One of the criticisms leveled against advertising is based on tis 'high cost'. But no manufacture would spend unscrupulously because of one simple reason that high expenditure cannot be accommodated in the margin of profits. But, how far a manufacturer could spend on advertising ? This is a financial problem which is to be tackled by financial manager. Fundamentally, advertising expenditure relates to two aspects. One is the cost involved in the advertisement and the effects created by advertising. Secondly, the volume of advertising and tis relation to overall profitability. It is, thus, a complex problem which is often solved by pre-determining the amount that could be spent on advertising. This is done on the basis of analysis of markets, consumers, nature of products, etc. In other words, an advertising budget is prepared which shows ow much, where and for what purpose advertising funds will be spent. Simply stated manufacturer sets apart a sum to be spent for advertising which is referred ti as 'Advertising appropriation'. As mentioned above, the amount is not arbitrarily fixed but is determine on a scientific basis.

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There are several options of evaluation should always be in terms of objectives

(i) Objectives
(ii) Readership
(iii) Study the Message 
(iv) Investigate the Relation Between Readership and Attitudes Toward the Product
(v) Small Group Research

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The advertising agency receives its compensation from two sources-Commission from the owners of the advertising media and publishers. It is clear from the description that the advertising agency brings business to the owners of the advertising media. In recognition of the fact that advertising agency is paid certain commission, it is usually 15 % of the total amount of the bill by the owners of the media, as such clients pay nothing to it for handling their advertising. In fact it means that the large firms pay nothing for the services rendered by the agency in preparing and placing their advertisement. For instance if an agency occupies a time in radio publicity at a cost of Rs. 10,000, the bill is collected from the advertiser and is given back to the radio medium owners Rs. 8500 after deducting tis commission of Rs. 1500, being 15 %.

Most advertising agencies receive about ¾^th of their income from commissions. A small agency may earn less tan 2/3^th of its income from commissions. The other sources of revenue is the fee charged by the agency to its clients for services on the advice, planning, copy writing, layouts, media selection, scheduling and placement of public relations, package design, point of purchase displays and preparation of sales manuals. Income from the fees varies between 10 % and 33 % of the total income of the agency depending on its size.

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Advertising, though impersonal in character, could create profound influence in persuading prospects to become customers. In contrast to the marketing devices, the advertising carries only a message to the consumers and does not substantiates consumers with any physical presents.

Essentially, advertising means spreading of information. From the earliest day men have proclaimed by word of mouth or in writing the virtue of goods which they have produced.

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The evaluation of advertising is divided into media research, copy research and sales results research. The multi variable forces influencing sales make ti almost impossible to measure with high precision the sales effect of advertising. Consequently, most advertising research measures the characteristics of an advertisement, such as exposure, and the ability of the receiver to comprehend, retain and believe in the advertisement. If all of these are present, it is inferred that the advertisement will be effective in producing sales. The problem f measuring advertising effectiveness is still a frontier area for application of complexed scientific methods to market cultivation efforts, particularly in Indian conditions, in which advertising industry is growing; and its problems are closely tied to the economics and cultural problems of the country.

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The fundamental needs of print and broadcast media are quite dissimilar and hence they need separate treatment. Mechanical production has more importance for print media for advertising. We have to consider the limitations of production so that cost may not be enhanced and the advertisement may prove in-effective. A copy writer must tell story in fewer words for half page than he needs for the whole page. The emphasis remains the same for verbal and picture elements. If the advertisement is to be given colour, the selling points and benefits should be given in words but not in black and write. The message will be delivered by the medium and the use of printing process can influence the choice of picture. This can be effective' with high class magazines but it is not suitable for coarse paper used for news-papers.

After the approval of the copy by the advertiser with layout and finished art for advertisements, these symbol should be translated in mass communication of a printed advertisement. These need a continuous operations in graphic arts. If it is to be printed by offset, the paste up copy is supplied to newspaper or magazine which we call it as “camera ready”. Proofs are adequately produced and photographic negatives are pasted in position exactly as they would appear in the final printed version. Photos and other continuous tone art are separately given to the photographer who pictures them through the screen and then pastes them in position with line negatives. These strips of negatives are used to make the offset printing plates. Thus we get the screened art.

While printing is to be done by letter press, the design an size of the type are selected or specific and thus type is sent to the advertiser by agency for approving. Art work for pictures or other graphic elements is sent to the block maker with instructions with size screen and other instructions. Block maker's profits are taken out. They are approved an sent to the press for assembling with the type matter. The proofs of the completed advertisement are sent for final approval or corrections and printing plates are prepared for delivery to the media.

The steps may differ with the kind of advertisement and the medium. A local advertiser may type text and lay-out to the newspaper directly. Newspaper functions for all the categories of jobs and compositors supply proofs to the advertiser for approval.

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The core of all advertising is suggestion. Advertisement aims at suggesting buying of a particular thing; advertisement is a science of drawing attention. Some traits attract more attention than others. Much progress has been made in the art of advertisement by the discovery of internal and external determinants of attention. In order to understand the importance of attention as the psychological basis of advertisement, it shall be relevant to describe briefly the internal determinants attention.

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There was no need of advertising at all before the Industrial Revolution. Sellers used to met the buyers face. Thy knew the customers intimately. Hence, no research was needed. With the expansion of market the buyers and sellers became separate. Hence market informations became necessary. The elopement of business led to more gap and various intermediaries came in thereby sellers and buyers has no direct link. The information needed feed back which was done by market research. The process of informations gathering is market research which went through evolution was responsible to the needs of its own market places Marketing and advertising research are closely connected. Before advertising campaign development the market is analyzed to decider what kinds of tings are needed to be understood about the target market for the product. Research can b used in the development of creative strategy underlying the campaign an the measure of its effectiveness. Before we proceed let us clearly understand the difference between marketing research, marketing research advertising research which are often confused by the students.

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For those advertising managers who firmly believe that advertising must be evaluated by determining its impact on sales, some measures of sales response to advertising must be devised. Because of the many influences on sales in addition to that of advertisings the total sales of a product from the period in which the advertising was run are not a valid measure of advertising effectiveness. The only exception is in those rare cases where the management believes that advertising is the sole, at least the most important influence, on sales. However, where advertising objectives are stated in terms of sales, it is desirable to measures the effect of the advertising campaign so sales.

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It is true that the products are manufactured to satisfy the consumers. But this alone is not enough. Today, the responsibility of the manufacturer never creases as soon as the physical production is over. Whatever may be the nature of the product, the present-day markets are consumer-oriented, there it is the duty of he manufacturers to know what is required by customers. It sis also his duty to make the customers know from where, when, how, and at what prices the products would be available. The successful marketing lies on having the right product at the right price at the right place and time with promotion.

But these rightnesses are not to be decided by the producer but by the customers. Furthermore, the customers do not judge these elements independently but they judge the combination of these elements. This makes it clear that there are certain activities that are to be undertaken by the producer in the sphere of selling also.

In course of time, various activities came into vogue, destined particularly to help easy sale of goods. These activities commonly known as 'promotional activities' are, in management terminology named as promotional-mix'. It includes all those activities which are undertaken to promote the sale of products ultimately. It has thee important elements. viz., personal selling, advertising and sales promotion.

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There are three parties involved in the process of advertising, such as:

The advertiser

The advertising agency

The media owners

In market terms, advertisers constitute the buyers and media owners and sellers. There is also a third party who makes the buyers and seller meet, holding an intermediary position. In spite of the fact that the intermediaries are not essentially required, there are a large number of economies enjoyed both by the advertisers an the media owners because of the services rendered by advertising agents. From the viewpoint of media owners, these agents act as wholesaler, wholesalers, who assemble bulk orders. For that advertiser, agency constitutes a reservoir of skills which is beyond the capacity of a small firm to own such kills for itself. In addition, the agent is familiar with its media owner's language and method of operation, and in most cases they act as and interpreter between the parties.

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