Sept 15 Lecture - Advertising Industry

Vocabulary flashcards based on the September 15 lecture covering ad agency classifications, business structure, pitch/client dynamics, and creative execution concepts.

Classification of Advertising Agencies

Ad agencies are classified into national AAs, regional AAs, and local AAs.

Four Players in Advertising

1. Advertiser (Client), 2. AA (Ad Agency), 3. Media, 4. Supplier.

12% of Ad Agencies

12% of ad agencies account for 80% of business through mergers and acquisitions.

90's Recession Consolidation

A flurry of M+As (mergers and acquisitions) during the 90's recession led to consolidation into 5 publicly held holding companies.

Rule on Promotion and Product Quality

Promotion cannot save a poor product.

Billings

The amount the advertiser is spending on billing.

AOR

Agency of Record.

Two Types of Ad Agencies

1. Those that have been fired, and 2. Those who haven't been fired yet.

Under Review

The process by which a client fires an agency by putting them under review.

Pitch

An opportunity to interview for client business, which an agency must be invited to do.

Presentation Teams

Teams that go out to secure new business for the ad agency.

Agency/Client Relationship Breakdowns

Primary reasons ad agencies get fired by clients: failure to meet deadlines and poor chemistry with the client.

Green Light

Client approval; ads cannot be run until a green light is received from the client.

Speculative Presentation

A sample campaign presented by an agency to pitch for business.

Vampire Effect

A phenomenon in creative execution where viewers remember the ad itself, but fail to remember the product or brand.

Clio Syndrome

Referenced by David Ogilvy; occurs when focus is placed on the wrong thing (the vampire effect), resulting in ads that do not move the needle.

Formula Advertising

Advertising characterized by a lack of creativity, using standard execution techniques like puppies + babies, structured to 1) get attention, and 2) deliver the payload.

Evaluative Criteria in Advertising

The reason delivered in the payload of an ad explaining why consumers should buy the product.

50% Effectiveness Rule

50% of all advertising is effective; advertisers just don't know which half.

Referee Analogy

The principle that effective advertising is like a referee: you don't talk about the ad, you talk about the product.