Marketing Guide

Glossary of terms used in Advertising

4As - Associated of Accredited Advertising Agencies Malaysia. This is the main body that has more than 130 members made up of advertising agencies both local and international. 4As is responsible as the main voice for the agencies in the country.

Ad – the short form (acronym) used to refer to an advertisement.

Account – the term used by agencies to refer to its client. Petronas is an account for Leo Burnett Malaysia.

Agency – the company that represents a firm or business in all advertising related services. This could involve planning and design, media buying and strategizing as well as in the tracking of the effectiveness of an ad or a campaign. The Agency is responsible for the execution of the campaign as well.

Ad View – The frequency of the times that an ad is being seen. This is sometimes referred to as ‘Impressions’ and is commonly used for charging the client in terms of CPM (Cost per Thousand Impressions)

Above the Line – A category in advertising which involves more mainstream services. This usually refers to the likes of advertising in television, radio and print.

Below the Line – the other side of the spectrum as compared to ‘Above the Line’. It refers to the less mainstream services like using of flyers, banners and other marketing collaterals.

Billboard – A type of media which is an outdoor poster. They are usually very large as they need to be seen from passing vehicles and pedestrians.

Billing – this is referred to as the value of advertising by the agency for its clients. It is derived from the total invoices involved in purchasing of media space and time.

Buyer – Short for Media buyer. This is the person or the agency in charge of buying media spots either on behalf of the agency or for the agency.

Campaign –  A concerted and coordinated effort planned and launched by the agency for its client. It includes all activities like budgeting and time management and the use of all the relevant media for the advertising of the product or service.

CPM – Cost per Thousand Impressions. This is the common accepted rate for media to charge anyone who buy spots with them.

House Agency – Refers to the agency which is owned or controlled by the advertiser. Sometimes known as in-house agency.

Market Share – Refers to the portion of the market that a product or service that the company currently holds among its competitors.

Market Profile – this is very important for advertisers as it refers to the geographic description of the market. Sometimes referred to as the ‘target profile’ and is used to determine the prospects and opportunities of a specific market for the product or service of the company.

Media Buyer – the same term used as ‘Buyer’ to refer to the person or agency who is responsible for the buying of spots and time in different media.

Media Planner – this is the person or agency that plans and determines which media is the most appropriate and the costing needed for a specific advertising campaign. The Media Planner and the Media Buyer usually works together and could be the same party.

Merchandising – A part of promotion for the product or service. Merchandising is an important part of a campaign as it includes all the parties involved in the selling of the product or service. This includes the likes of using marketing collaterals like banners and posters as well as in using other related products. Merchandising is very common for movies and other entertainment types which are important for their marketing and promotion.

OTO (One Time Only) – Refers to advertisements that only runs once. This is more commonly used by advertisers to make announcements like end of product and such.

Penetration – refers to the rate (in percentage) on a certain campaign. This term is commonly used in other areas of marketing and promotion. The rate measures the degree by which the advertising campaign is effective and involves households. For instance, the penetration rate of the Caltex campaign refers to the percentage of households that were exposed to the campaign.

Pitch – an exercise carried out by advertisers when they want to offer either the account or a campaign to suitable agencies. This is very much like a tender process in which advertisers will offer the contract to the best and most suitable agency to undertake the project or in more prominent cases, the entire account.

Rate Book – an independent publication in the form of a printed book published annually that contain all the advertising rates of all the media available in a specific market.

Rate Card – the printed listing of the rates involved of a particular media, for example, TV3 will print their own rate card and given to prospective advertisers to inform them about the cost of buying spots in all the time slots

Return on Investment (ROI) – perhaps the most important element among advertisers. This refers to a method of calculation for the advertiser on how much and how long it will take before their investments are returned. Break even points and profit levels are determined through the calculation of ROI. Often an issue for advertisers as campaigns might not be easily measured and calculated in terms of dollars and cents.

Target Group – refers to the people that a specific advertising campaign is directed to. Sometimes called the consumer profile, they usually have similar characteristics and attributes like age group, income level, education background and such.

Target Market – similar to Target Group but usually refers to a geographical area. Sometimes known as Market Profile.

Teaser – an advertisement which is designed as a preliminary introduction to either a new product launch or an advertising campaign. Teaser ads are usually designed to stir curiosity and can be ambiguous. They are launched before the main ads or campaign is implemented.

Time buyer – refers to the person or agency who buys spots mainly on radio and television media. The role of Time buyers are sometimes played by the Media buyer as well .