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The Dynamics of
Mass Communication
Seventh Edition
Joseph R. Dominick
Part 4
Specific Media Professions
Chapter 14
Advertising
Defining Advertising
Simply defined, advertising is any form of nonpersonal presentation and promotion of ideas,
goods, and services usually paid for by an
identified sponsor.
Advertising Functions
Advertising fulfills four basic functions in society:
•
serves as a marketing function -- helps companies
sell products or services
•
advertising is educational -- people learn about new or
improved products or services
•
advertising plays an economic role -- encourages
new competition and lower prices
•
it performs a social function -- helps increase
productivity and raises the standard of living
Advertising can be classified several ways
•
target audience
specific people to whom product appeals
•
consumer advertising goods and services for personal use
•
business-to-business products for business use
•
geographic focus targets specific geographical regions
•
purpose advertising designed to accomplish a distinct goal
•
primary demand promotes product category, not specific brand
•
selective demand promotes a particular product or service brand
•
direct action ad promotes direct, short-term feedback
•
indirect action ad promotes long-term brand recognition
A Brief History of Advertising
•
Advertising, in a variety of forms, dates to antiquity. The first
serious and repeated ads appear shortly after Gutenberg’s
invention of moveable type in the form of handbills, posters,
and periodicals.
•
Most newspaper advertising continued to look more or less
like crowded classified ads until the 18th century.
•
Ben Franklin improved the look of ads in his newspapers by
using more white space and attractive fonts.
A Brief History of Advertising
(Con’t)
With the advent of mass production in the 1800s came the
parallel need for mass consumption and mass markets. That
rapid consumer evolution became most apparent after the
Civil War ended, helped along in large part because . . .
• railroads linked the continent, and linked manufacturers with
consumers
•
•
•
U.S. population doubled 1870-1900 (more consumers)
new media (telephone, typewriter, high-speed printing press,
motion pictures, national magazines, photography, and rural
mail delivery) increased communication potential
people now had more money to spend on new products
A Brief History of Advertising
(Con’t)
•
Demand for advertising expertise quickly gave rise to
the advertising agency.
•
Radio networks make national ads a reality in 1920s.
•
The Great Depression and WW II slow advertising
industry growth down during the 1930s, 1940s.
•
From that time on, advertising content and appeal
generally reflects the prevailing mood of the country.
ORGANIZATION OF THE
CONSUMER ADVERTISING INDUSTRY
Three components of the advertising industry:
ADVERTISERS
national – emphasis on brand names, product, service
•
local – emphasis on prices, sales, local stores
Anyone in charge of advertising must:
•
plan the ads, deciding how and where they will appear
•
budget appropriate funds for advertising
•
coordinate ads with departments within the company
•
supervise any outside agency handling the ad account
•
ORGANIZATION OF THE CONSUMER
ADVERTISING INDUSTRY (Con’t)
AGENCIES
•
full-service agency: handles all phases of the ad campaign
•
media buying service: buys, resells, monitors TV/radio slots
•
creative boutique: creates imaginative ad campaigns
ORGANIZATION OF THE CONSUMER
ADVERTISING INDUSTRY (Con’t)
MEDIA
Advertisers evaluate media under four criteria, deciding which
ones will give them the best results for their marketing goals:
•
reach
how many people can get the message?
•
frequency how often will the message be received?
•
selectivity will the medium reach the right people?
•
efficiency
what’s the cost to reach a certain number of
people (expressed in cost per thousand)?
Evaluating Potential Ad Media
Characteristics
Papers
Magazine
Radio
TV
Net
Mail
Reach
High
Low
High
High
Med.
High
Frequency
High
Low
High
High
Med.
Med.
Selectivity
Low
High
High
Med.
High
High
Cost
Med.
Med.
Low
High
Med.
High
Advertising Online
Online advertising is a new and rapidly evolving ad medium,
one that provides a wide range of creative outlets.
•
banner ads
•
free-link exchange ads
•
sponsored chat room and bulletin boards
•
e-mail campaigns
•
product and service-specific web sites
Four Typical Operational Departments
of an Advertising Agency
•
creative services
people who create the ads
•
account services
client-agency liaison staff
•
marketing services
suggest appropriate media
•
administration
routine business operations
Six Steps of an Advertising Campaign
A campaign consists of any number of ads, each stressing
the same major theme or appeal that appear in a number of
media over a specified time. Here are six typical phases:
•
•
•
•
•
•
choosing the marketing agency
selecting the main appeal or theme
translating the theme into the various media
producing the ads
buying space and time
executing and evaluating the campaign
Advertising Research
Ad research goes on during all phases of the campaign to help agencies
and clients make informed decisions about the direction and efficiency of
their strategies and tactics
•
formative research
•
•
•
identifies audience’s demographics
identifies attitudes, motivation, lifestyles
message research
•
•
•
audience defining
audience profiling
done before campaign starts to
help guide creative efforts
stage 1:
stage 2:
tracking studies
pre-test ads for clarity, understanding
screen ad prototypes and refine ads
evaluate post-campaign effects
ADVERTISING ECONOMICS
About $215 billion was spent on advertising in the United States in
1999. Television and newspapers accounted for almost half the
total amount spent
Agency Compensation: Three common methods
• Commissions
media give agencies 15% commission on
•
Agency charges
•
Fees
time and space they buy from media; though
in transition, most common payment
method.
fees added from agency’s production costs
services such as research, focus groups,
market analysis--types of services not
traditionally covered by commission
Business-to-Business Advertising
Though the low-profile side of the ad industry, business-tobusiness ads still rang up $150 billion in sales in 2000.
There are four main categories of B2B advertising:
. Trade
goods and services to wholesalers, retailers
. Industrial
items used in production of goods, services
. Professional
services aimed at doctors, nurses, teachers
. Agricultural
goods and services aimed at farmers
Consumer vs. Business Advertising
• Target audience in business advertising is much
smaller.
• Most advertised business products tend to be technical,
complicated, and high priced.
• Business buyers will be professional purchasing agents,
basing purchases on reason and research.
• Personal on-site selling plays a much greater role in the
business sector.
Business Advertising Media
Business advertising’s targets are much narrower than
the consumer market, so a mix of highly selective media,
usually magazines, works best. Two usual formats:
horizontal magazines
aimed at particular job function
without regard to the industry
vertical magazines
covers all levels and interests
within an entire single industry
Business Advertising Appeal
Business ad copy tends to be long, fact filled, detailed,
technical, accurate, and complete, with little, if any,
emotional appeal, yet business buyers pay very close
attention to these ads and place a premium on data
accuracy and completeness.
Some of the most common business ad formats are
testimonials, case histories, new-product news, and
demonstrations
End of Chapter 14
Advertising