Transcript Johansson - Tunghai University

Chapter
16
Global Advertising
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Outline
 Advertising in Selected Countries
 The Top Global Advertisers and Ad Agencies
 Global Advertising Pros and Cons
 The Communication Process and Culture
 Global Campaign Planning
 Takeaways.
Advertising Intensity in Selected Nations
Country
North America
Canada
United States
Latin America
Argentina
Brazil
Chile
Asia
China
Hong Kong
India
Japan
Singapore
South Korea
Australia
New Zealand
Europe
France
Germany
Italy
Spain
Sweden
Switzerland
United Kingdom
Russia
Advertising Expenditures
Total ($billion) $ per capita
4.8
120.2
157
445
2.7
5.2
0.6
76
32
43
3.4
2.8
1.2
33.3
0.7
3.3
4.6
0.7
0.3
419
1.2
262
222
70
246
185
9.3
18.9
6.8
4.7
1.9
2.5
15
0.04
157
230
118
120
211
356
252
0.02
Media Usage in % of Ad Expenditures
Country
North America
Canada
United States
Latin America
Argentina
Brazil
Chile
Asia
China
Hong Kong
India
Japan
Singapore
South Korea
Australia
New Zealand
Europe
France
Germany
Italy
Spain
Sweden
Switzerland
United Kingdom
Russia
TV
Print
Radio
Cinema
Outdoor
37.7
37.4
46.5
47.2
12.9
13.5
0.1
2.8
1.9
49.7
58.6
43.1
32.8
314.8
39.3
7.7
4.1
10.9
2.2
0.3
7.6
5.5
6.4
48.4
51.8
55.9
52.5
38.4
26.8
33.7
36.6
47.1
41
16.7
41.7
51.7
70.2
52.8
49.5
4.5
4.4
2.3
5.7
3.9
2.4
7.4
12.9
0.3
0.7
2.6
24.4
1.4
4.6
0.6
4.3
35.1
23.3
52.1
42.4
21
13.8
32.1
74
45.6
69.2
37.2
43.8
70.3
71.2
57.8
18.3
6.8
3.2
5.4
9.3
3.9
3.1
4.3
1.8
0.8
1
0.7
1
0.5
1
0.4
0.9
0.9
11.9
3.9
4.7
3.5
4.4
4.9
4.9
6
Top Global Advertisers
Figures are in millions of US dollars
rank
1999 1998
1
2
2
1
3
3
4
4
5
7
6
8
7
5
8
6
9
9
10
10
11
12
12
11
13
14
14
13
15
15
spending
outside the US country
advertiser
headquarters
1999 % change count
UNILEVER
Rotterdam/London
3110
8.1
66
P&G
Cincinatti
2988
-4.7
68
NESTLE
Vevey, Switzerland
1580
0.6
67
COCA COLA
Atlanta
1178
5.3
69
FORD
Dearborn, Michigan 1150
6.9
51
GM
Detroit
1148
8.6
43
L'OREAL
Paris
1120
0.2
47
VOLKSWAGEN
Wolfsburg, Germany 1009
-8.2
33
TOYOTA
Toyota City Japan
1007
-3.9
44
PSA PEUGEOT CITROEN
Paris
906
-0.3
37
SONY
Tokyo
886
8.3
53
MARS
Mclean VA
841
-3.4
37
RENAULT
Paris
809
5.7
31
PHILIP MORRIS
New York
767
-1.5
49
HENKEL
Dusseldorf
728
-0.9
35
US media
ad spending
1999
1998
588
769
1704
1743
329
280
355
316
1272
1212
2960
2206
450
407
372
255
718
657
590
298
575
277
1358
19
1265
8
Top Global Advertisers (cont’d)
Figures are in millions of US dollars
rank
1999 1998
1
2
2
1
3
3
4
4
5
7
6
8
7
5
8
6
9
9
10
10
11
12
12
11
13
14
14
13
15
15
worldwide media
spending
breakdownof regional 1999 media spending reported
advertiser
1999 1998 africa
asia
latin america europe
middle east canada
UNILEVER
3698 3646
31
839
419
1785
18
19
P&G
4693 4880
11
527
550
1805
41
55
NESTLE
1909 1851
8
342
197
1023
5
5
COCA COLA
1533 1435
20
283
334
519
8
14
FORD
2122 2288
3
126
142
825
13
41
GM
4108 3263
0
110
214
723
18
83
L'OREAL
1570 1525
4
36
51
1003
2
23
VOLKSWAGEN
1381 1353
6
23
163
796
4
17
TOYOTA
1725 1706
9
607
24
320
15
32
PSA PEUGEOT CITROEN 906
909
0
16
47
840
3
0
SONY
1477 1394
0
387
71
398
3
27
MARS
1139 1148
0
69
31
732
0
8
RENAULT
809
765
0
1
41
766
1
0
PHILIP MORRIS
2125 2044
0
92
75
567
10
22
HENKEL
747
742
0
14
0
714
0
0
Top Global Advertising Agencies
Figures are in millions of US dollars
Worldwide Gross
Rank
Agency
Headquarters Income (2000)
1
Dentsu
Tokyo
2432
2 McCann-Erickson Worldwide
New York
1824.9
3
BBDO Worldwide
New York
1534
4
J Walter Thompson Co
New York
1489.1
5
Euro RSCG Worldwide
New York
1430.1
6
Grey Worldwide
New York
1369.8
7
DDB Worldwide
New York
1176.9
8
Ogilvy & Mather Worldwide
New York
1109.4
9
Publicis Worldwide
Paris
1040.9
10
Leo Burnett Worldwide
Chicago
1029.3
% Change
from 1999
<23.6>/td
9.8
6.7
9.7
5.7
14.8
9.3
16.6
7.9
10.4
Worldwide Capitalized
Billings 2000
16507
17468.5
13611.5
10229
10646.1
9136.6
9781
10647.2
7904.5
7757.8
The Global Ad Agency Job
• To coordinate with the global advertiser in terms of final
message creation & media selection
• To effectively construct a media schedule for the various local
markets within its global network
• To communicate the global advertisements effectively into
various smaller local markets
• To account for across-country variability in financial
arrangements & payments
Global Advertising Defined
GLOBAL ADVERTISING – media advertising that is
more or less uniform across many countries, often, but
not necessarily in media vehicles with global reach
Pros and Cons of Global Advertising
ADVANTAGES
•
•
•
•
•
CONSISTENCY OF BRAND COMMUNICATIONS
MEDIA SPILLOVER
COST SAVINGS
IMPROVED PRODUCTION
LEVERAGING A GREAT IDEA
DISADVANTAGES
•
•
•
•
IMAGES AND SYMBOLS MIGHT NOT BE LOCALLY ACCEPTABLE
APPROPRIATE MEDIA MIGHT NOT BE AVAILABLE
PRODUCT USAGE IS NOT THE SAME
LOCAL CREATIVITY IS STIFLED
Drivers of Global Advertising

SUPPLY SIDE

1) GLOBAL AD AGENCIES

2) GLOBAL MEDIA

DEMAND SIDE

3) GLOBAL CUSTOMERS

4) PREFERENCE CONVERGENCE

5) GLOBAL COMPETITORS
Four Components of Global Advertising
1. STRATEGY – Global ads involve products &services that are positioned
similarly across markets, wherein the product’s appeal is consistent
2. ORGANIZATION – global ads are typically directed from headquarters
with the help of advertising agencies with a global network
3. MEDIA – with global reach are used, creating spillover that crosses
borders to reach customers in different countries & follows traveling
customers around the globe
4. MESSAGE & CREATIVE – copy & visualization may be uniform across
markets, uniformity decreases based on how different each local market
is from another
Global Ad Categories
• IDENTICAL ADS – ads are identical, usually with localization only
in terms of language voice-over changes & simple copy translations
(e.g. the Marlboro cowboy ads)
• PROTOTYPE ADVERTISING – the same ads, but the voice-over
may be changed to avoid language & cultural problems, & the ad
may be re-shot with local celebrities (e.g. Drakkar Noir)
• PATTERN STANDARDIZATION – similar but less structured global
approach, wherein the positioning theme is unified & some
alternative creative concepts are planned, but execution differs
between markets (e.g. Xerox)
Global Ads: Same everywhere?
PROTOTYPE ADVERTISING
PATTERN STANDARDIZATION
• Brand Name same
• Brand Name same
• Theme same
• Theme same
• Visual same
• Visual same
• Positioning same
• Positioning same
• Actors same
• Actors not same
• Words same
• Words not same
• Language (local)
• Language (local)
• Media same
• Media not same
• Materials same
• Materials not all same
• Slogan same
• Slogan same
Web Ads Are Naturally Global
WEB ADS are those boxed inserts on the screen that appear as you surf the
web. They are interactive in the sense that you can click on them to get more
information about the product/service.
Types of Web ads:
• Banner ads – most common, measured in pixels
• Tickers – banner ads that move across the screen
• Interstitial ads – ads that flash while a request is being handled, filling up idle loading
time.
• Pop-up ads – ads that appear once a site has been loaded prior to webpage access
• Transactional ads – let you order/request something without leaving the current webpage
• Roadblocks – full screen ads that users must pass through to get to other screens
• Rich media ads – the web version of a TV commercial, with audio and motion
The International Mass Communication
Process
Producer/
marketer/
advertiser
Sets
objectives and
advertising
budget
Coordination
and
control
Sender’s cultural setting
Advertising
agency
Mass
Media
Develops
message
(encoding)
and selects
media
Carries
the
message
Generate
feedback
on effects
Receiver’s cultural setting
Opinion
leaders,
individuals
Receive the
message and
interpret
(decoding)
Individuals
Think, feel
and act
(hierarchy
of effects)
Cultures and Visual vs Verbal Processing
VISUAL PROCESSING
TV commercials
Radio Ads
Low literacy
Younger Segments
Low Involvement products
High context societies
VERBAL PROCESSING
Magazines
Newspapers
High Literacy
Older segments
High involvement products
Low context societies
The Hierarchy of Effects
ADVERTISING EXPOSURE
AWARENESS
KNOWLEDGE
LIKING/ATTITUDE
PREFERENCE
TRIAL
REPEAT PURCHASE/LOYALTY
Matching Ad Objectives and Media
AWARENESS
TV, Radio
KNOWLEDGE
Words (spoken/written),
Print, TV/Radio
ATTITUDE CHANGE &
IMAGE BUILDING
INFLUENCE BEHAVIOR
TV, Magazines, Cinema,
Outdoor Ads
Media must be timely,
newspapers, TV
Global Advertising is Most
Powerful When…
 •
the image communicated can be identical across
countries
 • the symbols used carry the same meaning across
countries
 • the product features desired are the same
 • the usage conditions are similar across markets
Goodyear’s Latin-Am. Campaign Planning
Global Tire Ads: Language pitfalls
How do you say “tire” in Latin America’s
Spanish?
What to say
Where to say it
CAUCHOS
Venezuela
CUBIERTAS
Argentina
GOMAS
Puerto Rico
LLANTAS
Mexico, Peru, Guatemala, Colombia
NEUMATICOS
Chile
Goodyear: Lessons for Global Advertisers
1.
By focusing on regions, it may be possible to reap the scale benefits &
cost efficiencies of global advertising without sacrificing too much on
the side of local adaptation.
2.
The early involvement of country subsidiaries & agency professionals
not only facilitates later acceptance of unified themes but also helps
broaden the sources of powerful campaign concepts.
3.
The process by which pattern standardization is arrived at needs to allow
open & free exchange.
4.
Even when the company has operated for years in a market, research is
still necessary, especially when conditions are changing.
Takeaway
As the affluence of countries grows, new products/services
appear, & customers need more information.
Advertising becomes more important and advertising
expenditures as a percentage of GDP increase.
Takeaway
As markets integrate, global communications expand, &
customers become more similar, pan-regional advertising
campaigns will become increasingly cost-efficient & more
effective than multi-domestic advertising.
Takeaway
Instead of complete uniformity, global advertising tends to
follow a pattern standardization approach with unified slogan,
visualization, & image but with local execution in terms of
language, spokespersons, & copy.
This helps avoid the pitfalls of standardized & translated
messages.
Takeaway
The global advertising agency is often at an advantage over
local rivals when it comes to global /regional advertising.
But independent local advertising agencies have combined
with others to form multinational networks & can sometimes
offer stronger local talent.
Takeaway
Developing a global campaign takes time, effort, & planning.
The process should involve headquarters and ad agency
managers & local representatives whose knowledge will help
formulate the global communication strategy.