Broadcast Advertising. Advertising Defined Non-personal CommunicationNon-personal Communication...
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Transcript of Broadcast Advertising. Advertising Defined Non-personal CommunicationNon-personal Communication...
Advertising DefinedAdvertising Defined
• Non-personal CommunicationNon-personal Communication
• Usually paid forUsually paid for
• By an identified sponsorBy an identified sponsor
• Persuasive in naturePersuasive in nature
• About products, ideas or servicesAbout products, ideas or services
• Through various mediaThrough various media
Advertising in the Marketing Advertising in the Marketing MixMix
• ProductProduct– Quality, package, appearance, etc.Quality, package, appearance, etc.
• PricePrice– Deep discount to premiumDeep discount to premium
• PlacePlace– Distribution channelsDistribution channels
• PromotionPromotion– POP, personal selling, PR, AdvertisingPOP, personal selling, PR, Advertising
Advertising ClassifiedAdvertising Classified
• By audienceBy audience– ConsumerConsumer– Business to BusinessBusiness to Business
• IndustrialIndustrial• TradeTrade• ProfessionalProfessional• FarmFarm
Advertising ClassifiedAdvertising Classified
• GeographicallyGeographically– NationalNational– RegionalRegional– LocalLocal– InternationalInternational
Advertising ClassifiedAdvertising Classified
• By mediumBy medium– ElectronicElectronic
• RadioRadio• TelevisionTelevision• CableCable• InternetInternet
Advertising ClassifiedAdvertising Classified
• PrintPrint– NewspaperNewspaper– MagazineMagazine
• OutdoorOutdoor– BillboardBillboard– TransitTransit
Advertising ClassifiedAdvertising Classified
• SpecialtySpecialty– NoveltiesNovelties– POPPOP– Product placementProduct placement– Etc.Etc.– Etc.Etc.– Etc.Etc.
Advertising ClassifiedAdvertising Classified
• By functionBy function– Product -vs- non-productProduct -vs- non-product– Commercial -vs- non-commercialCommercial -vs- non-commercial– Direct action -vs- non-direct actionDirect action -vs- non-direct action
The advertising industryThe advertising industry
• AgenciesAgencies
• The media The media
• The advertisersThe advertisers
• The support services and suppliersThe support services and suppliers
• The regulatorsThe regulators
• The consumersThe consumers
Advertising HistoryAdvertising History
• Functions of advertising:Functions of advertising:– Identify products and differentiate themIdentify products and differentiate them– Communicate information about productCommunicate information about product– Induce consumers to try the productInduce consumers to try the product– Increase product usageIncrease product usage– Build brand preference and loyaltyBuild brand preference and loyalty
Advertising HistoryAdvertising History
• Dates to 1600sDates to 1600s– British newspapers paid noticesBritish newspapers paid notices
Advertising HistoryAdvertising History
• Ben Franklin is credited with introducing Ben Franklin is credited with introducing white space and illustrationswhite space and illustrations
Advertising HistoryAdvertising History
• Magazines became first national Magazines became first national mediummedium
• Volney Palmer – first ad agency – 1841Volney Palmer – first ad agency – 1841– Bought newspaper and magazine space in Bought newspaper and magazine space in
large volumes at discount.large volumes at discount.– Marked up 15%Marked up 15%
• N. W. Ayer – first full service agencyN. W. Ayer – first full service agency
Broadcast Advertising HistoryBroadcast Advertising History
• Out of the debate on how to pay for Out of the debate on how to pay for broadcasting came…broadcasting came…
• ““Toll” broadcastingToll” broadcasting– WEAFWEAF– AT&T station AT&T station
• ““telephone philosophy of paying toll for long distance telephone philosophy of paying toll for long distance calls.calls.
• First commercial broadcast First commercial broadcast • http://www.old-time.com/commercials/1stcom
mercial.html
Broadcast Advertising HistoryBroadcast Advertising History
• Post WWIPost WWI– Radio grewRadio grew– Lifestyles improvedLifestyles improved– Spending increasedSpending increased– Radio networks emergedRadio networks emerged– Advertising stressed the “Unique Selling Advertising stressed the “Unique Selling
Proposition”Proposition”
Broadcast Advertising HistoryBroadcast Advertising History
• Television explodes post WWIITelevision explodes post WWII– Radio programs shift to televisionRadio programs shift to television– Radio adopts musical formatsRadio adopts musical formats
• Advertising costs increaseAdvertising costs increase• Sponsorships give way to participations Sponsorships give way to participations
or “spots”or “spots”• By the 1960s – advertising entered the By the 1960s – advertising entered the
“image era”“image era”
Broadcast Advertising HistoryBroadcast Advertising History
• Depicting a lifestyle – not product Depicting a lifestyle – not product informationinformation
• Emotional appeals – not logical appealsEmotional appeals – not logical appeals
• Remember the package – not the nameRemember the package – not the name
• Focus on benefits to consumerFocus on benefits to consumer
The contemporary advertising The contemporary advertising industryindustry
• Complicated by the proliferation of Complicated by the proliferation of mediamedia
• Audiences are splinteredAudiences are splintered– NarrowcastingNarrowcasting
• Clutter and competitionClutter and competition
• High costs of media drive demand for High costs of media drive demand for researchresearch
Effects of advertisingEffects of advertising
• On pricesOn prices
• On competitionOn competition
• On product imageOn product image
• On demandOn demand– ““Creating” demands?Creating” demands?– Bran, fiber, carbs, cosmetics, vitamins, etc.Bran, fiber, carbs, cosmetics, vitamins, etc.– Slow a declining market – “repositioning”Slow a declining market – “repositioning”
Media strategyMedia strategy
• Buying patternsBuying patterns– Weekly cyclesWeekly cycles– Monthly cyclesMonthly cycles– Annual cyclesAnnual cycles– Seasonal productsSeasonal products
• Products/service with fixed maximum Products/service with fixed maximum capacitiescapacities