ADVERTISING PROPOSAL

ADVERTISING PROPOSAL CONDUCTED BY The Y ES Agency Generation Y Experts John Hawkins Nina Taniguchi March 15, 2004 Please direct all questions or comments to John at (215) 417-8842 E-mail: johawkin@wharton.upenn.edu 3901 Locust Walk, Box 674 • Philadelphia, PA 19104 p. 2 Client Information: 2004 Senior Class Gift Drive Committee Primary contact person: Ms. Elise Betz Assistant Director Student Development Programming and the Senior Class Gift Drive The Penn Fund 601 Franklin Building 3451 Walnut St. Philadelphia, PA 19104-6285 (215) 898-3643 Project: Senior Class Gift Drive Spring 2004 Advertising Campaign p. 3 TABLE OF CONTENTS I. II. III. IV. V. Key Recommendations………………………………………………………………..4 Client Objectives……………………………………………………………………...5 General Campaign Strategy…………………………………………………………...6 Target Market…………………………………………………………………….…....7 Advertisements…………………………………………………………………….….9 1. Print Advertisements…………………………………………………………10 2. Video Advertisements………………………………………………………..13 VI. VII. Advertising Principles………………………………………………………………..15 Advertising Tactics…………………………………………………………………..17 1. Print Advertisements 2. Video Advertisement Copy Test Results……………………………………………………………………20 1. ESAP Ratings………………………………………………………………..20 Media Alternatives…………………………………………………………………...22 Media Plan…………………………………………………………………………...25 Agency Capabilities………………………………………………………………….27 Legal and Ethical Guidelines………………………………………………………...28 Appendix..……………………………………………………………………………29 1. Timeline……………………………………………………………………...29 2. Decomposition comparison……………………………………………….....30 3. Decomposition calculations………………………………………………….31 VIII. IX. X. XI. XII. XIII. p. 4 I. Key Recommendations After an assessment of your objectives and resources, we have formulated the following set of recommendations in order to increase the total amount collected as well as the number of participants in the 2004 Senior Class Gift Drive. Our recommendations to launch the campaign listed below reflect the results of multiple market research studies and the advice of experts in the advertising industry. A. Print advertisements (3) 4. “Benjamin Franklin Society” (BFS) 5. “Small gifts add up” 6. “Help future Penn Students” B. Online Advertising 1. Reminder Advertisement & Giving Link on Class of 2004 Website 2. Testimonial Video Based on your estimated budget of $1000, we recommend placing advertisements in the following media forms: • • • • • Flyers along Locust Walk and other campus areas The Daily Pennsylvanian (Please refer to the Media Plan on page 20) • Two quarter-page advertisements • Sponsorship of the crossword puzzle Mass mailing to the senior class Placement in Wharton mailfolders On the Class of 2004 website (http://dolphin.upenn.edu/~class04) p. 5 II. Client Objectives Based on our initial meeting on January 23, 2004, we learned about your overall objectives for the Class of 2004 Senior Class Gift Drive as well as the purpose for developing a new advertising campaign. After gaining a better understanding of your goals, we worked to establish quantitative standards by which to evaluate the success of the campaign. As a result, the following two objectives now appear more explicit and measurable. By observing the number of seniors who have donated as well as the total amount collected, you will be able to track the progress towards the primary objective in the next few months. The secondary goal, however, will require a longer period of time to evaluate the number of 2004 alumni who have correct contact information on file with Penn. Objectives (ranked in order of importance): 1. To raise $60,000 and have 60% of the senior class donate to the gift drive, which will pay for the building of the Class of 2004 Cafe Courtyard at Mark's Café by June 30, 2004. 2. Maintain correct contact information with at least 50% of the senior class within five years following graduation, so that they will feel encouraged to stay connected and continue contributing their time, talents, and gifts to Penn. With these objectives in place, we built our recommendations in order to increase donation amounts as well as the participation rate of seniors who donate. Furthermore, our objectives will guide us to emphasize how giving will preserve and improve the positive aspects of the Class of 2004’s Penn undergraduate experience for future classes, so that they will feel more inclined to remain involved and in touch with the university for many years after they have graduated. p. 6 III. General Campaign Strategy During the initial client-agency meeting, we learned about how you separated the senior class into three different groups based on their feelings and beliefs about the Senior Class Gift Drive. Your approach placed seniors into one of the following categories: 1. “BFS” – seniors who are extremely willing to donate and have the financial resources to make a gift of $250 or more in order to earn membership in the Benjamin Franklin Society run by the Alumni office. The greatest challenge with this group is locating these seniors who feel so passionate about their Penn experience to donate. 2. “Participants” – These seniors are willing to donate the minimum gift of $5 or more without a great deal of hesitation. The difficult part of collecting money from these seniors is directing them on how, when, and where to donate. 3. “Non-Believers” – This group of seniors are not willing to donate and believe that the university will not benefit from any donation they make. These seniors often feel that the university already has too much money. Any message to this group should answer the question about where the donated money goes and how it benefits the Penn community. We recommend that you build upon this idea of separating the senior class into smaller audiences when developing advertisements. By using three different print advertisements, this campaign may lead to promoting more compelling and tailored messages about the propositional benefits of giving, which could subsequently increase the number of donations. The chart below clarifies the benefits that we recommend to strategically communicate to the three groups that comprise the senior class. Group BFS Participants Non-Believers Propositional Benefit to emphasize in advertisement In exchange for your leadership gift, BFS membership and special recognition with one’s name on the class gift plaque Your gift will put the class one step closer to reaching its record-breaking goal of 60% participation and $60,000 collected (Social-proof) Contributing to resources Penn needs to improve to maintain its status as an elite institution (i.e. financial aid, endowment, new buildings) p. 7 IV. Target Market For the Senior Class Gift Drive, a definition of the target market must extend beyond simply the senior class. The difference in beliefs about the Senior Class Gift Drive among members of the class of 2004 appears to serve as the best way to separate the class into smaller groups. Based on the participation numbers for the Class of 2003, we have derived the following table that shows the relative size of these segments to whom which we have designed our advertisements. Segment Non-believers Participants BFS Percentage of Total Class 52% 47% 1% p. 8 The following data indicates that, during the spring semester of 2003, a larger number of seniors donated as they approached graduation. This trend suggests that advertisements should be developed to continue the high level of donations given in February as the result of the annual Feb Club promotion, which rewards seniors who have donated with a bonus stamp on their Feb Club card. As a result, this research reveals that a month by month media placement plan should be in place to continually remind and encourage more donations during the final months of the academic year. Donors by Month 350 300 250 Number of Donors 201 200 150 100 50 0 Before January January February Month M arch April M ay 34 134 288 276 231 p. 9 V. Copies of Advertisements The following pages include copies of the print advertisements we created for your campaign as well as an analysis of the principles, techniques, and methods we used to evaluate these ads. p. 10 Print Ad #1 - “BFS” Seniors, why a $250 donation helps to build more than this courtyard Site for the Class of 2004 Courtyard at Van Pelt Library Why donate $250 Penn benefits greatly from a $250 donation. In recognition of such generosity, Penn shows its gratitude by rewarding you with membership into the Benjamin Franklin Society, Penn’s elite alumni giving association. Penn encourages graduating seniors to gain BFS membership since gifts to the university are crucial. For the past 3 years, U.S. News and World Report named Penn among the top 5 universities in the nation. However, Penn’s endowment per student ranks only 67th in the country. Your contributions go to more than just the building of our gift, The Class of 2004 Café Courtyard at Van Pelt Library. They allow Penn to offer more financial aid, build its endowment, and offer the best resources to its students. The benefits of giving Penn holds a special appreciation for its BFS members. As a result, you can benefit in many ways by making the minimum donation of $250. Some of the benefits are highlighted below: • Your name on the commemorative plaque in the courtyard Invitations to events exclusively for BFS members, including wine and cheese receptions, homecoming tailgate parties, and many more alumni celebrations around the nation Pride in making a leadership gift towards the Class of 2004’s enduring legacy in the heart of Penn’s campus Donating is easy Making a donation could not be easier. You can pledge over the phone by calling 1-800-BFRANKLIN, or by going online and visiting the class website http://dolphin.upenn.edu/~class 04/. Gift drive committee members will also be present to collect gifts at all senior class activities leading up to graduating, including Senior Week events. We accept cash, personal checks, and all major credit cards. You can also pay in installments to reach the BFS membership level. If you still have questions or would like more information about donating or the Benjamin Franklin Society, please contact Elise by telephone at (215) 898-8445 or send her a email at ebetz@ben.dev.upenn.edu. • • p. 11 Print Ad #2 - “Help future Penn students” Class of 2004 How your $5 gift can help make Penn even better Small gifts add up Wealthy alumni are not the only people who donate to Penn. Over 60% of all gifts received annually are less than $100. As a result, gifts of any amount are crucial to maintaining Penn’s excellence as an institution. For the past 3 years, U.S. News and World Report named Penn among the top 5 universities in the nation. However, Penn’s endowment per student ranks only 67th in the country compared to other schools. You can help build Penn’s endowment by donating just $5 or more to our class’ permanent legacy on Penn’s campus, The Class of 2004 Café Courtyard at Van Pelt Library. Your contributions go to more than just the building of our gift. They allow Penn to offer more financial aid, build its endowment, and offer the best resources to its students. The benefits of giving Penn appreciates gifts regardless of their amount. As a result, you can benefit in many ways by making a contribution as small as $5. That is less than 1 cent for every day that you have been at Penn. Some of the benefits are highlighted below: • Your student organization’s name on a commemorative plaque in the courtyard when every senior in the group donates Satisfaction with contributing to financial aid and making higher education possible for all qualified students regardless of income Pride in being part of the Class of 2004’s Donating is easy Making a donation could not be easier. You can pledge over the phone by calling 1-800-BFRANKLIN, or by going online and visiting the class website http://dolphin.upenn.edu/~class 04/. Gift drive committee members will also be present to collect gifts at all senior class activities leading up to graduating, including Senior Week events. We accept cash, personal checks, and all major credit cards. If you still have questions or would like more information about the benefits of giving, please contact Elise by telephone at (215) 898-8445 or send her a e-mail at ebetz@ben.dev.upenn.edu. • • enduring landmark on campus Allocation of Gifts to Penn Special Initiatives 9% Student Life & Academic Support 16% Student Financial Aid 51% Your gifts have an impact on the lives of Penn’s current and future undergraduates. Residential Experience 24% p. 12 Print Ad #3 - “Small gifts add up” Class of 2004 Remember, small gifts add up Donations of $5 or more to the Senior Class Gift Drive help expand undergraduate financial aid so that students who can’t afford to wear this $200 coat: can wear this cap and gown instead: Give today for a better tomorrow To donate, call 1-800-B-FRANKLIN, or visit http://dolphin.upenn.edu/~class04/ p. 13 Video Ad Introduction What will be the Class of 2004’s legacy? (written on white screen in black lettering with classical upbeat music in background) Scene 1 – “Before” (It is a sunny day; narrator shown standing in front courtyard site gesturing/pointing behind her; music softly playing in background) Narrator: “Your donations to the Senior Class Gift Drive will help turn this area in front of Mark’s Café at Van Pelt Library… Scene 2 – “After” “…into a beautiful courtyard where people can gather to chat, enjoy a cup of coffee, or take a quick study break.” Show rendering of the courtyard with the caption “Class of 2004 Café Courtyard” Scene 3 – “Transition” (cut back to narrator walking along Locust Walk in front of the library/button) Narrator: “But that’s not all! A minimum donation of $5 won’t only go toward our class gift, but will also create a ripple effect throughout the university community. Hear what Jane Doe has to say about giving to the Gift Drive.” Scene 4 – “Testimonial” (waist-up shot of Jane Doe with backpack, standing in front of Huntsman Hall; she is speaking as if being interviewed by someone off camera; therefore, she is not looking directly into the camera but off to the side) Jane Doe, Penn senior: “I’m proud to contribute to the Senior Class Gift Drive because I know that the money raised goes towards a lot of great causes like campus renovations, increasing undergraduate financial aid, and bringing the best faculty to campus. All of these things have really enriched my Penn education and I want to make sure that future generations will be able to enjoy their time here as much as I have. I definitely encourage every senior to give.” p. 14 Scene 5 – “Call To Action” (cut back to narrator continuing to walk along Locust Walk toward LOVE sculpture; place subtitles of phone number and website address on bottom of screen) Narrator: “Gift drive committee members will be present at all upcoming senior events to collect your donations. Or, you can also make a pledge by calling 1-800-B-FRANKLIN, or by visiting the Class of 2004 website.” Scene 6 – “Close” (cut to close-up of narrator shown waist-up, sitting) Narrator: “All of your gifts, great and small really do make a difference.” (pan out to reveal that narrator has been sitting atop the LOVE statue) Narrator: (smiling, speaking loudly) “So seniors, show your love for Penn and donate to the Senior Class Gift Drive today!” p. 15 VI. Advertising Principles In crafting this advertising campaign, we evaluated the target market’s characteristics to determine what approach would most appeal to them and more importantly, elicit action from them. Based on our findings, we drew upon three basic approaches to develop our advertisements – informational, influential, and emotional. Outlined below are brief justifications for the strategies, as well as the specific principles that we used. Information An ad should provide information to enable the target market to make well-informed decisions. In the case of universally known products or services, this approach may not be necessary, as consumers already have all of the information they need. For the Senior Class Gift Drive however, the target market does not know a great deal about the class gift or about how the university also uses donations to support undergraduate education. Therefore, all of our ads contain information about these issues. Product or Service: In all of our ads, we either feature a picture of the future location of the Class of 2004 Café Courtyard or explain how donations also go toward increasing the quality of undergraduate education in terms of greater financial aid and increasing the university’s endowment. Price (donation amount): In general, people are averse to donating money because they do not receive any immediate, tangible reward in return. Additionally, they may have a high reference price, thinking that only donations above a certain amount (e.g. $100) make a difference. Therefore, we attempt to lower this point of reference by emphasizing that small gifts of only $5 are just as appreciated as larger contributions. Benefits: We frame our message in terms of benefits to the target market. In this case, such an approach is especially necessary because many of the benefits are not readily evident. Depending on the target market segment, we emphasize a specific benefit that will have the most appeal. For example, for those who are capable of making a donation of $250 or more, we confer a special status to them in the form of membership to the Ben Franklin Society, as well as an engraving of their name on the plaque in the Class of 2004 Café Courtyard. Influence We use influence principles to persuade the target market to take action and make a contribution to the Gift Drive. Liking: Because one the objectives of this advertising campaign is to help establish a lasting relationship between graduating seniors and the university, it is important that seniors actually like the causes supported by the Gift Drive. In our ads, we emphasize benefits of the Gift Drive that seniors value—increased financial aid, a permanent legacy for the Class of 2004, and a commemorative plaque recognizing leadership giving by individuals and by student groups. Rational arguments: Because we are appealing to an intelligent audience, we provide more than one rational reason why they should make a contribution. These arguments include the features listed in the bullet point above. p. 16 Emotions In our ads, we also attempt to appeal to the target audience on an emotional level, making the Gift Drive a worthy, “feel-good” cause. Trust: To establish a lifelong relationship between graduating seniors and the university, it is important that the seniors trust the university and know exactly how their money will be used. Therefore, we make no false or inflated claims about the Gift Drive. Additionally, we do not omit any information that the target audience might need to make its decision; we even provide the Gift Chairs’ e-mail addresses in one of the ads in case anyone has unanswered questions. Positive emotions: In our ads, we used positive phrases such as “give today for a better tomorrow” and “help preserve Penn’s excellence for future generations” to cause warm feelings among the members of the target market. By giving to the Gift Drive, they are able to feel good about their generosity. p. 17 VII. Advertising Tactics In our advertisements, we used a variety of media-specific tactics to implement the strategies described in the previous section. A. Print Advertisements Though viewers may not devote much attention to print ads, these ads allow them to take their time in processing all of the information and images presented. Therefore, in the print ads referred to as “Help future Penn students” and “BFS”, we incorporated a great deal of information about the Senior Class Gift Drive. In the case of the other ad “Small gifts add up”, because it will mostly likely be produced in the form of flyers and handbills, we perceived it more as a reminder rather than as a vehicle to present comprehensive information about the Gift Drive. However, we still made use of print-specific tactics to maximize its effectiveness. Headline: According to experts like Caples & Hahn1, the headline is the most important part of the advertisement, aside from the product itself. To infuse the headlines in our ads with a degree of urgency, we incorporated many active verbs (as opposed to the passive “to be” form). Additionally, as the headline is most often the first part read by viewers, it must grab their attention and lead them to the main body of the ad. Therefore, we employed several techniques, including asking a question, using the phrase “here are,” to encourage the viewer to continue reading the ad. In fact, in regards to the use of a question in the headline, Caples & Hahn2 found that curiosity is the third most effective after benefits and news. Furthermore, we address the viewer personally as seniors in the headline to engage them even more. However, the strongest element in facilitating that the audience keeps reading is the fact that we promise a benefit and mention the product in the headline. In doing so, we draw upon the expertise of Ogilvy, who stated that “ ads featuring headlines that do not say what the product is and what it will do are recalled 20 percent less often.” 3 Picture: As so often stated, “pictures are worth a 1000 words.” As shown by Miniard, et al.4, pictures of the product itself led to higher purchasing intentions among the target audience. Furthermore, as demonstrated by Haber5, illustrations facilitate recall, making it easier for people to remember the product. Therefore, we incorporated images of the class gift, as well as those that illustrate the benefits associated with the Gift Drive. Additionally, we tied all of the pictures to the benefits of making a donation in order to further convince viewers why they should give. For example, in the “Help future Penn students” ad, we portrayed the benefit of assisting with expanding undergraduate financial aid as allowing all qualified students to obtain a Penn education, symbolized by a cap and gown. Furthermore, we used photographs instead of drawings to make the ads believable. Caples & Kahn (date unkown) found that the headline is the most important element and recommended that all ads should have headlines. (Advertising and the Science of Persuasion. Armstrong, J. Scott.) 2 Ibid. 3 Ogilvy from Advertising and the Science of Persuasion. Armstrong, J. Scott 4 Miniard, et al. (1991) conducted a study and found that purchase intentions were higher when illustrations were more product relevant. (Advertising and the Science of Persuasion. Armstrong, J. Scott) 5 Haber (1970) showed that illustrations aided recall. (Advertising and the Science of Persuasion. Armstrong, J. Scott) 1 p. 18 Body-text structure: The body text informs the target market about the class gift as well as about the benefits associated with it. In the “Help future Penn students” ad, the opening paragraph is short and easy to read, encouraging the reader to continue on the main body. In order to guide the reader throughout the rest of the ad, we use informative subheadings that can be used as a summary of the entire ad’s message. And, according to advertising guru David Ogilvy, almost six times as many people read the average article than the average advertisement6; therefore, we framed the “Help future Penn students” and “BFS” ads in an editorial context. In regards to the “Small gifts add up” ad, we chose to develop it as a reminder advertisement simply because it would appear as a flyer and a handbill and therefore, receive less attention from readers than an ad in the DP. Typeface: The type should not detract from the main message of the advertisement. We used black, 12-point font in order to enhance readability and comprehension. Additionally, we avoided using all caps in the headlines, as lower-case letters have been found easier to read.7 Layout: For the “Help future Penn students” and “BFS” ads, we used three columns in the body, thereby employing the “rule of thirds” to help guide the reader’s eye to the most important material. Additionally, key words and sentences are emphasized with the use of boldface and italics. B. Video Advertisement We designed a storyboard for a 60-second video advertisement that is meant to appear on the Class of 2004 website. (see Appendix for the storyboard) Opening scene: First impressions are critical; viewers need to find something relevant immediately in order to want to keep watching. As such, we have explicitly referred to the target market (Class of 2004), a main selling point of the Gift Drive (a lasting legacy), as well as portrayed the site of the actual class gift within the first five seconds of the ad. Central message: Each of the scenes center around the central message of giving back to the university in order to establish a permanent, physical legacy for the Class of 2004, as well as to enrich undergraduate life on campus in general. Visuals: As one of the main benefits of donating to the Gift Drive is the construction of the Class of 2004 Courtyard Café, we showed before-and-after close-ups of the café’s location. Additionally, the spokesperson that is similar in age and appearance to the target market is walking around in the courtyard on screen. Ogilvy claimed that voiceovers are not nearly as effective as spokespeople in attracting the viewers’ attention8. Portraying the spokesperson also increases the believability of the ad because it is an individual to whom members of the senior class can relate. In order to emphasize main points like how to make a donation, we include “supers,” or subtitles of the 1-800-BFRANKLIN number and the senior class website address on the screen. Voice: In order to create a rapport with the audience, we suggest using a spokesperson that has a pleasant and friendly voice. Additionally, we have included a testimonial from 6 7 Ogilvy in Advertising and the Science of Persuasion. Armstrong, J. Scott Wheildon (1995) in his book Type and Layout conducted a study that proved that all upper-case characters are harder to read than lower-case ones. (Advertising and the Science of Persuasion. Armstrong, J. Scott) 8 Ogilvy in Advertising and the Science of Persuasion. Armstrong, J. Scott p. 19 a Penn senior who has donated to the Gift Drive. Because this person is a member of the target market, her peers can identify with her and be more inclined to give. Music: We use music purely as a background soundtrack to set a certain mood for the ad. As Bruner9 points out, certain musical elements cause different emotions. Because we want to portray giving to the Gift Drive as a positive, happy experience, we used a piece of classical music written in a major key with a relatively upbeat tempo. C. Online reminder advertisement We also recommend that a hypertext link (e.g. “Hey Seniors! Click here and donate to the Senior Class Gift Drive today!”) be placed on the Class of 2004 homepage that redirects the viewer to the online donation page. With the advent of senior-targeted events such as the upcoming Senior Week in May, as well as the release of general information about graduation ceremonies, we anticipate that a larger percentage of the senior class will visit the Class of 2004 website in the following months. Therefore, we also recommend placing a time-relevant message along with the general link. For example, for this past month of February: “Donate $5 or more and earn a bonus Feb Club Stamp.” • Call for action: The hypertext link provides a quick and easy way to encourage seniors to make a donation to the Gift Drive. All they have to do is click on the link, and they will be taken to the online giving page within less than one second based on the high-speed internet connection on all campus computers. Additionally, by including the word “today” in the link, we urge that the viewer make the donation immediately. Tie to propositional benefit: By including a time-relevant message as part of the link, we associate the call to action with an immediate benefit to the viewer. As Keller & Swan demonstrate, “ads that devoted more space to the benefits of the product are more effective”. 10 • 9 Bruner (1990) presents guidelines on how to match musical elements to emotion. (Advertising and the Science of Persuasion. Armstrong, J. Scott) 10 Results from a study conducted by Keller & Swan (1981) (Advertising and the Science of Persuasion. Armstrong, J. Scott) p. 20 VIII. Copy Test Results In order to test the effectiveness of our ads, we presented drafts of our ads to fellow classmates, who then acted as experts and gave us feedback as to how to improve the ads. After doing so, we employed ESAP, an expert system that performs an evaluation on how the ads incorporate various Effectiveness, Strategy, Attention, and Persuasion principles based on the expertise of leading advertising experts as well as upon extensive research. We also tested an ad from last year’s campaign, which depicted a well-known Penn basketball player claiming that he had donated to the Gift Drive, thereby taking the social proof approach. We first tested the preliminary versions of our ads, and then made revisions to them based on feedback we received from another advertising agency. We then tested the revised ads, which received higher scores than the preliminary ones. The charts below feature ESAP ratings for both our print and video advertisements. ESAP - Print Ads "Help future Penn students" (%) Strategy (overall) -Information -Emotion -Influence -Exposure Attention Persuasion Effectivess (E = S+A+P) 69 65 65 20 59 70 72 67 65 68 20 59 72 72 68 "BFS" (%) 67 67 65 74 24 70 72 68 "Small gifts add up" (%) 61 40 64 28 44 63 70 60 last year's ad (%) 40 Print Ads – Revised "BFS" (%) Strategy (overall) -Information -Emotion -Influence -Exposure Attention Persuasion Effectivess (E = S+A+P) 67 65 68 20 59 74 72 69 67 65 74 24 74 72 69 "Small gifts add up" (%) 61 p. 21 ESAP – Video Advertisement Video ad (%) Strategy (overall) -Information -Emotion -Influence -Exposure Attention Persuasion Effectivess (E =S+A +P) 69 67 71 25 64 71 75 70 p. 22 IX. Media Alternatives There are a variety of media outlets on the university campus through which the advertisements could appear. Outlined below is a list of possible alternatives we generated through the use of the brainwriting technique, where we individually listed ideas and then collaborated to form the list. In this section, we analyze the profitability of each to determine which ones to include in the media plan. One of the main tools we utilized to create our media usage strategy was a survey that assessed the media usage habits of thirty members of the senior class. In order to calculate return on investment (ROI) for each alternative, we make use of the decomposition method. With this technique, we make educated estimates about the percentage of the target market that will see the ad, read the ad, understand the ad, and ultimately take action and make a donation to the Gift Drive. In order to make our estimates as refined as possible, we engaged in the Delphi technique, which guides us to refine our estimates concerning the percentage of people our advertisements will reach after a few rounds of independent assessment coupled with discussion. Because information about the target market is fairly stable, this technique can provide a reasonable approximation of ROI. Print Advertisements Daily Pennsylvanian -Crossword puzzle sponsorship -Traditional advertisements Other student publications (e.g. FirstCall newspaper) Flyers/handbills Student performance programs Radio Advertisements WQHS, Penn’s student-run radio station WXPN-FM, Penn’s public radio station Video Advertisements University Television (UTV) Class of 2004 website Daily Pennsylvanian (DP) The DP puts out 14,000 issues daily, reaching a large audience. Our survey results suggested that 22 out of 30 respondents read the DP on a daily basis. The ad rates for university groups are listed below: Page Size 1/8 1/4 1/2 Full Cost ($) 141 297 593 1,185 p. 23 Using the price for a 1/4-page ad space, we calculated an ROI of approximately 103%, making the DP a profitable investment. (see Appendix) Additionally, sponsoring The New York Times crossword puzzle in the DP provides another creative and cost-efficient way to advertise in the newspaper. According to our survey, 18 respondents attempt to complete the puzzle at least once a week, as well as notice the ad space above it. With a cost of only $65, we calculated an approximate ROI of 146%. (see Appendix) Other student publications While other student publications besides the DP are an option, they do not possess as high a readership, nor do they come out as often. Furthermore, the number of issues printed at one time is far below that of the DP. We chose to evaluate the profitability of First Call, a Wharton undergraduate publication, as representative of other student-run papers on campus. It has a circulation of 2500 copies, which appear on a weekly basis. The ad rates for university groups are listed below: Page Size 1/4 1/2 Full *2002-2003 figures Cost ($) 140 210 372 Using the price for a 1/4-page ad space, we calculated an ROI of approximately –90%, making this an unprofitable investment. (see Appendix) Flyers/handbills Flyers and handbills provide an inexpensive way to connect with the target market. For this campaign, we propose placing flyers in student mailfolders in Huntsman Hall, as well as residence mailboxes. The handbills would be distributed at various senior events such as Feb Club and those taking place during Senior Week. The Senior Class Gift Drive would only incur a cost of about $100 to print these ads. Furthermore, labor costs would also be negligible, as members of the Gift Drive Committee would volunteer their time to distribute the flyers and handbills. Therefore, this option proves to be quite profitable, with an estimated ROI of 120% (see Appendix). Student performance programs With approximately 52 student performing arts groups on campus, advertising in their programs seems like a creative way to reach the target market. However, it is unlikely that a large percentage of the senior class would attend a given performance. We chose to evaluate the profitability of purchasing a 1/2-page ad in the program of the Pan Asian Dance Troupe. The p. 24 ROI is approximately –8%. (see Appendix) While this ad placement only costs $13, it does not appeal to a large enough segment of the target market to make it worthwhile. Radio advertisements Because WQHS and WXPN-FM are non-profit entities and do not solicit advertising sales, it is not feasible for the Gift Drive to pursue this avenue. UTV According to our calculations, the student-run University Television does not merit investment. We surveyed a sample of 30 seniors and asked if they ever watched UTV, and only 3 of them, or 10%, said that they did. The ROI for this particular option is negative, making UTV an unprofitable option. (see Appendix) Class of 2004 website Unlike UTV, there is no charge associated with placing the video ad on the Class of 2004 website, especially since the webmaster is part of the class board and volunteers his time to maintain the site. Therefore, the only cost of doing so would be for renting video equipment. Additionally, an increasing percentage of the target market is expected to visit the website as graduation draws near in order to find out about upcoming senior events. With this information in mind, we calculated an approximate ROI of 340%, making this quite a profitable investment. (see Appendix) Additionally, placing a hypertext link on the website would not cost anything and therefore, any donations generated because of it would be pure profit. Therefore, it would also provide a viable mechanism by which to advertise the Gift Drive. p. 25 X. Media Plan Based on our analyses in the previous section, we have crafted a media plan that will enable you to attain your goal of generating $60,000 in donations and a 60% participation rate among the senior class. We chose to incorporate the media that would yield the highest ROI, namely print advertisements and crossword puzzle sponsorship in the DP, flyers and handbills, as well as a video and hypertext link on the Class of 2004 website. Below is the cost structure for our proposed media plan: Media DP 1/4-page ads (2) DP crossword puzzle sponsorship Video on Class of 2004 website Hypertext link Flyers/handbills Grand total: Cost $592.10 65.00 100.00 0 100.00 $892.20 In order to calculate ROI for the entire campaign, we based our calculations on last year’s trends. The final total amount collected by the 2003 Gift Drive represented a 123% growth increase from the money collected by this time last year. Taking this trend into consideration, we made the following analysis based on total amount collected during the months of March to June: Last year Total money collected: Total advertising cost: Overall ROI: $20,231 $800 25 Projected collections* Total advertising cost: Overall ROI: This year $31,980 $892.20 36 *Our projected collections result from applying the same rate of growth in 2003 to 2004. Therefore, we took the current amount collected to date and multiplied it by the 2003 growth rate of 123% to arrive at our estimate of $31,980. As you can see, our advertising campaign should increase your ROI by at least eleven points. However this is only a cautious estimate, as we anticipate a larger total amount collected brought about by our ad campaign. While these ROI values appear overly optimistic, please keep in mind that these calculations only include advertising costs and do not reflect the costs of our agency’s work or other administrative costs that will have to be incurred with the implementation of this campaign. p. 26 Outlined below is a general schedule that we recommend you follow in order to maximize your returns. March DP ad - "BFS" DP ad - "Help the future" Flyer/handbill distribution – “Small gifts add up” ad Video and hypertext link on Class of 2004 homepage April DP crossword puzzle sponsorship May Media Plan by Month March By focusing your efforts on collecting more BFS gifts this month, you will be able to increase our total amount given substantially, as the minimum gift for membership is $250 per donor. Additionally, appealing to this group of seniors now will allow them to enjoy the upcoming benefits of membership sooner than if you tried to reach them later in the academic year. Since the BFS ad does not list all of the benefits upfront, you will better your chances of establishing a long-term relationship with the students as they become alumni when they discover additional benefits in the future11. The launch of the video and hypertext link on the class website will serve as a reminder that complements the suggested print advertisements. By having this online reinforcement throughout the remainder of the semester, seniors will consistently have a method to give from the privacy of their own home instead of relying simply on events run by the gift drive committee. April The shifting of our efforts to reaching the “non-believers” group of seniors by highlighting the reasons and benefits of giving will do more to address their main concerns about how the money collected benefits the university. Since this group may be the most reluctant to give, devoting the last two months before graduation to capturing their attention may lead to an increase in the total number of donors. This increase could result from the long copy “Help the future” ad which influences the reader with rational arguments about how even the minimum donation contributes to maintaining and improving the Penn undergraduate experience. Slusher & Anderson state that “arguments using a reason were more persuasive” in a 1996 study12. May With the Daily Pennsylvanian no longer in circulation on a consistent basis, our media plan suggests that you emphasize a broader message for the senior class to unite and all contribute before they graduate by using flyers and handbills on campus. The “Small gifts add up” ad will employ the social proof principle by mentioning that several other seniors have already given and that they should as well. 11 12 Advertising and the Science of Persuasion. Armstrong, J. Scott Slusher & Anderson (1996). Advertising and the Science of Persuasion. Armstrong, J. Scott p. 27 XI. Agency Capabilities In order to better inform you about the process of the suggested advertising campaign that we developed, we have categorized our abilities and tactics below to demonstrate that we have done our best to assist you in reaching your objectives. The following categories not only summarize our efforts when developing this advertising campaign proposal, but they also serve as the ideals to which we commit ourselves in order to execute your advertising strategy. 1. Organization serves as the foundation towards coordination of our efforts. Primarily, the organization of relevant, tangible, and measurable objectives directs us throughout the campaign development process. Also, we wrote a detailed timeline to keep ourselves on track as the weeks progressed. An abbreviated version of this timeline on page 8 outlines our progress. By dissecting our list of tasks, we were able to break down the project into more manageable and tangible jobs. The use of action steps allows us to create and achieve daily objectives that we set for ourselves. 2. Professionalism guides our behavior and consistently places the client’s objectives in the forefront. Our weekly updates to you that we delivered via e-mail, telephone, or in person reveals our dedication to keeping our clients informed. Frequent and open communication also kept our agency abreast of any developments that might require us to alter our efforts to better reach your goals. Finally, our ability to arrive to meetings and deliver updates on time proves that we value and respect our client’s time. 3. Continual improvement drives our desire to provide our clients with the best recommendations possible. We engaged in techniques listed in J. Scott Armstrong’s Advertising and the Science of Persuasion that permitted us to build upon each others ideas and work. One of the techniques we used includes “parallel processing” when we worked independently on the same task and then compared and selected the best parts of each individual’s work. We also generated a “second solution” where we assumed that we must create a brand new advertisement since the previous one is no longer an option. Again, we compared both advertisements and decided on which one we felt was more effective. Both of these techniques facilitated highlighting the best ideas by offering multiple drafts and alternatives from which to choose. Finally, by keeping our criticism constructive and our suggestions positive, we pride ourselves on maintaining a pleasant working relationship throughout the project. 4. Expert knowledge establishes a strong foundation from which to create advertisements that remain effective as a persuasive tool to encourage action. We incorporate the research findings of several academics as well as the opinion of successful icons of the advertising industry, including David Ogilvy, when considering methods in which to most effectively communicate the client’s message. 5. Quantitative measurement satisfies our need for statistical proof that our efforts will make advertisements more effective according to the ESAP program. The use of numbers also aids us in the better estimation of an appropriate media budget, especially when we consider improving the client’s return on investment (ROI). p. 28 XII. Legal and Ethical Guidelines In crafting this advertising campaign, we held ourselves to the highest ethical and legal standards. In regards to truthfulness, we have made it a point to verify all of the facts we present in the ads with either you or with objective and reliable third-party sources. Therefore, you will be able to execute our campaign without any worries as to inciting accusations about false advertising. Additionally, in all of our ads, we made certain not to offend any member of our target audience, or any viewer in general with discriminatory references based on race, gender, nationality, religion, or sexual preference. Furthermore, we attempted to create ads that were tasteful in terms of content and message. We refrained from using any profanity, sexual references or rude humor in order to maintain the appropriateness of our ads. While copy testing the ads, we were assured that our ads did not overstep any boundaries. In our relationship with you, we also endeavored to establish and preserve an open line of communication so that both of us would feel comfortable in voicing our opinions to one another. Our agency has remained in close contact with you throughout the developmental stages of this ad campaign and obtained your approval for all major decisions. We have followed all legal guidelines of a client-agency relationship and trust that you feel just as confident as we do in our adherence to the law. p. 29 XIII. Appendix Exhibit 1 – Timeline for the creation of the proposal We present here a brief timeline summarizing our agency’s developmental process for this advertisement campaign. We have created it to accommodate any obstacles or emergencies that could have arisen. January 23, 2004 Initial Meeting with the client to establish objectives; agreed to keep in touch by email January 28, 2004 Delivered draft of objectives and suggested strategies to client February 2, 2004 Finalized strategic plan and objectives February 4, 2004 Developed target market research survey February 5, 2004 Conducted market research Held agency meeting to discuss print advertisement concepts February 7, 2004 Completed drafts of three print advertisements for different consumer segments February 9, 2004 Copy tested print ads in class February 11, 2004 Group meeting to rate print ads using ESAP Discussed preliminary ideas for video ad February 14, 2004 Developed media plan Tweaked print ads Began to storyboard video ad February 16, 2004 Emailed media plan to client accompanied with explanation of all alternatives considered Completed storyboard of video ad February 18, 2004 Tested video ad storyboard (small group) February 20, 2004 Tweaked video ad storyboard February 23, 2004 Presented rough draft of proposal to class and elicited feedback February 25, 2004 Revised proposal March 3, 2004 Submitted final proposal to Scott Armstrong and to client p. 30 Exhibit 2 – Decomposition Comparison Type of Media Class of 2004 Website DP Crossword Puzzle Flyers/Handbills DP ¼ Page Ad Pan-Asian Dance Troupe Program First Call newspaper UTV 60 second ad Return on Investment 340 46 20 3 -8 -88 Likely negative p. 31 Exhibit 3 – Decomposition calcuations DP 1/4-page ad Target Market See ad Read ad Understand ad Intend to purchase (donate) Actually purchase (donate) Average donation amount ($) Gross profit ($): Cost of advertisement ($): Total ($): Return on investment (%): Cumulative Percentages 100% of senior class 0.75 0.60 0.48 0.19 0.14 Number 2500 1875 1125 540 104 15 40 600 296.10 303.9 3 0.75 0.8 0.8 0.4 0.75 DP – Crossword Puzzle Cumulative Percentages 100% of senior class 0.65 0.46 0.36 0.15 0.11 Number 2500 1625 739 269 39 4 40 160 65 95 46 Target Market See ad Read ad Understand ad Intend to purchase (donate) Actually purchase (donate) Average donation amount ($) Gross profit ($): Cost of advertisement ($): Total ($): Return on investment (%): 0.65 0.7 0.8 0.4 0.75 p. 32 FirstCall: 1/4-page ad (2002-2003 rates) Target Market See ad Read ad Understand ad Intend to purchase (donate) Actually purchase (donate) Average donation amount ($) Gross profit ($): Cost of advertisement ($): Total ($): Return on investment (%): Cumulative Percentages 100% of senior class 0.3 0.27 0.22 0.11 0.09 Number 2500 750 203 44 5 0.41 40 16 130.04 -114 -88 0.3 0.9 0.8 0.5 0.8 Flyers/Handbills Target Market See ad Read ad Understand ad Intend to purchase (donate) Actually purchase (donate) Average donation amount ($) Gross profit ($): Cost of advertisement ($): Total ($): Return on investment (%): Cumulative Percentages 100% of senior class 0.75 0.38 0.30 0.14 0.10 Number 2500 1875 713 217 30 3 40 120 100 60 20 0.75 0.5 0.8 0.45 0.75 p. 33 Pan Asian Dance Troupe 1/4-page ad Target Market See ad Read ad Understand ad Intend to purchase (donate) Actually purchase (donate) Average donation amount ($) Gross profit ($): Cost of advertisement ($): Total ($): Return on investment (%) : Cumulative Percentages 100% of senior class 0.3 0.29 0.23 0.09 0.07 Number 2500 750 214 49 4 0.30 40 12 13 -1 -8 0.3 0.95 0.8 0.4 0.75 UTV: 60-second ad Target Market See ad Understand ad Intend to purchase (donate) Actually purchase (donate) Average donation amount ($) Gross profit ($): Cost of advertisement ($): Total ($): Cumulative Percentages 100% of senior class 0.2 0.15 0.06 0.04 Number 2500 500 73 4 0.19 40 8 100+ unknown Likely negative 0.2 0.73 0.4 0.75 Return on investment (%): p. 34 Class of 2004 website: 60-second ad Target Market See ad Understand ad Intend to purchase (donate) Actually purchase (donate) Average donation amount ($): Gross profit ($): Cost of advertisement ($): Total ($): Return on investment (%): Cumulative Percentages 100% of senior class 0.5 0.37 0.18 0.14 Number 2500 1250 456 83 11 40 440 100 340 340 0.5 0.73 0.5 0.75