Types of advertising and advertising techniques — practice questions

TV family road trip — ATL + emotional appeal: Mass reach builds brand awareness (2.5.3) and positive affect — associates car with family bonding, not specifications. High-involvement product (2.3.1) — emotion creates favourable attitude before rational comparison.

Personalised email — BTL: Targeted to interested visitors — higher conversion rate, measurable ROI. Test-drive offer = behavioural call to action.

Celebrity athlete — endorsement + peripheral route: Transfers success, performance, attractiveness to brand. Processed via peripheral route (2.5.2 ELM) — cue-based, not argument-based.

Fear appeal — public health: Statistics create anxiety → effective only if safety features offer clear solution and audience feels efficacy (protection motivation theory). Without solution → denial/defensive avoidance.

Evaluate — ATL vs BTL: ATL builds long-term recognition but hard to measure; BTL drives immediate action but limited reach. Combined = integrated campaign.

Evaluate — limitations: Emotional ads — wear-out effect with repetition. Celebrity — negative publicity risk. Fear appeals — ethical concerns if causing distress without actionable advice. Digital targeting — privacy concerns.

Formulas Used:

• CTR (%) = (Total Clicks / Total Impressions) × 100
• CR (%) = (Total Conversions / Total Clicks) × 100
• Revenue ($) = Number of Sales × Price per item
• ROI (%) = ((Revenue - Cost) / Cost) × 100

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Campaign A: Social Media

1. Calculate CTR:
   • CTR = (4,800 clicks / 240,000 impressions) × 100
   • CTR = 0.02 × 100
   • CTR = 2.0%
2. Calculate Conversion Rate (CR):
   • CR = (96 sales / 4,800 clicks) × 100
   • CR = 0.02 × 100
   • CR = 2.0%
3. Calculate ROI:
   • Revenue = 96 sales × $150/watch = $14,400
   • ROI = (($14,400 -$1,200) / $1,200) \times 100$
   • ROI = ($13,200 /$1,200) × 100
   • ROI = 1100%

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Campaign B: Search Engine

1. Calculate CTR:
   • CTR = (3,000 clicks / 60,000 impressions) × 100
   • CTR = 0.05 × 100
   • CTR = 5.0%
2. Calculate Conversion Rate (CR):
   • CR = (150 sales / 3,000 clicks) × 100
   • CR = 0.05 × 100
   • CR = 5.0%
3. Calculate ROI:
   • Revenue = 150 sales × $150/watch = $22,500
   • ROI = (($22,500 -$1,500) / $1,500) \times 100$
   • ROI = ($21,000 /$1,500) × 100
   • ROI = 1400%

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Evaluation:

• CTR: Campaign B (5%) was more effective at generating clicks from impressions than Campaign A (2%), suggesting the search ads were more relevant to user intent.
• CR & ROI: Campaign B also had a higher conversion rate (5% vs 2%) and a much greater ROI (1400% vs 1100%), indicating that while it cost more, it was significantly more profitable because it reached a more motivated audience.