Below the line advertising

Below the line advertising (BTL) refers to marketing activities that target specific audiences through direct and personalized communication channels rather than mass media. The term originated at Procter & Gamble in 1954 when the company's finance department drew a literal line in budget documents to separate traditional advertising expenses from promotional activities.^[1] Costs above the line went to advertising agencies for television, radio, and print campaigns. Costs below it covered direct marketing, sampling programs, and trade promotions paid through other intermediaries.

Origin of the terminology

The distinction arose from accounting practices. P&G paid different rates for different promotional activities. Traditional media advertising commanded premium agency fees. Direct promotions cost less per contact. The budgeting separation became industry standard terminology.

Above the line (ATL) activities include television commercials, radio spots, newspaper advertisements, magazine spreads, billboards, and cinema advertising. These reach broad audiences without targeting specific individuals. Brand awareness is the primary objective.

Below the line activities engage smaller, defined audience segments. Response rates can be measured directly. Return on investment calculation becomes straightforward.

BTL marketing channels

Direct mail

Physical materials sent to customer addresses allow personalized messaging. Variable data printing enables customization at scale. Response rates typically range from 1-5%, substantially higher than mass media advertising. The Direct Marketing Association reported average direct mail ROI of 29% in 2018.

Email marketing

Digital messages reach subscribers instantly at minimal cost. Segmentation allows targeted offers based on purchase history. Open rates average 15-25% for commercial messages. Click-through rates range from 2-5%. Automation enables triggered campaigns responding to customer behaviors.

In-store promotions

Point-of-purchase displays influence buying decisions at the moment of selection. Product demonstrations showcase features directly. Sampling programs let consumers experience products before commitment. Trade promotions incentivize retailer cooperation.

Events and experiential marketing

Brand experiences create emotional connections. Trade shows generate business leads directly. Sponsorships associate brands with events audiences value. Pop-up activations create novelty and social media content. Red Bull's extreme sports sponsorships exemplify this approach, spending over $600 million annually on event marketing.

Loyalty programs

Rewards systems encourage repeat purchases. Points accumulation creates switching costs. Customer data collection enables personalization. Airlines pioneered this channel. American Airlines launched AAdvantage in 1981. Today Starbucks Rewards has over 30 million active members in the United States alone.

Social media marketing

Targeted advertising on platforms reaches specific demographic segments. Contests and promotions encourage engagement. Influencer partnerships leverage established audiences. The measurable nature of digital campaigns makes them quintessentially BTL despite their reach.

Characteristics of BTL advertising

Several features distinguish BTL from ATL approaches:

Measurability - Response tracking enables precise ROI calculation
Targeting - Messages reach defined audience segments
Personalization - Content can be customized to recipients
Interactivity - Two-way communication becomes possible
Cost efficiency - Lower absolute costs for smaller campaigns
Immediacy - Calls to action drive short-term response

The direct connection between expenditure and result makes BTL attractive for performance-focused marketers. Sales can often be attributed to specific campaigns.

BTL vs ATL comparison

ATL builds brand awareness broadly. BTL drives specific actions from targeted groups. ATL creates emotional associations over time. BTL generates immediate measurable responses.

Large companies typically employ both approaches. ATL establishes the brand foundation. BTL converts awareness into sales. The appropriate mix depends on product category, market maturity, and company objectives.

Coca-Cola spends billions on ATL advertising annually to maintain global awareness. Simultaneously, the company runs extensive BTL programs including retailer promotions, sampling campaigns, and loyalty partnerships.

Through the line (TTL) marketing

Contemporary practice often integrates ATL and BTL elements. A television commercial might include a QR code linking to a promotional landing page. Brand awareness advertising drives traffic to direct response channels.

TTL campaigns coordinate messaging across all touchpoints. The distinction between above and below becomes blurred. Digital platforms in particular combine broad reach with targeting precision. Programmatic advertising serves personalized messages at scale.

Effectiveness measurement

BTL's measurability enables sophisticated analysis:

Response rate - Percentage of recipients taking action
Conversion rate - Percentage completing desired outcomes
Cost per acquisition - Expense to gain each new customer
Customer lifetime value - Long-term revenue from acquired customers
Marketing attribution - Credit assignment across touchpoints

A/B testing compares alternative approaches systematically. Control groups isolate campaign effects. Incrementality measurement identifies true lift versus baseline behavior.

Industry applications

Consumer packaged goods companies rely heavily on BTL. Trade promotions with retailers account for significant marketing budgets. Couponing drives trial and repeat purchase. In-store displays capture shopper attention.

Financial services use direct mail and email extensively. Personalized offers based on customer data drive response. Acquisition costs are tracked precisely against customer value projections.

Technology companies leverage event marketing and content programs. Trade shows generate qualified leads. Webinars educate prospects directly. Free trials convert interested parties.

Infobox4 See also

References

Belch, G.E. and Belch, M.A. (2021), Advertising and Promotion: An Integrated Marketing Communications Perspective, 12th ed., McGraw-Hill
Kotler, P. and Keller, K.L. (2016), Marketing Management, 15th ed., Pearson
Bird, D. (2007), Commonsense Direct and Digital Marketing, 5th ed., Kogan Page

Footnotes