Download Advertising - Journalism 105

Chapter 15 - Advertising
The Dynamics of Mass
Communication – 12th Edition
Critical Thinking Quiz #5
• What would society be like without
advertising? Do you think it could ever actually
happen?
Hint: Think about every place you see
advertisements. Then think about what it
would be like if they weren’t there.
Consider the economic, informational, societal,
environmental impacts and any other impact
you can think of.
Photo Collage of São Paulo, Brazil,
Immediately After the Advertising
Ban Took Place
• http://www.flickr.com/photos/tonydemarco/s
ets/72157600075508212/
Defining Advertising
• Advertising = any form of nonpersonal
presentation and promotion of ideas, goods, and
services usually paid for by an identified sponsor.
• Advertising is part of the overall marketing
process
• Marketing consists of the development, pricing, distribution,
and promotion of ideas, goods, and services.
• Advertising is only part of the general promotion process.
Defining Advertising
• 5 Functions of Advertising
1. It serves a marketing function
2. It is educational
3. It plays an economic role
4. It reaches a mass audience
5. It performs a social function
Defining Advertising
5 Ways Advertising Can Be Categorized
1. Target audience
– Consumer advertising = targets the people who buy
goods and services for personal use
– Business-to-business advertising = aimed at people who
buy products for business use
2. Geographic focus, such as international,
national, or local (retail) audiences.
3. Purpose = some ads are for specific
products/services; others ads try to improve a
company’s image or influence public opinion on an
issue
Defining Advertising
4. Primary vs. selective demand
– Primary demand advertising = promotes a product category rather
than a specific brand
– Selective demand advertising = promotes a particular brand of product
or service
5. Direct vs. indirect action advertising
– Direct action advertising = promotes direct, short-term action from
consumers (call now, use the coupon this week etc.)
– Indirect action advertising = promotes long-term brand recognition and
consumer awareness
A Brief History
• The invention of the printing press in the 1400s
allowed the creation of several new advertising media:
posters, handbills, and newspaper ads.
• Most early newspaper ads looked like today’s classified
ads.
• Magazine distribution from coast to coast make
national advertising possible
• The increase in advertising lead to the birth of the
advertising agency = an organization that specializes in
providing advertising services to clients
• Radio became a vehicle for advertising in the 1920s
A Brief History
• Moving into current times… Contemporary advertising is
trying to cope with technological and social change.
• The consumer is taking more control over his/her media
choices (e.g., the Internet, DVRs, iPods, cell phones, etc).
• The traditional advertising model, in which advertisers
interrupt a program or insert ads around articles, is
becoming harder to justify because many young people
don’t get news and entertainment from traditional media.
• Advertisers are rethinking their Internet strategies, and
contemporary advertising is more targeted, interactive and
engaging
“Social Issues”
• Read the box on page 353
• Consider the arguments… Is advertising good
or bad?
• Do you watch TV commercials?
Advertising in the Digital Age
Online advertising = began in 1994 when the digital magazine
HotWired started a Web site with about a dozen sponsors who paid to
have advertising banners embedded on the site.
AUDIENCE CONTROL
• As consumers are taking more control over their media choices and
technologies, they are increasingly making choices to avoid
advertising.
• These developments have forced advertisers to look for other
means to reach audiences, such as product placement and viral
advertising.
• Viral advertising = a technique where companies create messages
(example: YouTube video) that are so compelling that consumers
willingly share them with others through social networking sites,
cell phones or e-mail.
Advertising in the Digital Age
NEW CHANNELS
• The digital revolution has opened up
additional avenues for advertising using
blogging, podcasting, and social media.
• Every major ad campaign during the past few
years has included a social media dimension.
Advertising in the Digital Age
MOBILE MEDIA: APPS & ADVERTISING:
• As more people are accessing the Internet using mobile
devices, companies are developing apps to reach customers.
• Unlike traditional ads that interrupt programs, apps give the
user control over the process, as the consumer elects to
download the app and decides when to use it.
• Advantages of apps = they connect with consumers wherever
they are, they keep a brand in the consumer’s consciousness,
and they offer a gateway to a brand’s services.
• Experts predict that revenue from mobile apps will top $40
billion by 2015.
Advertising in the Digital Age
DECOUPLING = the migration of advertisers away from traditional
media (TV and radio programming)
• Internet advertising, lets advertisers target ads at the people most
likely to buy the product or service.
– For example, instead of spending huge amounts on TV ads, Sony could
pay Google to have an ad displayed next to the search results
whenever anybody searches for “television set.”
– The Internet also makes it easier for advertisers to collect huge
amounts of data from large groups of people, enabling them to learn
more about how best to advertise to them.
•
Advertisers are also putting more of their budgets into non-media
sources, such as viral marketing, sponsorship of special events and
public relations efforts.
Cultural Meaning and Trade Characters
• Read the Critical Cultural Issues box on
page 354
• What other trade characters stand out in
your mind as effective ways to remember
products or service?
Organization of the Consumer
Advertising Industry
3 main components of the advertising industry
1. advertisers – national and retail (or local)
2. advertising agencies = independent business
organizations composed of creative people and
business people who develop, prepare, and place
advertising for sellers trying to reach customers.
3. the media = the connection between a company
and its customers. TV, radio, newspaper, Internet,
billboards etc.
The Economics of Advertising
ADVERTISING VOLUME IN VARIOUS MEDIAS
• Global advertising spending totaled $390 billion in 2010.
• Newspapers and magazines have seen a decrease in their
relative share of advertising volumes
• Television has shown a significant increase
• Outdoor advertising has shown modest growth.
• Internet advertising will probably show increased growth in
the future
This Most Successful Advertising
Campaigns of the Past Century
• http://dealnews.com/features/The-Top-10Ad-Campaigns-That-Made-Us-Run-Out-andBuy-Stuff/815802.html
Business-to-Business Advertising
BUSINESS-TO-BUSINESS ADVERTISING
– designed to sell products/services not to general consumers but to
other businesses
– Typically via trade publications, direct mail, email, Web sites,
professional journals and display advertising at trade shows
• 4 Main Categories of B-to-B Advertising
1. Trade = goods and services aimed at wholesalers and retailers,
who in turn, resell these items to a more general audience
2. Industrial = items used in the production of goods and services,
such as copy machines and forklifts
3. Professional = services aimed at doctors, architects, nurses,
teachers, who might influence the buying process or use the
product in their profession
4. Agricultural = goods and services aimed at farmers, such as seed,
fertilizer, and chemicals
Business-to-Business Advertising
CONSUMER VS. B-TO-B ADVERTISING
4 ways B-to-B advertising is different than consumer
advertising:
1. The target audience in business advertising is narrower
and less diverse
2. Most of the products in business advertising tend to be
technical, complicated and high-priced
3. Business advertising generally relies on rationality more
than emotional appeals
4. Personal selling plays a greater role in business advertising
Group Discussion Topic
Watch Media Talk clip: http://highered.mcgrawhill.com/sites/0073526193/student_view0/media_talk__nbc_.html#
- Can you remember an McDonald’s commercials from your
childhood?
- Do you think that McDonald’s unfairly targets children who are too
young to know about commercials?
- Should McDonald’s stop advertising aimed at children?
Read “Ethical Issues” on page 369
• Is it right to advertise to children?
• If you think it is appropriate to advertise to children, what special
considerations (if any) should be applied to ads?
Chapter 14 – Public Relations
The Dynamics of Mass
Communication – 12th Edition
Defining Public Relations
• 3 Main Differences Between Public Relations and Advertising
1. Public relations is a function of management whereas
advertising is a marketing function
2. public relations uses all forms of communication
where as advertising using mass media and machine
assisted communication but not interpersonal
communications
3. Public relation messages appear as features, news
stories or editorials and the space or time involved is
not paid for. Advertising is paid for
Defining Public Relations
• What do PR people do?
– PR involves working with public opinion = It attempts to influence
public opinion in ways positive to the client.
– PR is concerned with communication = The PR professional explains
the client's actions to its various publics (internal and/or external
groups involved with or affected by the client).
• Internal publics = employees, managers, unions, stockholders
• External publics = consumers, governments, dealers, suppliers, community
members, mass media
– PR is a management function = Its goal is to help a company set its
goals and adapt to a changing environment. It is a planned, goaloriented activity.
Defining Public Relations
• The Internet has added several new dimensions
to public relations = it has opened up new
channels of communication between
organizations and the public and between public
relations practitioners and the media. It has also
become a major channel of feedback for
organizations interested in their public image.
• The public relations professional focuses on
communication, especially two-way
communication.
The Importance of Public Relations
PR has grown in importance. Some reasons include:
• Corporations have acknowledged their social responsibility
to the public. It is up to the PR department to finds the
means to fulfill this responsibility.
• Increasing consumerism is forcing organizations to be more
responsive and communicative with their customers. This
task falls to PR professionals.
• The increasing complexity of modern organizations has
made it difficult for them to get their messages to the
public without using a PR professional.
The Importance of Public Relations
• The following changes in U.S. society have led to a
surge in the importance of PR in our society:
– corporate acceptance of their social responsibility
– increased consumerism
– increased organizational complexity and career
specialization
• Although more expensive, the advantages of using an
external rather than an internal PR provider are:
– greater objectivity of perspective
– greater ability to come up with fresh ideas
– wider variety of services
Public Relations in Practice
• One of the 13 areas in which PR is practiced is professional
associations. For example, a PR firm specializing in
representing professional associations might be employed
by the American Medical Association or the American Dairy
Association.
• An interrelated world economy has helped make
international PR one of the fastest-growing sectors of PR.
• The 4 main steps involved in developing a typical PR
campaign =
–
–
–
–
Information gathering
Planning
Communication
Evaluation
Public Relations in the Digital Age
• Communicating with the Audience: Social
Media
– Companies and organizations are embracing social
media to get their messages across.
– Big and small companies have Facebook pages
and Twitter accounts.
– Politicians have adopted social media to stay in
touch with voters.
Public Relations in the Digital Age
• Social media can be helpful in PR by:
– serving as an early warning system, so the
company can learn of potential problems with
their product or service
– providing information to the public about the
launch of new products or services
– dealing with customer complaints
– providing new connections between a company
and its customers
Discussion Question
• How much faith does the public have in the
credibility of PR professionals? Why?
• Consider the question again after reading the
“Media Probe” on page 342
– Did your answer change?
– Are you surprised at where PR professionals rank
compared to other people and professions?
– Before reading the box, who would you have
guessed ranked that highest?
– Who would you have guessed ranked the lowest?