ADVERTISING
any paid form of nonpersonal communication about an organization, good, service, person, or idea by an identified sponsor

The general objectives are to inform, persuade, and/or remind.

advertising campaign
the creation and execution of a series of advertisements to communicate with a particular target audience

SELECTING ADVERTISING MEDIA

reach
the percentage of people in the target market who are exposed to an ad campaign during a given period

consider:

• waste
  advertising that reaches people who are not part of the target audience

• circulation
  the number of people who receive a particular publication

• passalong rate (print)
  associated with the number of people who are exposed to a publication in addition to the original subscriber or buyer

frequency
the number of times the average person in the target market is exposed to an advertising message during a given period

selecting media vehicles

• magazines
• television shows
• radio programs
• internet
• - etc.

DECIDING ON MEDIA TIMING: FLIGHTING

flight
the length of time that a broadcaster's campaign runs (can be days, weeks, or months, but does not refer to a year)

pulsing
a flighting schedule alternates periods of activity with inactivity

steady schedule (continuity)
advertising is funded at a steady or regular schedule throughout the year

TRADITIONAL MEASURES OF ADVERTISING COST EFFECTIVENESS

CPM
Cost Per Thousand: cost of reaching 1000 individuals or households with the advertising message in a given medium

            cost of a single insertion
     ----------------------------------------
     no. of target market members in audience

in thousands

EVALUATION OF INTERNET ADVERTISING COST EFFECTIVENESS

PPC advertising
Pay-per-click: An advertising pricing model in which the advertiser pays for each click-through made on a Web advertising link.  Also known as cost-per-click (CPC) advertising.

click-through rate (CTR)
The number of people who clicked on an advertising link vs. the number of people who were exposed to the ad link.

ADVERTISING MESSAGE

copy
the verbal portion of advertisements

layout
the physical arrangement of an ad, including the illustrations (photographs, drawings, charts, tables, etc.) and copy

storyboard
a mockup combining copy and visual material to show the sequence of major scenes in a commercial

EVALUATING TRADITIONAL ADVERTISING EFFECTIVENESS

pretests
evaluations of ads performed before a campaign begins

posttest
evaluation of advertising effectiveness after the campaign

• recognition test
• unaided recall test
• aided recall test

EVALUATING INTERNET ADVERTISING EFFECTIVENESS

bounce rate
The number of visitors who leave a web page without clicking on anything vs. the total number of page visitors.

customer conversion rate (CCR)
The percentage of website visitors who engage in a target action, such as making a purchase.

cost-per-action (CPA)
The total cost of an advertising campaign vs. the number of target actions (e.g., number of purchases made on a website as a result of visits referred by PPC hosted advertising).

PUBLICITY
nonpersonal, indirectly paid presentation about an organization, good, service, person, or idea

news release, press release
A brief copy of an article about an organization or event that is sent to a news agencies, news papers, magazines, radio stations, etc. in the hopes that it will be printed or announced in part or in full.

feature article
An article about an organization or event that is published in a newspaper or magazine.

captioned photograph
A photograph accompanied by a brief description in a newspaper or magazine.

press conference
A meeting with news people to announce news or events about an organization.

SALES PROMOTION
short term incentives to encourage purchase or sales of a product

samples
offers to consumers of a trial amount of a product

coupons
certificates that give buyers a saving when they purchase a specified product

rebates
offers to refund part of the purchase price of a product

deals (cents-off offers)
short term price reductions

premiums
goods offered either free of at low cost as an incentive to buy a product

point of purchase displays (pop)
displays at the point of purchase or sale

contests
consumers attempt to win a prize by applying analytical or creative thinking

sweepstakes
consumers attempt to win a prize without analytical or creative effort