Where Marketing Communication Began
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Chapter 1 Where marketing communication began: the development of advertising in Australia and New Zealand Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-1 Learning objectives 1. To define advertising—looking at its importance and its function. 2. To trace the history of advertising in Australia and New Zealand. 3. To explore the changing advertising environment. 4. To introduce marketing communication concepts—such as consumer empowerment and engagement, the push–pull marketplace and interactive advertising, digital and social media— that will be fundamental to the rest of the book. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-2 Importance Structure & function Definition Future of advertising History Advertising News channels Empowered Consumers Changes in ad agencies Social media Interactive advertising Engagement Digital media Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-3 What is advertising? Traditional definition Advertising is any paid paid form form of of non-personal non-personal non-personalcommunication communication communicationabout about about an organisation, product, service or idea by an identified sponsor. Paid: The space or time for an advertising message must be purchased. Non-personal: Involves mass media (e.g. TV, radio, newspapers, magazines) in oneway communications. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-4 The best job in the world The best job in the world campaign, but how much advertising did it use? Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-5 A new definition of advertising Traditional definition Advertising is any paid form of non-personal communication about an organisation, product, service or idea by an identified sponsor. New, improved definition Advertising is a paid, mediated form of communication from an identifiable source, designed to persuade the receiver to take some action, now or in the future. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-6 Importance of advertising Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-7 Importance of advertising Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-8 Advertising has many functions Communicate & interact The nature and purpose of advertising differs from one industry to another and across situations. Engage & involve Brand awareness Brand equity Brand image Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-9 Brand awareness Building brand awareness is especially important for new products. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-10 Brand image Even established brands need to build and maintain brand image. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-11 History of advertising Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-12 Function and structure Client options In-house advertising Advertising agency Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-13 Types of agencies Full service Types of agencies Creative boutiques Media buying services Other Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-14 Full-service agencies Planning advertising Creating advertising Research Full range of marketing, communication and promotion services Producing advertising General communications Sales promotion Direct marketing Interactive Package design Public relations Publicity Selecting media Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-15 Ad agencies have skilled specialists Artists Copywriters Researchers Photographers Media analysts Other skills Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-16 Great Australian ads Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-17 Importance Structure & function Definition Future of advertising History Advertising News channels Empowered consumers Changes in ad agencies Social media Interactive advertising Engagement Digital media Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-18 Advertising timeline (Australia) 1800 First ad (poster) 1821 First magazine 1803 First newspaper ad 1911 Media commissions introduced 1912 First industry association (Melbourne) 1901 First advertising service agency (Sydney) 1946 National industry association (AANA) 1923 Commercial radio Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1956 Commercial TV 13-19 1-19 Advertising timeline (NZ) 1901 Newspaper Publishers Association 1906 First advertising agency 1821 First magazine 1931 1927 11 accredited Advertisers agencies in Association of operation NZ 1923 Broadcasting regulations Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1960 1st television broadcast 1989 Te Mangai Paho (Maori Broadcasting) established 13-20 1-20 History of advertising Early newspaper advertisements were confined to printed text only. Illustrations were rare until the 1860s. Source: Walter Powell Advertisement for Paragon Kitchens, 1862 State Library of Victoria, Pictures Collection Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-21 Advertising today—Australia Media expenditure: $12.6 billion Advertising agencies: 1000+ Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-22 Advertising today—Australia (cont.) Radio licences 374 commercial 358 community Television (FTA) 54 commercial 83 community Subscription TV 2588 Metro and regional daily newspapers: 50+ Consumer magazines 140 (audited) Cinema screens: 1994 Population: 21 million Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-23 Advertising today—NZ Media expenditure: $2045 million Advertising agencies: 200+ Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-24 Advertising today—NZ (cont.) 300 radio stations 150 newspapers 87 TV channels 6000 magazines 455 cinema screens Population: 4.18 million Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-25 Breakdown of advertising expenditure (Australia) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-26 Media expenditure in New Zealand: 2007 Media Platform 2008 2009 ($million) ($million) Newspapers 760 623 Television 647 570 Radio 268 236 Magazines 249 217 Outdoor 74 68 Cinema 9 6 Addressed mail 56 58 Unaddressed mail 64 65 Interactive 193 214 Source: New Zealand Advertising Standards Board Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-27 Importance Structure & Function Definition Future of Advertising History Advertising News Channels Empowered Consumers Changes in Ad Agencies Social Media Interactive Advertising Engagement Digital Media Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-28 The changing advertising landscape Consumer empowerment Push-pull marketplace Digital media and interactive advertising Social media New rules of engagement Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-29 Consumer empowerment and the push-pull marketplace • Insert figure 1.7 • Push pull marketplace Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-30 Digital media and interactive advertising Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-31 Interactive advertising Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-32 Social media Social media defined: Social media has been defined as ‘a group of internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of usergenerated content. David Schumann, Andy Artis & Rachel Rivera, ‘The future of interactive advertising through an IMC lens’, Journal of Interactive Advertising, vol. 1, no. 2,. 2001 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-33 Social media Traditional view Contemporary view Consumers are consumers of content Consumers are producers of content Brands are owned by companies Brands are a shared creation Marketers define brand meanings and values Consumers define brand meanings and values Key opportunity: How to engage consumers by inviting them to create content around a product? Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-34 Social media Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-35 New rules of engagement Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-36 Importance Structure & Function Definition Future of Advertising History Advertising News Channels Empowered Consumers Changes in Ad Agencies Social Media Interactive Advertising Engagement Digital Media Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-37 The future of advertising Harsh economic environment leading to advertising budget cuts Mass media advertising is dying Rise of new communications technologies Fragmentation of media and markets Search for big ‘consumer insight’ From great executions to strong strategy Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-38 Summary and conclusions Advertising in Australia and New Zealand has a long heritage with its roots dating back to the 1800s. Advertising has evolved from a push by marketers to reach audiences to a more complex and interactive approach. Consumer empowerment has led to an emphasis on shared dialog rather than pushed messages. Definitions of advertising have changed to accommodate new technologies and interactivity. The advertising industry has also adapted to current changes. Advertising continues to be the best way to reach large audiences. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-39
