorship, broadcasting and
other rights, and the production and marketing of such
media / content as sporting events, films, TV programs,
animated content, music and other forms of
Integrated Media Services
Bringing value to both clients and media-related
companies by offering a wide
range of media solution services
Sales Promotion
Providing comprehensive sales promotion planning
designed to complement
mass media and other activities
Event Marketing
Assisting clients by providing dynamic vehicles for their
messages in the form
of on-the-spot interactive communications
Integrated Branding Services
Assuring clients the highest quality of branding services
for their communication

Agency Compensation :-
Commission and fees methods

     The revenue of advertising agency is derived from
commission and fees. It has been customary for full


agencies to charge a commission of 15% on total billings
for their services, plus reimbursement for advertising
production costs. The 15% commission comes form the
media in which a client firm’s advertising is placed rather
then from the firm. An advertiser is billed by its agency for
the full cost of advertising space used in the media. Then,
the media bill the agency for the full cost of space less a
commission of 15% (any early payment discount is passed
back to the client). The agency’s revenue then is primarily
the difference between what it bills clients and what it
pays to media. In fact the media are paying the agency a
15% commission through a reduction in its billing to the
agency. Moreover, this 15% commission must cover most
expenses of operating the agency, so that a client is
actually paying for the full service offering.

     Creative Boutiques on the other hand, charge a fee,
rather than a commission, for services rendered. The
movement toward a fee system will change the agency-
client relationship to the advantage of the client; for
advertisers will be better able to buy only those services
that they need from agencies.

     For many years, there has been considerable
dissatisfaction with the straight commission system. The
profits of the agencies declined because they were forced
by competition to perform more and more services without
additional compensation. Large advertisers, who bought


     much media time and space, felt that they were
paying too much. The agencies received the same
compensation, whether they placed extra expenses of
creating ten different magazines or had the extra expense
of creating ten ads. Today, there is a definite trend toward
the use of the fee method, or a combination of the
commission and fee methods, although the straight
commission method is still probably the most widely used.

Impact of technology on
advertising :-
     In the mid 1980s, the arrival of desktop publishing
and the introduction of software applications introduced a
generation of designers to computer image manipulation
and 3D image creation that had previously been
unachievable. Computer graphic design enabled designers
to instantly see the effects of layout or typography
changes without using any ink in the process. Computers
are now considered to be an indispensable tool used in
the advertising and graphic

     design industry. Computers and software
applications are generally seen, by creative professionals,
as more effective production tools than the traditional

     Computers may or may not enhance the creative
process of graphic design, depending on which process


     best stimulates the creativity of the designer. Rapid
production from the computer allows many designers to
explore multiple ideas quickly with more detail than what
could be achieved by traditional hand-rendering or paste-
up on paper, moving the designer through the creative
process more quickly. New ideas may come in the form of
exploring software features that would not have been
considered without the software. However, some
professional designers may explore ideas on paper to
avoid creating within the limits of the computer
configuration, enabling them to think outside the box; the
box being the computer. Some creative graphic design
ideas are initiated and developed to near completion in
the mind, before either traditional methods or the
computer is used.

     A graphic designer may also use sketches to explore
multiple or complex ideas quickly without the potential
distractions of technical difficulties from software
malfunctions or software learning. Hand rendered comps
may be used to get approval of a graphic design idea
before investing what would be too much time to produce
on a computer if rejected. Thumbnail sketches or rough
drafts on paper may then be used to rapidly refine and
produce the idea on the computer in a hybrid process. The
traditional-design/computer-production hybrid process
may be used for freeing ones creativity in page layout or
image development as well. Traditional graphic design


     may employ computer-savvy production artists to
produce their ideas from sketches, without needing to
learn the computer skills themselves.

The use of computers in design is sometimes referred to
asCAD (computer aided design), the same abbreviation of
computer aided drafting and a homophone of the acronym
Computer Aided Design & Drafting (CADD) which is the
use of computers in engineering designs for mechanical
products and associated with computer aided production
of these products known as CAM (Computer Aided
Manufacturing). This makes no distinction between
graphic design and technical drawing. Due to this common
misunderstanding, CAD is rarely used to describe
computer use in graphic design. The more common term
used to describe computer use in graphic design is DTP
(desktop publishing). However, DTP is often oversimplified
to the narrower scope of graphic design known as page
layout and publishing technology.


Made by:- omprakash yadav

Sri balaji college jaipur

2nd yr cse

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