Advertisement Decision Making
Over the past three decades, the art of advertisement has undergone a great evolution with most of the companies developing one voice across all media. Most marketing companies depend on advertising agencies to help them campaign for their commodities. However, the advertising agencies are always evaluated according to the sales the company makes in a given period. Whenever there is a drop in sales, in a given period, the brand manager has no option but to terminate the contract with the advertising agency. The major functions of an advertising agency are; planning and preparing for advertisements, selection of media, buying of media space and time.
Advertisers always have higher demands for the advertising agencies to provide all the best services. However, the advertising agencies may not be able to deliver to the advertiser’s expectations because of the external environmental factors such as the economy, law, society, and technology that greatly influence the impact of any advertisement regardless of the effort made by the agencies. The continuous changes and evolution in these external environmental factors call upon the advertising agencies to respond in the way that they will be able to cope with these changes to provide the best advertising services to the advertiser. This paper will briefly look at how the external environmental factors have evolved with time, then lastly, look at the specific evolution in one of the advertising agencies. Focusing closely on, the target consumers, the objective of the campaign, and finally the application of logic and emotions in product promotion by advertising agencies.
Any change in the economy in terms of growth and structure greatly influences the evolution of agency services. The competition for consumers among the marketing sector, changes in consumer income, change in the relationship between price, volume, and cost and industrialization have brought about the change in advertisement thus compelling the agencies to evolve too.
The legal policies and regulations have been set in place by the government to restrict the advertisement of certain products. Therefore, the agencies need to evolve to come up with the best ways to campaign for the products that are under strict laws by the government. The advertising agencies also need to fulfill some of the conditions set by the government in order to be allowed to carry out the advertisement services. This makes the agencies evolve to conform to these laws.
Any advertising agency needs to closely observe the changes in the setting of the society in order to come up with the most appropriate way to do advertisement. The changes in consumer behavior as manifested in consumer attitudes, living styles, incomes, habits, leisure time, and activities. In order to improve on the quality and type of services being offered, the agencies need to evolve.
Technology has greatly influenced the evolution of advertising agencies. Over the years, they have been an evolution of new and most modern media. Photographic processing, graphics development, and data processing are among the new developments that have emerged in the advertising industry.
In order to deal with these great changes in the advertisement industry, several advertising agencies have come up with more improved strategies to meet the needs of their advertiser. PepsiCo for example had to change its advertising agency in order to remain competitive in their market through advertisements. The new advertising agency adopted some new advertisement strategies. The similarity between both the old advertisement agency and the new agency was that both were targeting the youthful audience. However, the news agency did not only use the big screen to advertise but they used the portraits of high profile households who shape the youth culture. The adverts could be put on the films as additional at the end of the film. The objective of both campaigns is to reach as many potential consumers as possible within a shorter time at a low cost. The old agency could achieve that effectively because they used the media method, which is restricted by time and not very flexible. It could also be sure whether the intended targets are reading about the products, watching them, or listening to it. There was also little interaction between the advertiser and the intended target. The evolution of online advertising by the second agency was able to achieve this. Information could reach the target within a very short time, able to follow up the link and see the number of people viewing their site and their purchasing history. The advertiser could also receive an immediate response from the target consumers and make the necessary improvement. Lastly, it was not limited to time because the consumers can be able to view the product anytime and anywhere provided there is availability on the internet.
In media advertisements, both agencies are using a human character to convey their message. However, the first agency used animations to pass the information, whereas the second agency is using household celebrities who are shaping the lifestyle of the target consumers thus attracting them and keenly watching or reading about the advert. Therefore, the second agent is using these celebrities and their association with the brand to win the consumers.
Bruce N, Peters K, Naik P. Discovering How Advertising Grows Sales and Builds Brands. Journal of Marketing Research (JMR) [serial online]. December 2012; 49(6):793-806.
Available from: Business Source Complete, Ipswich, MA. Accessed April 6, 2014.