Above-the-line advertising
| Above-the-line advertising |
|---|
| See also |
Above-the-line advertising also known as Above the Line promotion/ Above the Line marketing/ ATL marketing/ ATL advertising) consist of advertising activities that are largely non-targeted and have a wide reach. ATL isusing to done to build the brand and inform about the product. Conversions are given less importance in above the line advertising[1]. "This type of communication is conventional and impersonal to customers, and much more effective when the target group is very large and difficult to define. One of the major drawbacks in the ATL campaigns is the inability to evaluate the commission based on the campaign. It is impossible to calculate how much the sale increased due to campaign."(Šehović, M., Duduković, M., Mladenović J. 2014, s. 1135)
Example of ATL[2]:
- Radio
- Television
- Newspapers
- Internet
According to D. Statt "above-the-line advertising is a form of sales promotion where an agency is commissioned to place advertising for a client in the mass media. It isusually contrasted with below-the-line advertising which has overtaken it inpopularity in recent years." (D. Statt 2014, s.10)
History
"First used in 1954 when Procter & Gamble began paying advertising firms separately from other suppliers who dealt with more direct promotional efforts. The term originated spontaneously while composing a budget of Procter & Gamble. Only traditional advertisement costs were listed in the draft budget (television, radio, printed media, outdoor and movie theatre ads). Employees in company then considered free sampling, discount programs, sweepstakes, sponsorships, etc. which made them draw a line below initial costs, in order to include these previously uncharted costs of promotion (In the Beginning, There Was ATL, n.d.). Advertising agencies made commission from booking different types of media – TV, cinema, radio, press, magazines and out-of-home. Since BTL activities had no involvement of media, no commission was made for these agencies. The accountants marked different types of media as ATL an BTL depending on where it would sit in the balance sheet and profit and loss accounts (ATL stands for profit oriented activities, and BTL stands for non profit activities). During the time, this advertising budget structure became popular and became practiced around the world. Now, “above the line” stands for capital expenditures and “below the line” for current expenditures." (Šehović, M., Duduković, M., Mladenović J. 2014, s. 1134)
Marketing activities
Generally in the opinion of N. Arora "marketing activities (basically advertisements) today can be divided into three segments – Above the Line (ATL), Below the Line (BTL), & Through the Line (TTL) Marketing. The line was originally used to separate marketing activities which had mass penetration (above the line) to those which had specific penetration (below the line)." (N. Arora 2018, s. 13)
Examples of Above-the-line advertising
- Television: Television commercials are one of the most common forms of above-the-line marketing. Companies such as Coca-Cola, McDonald's and Apple have used television commercials to promote their brand and products to a wide audience.
- Radio: Radio advertising is another form of above-the-line marketing. Companies such as McDonald's and Apple have used radio ads to reach a wide range of listeners.
- Print: Print advertising is another form of above-the-line marketing. Companies such as McDonald's and Apple have used print ads in magazines, newspapers and other publications to reach a wide range of readers.
- Outdoor: Outdoor advertising is another form of above-the-line marketing. Companies such as McDonald's and Apple have used billboards, bus shelters, and other forms of outdoor advertising to reach a wide range of viewers.
- Events and Sponsorships: Events and sponsorships are another form of above-the-line marketing. Companies such as McDonald's and Apple have used events and sponsorships to reach a wide audience. This could include sponsoring a music festival, sports team, or charity event.
Advantages of Above-the-line advertising
Below are some of the main advantages of above-the-line advertising:
- Above-the-line advertising is a cost effective advertising method; it is usually cheaper than other forms of advertising and has a wide reach.
- Above-the-line advertising can be used to reach a large number of potential customers quickly. It is also an effective way to build brand recognition and loyalty.
- It has the potential to reach a large audience in one go, and is ideal for targeting a specific demographic or geographic area.
- Above-the-line advertising is also effective for creating a buzz and generating interest around a product or service.
- Above-the-line advertising is highly measurable and can be tracked for effectiveness, allowing for testing and adjustment of campaigns.
Limitations of Above-the-line advertising
Above-the-line advertising is a form of advertising that typically focuses on traditional media, such as television, radio, and print. Despite its widespread use, there are several limitations to this method of marketing. These include:
- Cost: Above-the-line advertising can be expensive and often requires a large budget to be effective. This type of advertising is typically used for large-scale campaigns, which can be cost-prohibitive for smaller companies.
- Reach: Above-the-line advertising is limited to the target demographic that is exposed to the medium. For example, television commercials can only reach viewers who have access to the television station where the commercial is being broadcast.
- Measurement: It can be difficult to measure the success of an above-the-line advertising campaign, as traditional media lacks the real-time analytics that are available with digital marketing. It can be difficult to determine what audience was exposed to the advertisement and how it impacted their behavior.
- Flexibility: Above-the-line advertising is limited in terms of customization and can be difficult to adjust once the campaign is underway. This type of advertising requires a large upfront investment and is not easily changed once it has been implemented.
The following are other approaches related to Above-the-line advertising:
- Below-the-line advertising which focuses on traditional methods of marketing such as direct mail, signage, brochures, etc.
- Experiential marketing which involves creating a memorable experience for the customer in order to increase engagement and loyalty.
- Social media marketing which leverages social media platforms such as Facebook, YouTube, Twitter, and Instagram to reach target audiences.
- Content marketing which focuses on creating and sharing valuable content in order to engage customers and build relationships with them.
- Search engine optimization (SEO) which involves optimizing website content to increase visibility in search engine results.
In summary, Above-the-line advertising is one of many approaches to marketing and includes other approaches such as below-the-line advertising, experiential marketing, social media marketing, content marketing, and search engine optimization.
Footnotes
References
- Arora N.(2018), ATL, BTL and TTL Marketing in Education Industry, "International Journal of Research and Innovation in Social Science", nr 2, 13
- Gaerig A. (2010)., New Economics of Advertising: The Principle of Relative Constancy Reconsidered, University of North Carolina at Chapel Hill,s. 8
- Iqbal, HAIDER (2013), Selecting an appropriate source of media as an effective source of promotion and communication from ATL and BTL modes of advertising, FMCG Peshawar, "International Review on Basic and Applied sciences", nr 2, 25-34
- Statt D.(2004), The Routledge Dictionary of Business Management, Routledge nr 3. s.10.
- Šehović, M., Duduković, M., Mladenović J. (2014), The Effectiveness of ATL and BTL Advertising Techniques, "Proceedings of the XIV International Symposium Symorg: New Business Models and Sustainable Competitiveness", s. 1134
Author: Katarzyna Kraj
