Chapter 13 Advertising

8/8/2019 Chapter 13 Advertising

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Chapter 13

Chapter 13 ADVERTISING:

The Media Support Industry

ADVERTISING:

The Media Support Industry


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Advertising Comes to America Most of the first settlers came to America

because of advertisements they had read inEngland touting free and fertile farmland.

The first American newspaper, the Boston NewsLetter , carried notices of wares for sale frommanufacturers to local merchants, what wenow call tr ade adve rt ising . There was notmuch use for consume r adve rt ising becausemost Americans made their own clothing andgrew their own food.

In the 1860s, large department stores useddisplay ads which were larger and includeartwork, fancy typefaces and snappy slogans tolure customers from general stores.

Advertising Comes to America Most of the first settlers came to America

because of advertisements they had read inEngland touting free and fertile farmland.

The first American newspaper, the Boston NewsLetter , carried notices of wares for sale frommanufacturers to local merchants, what wenow call tr ade adve rt ising . There was notmuch use for consume r adve rt ising becausemost Americans made their own clothing andgrew their own food.

In the 1860s, large department stores useddisplay ads which were larger and includeartwork, fancy typefaces and snappy slogans tolure customers from general stores.


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Ads and the Industrial Revolution Manufacturers such as Andrew Carnegie (steel)

and Henry Ford (automobiles) believed massproduction needed advertising to create massdemand.

Advertising led to the diffusion of almost everytype of innovation.

It encouraged people to bathe more often.It encouraged teeth brushing and clotheswashing.It encouraged men to shave themselves dailyrather than visit a barber every few days.Automobiles were advertised as the solutionto air pollution caused by dried horsemanure blowing through the streets.

Ads and the Industrial Revolution Manufacturers such as Andrew Carnegie (steel)

and Henry Ford (automobiles) believed massproduction needed advertising to create massdemand.

Advertising led to the diffusion of almost everytype of innovation.

It encouraged people to bathe more often.It encouraged teeth brushing and clotheswashing.It encouraged men to shave themselves dailyrather than visit a barber every few days.Automobiles were advertised as the solutionto air pollution caused by dried horsemanure blowing through the streets.


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T he Advent of Advertising Agencies Advertising was the chief means of support for

newspapers but most did not want to maintaina full advertising department. In 1841,Philadelphias Volney Palmer became an ad br oke r to act as a liaison between advertisersand newspapers.

By 1860, 30 major agencies were servicing some4,000 newspaper and magazines.

N.W. Ayer was founded in 1869 whenmanufacturers realized they needed agencies towork directly for them as opposed to workingfor the newspapers. Ayer would not work withproducts that were dangerous or place adsconsidered deceptive.

T he Advent of Advertising Agencies Advertising was the chief means of support for

newspapers but most did not want to maintaina full advertising department. In 1841,Philadelphias Volney Palmer became an ad br oke r to act as a liaison between advertisersand newspapers.

By 1860, 30 major agencies were servicing some4,000 newspaper and magazines.

N.W. Ayer was founded in 1869 whenmanufacturers realized they needed agencies towork directly for them as opposed to workingfor the newspapers. Ayer would not work withproducts that were dangerous or place adsconsidered deceptive.


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E arly Industry Control Advertisers were prone to exaggeration, or

puffe r y. By the late 1800s, advertisers were making

outrageous claims and outright deceptions. Miracle elixirs promised to cure gout,

tuberculosis, and heart disease but many wereflavored drinks that were mostly alcohol andoften contained addictive drugs such as heroinand morphine.

The Pure Food and Drug Act was passed in 1906largely in reaction to patent medicine claims.

The Federal Trade Commission (FTC) wasestablished in 1914 as a national watchdog ofbusiness and advertising.

E arly Industry Control Advertisers were prone to exaggeration, or

puffe r y. By the late 1800s, advertisers were making

outrageous claims and outright deceptions. Miracle elixirs promised to cure gout,

tuberculosis, and heart disease but many wereflavored drinks that were mostly alcohol andoften contained addictive drugs such as heroinand morphine.

The Pure Food and Drug Act was passed in 1906largely in reaction to patent medicine claims.

The Federal Trade Commission (FTC) wasestablished in 1914 as a national watchdog ofbusiness and advertising.


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Ads T ake to the Airwaves As the radio industry developed in the early

20th Century, there was a movement to leavebroadcasting free of advertising and run it as acommon carrier of mediated interpersonalcommunication.

Britain decided to fund its state-runbroadcasting system, the BBC, by license feespaid by radio owners, not advertising. Britishradio and television did not accept advertisinguntil the 1950s.

In 1922, the first commercial was run by AT&TsWEAF in New York.

By 1926, when network radio began, advertisinghad become an acceptable means of supportingradio.

Ads T ake to the Airwaves As the radio industry developed in the early

20th Century, there was a movement to leavebroadcasting free of advertising and run it as acommon carrier of mediated interpersonalcommunication.

Britain decided to fund its state-runbroadcasting system, the BBC, by license feespaid by radio owners, not advertising. Britishradio and television did not accept advertisinguntil the 1950s.

In 1922, the first commercial was run by AT&TsWEAF in New York.

By 1926, when network radio began, advertisinghad become an acceptable means of supportingradio.


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Advertising became a specialized art form withthe advent of television.

TV ads became 30-second entertainmentswith cute cartoon characters such as SpeedyAlka-seltzer singing catchy jingles like Plop,plop, fizz, fizz, oh, what a relief it is! thatpeople were humming the next day.

One failed, but controversial attempt at a newstyle of promotion, involved subliminal

advertising, or advertising that the consumerwas not consciously aware of.

Advertising became a specialized art form withthe advent of television.

TV ads became 30-second entertainmentswith cute cartoon characters such as SpeedyAlka-seltzer singing catchy jingles like Plop,plop, fizz, fizz, oh, what a relief it is! thatpeople were humming the next day.

One failed, but controversial attempt at a newstyle of promotion, involved subliminal

advertising, or advertising that the consumerwas not consciously aware of.


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D iversity and T arget Marketing

T ar

get

mar

ket

ing breaks up the advertisingaudience into diverse segments in order to reachindividuals most likely to purchase a particularproduct.

Advertisers like to minimize cir cula t ion was t e,

that part of advertising received by people theadvertiser has no interest in reaching.Advertisers direct ad campaigns toward women,African Americans, Hispanics and others.

D iversity and T arget Marketing

T ar

get

mar

ket

ing breaks up the advertisingaudience into diverse segments in order to reachindividuals most likely to purchase a particularproduct.

Advertisers like to minimize cir cula t ion was t e,

that part of advertising received by people theadvertiser has no interest in reaching.Advertisers direct ad campaigns toward women,African Americans, Hispanics and others.


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G lobalization

Since the 1980s, agencies in the U.S., Japan, andBritain have merged into transnationalbehemoths and adapted to indigenous culturesin new markets.

G lobalization

Since the 1980s, agencies in the U.S., Japan, andBritain have merged into transnationalbehemoths and adapted to indigenous culturesin new markets.

Advertising begins with clients who provide theproduct to be sold. Clients spend about 20 percent of revenue on

advertising. The gross dollar amount spent isknown as billings .

Advertising begins with clients who provide theproduct to be sold. Clients spend about 20 percent of revenue on

advertising. The gross dollar amount spent isknown as billings .


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There are over 13,000 ad agencies in the U.S. I n-house agencies are built into the clients

corporate structure. Bou t ique agencies specialize in creative services

but do not cover aspects such as media buys. Full-se r vice agencies supply all of the advertising,

marketing, and often public relations services the

client needs.

There are over 13,000 ad agencies in the U.S. I n-house agencies are built into the clients

corporate structure. Bou t ique agencies specialize in creative services

but do not cover aspects such as media buys. Full-se r vice agencies supply all of the advertising,

marketing, and often public relations services the

client needs. Account executives represent the client within theagency and coordinate agency services for theclient.

They coordinate the process of pitching accounts , which involves preparing andpresenting new ideas for ads to a prospectiveclient.

Account executives represent the client within theagency and coordinate agency services for theclient.

They coordinate the process of pitching accounts , which involves preparing andpresenting new ideas for ads to a prospectiveclient.


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Audience r esea r ch involves the gathering of dataabout consumers who are likely to buy the product.

Demog r aphics include audience characteristicssuch as age, gender, income, occupation, andethnicity. Psychog r aphics include psychologicaldimensions of attitudes, beliefs, values, interestsand motivations.

Audience r esea r ch involves the gathering of dataabout consumers who are likely to buy the product.

Demog r aphics include audience characteristicssuch as age, gender, income, occupation, andethnicity. Psychog r aphics include psychologicaldimensions of attitudes, beliefs, values, interestsand motivations. Posi t ioning is the process of finding the products

most specific customer type and creating appealsthat will be effective with that customer.

Copy r esea r ch can involve f ocus groups of

potential users who sit around and chat about apotential campaign under the guidance of aresearcher.

Posi t ioning is the process of finding the productsmost specific customer type and creating appealsthat will be effective with that customer.

Copy r esea r ch can involve f ocus groups of

potential users who sit around and chat about apotential campaign under the guidance of aresearcher.


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Creative directors head teams that include

copywriters, who create the words, an art director, whoassigns individual photographers, illustrators andgraphic designers, plus TV producers, musicians andcasting experts.

The media department plans how advertising

budgets will be allocated among various media andarranges for the purchase of media space and time.

Creative directors head teams that include

copywriters, who create the words, an art director, whoassigns individual photographers, illustrators andgraphic designers, plus TV producers, musicians andcasting experts.

The media department plans how advertising

budgets will be allocated among various media andarranges for the purchase of media space and time.


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Full-Service Advertising Agency OrganizationFull-Service Advertising Agency Organization


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VALST M FrameworkVALST M Framework


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N ewspape r s provide easy-to-find ads on themost current local sales, and have the

advantage of money off coupons that theshopper can take to the store. T elevision is perfect for image advertising and

encourages name recognition better than mostother media.

TVs biggest disadvantage is that it isextremely expensive.Another disadvantage is clu tt er , the glut ofcommercials that compete for the viewersattention. I nfome r cials are program lengthcommercials disguised as information andtalk shows.

N ewspape r s provide easy-to-find ads on themost current local sales, and have the

advantage of money off coupons that theshopper can take to the store. T elevision is perfect for image advertising and

encourages name recognition better than mostother media.

TVs biggest disadvantage is that it isextremely expensive.Another disadvantage is clu tt er , the glut ofcommercials that compete for the viewersattention. I nfome r cials are program lengthcommercials disguised as information andtalk shows.


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Di r ect mail advertising, or di r ect ma r ke t ing ,includes catalogs, flyers, coupon packages, and

computer-generated letters that are sent toindividuals. Special t y ads consist of matchbook covers, t-

shirts, pens, balloons, even the inside doors ofpublic toilets.

Radio s highly segmented formats make it easyto target specific audiences.

Radio production costs are minimal andstation staff often produce for free.

Radio airtime is inexpensive compared to TV. Y ellow pages advertising is based on the conceptthat it is a good idea to advertise in the bookpeople use to find the phone number of thebusiness they need.

Di r ect mail advertising, or di r ect ma r ke t ing ,includes catalogs, flyers, coupon packages, and

computer-generated letters that are sent toindividuals. Special t y ads consist of matchbook covers, t-

shirts, pens, balloons, even the inside doors ofpublic toilets.

Radio s highly segmented formats make it easyto target specific audiences.

Radio production costs are minimal andstation staff often produce for free.

Radio airtime is inexpensive compared to TV. Y ellow pages advertising is based on the conceptthat it is a good idea to advertise in the bookpeople use to find the phone number of thebusiness they need.


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The advantages of advertising in magazinesinclude their pass-along rate (four to five extra

people read them, besides the purchaser orsubscriber) and their shelf life (people keepthem for weeks, and sometimes longer).

Glossy paper makes them appropriate forfine art work.Magazines have been the medium of choicefor special-interest advertising since the1950s partly because there is very littlewasted circulation.

Ou t doo r ads are big and impressive, and cantbe turned off like TV or thrown away like anewspaper.

The advantages of advertising in magazinesinclude their pass-along rate (four to five extra

people read them, besides the purchaser orsubscriber) and their shelf life (people keepthem for weeks, and sometimes longer).

Glossy paper makes them appropriate forfine art work.Magazines have been the medium of choicefor special-interest advertising since the1950s partly because there is very littlewasted circulation.

Ou t doo r ads are big and impressive, and cantbe turned off like TV or thrown away like anewspaper.


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The W or ld W ide W eb is the most rapidly growingmedium of advertising, earning $23 billion

annually by 2008. W eb ads are a convergence of all former ads.

Like newspapers and the yellow pages, onlineads are placed precisely where consumers are

looking for product information.Online ads compete with magazines in terms ofartwork.They involve motion and sound, and have the

entertainment advantages of radio and TV.Some users resent Internet ads because they aredeveloping a clutter problem.

The W or ld W ide W eb is the most rapidly growingmedium of advertising, earning $23 billion

annually by 2008. W eb ads are a convergence of all former ads.

Like newspapers and the yellow pages, onlineads are placed precisely where consumers are

looking for product information.Online ads compete with magazines in terms ofartwork.They involve motion and sound, and have the

entertainment advantages of radio and TV.Some users resent Internet ads because they aredeveloping a clutter problem.


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Advertising Objectives

The objectives of advertising are: N ame r ecogni t ion and b r anding - to make theproduct familiar to the potential buyer.Spr eading news about a product. I

mage advert

ising - promoting an idea that isassociated with the product in the audiencesmind. Adding value t o t he p r oduc t that is notinherently within it, such as when a sexy

model is draped over the hood of a car,seemingly offering herself to the maleconsumer who is the main customer for newcars.

Advertising Objectives

The objectives of advertising are: N ame r ecogni t ion and b r anding - to make theproduct familiar to the potential buyer.Spr eading news about a product. I

mage advert

ising - promoting an idea that isassociated with the product in the audiencesmind. Adding value t o t he p r oduc t that is notinherently within it, such as when a sexy

model is draped over the hood of a car,seemingly offering herself to the maleconsumer who is the main customer for newcars.


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Advocacy ads are designed to affect publicopinion or government policy.

Corr ect ive ads try to rectify impressionsformed by earlier ads. Sometimes they arelegally mandated, such as what the FTCrequired from Listerine, whose ads falselyclaimed its mouthwash could kill the germs

that cause colds.Coun t er adve rt ising is usually run by a nonprofit agency to fight images created by largescale campaigns they feel are not in thepublic interest. Counter ads based on parody

are called guerrilla ads because they useunorthodox tactics. Public se r vice announcemen t s ( PS As ) are adspresented as a community service.

Advocacy ads are designed to affect publicopinion or government policy.

Corr ect ive ads try to rectify impressionsformed by earlier ads. Sometimes they arelegally mandated, such as what the FTCrequired from Listerine, whose ads falselyclaimed its mouthwash could kill the germs

that cause colds.Coun t er adve rt ising is usually run by a nonprofit agency to fight images created by largescale campaigns they feel are not in thepublic interest. Counter ads based on parody

are called guerrilla ads because they useunorthodox tactics. Public se r vice announcemen t s ( PS As ) are adspresented as a community service.


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According to one major marketing research

firm, 61 percent of consumers believeadvertising is out of control.

About 65 percent of an average newspaperconsists of ads; magazines contain about 50

percent; and commercial television and radiostations devote around 25 percent of theirbroadcast time to advertising.

The FTC is the main government watchdogagainst deceptive advertising.

Individual consumers have taken advertisersto court.

According to one major marketing research

firm, 61 percent of consumers believeadvertising is out of control.

About 65 percent of an average newspaperconsists of ads; magazines contain about 50

percent; and commercial television and radiostations devote around 25 percent of theirbroadcast time to advertising.

The FTC is the main government watchdogagainst deceptive advertising.

Individual consumers have taken advertisersto court.


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Bai t and swi t ch adve rt ising provides bait in

the form of an advertised bargain and aswitch when the customer is talked into amore expensive product.

The wording of pa r it y s t a t emen t s make it

sound like a product or service is superior toothers when in fact all the ad claims is that theproduct is just as good as its competition nobetter, no worse. Nothing is proven to workbetter or last longer than Advil. NOTHING is

a parity statement.

Bai t and swi t ch adve rt ising provides bait in

the form of an advertised bargain and aswitch when the customer is talked into amore expensive product.

The wording of pa r it y s t a t emen t s make it

sound like a product or service is superior toothers when in fact all the ad claims is that theproduct is just as good as its competition nobetter, no worse. Nothing is proven to workbetter or last longer than Advil. NOTHING is

a parity statement.


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Many critics feel that ads should not bedirected toward very young children.

Child r en as consume r tr ainees : is the beliefthat ads mold a childs character andpersonality by encouraging greed and bysuggesting that peoples importance stemsfrom personal possessions rather than whothey are.

J unk food ads : critics are concerned aboutunrestricted junk food ads directed atchildren. They blame the growing obesity

problem in the U.S. at least partially on theseads.

Many critics feel that ads should not bedirected toward very young children.

Child r en as consume r tr ainees : is the beliefthat ads mold a childs character andpersonality by encouraging greed and bysuggesting that peoples importance stemsfrom personal possessions rather than whothey are.

J unk food ads : critics are concerned aboutunrestricted junk food ads directed atchildren. They blame the growing obesity

problem in the U.S. at least partially on theseads.


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U.S. Government Advertising RegulationsU.S. Government Advertising Regulations


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Alcohol and ciga r ett e ads : A 1999 settlement between

tobacco companies and states attorneys generalbanned: Transit and billboard advertising in the U.S. The distribution of apparel and other merchandisewith brand names or logos.Brand-name sponsorship of concerts and eventswith a significant youth audience.Payments for the use of tobacco products inmovies, TV shows and theater productions.

Restricted the distribution of free samples.

Alcohol and ciga r ett e ads : A 1999 settlement between

tobacco companies and states attorneys generalbanned: Transit and billboard advertising in the U.S. The distribution of apparel and other merchandisewith brand names or logos.Brand-name sponsorship of concerts and eventswith a significant youth audience.Payments for the use of tobacco products inmovies, TV shows and theater productions.

Restricted the distribution of free samples.


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Product integration is being used in:Reali t y TV : Sears products on Ex treme Makeover : H omeEdi tionBooks : The novel C over Girl in 2006 was commissionedby the cosmetics company of the same nameI n N ews b r oadcas t s: In what was billed as a public-service campaign, a Univision station talked about healthtopics in a news segment utilizing Kaiser Permanentephysicians and patients, with news footage shot at Kaiserfacilities. Kaiser pays additional fees for this placement;fees which are not disclosed during the news programs.

Product integration is being used in:Reali t y TV : Sears products on Ex treme Makeover : H omeEdi tionBooks : The novel C over Girl in 2006 was commissionedby the cosmetics company of the same nameI n N ews b r oadcas t s: In what was billed as a public-service campaign, a Univision station talked about healthtopics in a news segment utilizing Kaiser Permanentephysicians and patients, with news footage shot at Kaiserfacilities. Kaiser pays additional fees for this placement;fees which are not disclosed during the news programs.

Advertiser Influence on Media Content Devices such as remote controls, videotape recorders, and

TiVo assist viewers in skipping ads.

Many industry professionals feel product placement( pr oduc t in t eg r a t ion) making commercials part of theprogram is their only recourse.

Advertiser Influence on Media Content Devices such as remote controls, videotape recorders, and

TiVo assist viewers in skipping ads.

Many industry professionals feel product placement( pr oduc t in t eg r a t ion) making commercials part of theprogram is their only recourse.


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E conomic Clout: Influencing the News

Revenue generated by advertising givesadvertisers an extraordinary amount of power. This power becomes controversial when used to

influence the content of the news or informationthat the medium carries.

Sometimes advertisers try to influence content bycanceling ads if they dont agree with ideasexpressed in editorial content.

Too often, the media are willing to be influencedby their advertisers.

E conomic Clout: Influencing the News

Revenue generated by advertising givesadvertisers an extraordinary amount of power. This power becomes controversial when used to

influence the content of the news or informationthat the medium carries.

Sometimes advertisers try to influence content bycanceling ads if they dont agree with ideasexpressed in editorial content.

Too often, the media are willing to be influencedby their advertisers.


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Top 10 Brands for Product Placement onBroadcast TV

Top 10 Brands for Product Placement onBroadcast TV

Chapter 13 Advertising

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