Below-the-line advertising targets individual consumers through direct marketing techniques, while above-the-line advertising aims to build brand awareness. The term is outdated, and an integrated communication approach is preferred. Fixed costs are typical for below-the-line advertising, while commissions are common for above-the-line. The rise of online communication has blurred the lines between the two approaches. Some traditional advertising agencies and large companies still use the terms, but others prefer different terminology.
In advertising, the term “below the line” refers to marketing campaigns aimed directly at individual consumers, providing personal contact with advertising. This is in contrast to above-the-line strategies such as mass media advertising, which are designed to build brand awareness and project an overall image of the company rather than drive specific sales. This term is considered a bit outdated in many areas of the marketing community as advertising is no longer developed above and below the line and people may prefer the term “integrated communication approach” to talk about advertising strategies.
Some examples of this type of advertising include catalogs and other direct marketing techniques, where individual consumers are contacted about land sales. Furthermore, promotions intended to attract customers or increase customer loyalty at the store level can also be considered below the advertising line. This contrasts with mass media branding campaigns. Historically, advertising agencies commanded very large commissions for these campaigns, but they were not involved in direct marketing efforts.
Another important aspect of below-the-line advertising tends to be fixed costs. Rather than running the job on commission, it is done for a flat, fixed fee per contact. Something like selling catalogs, for example, requires spending to design, print, and mail the catalogs, but large commissions for creative work are not involved, whereas online advertising pays per print. In above-the-line advertising, the company hired to make the ad charges a fee and doubles the ad placement costs at that fee, providing inclusive service with its brand management expertise.
Through online communication, uniting aspects of both approaches is increasingly common. Changes in the way media is used have also changed the way people develop and talk about advertising. Something like a viral video campaign, for example, doesn’t exactly fit the above-and-below-the-line model, as it might not achieve traditional advertising goals. The development of things like web television, where people can directly interact with mass media advertisements, has also changed the way advertisers present material.
Some people continue to think of advertising in terms of being below or above the line. Very traditional advertising agencies with an established billing structure may refer to these terms on their client statements, familiarizing clients with account billing handling. Large companies may also be familiar with this terminology and may prefer it when discussing the development of new advertising campaigns. Other companies use different terminology, reflecting changing trends in advertising.
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