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Advertising – Precious Information Or Vicious Manipulation?


2010
03.31

Is advertising the ultimate means to inform and help us in our everyday decision-making or is it just an excessively powerful form of mass deception used by companies to persuade their prospects and customers to buy products and services they do not need? Consumers in the global village are exposed to increasing number of advertisement messages and spending for advertisements is increasing accordingly.

It will not be exaggerated if we conclude that we are ’soaked in this cultural rain of marketing communications’ through TV, press, cinema, Internet, etc. (Hackley and Kitchen, 1999). But if thirty years ago the marketing communication tools were used mainly as a product-centered tactical means, now the promotional mix, and in particular the advertising is focused on signs and semiotics. Some argue that the marketers’ efforts eventually are “turning the economy into symbol so that it means something to the consumer” (Williamson, cited in Anonymous, Marketing Communications, 2006: 569). One critical consequence is that many of the contemporary advertisements “are selling us ourselves” (ibid.)

The abovementioned process is influenced by the commoditisation of products and blurring of consumer’s own perceptions of the companies’ offering. In order to differentiate and position their products and/or services today’s businesses employ advertising which is sometimes considered not only of bad taste, but also as deliberately intrusive and manipulative. The issue of bad advertising is topical to such extent that organisations like Adbusters have embraced the tactics of subvertising – revealing the real intend behind the modern advertising. The Adbusters magazine editor-in-chief Kalle Lason commented on the corporate image building communication activities of the big companies: “We know that oil companies aren’t really friendly to nature, and tobacco companies don’t really care about ethics” (Arnold, 2001). On the other hand, the “ethics and social responsibility are important determinants of such long-term gains as survival, long-term profitability, and competitiveness of the organization” (Singhapakdi, 1999). Without communications strategy that revolves around ethics and social responsibility the concepts of total quality and customer relationships building become elusive. However, there could be no easy clear-cut ethics formula of marketing communications.

ADVERTISING – PRESCIOUS INFORMATION OR VICIOUS MANIPULATION?

In order to get insights into the consumer perception about the role of advertising we have reviewed a number of articles and conducted four in-depth interviews. A number of research papers reach opposed conclusions. These vary from the ones stating that “the ethicality of a firm’s behavior is an important consideration during the purchase decision” and that consumers “will reward ethical behavior by a willingness to pay higher prices for that firm’s product” (Creyer and Ross Jr., 1997) to others stressing that “although consumers may express a desire to support ethical companies, and punish unethical companies, their actual purchase behaviour often remains unaffected by ethical concerns” and that “price, quality and value outweigh ethical criteria in consumer purchase behaviour” (Carrigan and Attalla, 2001). Focusing on the advertising as the most prominent marketing communication tool we have constructed and conducted an interview consisting of four themes and nine questions. The conceptual frame of this paper is built on these four themes.

THEME I. The Ethics in Advertising

The first theme comprises two introductory questions about the ethics in advertising in general.

I.A. How would you define the ethics in advertising?

The term ethics in business involves “morality, organisational ethics and professional deontology” (Isaac, cited in Bergadaa’, 2007). Every industry has its own guidelines for the ethical requirements. However, the principal four requirements for marketing communications are to be legal, decent, honest and truthful. Unfortunately, in a society where the course of action of the companies is determined by profit targets the use of marketing communications messages “may constitute a form of social pollution through the potentially damaging and unintended effects it may have on consumer decision making” (Hackley and Kitchen, 1999).

One of the interviewed respondents stated that “the most successful companies do no need ethics in their activities because they have built empires.” Another view is that “sooner or later whoever is not ethical will face the negative consequences.”

I.B. What is your perception of the importance of ethics in advertising?

The second question is about the importance of being moral when communicating with/to your target audiences and the way consumers/customers view it. In different research papers we have found quite opposing conclusions. Ethics of business seems to be evaluated either as very important in the decision making process or as not really a serious factor in this process. An example of rather extreme stance is that “disaster awaits any brand that acts cynically” (Odell, 2007).

It may seem obvious that the responsibility should be carried by the advertiser because “his is the key responsibility in keeping advertising clean and decent” (Bernstein, 1951). On the other hand the companies’ actions are defined by the “the canons of social responsibility and good taste” (ibid.). One of the interviewees said:

“The only responsible for giving decent advertising is the one who profits at the end. Company’s profits should not be at the expense of society.”

Another one stated that “our culture and the level of societal awareness determine the good and bad in advertising”.

The increased importance of marketing communications ethics is underscored by the need of applying more dialogical, two-way communications approaches. The “demassification technologies have the potential to facilitate dialogue”, but the “monologic” attitude is still the predominant one (Botan, 1997). Arnold (2001) points out the cases of Monsanto and Esso which had to pay “a price for its [theirs] one-way communications strategy”. In this train of thought we may review ethics in advertisements from two different perspectives as suggested by our respondents and different points of view in the reviewed papers. The first one is that it is imperative to have one common code of ethics imposed by the law. The other affirms the independence and responsibility of every industry for setting its own standards.

THEME II. Which type of regulation should be the leading one in the field of advertising?

The next theme directs the attention towards the regulation system which should be the primary one. Widely accepted opinion is that both self regulation and legal controls should work in synergy. In other words the codes of practice are meant to complement the laws. However, in certain countries there are stronger legal controls over the advertising, e.g. in Scandinavia. On the other hand the industry’s self regulation is preferred in the Anglo-Saxon world. Still, not everyone agrees with the laissez-faire concept.

One of our respondents said:

“I believe governments should impose stricter legal frame and harsher punishment for companies which do not comply with the law.”

Needless to say, the social acceptability varies from one culture/country to another. At the end of the day “good taste or bad is largely a matter of the time, the place, and the individual” (Bernstein, 1951). It would be also probably impossible to set clear-cut detailed rules in the era of Internet and interactive TV. Therefore, both types of regulation should be applied with the ultimate aim of reaching balance between the sacred right of freedom of choice and information and minimizing possible widespread offence. Put differently, the goal is synchronising the “different ethical frameworks” of marketers and “others in society” in order to fill the “ethics gap” (Hunt and Vitell, 2006).

THEME III. Content of Advertisements.

Probably the most controversial issue in the field of marketing communications is the content of advertisements. Nwachukwu et al. (1997) distinguish three areas of interest in terms of ethical judgment of ads: “individual autonomy, consumer sovereignty, and the nature of the product”. The individual autonomy is concerned with advertising to children. Consumer sovereignty deals with the level of knowledge and sophistication of the target audience whereas the ads for harmful products are in the centre of public opinion for a long time. We have added two more perspectives to arrive at five questions in the conducted interviews. The first one concerns the advertisement that imply sense of guilt and praise affluence that in the most cases cannot be achieved and the second one is about advertisements stimulating desire and satisfaction through acquisition of material goods.

III.A. What is your attitude towards the advertisement of harmful products?

A typical example is the advertisement of cigarettes. Nowadays we cannot see slogans like “Camel Agrees with Your Throat” (Chickenhead, accessed 25th September 2007) or “Chesterfield – Packs More Pleasure – Because It’s More Perfectly Packed!” (Chickenhead, accessed 25th September 2007). The general advertisement, sponsorship and other marketing communications means are already prohibited to be used by cigarette producers. Surprisingly, most of the answers of the respondents were not against the cigarettes advertisement. One of the respondents said:

“People are well informed about the consequences of smoking so it is a matter of personal choice.”

As with many other contemporary products the shift in communications messages for cigarettes is oriented towards symbol and image building. The same can be said for the alcohol ads. A well-known example of emotional advertising is the Absolut Vodka campaign. From Absolut Nectar, through Absolut Fantasy to Absolut World the Swedish drink actually aims to be Absolut… Everything.

Advertising of hazardous products is even more harshly criticised when it is aimed at audiences with low individual autonomy, i.e. children. Two main issues in this respect are the manipulation of cigarettes and alcohol as “the rite of passage into adulthood” and the fact that “sales of health-hazardous products (alcohol, cigarettes) develop freely without much disapproval” (Bergadaa, 2007).

III.B. What is your attitude towards the advertisement to children?

Children are not only customers, but also consumers, influencers and users in the family Decision-Making Unit (DMU). Additional difficulty is that they are too impressionable to be deciders in the DMU. At the same time it is not a secret that marketers apply “the same basic strategy of trying to sell the parent through the child’s insistence on the purchase” (Bernstein, 1951). It is not a surprise then that “spending on advertising for children has increased five-fold in the last ten years and two thirds of commercials during child television programs are for food products” (Bergadaa 2007). In the US alone children represent a direct purchases market of $24 billion worth (McNeal cited in Bergadaa, 2007) which certainly is on the top of the agendas of many companies. While exploiting children’s decision-making immaturity advertisers often go too far in dematerialising their products and “teleporting children out of the tangible and into the virtual world of brand names” (Bergadaa 2007). Teenage virtual worlds like Habbo where snack food brands run advertising campaigns are already a fact of life (Goldie, 2007). The imaginative worlds are popular not only online. Hugely successful for creating a fantasy world is Mc Donald’s. The company tops the European list of kids’ advertisers while more than half of the children’s adverts are for junk food.

In some countries there are harsher restrictions to the children advertising.

• “Sweden and Norway do not permit any television advertising to be directed towards children under 12 and no adverts at all are allowed during children’s programmes.
• Australia does not allow advertisements during programmes for pre-school children.
• Austria does not permit advertising during children’s programmes, and in the Flemish region of Belgium no advertising is permitted 5 minutes before or after programmes for children.
• Sponsorship of children’s programmes is not permitted in Denmark, Finland, Norway and Sweden while in Germany and the Netherlands, although it is allowed, it is not used in practice.” (McSpotlight, accessed 20th September 2007).

According to a research by Roberts and Pettigrew (2007) the most frequent themes in children advertising are “grazing, the denigration of core foods, exaggerated health claims, and the implied ability of certain foods to enhance popularity, performance and mood.” But the junk food is not the only reason for parents’ preoccupation. According to a study of Kaiser Family Foundation (Dolliver, 2007) parents are concerned about the amount of advertising of the following products (in order of importance): toys, video games, clothing, alcohol/beer, movies, etc.

The interviewed respondents were unanimous: “The advertising to children should be strictly monitored.” Similar results were obtained in surveys by Rasmussen Reports and Kaiser Family Foundation. Nevertheless, the legal means are just one part of the children’s protection. The other part involves “the decision-making responsibility of parents and teachers” which is “to assist their children in developing a skeptical attitude to the information in advertising” (Bergadaa 2007). The marketers themselves should also be involved in shaping the moral system of our future and “each brand should have its own deontology – a code of practice regarding children – rather than rely on industry codes” (Horgan, 2007).

III.C. Do you think there are many misleading, exaggerating and confusing advertisements. Are many ads promising things that are not possible to achieve?

It will not be exaggerated to state that advertising is in a sense “salesmanship addressed to masses of potential buyers rather than to one buyer at a time” (Bernstein, 1951). Since “salesmanship itself is persuasion” (ibid.) we cannot merely blame advertisers for pursuing their sales goals. However, in the last twenty years or so advertisers have increasingly applied semiotics in their messages and as a consequence ads have begun to function more and more as symbols. One extreme case in this stream of advertising is the creation of idealised image of a person who uses the advertised product. Bishop (2000) draws our attention to two “typical representatives of self-identity image ads” which entice consumers to project the respective images to themselves through use of the products:

- “The Beautiful Woman”;
- “The Sexy Teenagers.

Through setting of such stereotypes advertisers not only mislead the public and exaggerate the effects of products but also provoke low self-esteem in consumers. At the same time they promise results that in most cases are simply impossible to achieve. Instead of promoting “‘glamorous’ anorexic body images” communication messages should use “varied body types” and should drop the idea of the “impossible physical body images” (Bishop, 2000).

To question III.C one of the respondents commented:

“The customers of these products [the ones advertised through thin models] are mostly people who do not have the same physical characteristic. For me, this type of advertising is deliberately aimed at people to make them feel not complete, far from attractive social outsiders.”

However, another interviewed stated that: “every person has his own way of evaluating what is believable and what is misleading. Consumers are enough sophisticated to know what is exaggerated.”

Similarly, Bishop (2000) concludes that “image ads are not false or misleading”, and “whether or not they advocate false values is a matter for subjective reflection.” The author argues that image ads do not interfere with our internal autonomy and if people are misled, it is because they want it. It is all about our free choice of behaviour and no advertisement can modify our desires. Perhaps, the truth lies somewhere in-between the two extreme positions.

III.D. What is your attitude towards advertisement that imply sense of guilt, and praise affluence that in the most cases cannot be achieved?

A more specific case of controversial advertising is the one used to “promote not so much self indulgence as self doubt”; the one that “seeks to create needs, not to fulfill them: to generate new anxieties instead of allaying old ones” (Hackley and Kitchen, 1999). A response of our interviewee reads:

“It is not only a matter of advertising. It has to do with the social inequality and the desire to possess what you can not.”

Hackley and Kitchen (1999) refer to this discrepancy as to “when reality does not match the image of affluence and the result is a subjective feeling of dissonance”. The issue could be elaborated further through the next question.

III.E. Are advertisements stimulating desire and satisfaction through acquisition of material goods moral?

We live in a society which is more or less marked by materialism. Advertisements are often blamed to fuel consumption which is allegedly leading to happiness. The role of promoting satisfaction through acquisition of material goods has become so important that currently the “media products are characterised by relativism, irony, self referentiality and hedonism” (Hackley and Kitchen, 1999). Is the popular saying “those who die with most toys win” really a motivator in consumers’ behavior and could consumption be the cure of emotional dissonance? This seems to be the case provided a brand succeeds to enter in the evoked set of consumer choices. This new “kind of materialism” goes hand in hand with “the emergence of individualism via sheer hedonism along with narcissism and selfishness” (Bergadaa 2007).

THEME IV. Is the quantity of advertisements justified?

IV.A. Do you think there is too much advertising?

An audit of food advertising aimed at children in Australia by Roberts and Pettigrew (2007) revealed that “28.5 hours of children’s television programming sampled contained 950 advertisements.” Actually, we all are being bombarded by ads on TV, Internet, print media, etc. The amount and content of marketing communications messages puts the consumer’s information processing capacity to a test. The exposure to marketing data overload often leads to diluted consumer’s selective perception. Whether our responses are circumscribed by “confusion, existential despair, and loss of moral identity” or we “adapt constructively to the [communications] Leviathan and become intelligent, cynical, streetwise” (Hackley and Kitchen, 1999) is a question open to debate.

Two opposite streams of attitudes were produced in our research. One stance is concerned with the undue quantity of advertisement. The other stream proclaims that “If there is an advertisement, so it is justified by a need.” We agree that the communications overload may indeed have “pervasive effect on the social ecology of the developed world” (Hackley and Kitchen, 1999). If the increasing communication pollution is not managed properly by both legal and industry points of view yet again the advertising will manage “to hoist its foot to its own mouth and kick out a couple of its own front teeth” (Bernstein, 1951).

CONCLUSION

In preparation of this paper we have used qualitative depth interviews in order to get insights for what actual customers opine. We have also substantiated our presentation with references to a number of influential articles in the field of ethics in marketing communications. Generally, our respondents as well as various authors have taken two opposing stances. The first one affirms that ethics in marketing communications matters considerably, whereas the other one downsizes the importance of ethics, thereby stressing the role of other factors in consumer decision-making, i.e. price, brand loyalty, convenience, etc.

Marketers should understand their “responsibility for the emerging portrait of future society” (Bergadaa 2007). Not only there is a need of legal ethical frame but also professional ethical benchmarks and deontology should be in place. One of the main challenges is to avoid creating “a happy customer in the short term”, because “in the long run both consumer and society may suffer as a direct result of the marketer’s actions in ’satisfying’ the consumer” (Carrigan and Attalla, 2001).

The strength of the advertisement influence exerted on consumers is only one part of the equation. On the other hand we may affirm that consumers are not morally subservient and according to the information process models there is a natural cognitive defense. The communications tools “offer us a theatre of our own imagination” (Hackley and Kitchen, 1999). Consequently, we accept the reality in terms of our own experiences. In this sense marketers do not create reality – they are simply a mirror of the society. We may argue that unfortunately this is not always the case.

Advertising is often deservedly seen as the embodiment of consumer freedom and choice. Notwithstanding this important role, when the choice is “between one candy bar and another, the latest savoury snack or sweetened breakfast cereal or fast food restaurant” (McSpotlight, accessed 20th September 2007) it represents anything else but not an alternative and certainly not a healthy one.

The words of Bernstein (1951), said fifty-six years ago are still very much a question of present interest: “It is not true that if we ’save advertising, we save all,’ but it seems reasonable to assume that if we do not save advertising, we might lose all.”

Anonymous (2006). Module Book 6, Marketing Communications, University of Leicester.

Arnold, M. (2001). Walking the Ethical Tightrope (Marketing Corporate Social Responsibility), Marketing, 7/12/1001, p. 17.

Bergadaa M. (2007). Children and Business: Pluralistic Ethics of Marketers, Society and Business Review, Vol. 2, No. 1, pp. 53-73.

Bernstein, S. R. (1951). Good Taste in Advertising, Harvard Business Review, Vol. 29, No. 3, pp. 42-50.

Bishop, J. D. (2000). Is Self-Identity Image Advertising Ethical?, Business Ethics Quarterly, Vol. 10, No. 2, pp. 371-398.

Botan, C. (1997). Ethics in Strategic Communication Campaigns: The Case for a New Approach to Public Relations, Journal of Business Communication, Vol. 34, No. 2, pp. 188-202.

Carrigan, M. and Attalla, A. (2001). The Myth of the Ethical Consumer – Do Ethics Matter in Purchase Behaviour?, Journal of Consumer Marketing, Vol. 18, No. 7, pp. 560-577.

Chickenhead, ‘Truth in advertising’. Online. Available at: chickenhead.com/truth/chesterfield6.html (accessed 25th September 2007).

Chickenhead, ‘Truth in advertising’. Online. Available at: chickenhead.com/truth/camel1.html (accessed 25th September 2007).

Creyer, E. H. and Ross Jr. W. T. (1997). The Influence of Firm Behavior on Purchase Intention: Do Consumers Really Care About Business Ethics?, Journal of Consumer Marketing, Vol. 14, No. 6, pp. 421-432.

Dolliver, M. (2007). A Parental Dim View of Advertising, Adweek, Vol. 48, No. 26, pp. 25.

Goldie, L. (2007). Brands Free To Use Virtual Worlds To Target Kids, New Media Age, 8/9/2007, p. 2.

Hackley, C. E. and Kitchen P. J. (1999). Ethical Perspectives on the Postmodern Communications Leviathan, Journal of Business Ethics, Vol. 20, No. 1, pp. 15-26.

Horgan, S. (2007). Online Brands Need Their Own Ethical Guidelines, Marketing Week, Vol. 30, No. 26, p. 30.

Hunt, S. D. and Vitell, S. J. (2006). The General Theory of Marketing Ethics: A Revision and Three Questions, Journal of Macromarketing; Vol. 26, No. 2, pp. 143-153.

McSpotlight, ‘Advertising to children, UK the worst in Europe’ Online. Available at: mcspotlight.org/media/press/food_jan97.html, (accessed 20th September 2007).

Nwachukwu, S.L.S, Vitell, Jr. S.J., Gilbert, F.W., Barnes, James H. (1997). Ethics and Social Responsibility in Marketing: An Examination of the Ethical Evaluation of Advertising Strategies, Journal of Business Research, Vol. 39, No. 2, pp. 107-118.

Odell, P. (2007). Marketing under the Influence, Promo, Vol. 20, No. 6, p. 27.

Roberts, M. and Pettigrew, S. (2007). A Thematic Content Analysis of Children’s Food Advertising, International Journal of Advertising, Vol. 26, No. 3, pp. 357-367.

Singhapakdi, A. (1999). Perceived Importance of Ethics and Ethical Decisions in Marketing,
Journal of Business Research, Vol. 45, No. 1, pp. 89-99.

Stanford University, ‘Alcoholic Advertisements’. Online. Available at: stanford.edu/class/linguist34/advertisements/alcohol%20ads/index.htm, (accessed 20th September 2007).

Vintage Virginia Slims, Online. Available at: freenet-homepage.de/mshel120/vintage/vintage-vs.html, (accessed 25th September 2007).

Boyan Yordanof is Internet Marketing Executive at RIU Seabank Hotel Malta: http://www.seabankhotel.com

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Microsoft Windows 7 Home Premium Upgrade


2010
03.30

Microsoft Windows 7 Home Premium Upgrade

Amazon.com

Upgrade to Windows 7 Home Premium. Windows 7 Home Premium makes it easy to create a home network and share all of your favorite photos, videos, and music. You can even watch, pause, rewind, and record TV (a broadcast TV tuner may be required). Get the best entertainment experience with Windows 7 Home Premium. Do you use your PC for work, run Windows XP programs, or require enhanced security? Consider Windows 7 Professional. Windows 7 is designed to make your PC simp (more…)

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Sound Advertising


2010
03.30

Audio advertising is growing at a fast pace with more and more advertisers opting for audio classified ads. It’s no secret that a good sales headline makes all the difference in advertising and it’s no different when talking about great audio advertising. Professional voice talent and recognized studio engineers come together to create top quality audio advertising spots.

Interactive audio advertising is generating enormous interest within the advertising community.

Websites

At the turn of the 21st century, a number of websites including the search engine Google, started a change in online advertising by emphasizing contextually relevant, unobtrusive ads intended to help, rather than inundate, users.

Most Audio networks “crawl” websites in its list of publishers, prior to placing a single ad, to determine the content of Ad best suited to the visitor based on the page content they are seeing while the Ad is playing. For example, your audio ads are placed on websites that users can relate too, such as sports drink ads, sportswear and sports gear on a NFL information websites.

Advertisers

Audio advertisements have gained national media attention from national mass-market advertisers, the Wall Street Investment Community and discussed in the Wall Street Journal. Currently this new online audio advertising provides advertisers with a new procedure to promote.

Not just for major advertisers, but small niche advertisers like local business can use audio ads for local and regional advertising too. Ads for audio content, such as pod casts or Internet radio stations, often use a “reservation” model, where advertisers reserve spots in audio streams for confirmed fees.

It’s possible that this reservation model may not maximize revenue for audio publishers because many advertisers don’t have the wherewithal to negotiate agreements for ad spots and don’t compete for them.

However, imagine an Ad Network where advertisers and publishers can interact, and pay-per-action type advertising becomes a possibility. A publisher would set upon criteria for advertisers to match, and the system would determine which ads to play based upon relevancy and price. Now, forward-thinking advertisers are recognizing that if it works on radio, it can work on streaming audio.

Advertisements

Many advertisements are also designed to generate increased consumption of those products and services through the creation and reinforcement of brand image and brand loyalty.

In an effort to improve messaging, and gain audience attention, advertisers create branding moments that will resonate with target markets, and motivate audiences to purchase the advertised product or service, advertisers copy test their advertisements before releasing them to the public.

These short advertisements, allow the spoken words or most recognizable sounds to be presented to a visitor browsing the Internet. Another major advantage of radio advertising is that it is inexpensive to place and to produce, allowing small business owners to place advertisements on more than one station in a given market.

Changing Markets

However a relatively new company has recently been written about in the Wall Street Journal. This is a company that provides five second ‘radio station’ style advertisements played automatically to people browsing the Web when they visit a participating website. The advertisements are played immediately to the listener based on their geographical location… not on the location of the website being viewed.

In a sense the network is just like a radio station. A radio station broadcasts commercials through the speakers of a radio to people in their local area. This company broadcasts commercials to people in any local area (or nationwide or worldwide) through computer speakers.

For example, as a real estate agent, you could broadcast your message to 500 people per day in the North Palm Beach, FL area at a certain time on certain days. Or a restaurant owner from The City of London, England could advertise today’s lunch time menu to people that live in The City, between 10 o’clock and midday.

The company has grown enough to gain the attention of candidates running for President of the United States (among many other political campaigns), and political ads are scheduled run on participating websites across the Internet.

These short advertisements, known as “Adlets”, are now available to listeners over 30 million times a day on websites large and small, worldwide. Participating websites are scattered across the Internet giving advertisers a wide range of demographic exposure. When any Internet visitor hits one of their participating ad sponsored websites, the audio commercial starts playing instantly.

However there is a big difference from radio…

  1. The Advertiser can target…
  2. The Advertiser can choose the time and frequency that your ads play…
  3. The advertisement is played as soon as the visitor lands on the web site page, so the Advertiser has the undivided attention of the listener.

One of the best things about Internet audio advertising is that it doesn’t take up any of your website real estate.

With the massive reach established by their network of tens of millions of Website pages, online audio advertising is certain to become a staple in any advertising campaign, especially ones that target the ever-growing Internet population.

Whether you like it, or not, online audio advertising is here to stay.

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The Top Five Secrets To Advertising Strategies – Starting With Your First Ad


2010
03.29

Today, most advertising strategies focus on achieving three general goals, as the Small Business Administration indicated in Advertising Your Business:

1) promote awareness of a business and its product or services;

2) stimulate sales directly and “attract competitors’ customers”; and

3) establish or modify a business’ image. In other words, advertising seeks to inform, persuade, and remind the consumer. With these aims in mind, most businesses follow a general process which ties advertising into the other promotional efforts and overall marketing objectives of the business.

An advertising strategy is a campaign developed to communicate ideas about products and services to potential consumers in the hopes of convincing them to buy those products and services. This strategy, when built in a rational and intelligent manner, will reflect other business considerations (overall budget, brand recognition efforts) and objectives (public image enhancement, market share growth) as well. Even though a small business has limited capital and is unable to devote as much money to advertising as a large corporation, it can still develop a highly effective advertising campaign. The key is creative and flexible planning, based on an in-depth knowledge of the target consumer and the avenues that can be utilized to reach that consumer.

STAGES OF ADVERTISING STRATEGY

As a business begins, one of the major goals of advertising must be to generate awareness of the business and its products. Once the business’ reputation is established and its products are positioned within the market, the amount of resources used for advertising will decrease as the consumer develops a kind of loyalty to the product. Ideally, this established and ever-growing consumer base will eventually aid the company in its efforts to carry their advertising message out into the market, both through its purchasing actions and its testimonials on behalf of the product or service.

Essential to this rather abstract process is the development of a “positioning statement, a positioning statement explains how a company’s product (or service) is differentiated from those of key competitors. With this statement, the business owner turns intellectual objectives into concrete plans. In addition, this statement acts as the foundation for the development of a selling proposal, which is composed of the elements that will make up the advertising message’s “copy platform.” This platform delineates the images, copy, and art work that the business owner believes will sell the product.

With these concrete objectives, the following elements of the advertising strategy need to be considered: target audience, product concept, communication media, and advertising message. These elements are at the core of an advertising strategy, and are often referred to as the “creative mix.” Again, what most advertisers stress from the beginning is clear planning and flexibility. And key to these aims is creativity, and the ability to adapt to new market trends. A rigid advertising strategy often leads to a loss of market share. Therefore, the core elements of the advertising strategy need to mix in a way that allows the message to envelope the target consumer, providing ample opportunity for this consumer to become acquainted with the advertising message.

1. TARGET CONSUMER The target consumer is a complex combination of persons. It includes the person who ultimately buys the product, as well as those who decide what product will be bought (but don’t physically buy it), and those who influence product purchases, such as children, spouse, and friends. In order to identify the target consumer, and the forces acting upon any purchasing decision, it is important to define three general criteria in relation to that consumer, as discussed by the Small Business Administration:

1. Demographics-Age, gender, job, income, ethnicity, and hobbies.

2. Behaviors-When considering the consumers’ behavior an advertiser needs to examine the consumers’ awareness of the business and its competition, the type of vendors and services the consumer currently uses, and the types of appeals that are likely to convince the consumer to give the advertiser’s product or service a chance.

3. Needs and Desires-here an advertiser must determine the consumer needs-both in practical terms and in terms of self-image, etc.-and the kind of pitch/message that will convince the consumer that the advertiser’s services or products can fulfill those needs.

2. PRODUCT CONCEPT The product concept grows out of the guidelines established in the “positioning statement.” How the product is positioned within the market will dictate the kind of values the product represents, and thus how the target consumer will receive that product. Therefore, it is important to remember that no product is just itself, but, a “bundle of values” that the consumer needs to be able to identify with. Whether couched in presentations that emphasize sex, humor, romance, science, masculinity, or femininity, the consumer must be able to believe in the product’s representation.

3. COMMUNICATION MEDIA The communication media is the means by which the advertising message is transmitted to the consumer. In addition to marketing objectives and budgetary restraints, the characteristics of the target consumer need to be considered as an advertiser decides what media to use. The types of media categories from which advertisers can choose include the following:

o Print-primarily newspapers (both weekly and daily) and magazines.

o Audio-FM and AM radio.

o Video-Promotional videos, infomercials.

o World Wide Web.

o Direct mail.

o Outdoor advertising-Billboards, advertisements on public transportation (cabs, buses).

After deciding on the medium that is 1) financially in reach, and 2) most likely to reach the target audience, an advertiser needs to schedule the broadcasting of that advertising. The media schedule, as defined by Hills, is “the combination of specific times (for example, by day, week, and month) when advertisements are inserted into media vehicles and delivered to target audiences.”

4. ADVERTISING MESSAGE An advertising message is guided by the “advertising or copy platform,” which is a combination of the marketing objectives, copy, art, and production values. This combination is best realized after the target consumer has been analyzed, the product concept has been established, and the media and vehicles have been chosen. At this point, the advertising message can be directed at a very concrete audience to achieve very specific goals. There are three major areas that an advertiser should consider when endeavoring to develop an effective “advertising platform”:

o What are the product’s unique features?

o How do consumers evaluate the product? What is likely to persuade them to purchase the product?

o How do competitors rank in the eyes of the consumer? Are there any weaknesses in their positions? What are their strengths?

Most business consultants recommend employing an advertising agency to create the art work and write the copy. However, many small businesses don’t have the up-front capital to hire such an agency, and therefore need to create their own advertising pieces. When doing this a business owner needs to follow a few important guidelines.

5. COPY When composing advertising copy it is crucial to remember that the primary aim is to communicate information about the business and its products and services. The “selling proposal” can act as a blueprint here, ensuring that the advertising fits the overall marketing objectives. Many companies utilize a theme or a slogan as the centerpiece of such efforts, emphasizing major attributes of the business’s products or services in the process. While something must be used to animate the theme …care must be taken not to lose the underlying message in the pursuit of memorable advertising.”

When writing the copy, direct language (saying exactly what you mean in a positive, rather than negative manner) has been shown to be the most effective. The theory here is that the less the audience has to interpret, or unravel the message, the easier the message will be to read, understand, and act upon. As Jerry Fisher observed in Entrepreneur, “Two-syllable phrases like ‘free book,’ ‘fast help,’ and ‘lose weight’ are the kind of advertising messages that don’t need to be read to be effective. By that I mean they are so easy for the brain to interpret as a whole thought that they’re ‘read’ in an eye blink rather than as linear verbiage. So for an advertiser trying to get attention in a world awash in advertising images, it makes sense to try this message-in-an-eye-blink route to the public consciousness-be it for a sales slogan or even a product name.”

The copy content needs to be clearly written, following conventional grammatical guidelines. Of course, effective headings allow the reader to get a sense of the advertisement’s central theme without having to read much of the copy. An advertisement that has “50% off” in bold black letters is not just easy to read, but it is also easy to understand.

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Microsoft Office Home and Student 2007


2010
03.28

Microsoft Office Home and Student 2007

Amazon.com

Microsoft Office Home and Student 2007 is the essential software suite for home computer users and includes 2007 versions of Excel, PowerPoint, Word, and OneNote. This system enables you to quickly and easily create great-looking documents, spreadsheets, and presentations, and organize your notes and information in one place, making it easier and more enjoyable for you to get things done. The new streamlined workspace and easy-to-browse tabs make program features ea (more…)

search engine optimisation

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Pay Per Click Success Secrets – 7 Tips To Write Successful Advertisement in PPC Advertising Campaign


2010
03.27

The top success tip of writing the advertisement is to grab the viewer’s attention as much as possible. You will discover and learn great tips and inside secrets on writing the successful advertisements in PPC. It is obviously that those tips will help you to write better or even highly successful advertisement in PPC online advertising.

1. Write to Your Targeted Audience.

The first step of writing the highly successful advertisement is to write your own advertisements directly to your targeted audience. With the better understanding in your market and audience, it is easier to write your advertisements directly to your targeted audience. It is obviously that your advertisements will not success if they can not lead directly to the targeted audience.

The real secrets of PPC online advertising are to: (1) identify the small group of people in the market and (2) research effectively and get better understand people in the market.

2. Address the Benefits Rather Than Features.

There is no doubt that you have to identify the benefits of your products or services, rather than the features of products. It has proven that benefits can lead you to sale, but features can not. It means benefits can sell your products to your potential customers whereas the features only tell your products to them!

The real secrets of PPC online advertising are to: (1) list down all possible benefits of your products and (2) emphasize your benefits into your advertisement.

3. Insert Your Niche Keywords into Your Advertisement.

Inserting your keywords into your advertisement is very powerful and attractive approach. It has proven that if you insert your keywords into the advertisement, the opportunities to increase the click through rate (or CTR) will be opened and grown. With those keywords, it is easier to grab the viewers’ attention.

The real secrets of PPC online advertising are to: (1) insert your keywords into the first line of your advertisement in PPC and (2) insert those keywords as much as possible into the advertisement.

4. Include a Strong and Solid “Call to Action” Phrase.

Another powerful tip is to include a strong and solid “call to action” phrase into your advertisement. For example, you include: “Sign up”, “Register now”, and “Save on”. Otherwise, the prohibited phrase could be: “Click here”, “Visit here”, “Come see” and “Press here”.

The real secrets of PPC online advertising are to: (1) include your “call to action” phrase into your advertisement always and (2) do not include the prohibited phrase or break any PPC search engines’ term and use of condition.

5. Use the relevancy display URLs.

It is great idea to include the relevancy display URLs into your advertisement. Obviously, the more relevancy display URLs are, the more opportunities for people to click on and visit are! You have to use the relevancy and active display URLs.

The real secrets of PPC online advertising are to: (1) embed your keywords into your URLs and (2) use the existing and workable URLs only.

6. Use Proper Grammar and Correct Spelling.

Obviously, you have to use the proper grammar and correct spelling in your advertisement. Without them, your advertisement will look non-professional advertisement.

The real secret of PPC online advertising in this tip is to ensure that your advertisements look professional. It is a great idea to review and ensure that you use the proper grammar and correct spelling before submitting your advertisement.

7. Ensure that Your Advertisement is Easy to Understand and Straight Forward.

The last tip to write the highly successful advertisement is to write your easy-to-understand advertisement. You have to keep your advertisement short, clear and direct to the point. You have a limited space to write your own advertisement. Thus, it is a great idea to keep your advertisement clear, complete and concise.

The real secrets of PPC online advertising are to: (1) get better understanding about the products or services you are trying to write ads and (2) keep your advertisements clear, complete and concise.

Finally, writing the highly successful advertisements is one of the most significant components for your online business in PPC online advertising. With the highly successful advertisements, the opportunities to increase the CTR in PPC online advertising will open and increase. The real secrets of writing the successful advertisements are: (1) write direct to your targeted audience (2) address the benefits of your products (3) insert your keywords in the first line of advertisement (4) insert a strong “call to action” phrase (5) use the relevancy display URLs (6) use the proper grammar and correct spelling and (7) keep your advertisements clear, complete and concise. Apart from these great tips, all you have to do next is to monitor, track and evaluate your advertisements for improvement in the future.

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Interactive Advertisement


2010
03.26

Striving to persuade others to impact on their behavior and the way of thinking is shown one of the essential needs of human being to his social living improvement .The ways of encouraging and convincing the audience, as it comes later, has had a great influence on human beings’ minds throughout the history.
The tablets found by the archeologists among the ruins of Babel, tell us about the primitive advertisements. This tablets which is belong to 3,000 B.C are about a kind of ointment and also a compliment about a person who has been skillful in sewing shoes.( MirHosseini 2004) But regulated persuasive refers to some centuries before Christian Era, when it was common among the people called sophisticated. The World War 2 ended to more comprehensive and scientific studies. Along with vast spreading of the mass media, such as newspapers, radio and television, advertising became more significant. We cannot deny advertisements` effects on our decisions and on our every day lives.

From the advertisements point of view, it is a new version to exhibit a good or service, with emphasis on specialized debate which is presented by beneficiary individuals or groups. The aim of writing this article is to answer this essential question; how advertising without its economical essence would be represented in cyber space. It is possible to put vivid distinction between the persuasive ways in internet with other media, and if the answer is yes which benefits is provided for cyber users in this distinction, owing to the fact that we live in an interactive world in which the relation between the advertisers and the customers has completely changed. I’m trying to analyze these changes with emphasis on active audience of this universal media and with stress on the role of advertisements in this space; I want to set these effective parts to find a clear view of future.

Essence of advertisement
In the terms of Tankard and Severin there is an obvious distinction between persuasion and advertisement. They refer to Roger Brown who gives a definition about nature of advertisement. Advertisements are those kinds of persuasive attempt which are made only for sender interests; and even may run to loss of the receiver. (Tankard and Severin ,1992, p299) Lasswell in 1937 defined advertisement as an affective technique in human acts, which works with manipulating audible, discoursing and drawing signs. (Tankard and Severin ,1992, p148).
Opposing to some theorists who believe advertisement contains any kind of commercial content and matter which companies utilize it for giving more information to consumer. What we focus on it is the scientific way of persuasion each commercial aim is one of its aspects. We can say, consequently, that advertising is a regular process to produce reasonable information about specific subject which is used to make an intensive effect on audiences minds’ and acts’.

Traditional methods of advertisements had been constructed on the basis of imagery. The effectiveness of advertising was limited by this very need to reach and influence the widest possible audience. The manipulation of images was necessary because advertisements should have attractiveness for the passive accumulated viewers. As much as the advertisements became more global, it was more needed (of new methods of audience attraction) to utilize modern of new methods. But the methods of satisfying and exciting viewers which had been forecasting single and lawful results in the mass audience up to this time, abolished by entrance of virtual space .For internet was an interaction and informative base media; so users traverse an active stage, to find their desired websites. Because they want to reach definite information about a company, a service or a product. Any irrelevant images or tampered information would dissuade them from continuing their way.

Apart from professional design of a website, its agents should be interacting with their costumers. They should know the costumers’ needs and should answer them in a good manner and the most important thing is assembling the information which the costumers are in search of them. In view of the fact that they would lose their audience easily with decreasing or increasing the information .A propaganda would be effective when it could use all the facilities of cyber space to be able to assemble attractiveness, giving awareness, interaction experience. Levinson considers a website as an island which the advertisement is a bridge to reach it. He believes the aim of convincing people to buy or use the products cannot persist no longer; in case that in internet we are leading the viewer to watch the advertisement an our website.(Levinson 2004)

Osgoodby believes that advertisement in cyber space is like a party , until you didn’t invite others into it, nobody would come to see you. More over information you are demanded by your guests, would mean that they are more fond of your party .He also believes that advertisement methods in internet are the most attractive methods from the audience point of view.(Osgoodby, 2005) We should consider how and in which language the message is being packaged .In the other words , “we should be careful in using words because using incalculable of language can reveal advertisement in a treachery way”. (Mehdizade, 2001, pp 65-66)

Traditional advertisements have been inclined their affair to the creation of reading sense in the vast spectrum of the audience like the television extensive advertisement. But in virtual space you can base your activities on analysis of individual needs and definite needs of its viewers for reaching the product. As it was said before, in virtual space, the user is not a mass audience in front of a charming media that some global reliable websites would prohibit from more professional advertisement methods and have vast spectrum of global audience ,but if we believe in an audience as an analyst and critic individuals we should accept that he would use other opportunities which have then not always but sometimes he won’t be captured easily by direct advertisements. Of course, we should bear in mind that audience would enter to this space sometimes for fun. This audience would face to the advertisement messages with less critic view and his searching in virtual space is more for fun and satisfying his inquisitiveness. He would guide easily from one page to another page and he has no aim for this circulation. As a result he would be objected of these messages and he would be impressed by them. In a research which I have done to study the advertisements and the utilized technique in these advertisements, I have reached to an obvious image of such advertisements. The advertisement websites, which I have named them popular, had been used the least methods of scientific documentary evidence or intellectual well reasoned to code their convincing messages. In my opinion if we factorize from special form of such websites which would recognize from these contents, we would see that summarizing and more benefiting from images are inseparable from advertisements. The reason of this subject is in the hyperlink feature of virtual space. Whatever the message sender needs is to attract the attention of receiver. The audience should push the bottom of mouse on this message among other different subjects and then the message communicator would have enough time to give information to the audience and identify the existence of viewer who are considered as a message receiver.

Other points are hidden in accessibility of information. The audience can catch more information in less time about advertisement. This information could obtain from even conflicting resources. The most important distinction of advertisement in traditional media and cyber space could be defined as follows: in virtual space, the audience would always change his role from audience to producer and from producer to consumer. The possibility of using cyber space would be possible for all people. In such space, the user can show off her/his idea or product with using of convincing skills and depend on the way of presenting it could reach to success .In other word cyber space is on the contrary of the traditional media. There is no selling of idea or product; but they would sell viewing the site or advertisement. Now if we are capable to convince our superiority to the users, we would reach to success. The forms of traditional advertisement have many limitations in case of commercials form .Size and vast distributing; in a case that virtual space would assemble the possibility of showing any advertisement in various cyber pages and in a cheap expense. In other words, there is no real limit in volume and kind of advertisement presentation.( Jim Calloway and Don Murdock 1998)

How we can get more benefit from this space?
Today the world can not be imagined without advertisement .The audience and people would learn from advertisement what they should eat, how they can dress, which book they should read and how they can think about a special subject. In the age that is full of advertisement messages, there should be more attention to this science. Today the virtual space and the media channel would be discussed in our real lives as the main media in 21 century. By emphasizing vast and complex communications which are possible in this space we would understand that we have unique chance to effect on the unlimited spectrum of viewers, the chance which was not possible in dry previous media. from this point the importance of using advertisement messages would be declared .Our current era has been named the communication and advertisement age .Pratkanis believes that the messages construct our world .We are in thought of other satisfying in our social lives . There are many bulletin boards, subway and bus advertisements in streets.( Pratkenis , 1999).But whatever we are facing to as an advertisement in global media of the internet, has differences with such messages.

Effective and Successful cyber marketing means taking full advantages of the medium to offer all kind of customers an interesting, informative, interactive experience, a give and take of needs, wants, and information. Virtual space is not transient and temporary phenomenon. It is at the beginning way of its evolution. Today, the goal of much advertising is not to make the sale but to direct people to websites. It means we have to be really cautious about what we are presenting. Internet advertisement would not neither be a passing affair a phenomenon forked of the internet influences .Although today the internet advertisement is facing to problems and obstacles and we have no attention to using such an opportunity; but we should believe that in cultures, civilizations, belief, ancestors and all nations pillars which are forming identity are in confrontation with each other, prosperity is with a group which could use better form of convicting skills and methods.

Bibliography

o Severin W J, Tankard J W (1992), Communication Theories, Longman

o Jay Conrad Levinson, Guerrilla Marketing Articles http://www.gmarketing.com/articles/read/19/The_New_Power_Of_Advertising.html,

o Bob Osgoodby, http://www.stretcher.com/stories/05/05sep12h.cfm

o Mir Hosseini S H,(2003) internet-based advertisement, Tadbir educational scientific monthly journal, n.148

o Ameli S R, (2005), class notes of cyber space studies.

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The Fundamentals of Direct Response Radio Advertising


2010
03.25

Direct response radio advertising, at its core, works in the same way regardless of what type of business you are in. Whether you own a direct-to-consumer model business, a retail business, a web business, or some combination thereof, direct response radio advertising can help you grow. And grow profitably. The fundamentals of direct response radio, then, must start with a discussion of how radio advertising works within the context of a basic business model. The purpose of this article is to convey the fundamentals of direct response radio advertising that apply across businesses.

First, Two Important Concepts

Throw out all you think you know about advertising, radio advertising, and especially direct response advertising. It’s best to begin with a clean slate, a blank whiteboard so-to-speak. There are two important concepts I want to introduce before moving forward.

Concept One: Radio as A Highway From Your Business to Your Potential Customers

Think of radio advertising as a 5,000 lane highway from your business to groups (station audiences) of your potential customers. The many lanes on this highway are the many different radio stations and radio networks that are available for you air your radio advertisement. It is on these “lanes” that you send your message to your customers.

The lanes are clustered in such a way that they reach groups collections of customers who have similar tastes and demographic profiles. Therefore, some of these lanes lead to groups that have a high concentration of people who match your target customer profile. As a result, advertising on those lanes (stations) is more profitable than others with a lower concentration of your target customer profile. These groupings are the radio formats, which are used in radio advertising to enhance the efficiency of, or return on, advertising efforts. For more about radio formats, see our summary at http://www.strategicmediainc.com/radio-advertising.php.

Concept Two: Radio Advertising is a Profit-Driver, Not a Cost Center

At this juncture, the one thing many business people can’t seem to put out of their mind is the one of “how much does it cost” to advertise on radio. We’ve written extensively about this question because it is one of the most common that we get. The problem is that embedded in this question is the presupposition that radio advertising is a cost. The concept that one needs to fully grasp is that radio advertising is not a cost center. That is, it does not stand alone without any relation to revenue or profit. It is detrimental to think of direct response radio advertising as a cost because that leads to managing as though it’s a cost, which means minimizing or eliminating it. Contrast this with managing it like it’s an investment, and maximizing the return you realize on it.

Direct response radio advertising – by its very definition – is a profit-driver. If it’s not driving a profit, it would not exist – or at the very least it would not be called direct response radio advertising but instead “brand” or “awareness” advertising. Profitability is a fundamental aspect of direct response radio advertising.

On To the Fundamentals

Now that we’ve cleared our minds and allowed for two basic concepts about how to think about radio advertising, let’s move on to the meat of the fundamentals of direct response radio advertising.

The Basic Formula

We’ll begin with the basic formula involved in all direct response advertising:

You buy placement in radio media to air your radio ad, which gets your message broadcast to a certain number of people. This results in a cost per person reached with your message. In advertising this is known as CPM, or cost per thousand impressions of your ad.

Some percentage of those people will respond (call, visit your web site, visit your store), giving you a response rate.

Of those who respond (otherwise known as leads), a percentage will be converted into customers (orders), and by that conversion rate generate profit and revenue.

From this formula, you will derive your media “CPO”, or “cost per order”, which is found by dividing media spend by the number of orders achieved with that spend (media spend in the numerator/number of orders in the denominator). This is the amount it costs you in radio advertising to acquire one new customer, which is why it is also called “cost per acquisition” (“CPA”).

The important question at this point is this: Is the lifetime value (“LTV”) of each of your customers, on average, greater than this CPO? This fundamental question applies whether your business is a direct response advertising business (which includes radio advertising, print advertising, DRTV, catalog, or internet) or a traditional retailer. Every business pays to acquire a customer, and every business has a certain propensity to retain that customer over a period of time in a relationship consisting of subsequent purchases and therefore profit streams. Regardless of whether your business uses direct response radio to acquire new customers, or it uses one of the other approaches to customer acquisition, your success will be fundamentally based on whether your business model facilitates a strongly positive lifetime value. If it does not, there is little that radio advertising, or any other form of advertising, can do to change this.

If your LTV is not greater that your CPO, your business isn’t profitable and you’ll want to stop advertising so you can make the changes to both the advertising and the business model that will result in profitability. Even if LTV is greater than CPO, you will want to increase that amount to maximize your profitability. To do this, you’ll need to increase LTV and/or decrease CPO. This process is called business (or campaign) profitability optimization, and it is absolutely essential to the long term success of any direct responses radio advertising effort.

Improving Lifetime Value

There are a number of ways to increase the LTV of each customer. Let’s look at three of the main ways:

1. Increase price without increasing cost. One way to do this is by increasing the percentage of orders that include high-margin upsells. Retailers do this all the time. They put super high margin items right at the checkout. Direct response advertisers can learn a lot from this. Identify widely appealing, complementary items and ensure they are offered as part of the sales process.

2. Increase repeat purchase. You have paid to acquire that customer, now develop a relationship and continue to meet their needs to drive repeat purchase. If they only buy once from you, you don’t have a very viable business unless that first purchase is incredibly high margin.

3. Reduce your cost structure. Take advantage of your increased volume to negotiate better product costs, shipping costs, etc.

Improving Cost Per Order

Just as there are a number of ways to increase LTV, there are also many ways to decrease the CPO.

1. Reduce the media cost per person reached. Also known as CPM, this is a standard metric used in advertising. It reflects the cost to reach 1000 people. (remember that CPM stands for “cost per thousand” impressions of your message). This is a constant focus of any good direct response radio agency, and the element in direct response radio advertising that has received the most attention. This is why every dollar of media in direct response radio is remnant advertising. But that’s not all that should be considered when looking to reduce CPM. Leveraging database technology and using scientific testing methodology, it is possible to identify the optimum schedule to use in placing the media. Thus optimizing the media schedule can meaningfully reduce CPM.

2. Increase response rate. Again, media scheduling will play a role here. In addition, use of radio formats to effectively target the right customers is vital to optimizing response rate. But perhaps the greatest impact on response rate in direct response radio advertising is the messaging in the radio ad itself. Great direct response radio ads significantly enhance the responsiveness of the media dollars spent. Your radio agency’s ability to create radio ads that elicit response from your potential customers is a crucial element in direct response radio advertising success.

3. Increase conversion rates. Increasing the percentage of inquiries that become customers can have an enormous impact on campaign profitability. The factors that will most impact conversion rate are your sales scripting, web copy, product offers, pricing, and your guarantee or return policy. As much as any other variable, these factors need to be tested and continuously refined.

Implications and Conclusions

Now that you understand the fundamentals of direct response radio advertising, let’s look at the implications and conclusions that these fundamentals illuminate:

1. The role of database technology and analysis

By now it is clear that optimizing both lifetime value and cost per order maximizes your business profitability. But doing these things also requires capturing and analyzing an enormous quantity of data. To do this in a way that allows for distilling insights requires a robust database specifically tuned for direct response radio, along with well-refined analysis approaches. Fortunately, database technology and robust analysis are a part of the services your radio agency will provide for you.

2. The importance of ongoing testing

Any discussion of the fundamentals of direct response radio advertising (or any type of direct response advertising) would be incomplete without addressing the topic of testing. When you look at the above approaches to maximizing campaign profitability, you see the key metrics that must be impacted. But how do you actually impact them? How do you know whether offer A is better than offer B? or C? How do you know whether copy D drives a better response rate than the control? How do you know whether the sales scripting or the pricing structure could be improved by certain changes? The only way to know these things is to test. As a result, testing is a never-ending element in direct response radio advertising efforts. If you are not testing, you are slowly going out of business.

3. Success in direct response radio advertising is about more than costs

As we’ve mentioned, one of the biggest questions we get is “how much does it cost to advertise on the radio?”. Done correctly, direct response radio advertising is not a cost center, it’s a profit center. It’s a very efficient way to acquire new customers at a low CPO. To learn more on the topic of radio advertising costs and how to budget for radio advertising, see our article at http://www.strategicmediainc.com/radio-advertising-articles/.

4. Nearly any business can grow profitably with direct response radio advertising

It is difficult for me to think of businesses that cannot benefit from the kind of radio advertising that we are involved in. Direct response radio advertising is different from other forms of advertising because it is accountable for results, and the only way it can be accountable is to leverage a set of technological and human systems and processes to accurately capture, analyze and interpret results of the advertising. Once you have that in place, you have established a continuous improvement loop. Therefore, provided you have a profitable business model and a good product that delivers on a unique and relevant promise, your business can profitably acquire new customers with direct response radio advertising. That’s the ultimate promise of direct response radio: the ability to grow your business profitably at the rate you want to grow it. Once you establish profitability, you need only increase your media spend to drive higher revenues and profits.

The Fundamentals in Perspective

Direct response radio advertising does not stand alone in creating a business. It works in combination with your business model to acquire new customers at a low, and therefore profitable, CPO. What makes direct response radio advertising so attractive is its efficiency and flexibility, which results in comparatively low CPO’s relative to other mediums.

This article explains the fundamental elements involved in how nearly any business can use direct response radio advertising to acquire new customers and grow both profitably and rapidly. Once you understand the fundamentals of radio advertising, you’re ready to embark on the process of building a direct response radio advertising campaign. That process involves developing a radio advertising strategy, creating radio ads that drive response, and implementing a radio media plan that delivers your message to the right people for the right cost.

Jeff Small, CEO of Strategic Media, Inc., a leading direct response radio advertising agency. Jeff Small has over a decade of experience building profitable direct response radio advertising campaigns. Learn more about profitable direct response radio advertising strategies at http://www.strategicmediainc.com or by calling (207) 871-9958.

Author: Jeff Small
Article Source: EzineArticles.com

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All New Electronics Self-Teaching Guide (Wiley Self Teaching Guides) (Paperback)


2010
03.25

All New Electronics Self-Teaching Guide (Wiley Self Teaching Guides)

For almost 30 years, this book has been a classic text for electronics enthusiasts. Now completely updated for today?s technology with easy explanations and presented in a more user-friendly format, this third edition helps you learn the essentials you need to work with electronic circuits. All you need is a general understanding of electronics concepts such as Ohm?s law and current flow, and an acquaintance with first-year algebra. The question-and-answer format, illustrative e (more…)

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8 GB MP4/MP3 Player with FM Radio, Camera, Voice Recorder, USB Portable, and 2.8-inch Touchscreen


2010
03.25

8 GB MP4/MP3 Player with FM Radio, Camera, Voice Recorder, USB Portable, and 2.8-inch Touchscreen

PE registered Brand from Pro Ebiz LLC. * Please note this is NOT the actual Apple iTouch, it is a generic MP4 player**Portable digital entertainment that fits in the palm of your hand!Watch videos, listen to MP3 files, dial in your favorite FM radio station, and take pictures with this 8 GB USB portable MP4 digital media player!It features a 2.8-inch color touchscreen and features a built-in microphone so you never miss an important note or idea! Plug in the earbuds for private (more…)

rhinestones

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