11
Advertising
Selling a Message
The Development of the
Advertising Industry
• Advertising—any paid form of non-personal
communication about an organization, product,
service, or idea by an identified sponsor
 makes inexpensive media possible
 provides a diverse amount of product information
The Birth of Consumer Culture
Boston News-Letter
selling ads as early as
1704
individual shops and
businesses placed ads;
no brand promotion
Industrialization and the
Growth of Advertising
mass production of lowcost, standardized
products
prevalence of messages
(ads) grew alongside the
availability of products
people could now buy
items that fit their style
The Growth of
Brand Names
economy of
abundance—
there are as
many goods
available as
people want to
buy
brand name—word or
phrase attached to prepackaged good that
allows for promotion:
helped consumer distinguish
products from one another
Quaker Oats pioneered use of
branding
Pears Soap (Thomas J.
Barratt)
Famous slogan: “Have you
had your Pears’ today?”
Advertising-Supported Media
 Advertising helped penny papers flourish.
 Initially limited in magazines:
• The Ladies’ Home Journal
 Advertisers sponsored entire early radio programs.
 Television specialized in “selling audiences to
advertisers.”
Consumer Advertising
local advertising:
direct
action
message—
designed to
get
consumers
to purchase
a product or
engage in a
behavior
national advertising:
indirect
action
message—
designed to
build the
image of
and demand
for a product
advocacy
advertising:
promote a
particular
point of view
rather than a
product
trade advertising:
promote
products
directly to
other
businesses
rather than
to the
consumer
market
The Advertising Business
• client—the person or company that has a product
or idea to promote:
• advertising used to:




build awareness of a new product
build a positive image of the product
convince users to switch brands
promote a benefit of the product
• Research and planning:
 starts with identifying client’s objectives
 identifying the characteristics of the target audience
 ads tested internally and externally
• Creative activity:
 big idea—will grab people’s attention and make them
take notice, remember, and take action
 “All good advertising consists of both idea and
execution. All bad advertising consists of just
execution.”
• the agency—researches the market, creates the
advertising, and places it in the media
 George Rowell (1860s):
• first to buy space in papers, then sell it to clients
• first to publish circulation numbers
 Francis W. Ayer opened N.W. Ayer and Son (1868):
• wrote copy, developed artwork, planned campaigns
• pioneered use of open contract—enabled the agency to
provide advertising space in any publication
 David Ogilvy: Ads should
be created to sell a
product or promote a
message.
 Advertising does not exist
to be innovative, exciting,
creative, or entertaining.
 Most powerful ad headline
words are “free” and
“new.”
• Media planning:




figuring out which media to use
buying the media at the best rates
evaluating how effective the purchase was
trying to reach largest percentage of target audience
with lowest CPM—cost per thousand views
• Agency size and income
 U.S. agencies generated $11.2 billion in revenue for
2004
 Advertisers spent $263.77 billion in 2004 in United
States:
• $38 billion in Japan, $18.4 billion in the U.K., and $18.3
billion in Germany
 Trends in agencies include:
• large agencies buying multiple, smaller ones
• specialization
• The media
 newspapers:
• original advertising medium
• allow advertisers to present detailed
information
• space can be purchased last minute
 magazines:
• higher print quality
• longer lead time for preparation
outdoor:
billboards, blimps, barns, posters, etc.
 radio:
• drive time—morning and afternoon commute
• short lead time and relatively low costs
 television:
• offers sound, motion, and visuals
• best time slots sold a year in advance
 the Internet:
• companies that do a lot of their business on the
Net
• pop-ups, banners, buttons
The Audience
• targeting—making a particular product appeal to a
narrowly defined group
• audience members are often defined by the
“graphics”:
 demographics
 geographics
 psychographics
Advertising in
Contemporary Culture
• Four common misconceptions about advertising:




Advertising makes you buy things you don’t want.
Advertising makes things cost more.
Advertising helps sell bad products.
Advertising is a waste of money.
clutter—the huge number
of commercials and other
messages that compete for
consumer attention
between programs:
viewers more likely to
remember first ad in a
group
average Britain
exposed to 311 ads
per week (2005)
average American
exposed to 789 ads
per week (2005)
fight clutter with
celebrities and nontraditional ads
(Goodyear blimp)
Subliminal
advertising—messages
that are allegedly
embedded so deeply in
an ad that they cannot
be consciously
perceived
no supporting
research, only
speculation
• http://www.artistmike.co
m/Temp/SubliminalAd.ht
ml
• http://www.youtube.com/
watch?v=OYecfV3ubP8
When advertisements are
more important than the
program:
1984 Super Bowl—
Apple Macintosh
commercial
directed
by Ridley
Scott
showed
Orwellian
“Big
Brother”
situation
• Advertising to children
 In 2006, industry spent $15 billion on ads to kids.
 Federal Trade Commission study published in 1978:
o children from the ages of 2–11 see 20,000 ads per
year
 Food advertising to children has been scrutinized:
o health effects
o obesity epidemic
http://www.youtube.com/watch?v=WMDPql6rweo
TARGETED CHILDREN
The Future of Advertising
• Technology allows viewers to skip commercials:
 In 2006, 10 percent of Americans had DVRs.
• Survey of 133 national advertisers found that 78
percent thought television advertising was less
effective.
• CBS is selling Web ads as a package with
broadcast ads.
• mobisodes—mobile phone delivered video
episodes.
• Product Placement
 product integration—when product or service being
promoted is not only seen, but is spoken of as a
central part of the story
 challenge is making them seem natural rather than
intrusive
 unpopular with television and movie writers
• The Long Tail of Advertising
 Internet advertising still relatively small (2.5–5
percent)
 search engine uses
 difficult to measure consumer exposure to online ads
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