Introduction
to Advertising
A Passion for the Business
Chapter 1
1-1
1-2
SURPRISE QUIZ?
1-3
1-4
1-5
1-6
1-7
1-8
1-9
1-10
1-11
1-12
1-13
1-14
Who am I?
Veni Vidi Vici
1-15
CHAPTER KEY POINTS
Questions We’ll Answer
• What is advertising and what are its key
components?
• How has advertising evolved?
• What are advertising’s main roles?
• Who are the key players in advertising?
1-16
WHAT IS ADVERTISING?
Defining Modern Advertising
The Evolution of the Definition of Advertising
• Identification
– Simple images found in ancient Babylonia,
Egypt, Greece, and Rome identified a business,
manufacturer, or store.
1-17
1-18
1-19
1-20
Lincoln Cathedral-1400 A.D.
1-21
WHAT IS ADVERTISING?
Defining Modern Advertising
The Evolution of the Definition of Advertising
• Identification
– Simple images found in ancient Babylonia, Egypt, Greece,
and Rome identified a business, manufacturer, or store.
• Information
– Gutenberg’s movable type mechanized the printing
process leading to mass communication.
1-22
1-23
WHAT IS ADVERTISING?
Defining Modern Advertising
The Evolution of the Definition of Advertising
• Identification
– Simple images found in ancient Babylonia, Egypt, Greece,
and Rome identified a business, manufacturer, or store.
• Information
– Gutenberg’s movable type mechanized the printing
process leading to mass communication.
• Promotion
– The Industrial Revolution led to surplus goods, improved
transportation, and the need for new media.
1-24
When supply outstrips demand
• Wants vs. Needs
• Need to create preference
1-25
1-26
• http://www.youtube.com/watch?v=DXRa
boSo70A&feature=related
1-27
WHAT IS ADVERTISING?
Defining Modern Advertising
The Evolution of the Definition of Advertising
• Identification
– Simple images found in ancient Babylonia, Egypt, Greece,
and Rome identified a business, manufacturer, or store.
• Information
– Gutenberg’s movable type mechanized the printing
process leading to mass communication.
• Promotion
– The Industrial Revolution led to surplus goods, improved
transportation, and the need for new media.
• Brand Sales
– Advertisers became concerned about making ads that
worked and defining standards of effective advertising.
1-28
1-29
1-31
1-32
WHAT IS ADVERTISING?
Defining Modern Advertising
• A type of communication intended to
impact consumer thoughts, feelings and
actions.
• A form of marketing communication
1-33
WHAT IS ADVERTISING?
Defining Modern Advertising
Five Basic Factors of Advertising
1. Paid communication
2. Sponsor is identified
3. Tries to inform or persuade
4. Reaches a large audience
5. Message conveyed through many different kinds
of largely nonpersonal mass media
1-34
What is your book’s definition?
“Advertising is a paid form of communication that
uses mass and interactive media to reach broad
audiences in order to connect an identified sponsor
with buyers (a target audience) and provide
information about products (goods, services,
ideas).”
1-35
Let’s have a working definition
Advertising is a sponsored media message intended
to persuade you to think, do, or buy something.
1-36
WHAT IS ADVERTISING?
•Strategy
•Creative
idea
•Execution
•Media
• The strategy is the logic and
planning behind the ad that
gives it direction.
1-37
WHAT IS ADVERTISING?
•Strategy
•Creative
idea
•Execution
•Media
• The central idea grabs the
consumer’s attention and
sticks in memory.
1-38
WHAT IS ADVERTISING?
•Strategy
•Creative
idea
•Execution
•Media
• Production Values
1-39
ROLES AND TYPES OF ADVERTISING
•Strategy
•Creative
idea
•Execution
•Media
• Television, Internet,
magazines, and other media
are used to reach a broad
audience.
1-40
ROLES AND TYPES OF ADVERTISING
•Marketing
•Communication
•Economic
•Societal
• Marketing is satisfying
customer wants and needs
by providing products
(goods, services, ideas).
1-41
ROLES AND TYPES OF ADVERTISING
•Marketing
•Communication
•Economic
•Societal
• Advertising is a message
to a consumer about a
product, designed to create
a response.
1-42
ROLES AND TYPES OF ADVERTISING
•Marketing
•Communication
•Economic
•Societal
• Cost-efficient and lowers
prices for consumers.
• Advertising creates a
demand for a brand using
hard sell (persuading) and
soft sell (image building)
techniques.
1-43
ROLES AND TYPES OF ADVERTISING
•Marketing
•Communication
•Economic
•Societal
• Informs about innovations
and issues
• Helps us compare products
• Mirrors fashion and design
trends
• Helps shape consumer selfimage
• Facilitates self-expression
• Presents images about
diversity in our world
1-44
ROLES AND TYPES OF ADVERTISING
Types of Advertising
• Brand Advertising
– Focused on long-term brand identity and image
• Retail or Local Advertising
– Focused on selling merchandise in a
geographical area
• Direct Response Advertising
– Tries to stimulate a sale directly
• Business-to-Business
– Sent from one business to another
1-45
Brand ad
• Ariel Ad
1-46
1-47
1-48
1-49
Brand or Retail?
• Burger King
1-50
ROLES AND TYPES OF ADVERTISING
Types of Advertising
• Institutional (Corporate) Advertising
– Focused on establishing a corporate identity or
winning the public over to the organization’s
point of view
• Nonprofit Advertising
– Used by nonprofits like charities, hospitals,
orchestras, museums, and churches for
customer, members, volunteers, and donors
• Public Service Advertising
– Usually produced and run for free on behalf of
a good cause
1-51
THE KEY PLAYERS
Advertiser
•Advertiser
(client)
•Agency
•Media
•Supplier
•Audience
• Wants to send out a
message about its business
1-54
THE KEY PLAYERS
Top Ten U.S. Advertisers
1-55
THE KEY PLAYERS
Agency
•Advertiser
(client)
•Agency
•Media
•Supplier
•Audience
• Agencies have the strategic
and creative expertise, media
knowledge, talent, and
negotiating abilities to
operate more efficiently than
the advertiser.
• Some large advertisers have
in-house departments.
1-56
Top Agencies
•
•
•
•
•
•
McCann-Erickson
BBDO
JWT
Y&R
DDB
O&M
•
•
•
•
•
•
Grey
Campbell-Ewald
Draft FCB
TBWA
Saatchi & Saatchi
Leo Burnett
1-57
Homework
• Visit the sites of the top 5 ad agencies
• Write a paragraph about which one
impressed you the most and why.
• Email to Kate (cc: me) before next class.
1-58
Inside an ad agency
1-59
THE KEY PLAYERS
Media
•Advertiser
(client)
•Agency
•Media
•Supplier
•Audience
• Media are channels of
communication that carry the
message to the audience.
• They’re vehicles, but also large
media conglomerates like Time
Warner and Viacom.
• Mass media advertising can be
cost effective because the costs
are spread over the large number
of people the ad reaches.
1-60
THE KEY PLAYERS
Supplier
•Advertiser
(client)
•Agency
•Media
•Supplier
•Audience
• Service organizations that assist
advertisers, agencies, and the
media in creating and placing ads
by providing specialized services
• Artists, writers, directors,
photographers, producers,
printers, freelancers, and
consultants
1-61
THE KEY PLAYERS
Audience
•Advertiser
(client)
•Agency
•Media
•Supplier
•Audience
• People to whom an ad is directed
—their responses determine if
advertising is effective.
• Targeting is the process of
identifying the people in the
desired audience.
1-62
Bill Bernbach:
“Rules are what the
artist breaks. The
memorable never
emerged from a
formula.”
1-65
1-66
1984
The greatest commercial
ever made
1-67
CURRENT DEVELOPMENTS
What Makes an Ad Effective?
•
•
•
•
Gets attention
Creates a positive impression for a brand
Separates the brand from the competition
Influences people to respond in the desired
way
• An ad that works—that is effective—is one
where the target audience responds as the
advertiser intended.
1-72
If you remember one thing
Effectiveness is the target audience responding
as the advertiser intended
1-73
Vicky’s Corner
1-74