Download Chapter 7 - Professor Leach

Chapter 11
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In 2014, Internet ads comprised almost 25% of
worldwide ad revenue – and their share is still
growing.
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By 2016, Internet ad revenue will equal or
surpass TV ad revenue. Meanwhile, ad-free
online streaming services (e.g. Netflix) are on the
rise, putting traditional TV advertisers in a
difficult position.
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Advertising is an Ancient Activity
 Ancient Egyptians had roadside billboards carved in stone.
 Gladiator shows advertised on walls in ancient Rome.
 Ancient Egypt/Greece had town criers shouting in the streets.
▪ Sometimes accompanied by musicians
▪ Ancient advertisers knew the value of entertainment in their message.
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Advertising is an Ancient Activity
 The first printed advertisements were handbills
▪ Announcements on single sheets of paper
▪ Often posted on the doors of churches.
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Advertising Comes to America
 Many settlers came to America because of advertisements
they read in England touting free and fertile farmland.
 American newspaper, the Boston News Letter,
▪ Trade advertising
▪ Notices of wares for sale from manufacturers & local merchants.
▪ Not much use for consumer advertising
▪ Most Americans made their own clothing and grew their own food.
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Trademarks and packaging
 Manufacturers found that consumers
▪ Asked for products specifically
▪ If they were distinctive and associated with quality.
 Ads let manufacturers create an identity for products.
 19th-century ads created the impression of significant
differences among products.
 Early & enduring brands
▪ Smith Brothers (1850s)
▪ Campbell Soup (1869)
▪ Quaker Oats (1877)
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Ads and the Industrial Revolution
 Advertising led to the diffusion of almost every type of
innovation.
▪ Encouraged people to bathe more often.
▪ Encouraged teeth brushing and clothes washing.
▪ Encouraged men to shave daily rather than visit a barber
every few days.
▪ Autos advertised as the solution to air pollution caused by
dried horse manure blowing through the streets.
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Ads led to social changes.
 From producer to consumer driven society
 Promoted new tech advances that made life easier
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Emphasized appeals to women
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Accused of inciting for unnecessary products
 Formation of the Ad Council
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Early Industry Control
 Advertisers were prone to exaggeration, or puffery.
 Late 1800s, advertisers made outrageous claims &
deceptions.
 Miracle elixirs promised to cure ailments but many were
flavored drinks made mostly alcohol & addictive drugs
▪ Such as heroin and morphine.
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Patent medicines
 By the end of the 1800s, 1/6th of print ads came from
▪ Patent medicine & drug companies.
 Patent medicine ads were often fraudulent.
▪ Advertisers developed industry codes.
▪ Federal Food & Drug Act was passed
▪ in part due to patent medicine claims.
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Department stores
 More than 20% of ad space by the early 1890s
 Criticized for undermining small businesses
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Impact on newspapers
 Advertising changed the ratio of copy at most papers.
 Recession hit papers hard.
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Ads Take to the Airwaves
 In 1922, the 1st radio commercial AT&T’s WEAF in N.Y.
▪ For an apartment complex
 By 1926, when network radio began, advertising had become
an acceptable means of supporting radio.
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Subliminal advertising
 Hidden or disguised messages
 No more effective than regular ads
 One failed but controversial attempt at a new style of
promotion involved subliminal advertising,
▪ Advertising that the consumer was not consciously aware of.
 Subliminal Message Video
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Advertising begins w/clients with the product to be sold.
▪ Clients spend about 20 % of revenue on ads.
▪ The gross dollar amount spent is known as billings.
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There are about 14,000 ad agencies in the U.S.
 In-house agencies
▪ Are built into the client’s corporate structure.
 Boutique agencies
▪ Specialize in creative services but do not cover aspects such as media
buys.
 Full service agencies
▪ Supply advertising, marketing, and often public relations services the
client needs.
 Positioning
▪ Finding the product’s specific customer type
▪ Creating appeals that will be effective with that customer.
 Research can involve focus groups
▪ Potential users who sit around &and chat about a potential product
▪ Under the guidance of a researcher.
 Newspapers
▪ Easy-to-find ads on the most current local sales, “money off” coupons.
 Television
▪ Perfect for image advertising
▪ Encourages name recognition better than other media.
▪ Extremely expensive.
▪ Clutter,
▪ The glut of commercials that compete for the viewer’s attention.
▪ Infomercials
▪ Are program length commercials disguised as information and talk shows.
 The Internet is the most rapid growing medium of
advertising,
▪ Earning nearly $7 billion annually by 2007.
▪ Global earning nearly $148 billion annually by 2013.
 Web ads are a convergence of all former ads.
Million Dollar Homepage
▪
▪
▪
▪
Online ads are where consumers looking for product info.
Online ads compete with magazines in terms of artwork.
Involve motion, sound & have entertainment of radio & TV.
Some users resent web ads because of a clutter problem.
▪ Do you think internet ads are effective
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Types of online ads
 Video ads, sponsorships, & “rich media” (pop-ups)
 Classified ads & e-mail ads
▪ Spam
 Paid search advertising
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Leading advertisers
 Moving more ad campaigns & money to digital media.
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Targeting individuals
 Collect info through cookies & web surveys
 Track ad impressions & click-throughs
 Build profiles for consumers based on this info
 Smartphone technology to tailor ads
▪ By geographic location or user demographic
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Diversity & Target Marketing
 Target marketing
 Breaks up the audience into segments to reach individuals
likely to purchase a product.
▪ Advertisers like to minimize circulation waste,
▪ Part of advertising received by people not trying to be reached.
▪ Advertisers direct ad campaigns toward specific audiences
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Social media
 Social networks provide advertisers with a lot of data.
 Some sites ask whether users liked each ad.
 Companies buy paid ads on social networking sites.
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Association principle
 Association of product with positive value or image
▪ Even if it has little connection
▪ Used in most consumer ads
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Disassociation
 Responding to consumer backlash
▪ Major corporations present products
▪ As though from smaller, independent companies.
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Advertising Objectives
▪ Image advertising –
▪ Promoting an idea associated with the product in the audiences
mind.
▪ Adding value to the product that is not inherently within it
▪ A sexy model draped over the hood of a car,
 Seemingly offering herself to the male consumer who is the main
customer for new cars.
 Bait and switch advertising
▪ Provides bait in the form of an advertised bargain and a “switch” when
the customer is talked into a more expensive product.
 Critics feel ads shouldn’t be directed at young
children
▪ They see ads as entertainment & don’t understand
persuade goal.
 Kids as consumer trainees:
▪ Suggests importance stems from possessions
rather than who you are.
 Junk food ads:
▪ Critics are concerned about unrestricted “junk food
ads” directed at children.
▪
Blame growing obesity problem partially on these ads.
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Advertising toys & sugary cereals to children
Advertising in schools
Impact on health
 Eating disorders
 Tobacco
 Alcohol
 Prescription drugs
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Advertiser Influence on Media Content
 Devices such as remote controls, videotape recorders,
and TiVo assist viewers in skipping ads.
 Many industry professionals feel product placement
(product integration) – making commercials part of the
program – is their only recourse.
 What do you think of these?
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Ads in movies, TV, comics, video games, etc.
▪ Starbucks on Morning Joe (MSNBC)
▪ 100+ placements in Man of Steel, worth $160 Million
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“Truth” campaign
 National youth smoking prevention campaign works
to deconstruct the images that have long been
associated with cigarette ads.
 Recognized by 80% of teens
 By 2007, ranked
▪ Top 10 “most memorable teen brands”