Issue 53
Nov/Dec 2009

Welcome to the bumper issue of Costa Life. We wish you all a very merry Christmas and a happy New Year

How Advertising works

The purpose of this page is to give an explanation of how advertising works, in particular magazine advertising. Most people in business understand that if you have a product or service then in order to create interest in that product or service the supplier must advertise.

It is surprising though, how many people don’t understand how and why advertising works. If we mention names like BMW, Vodafone, Mcdonalds and Coca Cola then of course we all recognize these names immediately because they are some of the biggest brands in the world. They are household names and unless you live in the outer reaches of the Amazon jungle then you will know who they are and what they do. Not only are they world famous brands through being established for many years but they continually advertise their names. The biggest companies in the world advertise all the time and everywhere Branding, name awareness, call it what you will, companies who succeed advertise, it’s that simple.

Here is some information and advice on how and why advertising works.

If advertising didn’t work why do the biggest companies in the world continually advertise and why do they spend millions every year on marketing themselves?

A continuous presence in the public eye is vital to your companies continued success.

Advertise in as many different places as you can. Don’t rely on one media outlet to promote your company.

A combination of ads in different places like local radio, magazines and newspapers can create the right appearance for your company.

Reach as many people as you can.

Advertising is mainly subliminal and the more places you are seen the more of an impression you will make on your potential clients both consciously and unconsciously.

Don’t judge response by direct response, this may sound crazy but the bottom line is, if you advertise through, for example, 10 different mediums, your end user may not call or visit you until they have seen or heard your 5th advertisement. The question is; which medium works? The answer is; they all do, together.

Advertising is not a quick fix. If you need sales next month, don't bother with a print ad for one month. You will be wasting your money. Advertising is a long term investment, you have to create trust, confidence and an impression of longevity, this takes time.  

The problem with many ads is that they are destined to fail. The advertiser does not recognize that there are two types of ads: brand and response. For the company seeking to generate leads, a brand building ad cannot succeed. Brand building ads create awareness and fuel perceptions of products and services.

Response ads, the kind that directly generate leads, are entirely different. A response ad is designed for just one purpose, getting the prospect to make contact and buy something. Response ads are designed to create interest, fuel desire and foster action. Response ads close with a call to action.

How Magazine Advertising Works
The reader relationship
The magazine medium’s essential strength lies in the active way in which readers choose and use their magazines. Magazines are an active medium, with the reader in control.

Readers become deeply engaged with their magazines. As a result a strong relationship, a bond of trust, grows up between the reader and his or her chosen magazines. Reading a favourite magazine is like talking with a friend.

A reader’s identification with an engaging magazine can go well beyond the simple provision of information and ideas. When a magazine strikes a chord it can reinforce the reader’s own self-image. This creates a particularly powerful and trusting relationship.

Readers give commitment to their magazines. The time spent reading is substantial, and the copies are read thoroughly. Copies tend to be read repeatedly, often picked up more than once during a day and on more than one day. More than 90% of all pages are opened by the typical reader. The average page in a paid-for magazine is looked at 2.5 times by each reader.

Readers have their own repertoire of magazines to meet different needs and moods. Matching the mood and the magazine reinforces the values of the personal relationship and ensures that reading takes place in a highly receptive frame of mind.

The advertiser relationship
The intimacy between reader and magazine benefits advertisers. The magazine environment delivers a reader in the right frame of mind to be receptive to the advertising. In the sympathetic context of the right magazine, the strong positive brand values of the magazine can transfer onto the advertisements.

The stronger the reader’s affiliation with the magazine as a brand, the higher the level of endorsement that the advertising receives from the magazine’s personality.

Advertising is seen as an integral part of magazines. Relevant advertising is valued by readers, and is consumed with interest. Readers screen advertisements in much the same way as they screen the editorial - looking for items that interest, intrigue, catch the eye, entertain, inform.

Because advertisements are relevant and valued, ad clutter is not a problem in magazines. Clutter does not depress reading of ads, and may create a marketplace.

Readers take action as a result of seeing advertising in magazines.

Targeting with precision and without wastage is a key strength of magazines.

Magazine campaigns create awareness at a very similar level to television. The Ad track study showed that across a range of campaigns, the average awareness achieved by 100 gross rating points in TV was 13%, and in magazines the average was exactly the same, 13%. But the magazine exposures are generated at a much lower cost than TV.

Evidence from America reached the same conclusion: dollar for dollar, magazines deliver significantly higher advertising awareness levels than television.

Evidence that magazine advertising sells products

The landmark ‘Ad Track’ survey proved that magazine advertising can generate marked increases in advertising awareness.

‘Ad Track’ also proved that magazines can generate movement in willingness to consider buying the advertised brands.

There are many studies and case histories in which magazine campaigns are shown to sell products effectively and sometimes dramatically.

In comparisons between six media – magazines, newspapers, newspaper supplements, TV, radio and websites – magazines lead in terms of providing interesting information and being tailored to users’ needs.

Advertising in magazines is seen more positively than advertising in other media.

Magazines, followed by websites, are the most action-oriented of the six media.

There is growth in multi-tasking – using another medium or doing some other activity while consuming media – but magazine reading has relatively low distraction. When sharing time with television or radio, magazines attract the main attention.

Magazines and the internet work well together. Information in magazines sometimes leads readers to obtain more details on the internet, and they may then purchase something as a result of exposure to both media.

Magazine campaigns create awareness at a very similar level to television. The Ad track study showed that across a range of campaigns, the average awareness achieved by 100 gross rating points in TV was 13%, and in magazines the average was exactly the same, 13%. But the magazine exposures are generated at a much lower cost than TV.

Evidence from America reached the same conclusion: dollar for dollar, magazines deliver significantly higher advertising awareness levels than television.

There are strong arguments for continuous advertising pressure (as opposed to heavy bursts with gaps in between). Magazines are excellent at delivering this, whether on their own or in combination with other media.

In times of recession, it pays to maintain or even increase one’s advertising instead of cutting it. Studies have shown that companies who maintain or increase their advertising during a recession secure themselves in a stronger position for when the recession ends.

 


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