Chapter 15 Learning Objectives: Chapter 15

Advertising Advertising
alastair@purdue.edu alastair@purdue.edu
1. Describe the steps involved in planning the
advertising effort
2. List the three categories into which advertising
objectives can usually be divided
3. Explain the difference between consumer and
trade advertising
4. Explain the three components of advertising
message strategy and list the alternative creative
formats
5. Explain the seven factors considered when
selecting advertising media

Steps in advertising
Learning Objectives: Chapter 15 planning
Advertising
alastair@purdue.edu alastair@purdue.edu

2. Decide on 3. Establish a
1. Set
tentative
4. Consider
advertising in-house cooperative
6. Identify and describe the five major advertising objectives advertising advertising
advertising
or agency budget
media alternatives
7. Describe the advantages and disadvantages of
5. Decide on
various advertising media alternatives 6. Select
advertising 7. Decide on timing of
advertising
message advertisements
media.
8. Explain how the hospitality and travel industry strategy
uses different advertising media
9. Describe the role of advertising agencies and the 9. Prepare final 10. Measure and
8. Pretest advertising evaluate
advantages of using them advertisements plan and advertising
budget success

1
 Categories of
advertising objectives
Iceland movie was
highly informative;
typical of NTO
alastair@purdue.edu alastair@purdue.edu
1. Informative advertising general advertising
2. Persuasive advertising of destinations

3. Reminder advertising
Consumer vs. Trade
RIP acronym = Advertising
Remind - Inform - Persuade

Consumer and Trade Consumer vs. Trade

Advertising Emphasis

alastair@purdue.edu Tourism organizations most likely to use and put greatestalastair@purdue.edu

emphasis on (travel) trade advertising and promotion:

Consumer advertising: aimed at the customers
who will actually use the hospitality and travel
services being promoted.
Trade advertising: aimed at the travel trade
intermediaries who will influence customers’
buying decisions.
Complex tourism products (e.g., destinations and DMOs)
With markets distinct from the local area (e.g., destinations
and DMOs; airlines; resorts; cruise lines, etc.)
With products that are infrequently purchased
With products that are relatively expensive
With products where “expert knowledge” is important
With products where consumer awareness is low
In cases, where consumer promotion cannot be afforded

Depends on Industry Sector

2
Consumer vs. Trade Singapore Tourism
Emphasis Board

Tourism organizations most likely to use and put greatest

alastair@purdue.edu alastair@purdue.edu

emphasis on consumer advertising and promotion:

Different message
Less complex tourism products (e.g., restaurants; )
ideas and destination
With primarily local markets (e.g., restaurants; ) features and
With frequently purchased products (e.g., fast food) attractions highlighted
With products that already have high consumer awareness by STB for consumers
With products that are relatively less expensive and “routine” versus travel trade
purchases intermediaries

Depends on Industry Sector

Advertising Message
Strategy

alastair@purdue.edu
The advertising message strategy describes what is to be
alastair@purdue.edu

communicated and how it is to be communicated. It

consists of the:
Advertising Message idea: the main theme, appeal, or benefit to be
communicated in the message.
Message
Strategy Copy platform: a written statement that fully describes the
message idea.
Message or creative format: a broad creative approach
used to communicate the message idea to the target
audiences (ENCODING in Communications Process
Model).

3
Message or Creative
Testimonial
Formats

Testimonial (e.g., Jackie Chan and HKTB) alastair@purdue.edu alastair@purdue.edu

Slice of life (e.g., McDonald’s) Steve

Wynn
Analogy, association and symbolism (e.g., Preferred introduces
Hotels ad on page 400) the Wynn
Trick photography or exaggerated situations (e.g., Resort in
Callaway Gardens, page 401) Macau
Word plays or made-up phrases (e.g., ATC ads on
page 402)
Honest Twist (e.g., Avis, “We Try Harder”)
Fear (not recommended in tourism!)
Comparisons (fast food, Visa vs. American Express)

Analogy and Trick Trick Photography

Photography
Message or Creative
Formats (ENCODING)
alastair@purdue.edu alastair@purdue.edu

Dreaming on
traveling the
world with no
limits under
the stars (Air
France)

4
 Analogy
Honest-Twist

Virgin Atlantic’s
Tension Escape alastair@purdue.edu alastair@purdue.edu
Routes were a
great example
of using an We try harder ® to make their cars
analogy in accessible for all (Avis).
advertising

Made-up Phrases

alastair@purdue.edu alastair@purdue.edu

Selecting
Advertising
Media

5
Media Selection Media Evaluation
Considerations Criteria

Target markets and their reading, viewing, and listening

alastair@purdue.edu
Costs (e.g., CPM or CPI) alastair@purdue.edu

habits (e.g., trade vs. consumer)

Reach (e.g., how many exposed to ad)
Positioning approach, promotional goals, and advertising
objectives Frequency (e.g., how often can you place ads)
Media evaluation criteria Waste (e.g., those reached but do not notice ad, plus those
not in target markets)
Relative strengths and weaknesses of each media
alternative (in following slides) Lead time and flexibility (e.g., how long to place/change ad)
Creative requirements (do you need sound and Clutter and dominance (e.g., How crowded? Can you
movement?) dominate?)
Competitive media placements Message permanence (e.g., TV = low; magazine = high)
Approximate total advertising budget available Persuasive impact and mood (e.g., TV = high; papers = low)

Newspaper Advertising
Advantages
High reach
alastair@purdue.edu High geographic alastair@purdue.edu

concentration
Airlines
Good frequency Restaurants
Hotels
Advertising Tangibility Travel sections for all sectors
Media Short lead times (flexibility)
Alternatives
Relatively low cost
Ability to communicate
detailed information
Ability to place in most
appropriate location
Ability to schedule to
exploit day-of-week factors

6
Newspaper Advertising Magazine Advertising
Disadvantages Advantages

alastair@purdue.edu alastair@purdue.edu
High waste factor and Tangibility
inability to target High audience selectivity
Limitations on creative Good reproduction quality
format Long life span and good pass-along rate Great where colour is
Relatively poor Prestige and credibility an important feature
reproduction quality of strategy
Ability to communicate detailed
Clutter information
Short life span
High cost of national
coverage

Magazine Advertising Television Advertising

Disadvantages Advantages

Potentially high reach

alastair@purdue.edu alastair@purdue.edu

Limitations on High persuasive impact

creative format Availability of uniform
national coverage
Clutter
Exploits day-of-week and
Low reach time-of-day factors
Low frequency Relatively expensive
Some geographic and
Long lead times Difficulties in geographic demographic selectivity
targeting
Inability to schedule to
exploit day-of-week factors

7
Television Advertising Radio Advertising
Disadvantages Advantages
Relatively low cost
High total cost alastair@purdue.edu
Audience selectivity alastair@purdue.edu

Short life span High frequency

Inability to transmit detailed information Short lead times (flexibility)
Clutter Exploits time-of-day and day-of-week factors
Relatively high waste factor

Radio Advertising Direct Mail Advertising

Disadvantages Advantages

No visual communications alastair@purdue.edu

Audience selectivity alastair@purdue.edu

Can’t transmit complex messages or detailed information Highly flexible

Short life span Relatively uncluttered
Clutter High level of personalization
Shared attention Ability to measure response
Tangibility
Low minimum cost
Short lead times

8
Direct Mail Advertising Outdoor and Transit
Disadvantages Advertising Advantages

High reach and good frequency

“Junk mail” syndrome and high discard rate alastair@purdue.edu
Geographic selectivity
alastair@purdue.edu

Relatively high total cost Relatively uncluttered

Limitations on creative format Long life span
Large size

Outdoor and Transit Outdoor and Transit

Advertising Advantages Advertising Advantages
Cows wear
sandwich
alastair@purdue.edu alastair@purdue.edu
boards and
want you to eat
more chicken,
in their words
(Chick-fil-A).

9
Outdoor and Transit Outdoor and Transit
Advertising Advantages Advertising Advantages

alastair@purdue.edu alastair@purdue.edu

Marriott Hotels &

A spectacular kayaking ad from
Resorts introduced its
Air New Zealand shows the
new Revive in 2005
power of size and the creativity
with an award-winning
in billboard advertising
series of stunning
billboards

Outdoor and Transit Interactive Media or

Advertising Disadvantages Internet Advantages

High waste factor and inability to target alastair@purdue.edu

Cost effectiveness
alastair@purdue.edu

Relatively long lead times Easy to modify

Can’t transmit complex messages or Interactive content
detailed information International reach
Not prestigious Expanding market
Limitations on creative format Constant availability
Inability to schedule to exploit day-of-week Ease of traffic measurement
or time-of-day factors

10
Interactive Media or Interactive Media or
Internet Advantages Internet Advantages
The interactive
alastair@purdue.edu power of the alastair@purdue.edu

Internet is well
demonstrated
The online version of in this
Travel + Leisure shows Itinerary
how the Internet is Planner of the
expanding the reach Singapore
and appeal of travel Tourism Board
magazines website

Interactive Media or How the industry uses

Internet Disadvantages advertising

alastair@purdue.edu alastair@purdue.edu

Privacy concerns
Fast-food companies tend to focus upon
Partial market coverage
and emphasize television advertising.
Navigation problems
Airlines tend to place an emphasis on
Loss of control newspaper advertising.
Hotel companies tend to use a combination
of media.
Everyone is moving toward more
advertising on the World Wide Web.

11
 Roles of advertising
agencies

alastair@purdue.edu alastair@purdue.edu

Advertising planning
Advertising Creative services
Agencies Media services
Research services
Sales promotion and merchandising services

Roles of advertising Advantages of

agencies advertising agencies
WORLD'S TOP 50 AGENCY COMPANIES

RANKED BY 2007 WORLDWIDE REVENUE. DOLLARS IN MILLIONS.

RANK WORLDWIDE REVENUE U.S. REVENUE alastair@purdue.edu

REVENUE OUTSIDE THE U.S. alastair@purdue.edu
HEADQUA
2007 2006 AGENCY RTERS 2007 2006 % CHG 2007 2006 % CHG 2007 2006 % CHG

1 1 Omnicom Group New York $12,694 $11,377 11.6 $6,704 $6,194 8.2 $5,990 $5,183 15.6
Employ the best creative minds in advertising.
2 2 WPP Group London 12,383 10,820 14.5 4,538 4,196 8.1 7,846 6,624 18.4
Have accumulated experience from working
Interpublic Group
3 3 of Cos. New York 6,554 6,191 5.9 3,650 3,441 6.1 2,904 2,750 5.6
with a wide diversity of clients; have a broader
4 4 Publicis Groupe Paris 6,384 5,872 8.7 2,681 2,673 0.3 3,703 3,199 15.7 perspective and are more objective.
Dentsu* Tokyo
May save the organization money.
5 5 2,932 2,951 -0.6 67 46 44 2,866 2,904 -1.3

6 7 Aegis Group* London 2,215 1,826 21.3 512 NA NA 1,703 NA NA

7 6 Havas
Suresnes,
France 2,094 1,840 13.8 691 681 1.5 1,403 1,159 21
Agencies are more familiar with media and
Hakuhodo DY media vehicles.
8 8 Holdings* Tokyo 1,392 1,337 4.1 NA NA NA 1,392 1,337 4.1

Toronto/Ne
9 10 MDC Partners w York 547 412 32.8 439 345 27.3 108 67 61.2

Alliance Data
Systems
10 12 (Epsilon)* Dallas 469 309 51.8 440 300 46.7 29 9 232.6

http://adage.com/datacenter/datapopup.php?article_id=126706

12
Chapter 15: Summary
Advertising
alastair@purdue.edu
There are 10 steps in advertising planning, starting with setting
objectives, and finishing with measuring and evaluating
success.
The industry sector will determine the relative emphasis placed
on consumer versus (travel) trade advertising.
Advertising media use and selection depends on many factors
including target markets, objectives, and available budget.
There are standard measures for media effectiveness.
Each advertising alternative has distinctive advantages and
disadvantages.
Most tourism organizations engage the services of advertising
agencies because of their creativity and knowledge of media.

13