Your advertising strategy plays a vital role in your promotional mix.

Advertising strategy development begins by identifying and describing the target audience. Next, marketing management should establish the role and scope of advertising. They must decide on an advertising budget and set specific objectives and how to select their creative strategy.

It determines how the objectives will be accomplished. Advertising media and programming schedules are used to implement a creative strategy. The final step is implementing the strategy and evaluating its effectiveness.

Advertising is not always directed to the end-user.

The steps in developing an advertising strategy include:

  1. Identifying the target audience
  2. Determining the role of advertising in the promotional mix
  3. Setting advertising objectives and budget size
  4. Selecting the creative strategy
  5. Determining the media and programming schedule
  6. Implementing the advertising program
  7. Measuring its effectiveness

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Estimating advertising’s impact on buyers helps marketing management decide advertising’s role and scope of ineffective marketing programs. Marketing management perception of what advertising can contribute to promotion objectives as an important influence on advertising’s role.

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A study of the PIMS (profit impact of marketing strategy) databank identifies factors that determine advertising’s role in marketing strategy. The study also provides research support for several of the factors shown in Exhibit 1.

factors promotion strategy

A sample of 798 businesses with at least 0.01% of sales on advertising and promotion. It was found that firms with higher ratios of advertising and promotion to sales display the following characteristics:

  • Standardized products
  • Many customers
  • Small purchase amount
  • Add-on services
  • Sales through channel organizations and partners
  • Premium price product
  • Manufacturers contribution margin
  • Small market share
  • A higher ratio of sales from new products

The study describes existing relationships rather than indicating what should be but provides a useful guide.

denver marketing firm

Setting Advertising Objectives in Budgeting

Advertising Objectives

Exhibit 2 shows alternative levels for setting advertising objectives. The most general level (exposure)  toward the most specific level (profit contribution). The objectives are increasingly closer to the purchase decision. For example, knowing that advertising has caused a measurable increase in sales is more useful to the decision-maker.

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In contrast, saying that advertising exposed at a specific number of people to an advertising message. The question is which of the objectives in Exhibit 2 or link to purchase behavior.

To what extent will people who are more aware of a brand be more likely to purchase it? Exposure and awareness can be measured whereas the sales and profit impact of advertising is very difficult to measure. Attitude change measurement is difficult but feasible.

In my experience, brand awareness leads to increased market share and in turn greater profits.  In industrial products, businesses support the idea of a link between brand awareness, sales, and profits.

The value of exposure measures of advertising effectiveness is subject to much more debate. They are more useful in guiding media allocation decisions than engaging the value of advertising to a business.

setting advertising objectives

Budget Determination

I’ve discussed marketing budgeting methods before and budgeting methods for the advertising budgets are no different.  Budgeting guidelines indicate how the following factors are related to advertising and sales promotion expenditures for a company are:

  • Market share
  • New products
  • Market  growth
  • Utilization of company capacity
  • Unit price of a product
  • Product purchase mix
  • Product pricing
  • Product quality
  • Breath of product line
  • Standard versus custom products

The PIMS budgeting approach is a useful diagnostic tool for comparing a company’s current advertising and sales promotion budget. When used in conjunction with marketing management experience, the guide can indicate current ad spend with PIMS norms.

Case Study – Google Adwords

Oniqua
In-depth keyword research, cost-per-click, and quality score ratings.

Creative and advertising strategy

denver ad agency

The creative strategy guides the advertising campaign.

Two factors affect strategy selection:

  1. The campaign is intended to maintain or to change market conditions
  2. The campaign will communicate information or imagery and symbolism

Maintenance and reinforcement strategies are used to support an established brand.

A strategy to changing market conditions may:

  • Reposition a brand
  • Expand the market for the brand
  • Launch a new product

Information messages communicate product benefits or are image messages seek to either reinforce or create change using symbolism and imagery.

The Wall Street Journal asked several of the advertising Industries, top executives, their opinions on the best and the worst advertisements.

Included in the best category where the American Express portrait series of celebrity card members and Nike’s “Just do It” campaign. Some poor ad campaign cited was Burger King’s disastrous “Herb the Nerd” series.

And Infiniti automobile series of Zen-inspired nature scenes featuring pussy willows and rocks. Some of the highest rated and lowest rated ads were created by the same agency. Television dominated the high ratings, but a print and billboard campaign also received high ratings.

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With today’s digital environment, it’s easy to set up a Facebook ad campaign or Google AdWords campaign and see your results. The hard part is developing an intriguing creative copy and sales funnels to support those advertisements.

Creativity can enhance the effectiveness of advertising by selecting a unifying concept that binds various parts of an ad campaign. Advertising and digital agencies, who typically receive 15-20% of corporate clients gross billings or experts in designing creative strategies.

They may design unique themes to position a product or company in some particular way. Or use comparisons with competition to enhance the company’s brands. Choosing the right creative theme for the marketing situation can make a major contribution to the success of an ad program.

We typically use multi-variant tests and experiments to evaluate creative and online advertising approaches. Moreover, these tests and experiments are more of an art than a science. The data from the advertising online platforms make it more of a science than it has been in the past.

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Media and Programming Strategy

A company’s digital marketing agency should guide media and programming decisions. The digital agency has the experience and technical ability to match media and programming to the target audience. The choice of media, timing, and programming are influenced largely by two factors:

  1. Access to target audiences
  2. Cost of reaching the target groups

Let’s say management is interested in communicating with business executives through online media. Some possible advertising platforms may include Facebook ads and Google AdWords.

The costs are determined by the search traffic volume, competitiveness of the keyword,  and the quality of the ad score. The higher the quality score the lower the cost per click.

In deciding which medium to use, the company should evaluate the cost per exposure to the characteristics of subscribers or users.

Executing the Advertising Strategy and Measuring its Effectiveness

denver ad firm
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Before an advertising strategy is implemented, it is important to establish criteria for measuring its effectiveness. Advertising spends can be wasted if firms spend too much or allocate expenditures properly. Measuring effectiveness provides useful feedback for future advertising decisions. And the quality of advertising can be as instrumental as the quality of getting results.

Tracking Advertising Performance

Assessing advertising’s impact on sales is difficult because other factors also influence sales and profits. Most efforts to measure effectiveness focus on objectives such as attitude change, awareness, or exposure. Comparing objectives and results helps companies decide when to stop or alter advertising campaigns.

Methods of Measuring Effectiveness

Several methods can be used to evaluate advertising results. Analysis of historical data identifies relationships between advertising expenditures and sales using statistical techniques such as regression analysis.

Recall test measures consumers awareness of specific ads program by asking questions to see if people remember an ad.

Longitudinal studies track advertising spends and sales results before, during, and after an advertising campaign.

Controlled test (aka A/B testing) is a form of longitudinal studies in which extraneous effects are measured and or control during the test. Test marketing can be used to evaluate advertising effectiveness. Effort/results model use empirical data to build a mathematical relationship between sales and advertising efforts.

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An effective method for measuring advertising effectiveness is the use of consumer panels and cities with cable TV.  A panel is a group of consumers that agree to provide information about their purchases on a continuing basis.

Point-of-sale scanning of the purchases of panel members provides data on Brands purchase, prices, and other information. Samples of consumers can be split into groups exposed or not exposed to advertising on cable television.

Using equivalent samples, the influence on sales of factors other than advertising can be controlled. The difference in sales between the control and the experimental groups over the test.

Measure the effects of advertising. This technique is appropriate for certain types of frequently purchased consumer products such as health and beauty aids and food products.

Advertising research is not restricted to measuring the effect. Research can be used for various activities and advertising strategy. These include generating and evaluating creative ideas and concepts, and pre-testing concepts, ideas, and specific ads.

But we develop Facebook advertising campaigns, we may be running up to 48 test to determine the right ad set.

Case Study – Google Adwords

Oniqua
In-depth keyword research, cost-per-click, and quality score ratings.

Application Illustration

It can be difficult to evaluate single ads effectiveness. Therefore, we concentrate on assessing campaigns in particular business areas such as SaaS software. The model is implemented at the beginning of the creative development process.

Effectiveness involves pre-testing and posts introduction task. A company’s owned marketing database, monitoring changes by tracking studies, conducting buyer impression studies, and sometimes we use focus groups.

Note the early use of the campaign tracking benchmark in the pre-testing of advertising concepts. This approach uses evaluations and adjustments before and during the campaign.

Setting objectives are critical to determine the effect of advertising and to decide when to stop or alter a campaign. Marketing management should follow through by tracking results to measure effectiveness. An advertising strategy is rarely constant over time and is adjusted to changing conditions.

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Wrap-up for an advertising strategy

Advertising strategies are developed in the following steps:

  1. Identifying the target audience
  2. Determining the role of advertising in the promotional mix,
  3. Indicating advertising objectives and budget size,
  4. Selecting the creative strategy,
  5. Determining the media and programming schedule,
  6. Implementing the advertising program
  7. Measuring its effectiveness.

Advertising objectives may range from audience exposure to profit contribution targets. The PIMS study indicates useful guidelines for Budget analysis.

Digital marketing agencies offer specialized services for developing creative strategies, designing messaging copy, and developing media and programming strategies.

What components do you use to develop your advertising strategy?

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General FAQ


What is an advertising strategy?

An advertising strategy is a plan to reach and persuade a customer to buy a product or a service. 


How does your advertising strategy play a vital role in your promotional mix?

Advertising strategy development begins by identifying and describing the target audience. Next, marketing management should establish the role and scope of advertising. They must decide on an advertising budget and set specific objectives and how to select their creative strategy.


What do you set advertising objectives and your advertising budget?

The most general level (exposure)  toward the most specific level (profit contribution). The objectives are increasingly closer to the purchase decision. For example, knowing that advertising has caused a measurable increase in sales is more useful to the decision-maker.

Grow Your Website Traffic by 484% in 3-Months

How to Launch a Successful PPC Campaign For The First Time.