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Advertising and the changing media landscape Hoorcollege marketing communication blok 4 week 3 Hogeschool van Amsterdam Interactieve Media Why do we bother advertising? Hogeschool van Amsterdam Interactieve Media Learning goals By the end of the colleges and the reading you should: Be able to define advertising Be aware of how the changing media landscape affects advertising as a communications channel Understand the benefits of- and the issues with advertising Have an awareness of the different advertising channels available Be aware of the threats and opportunities interactive media generates for advertising Hogeschool van Amsterdam Interactieve Media Agenda A definition of advertising Issues facing advertising What is the job of advertising today? Summary Appendix Advertising channels Advertising and “new” media Hogeschool van Amsterdam Interactieve Media A definition of advertising Advertising can be defined as any paid for non-personal promotion broadcast through a mass medium where there is an identifiable sponsor Mass media TV, radio, cinema, magazines, newspapers, outdoor media Perhaps “New” Media The world of advertising is full of noise Some argue that the aim of any form of advertising is to attract and hold the attention of the target audience But perhaps this is not always the case Advertising must be consistent internally, within the communications mix AND the marketing mix Advertising must be truthful Hogeschool van Amsterdam Interactieve Media What advertising is not It is not just television The majority of advertising is print-based It is not dying, but it must change Internet, iTV, PVRs, in-game, etc. are changing the face of advertising It is not the only element of the promotions mix Advertising is great for creating awareness and interest But to increase sales it must be combined with other elements of the promotions mix Hogeschool van Amsterdam Interactieve Media Issues facing advertising Hogeschool van Amsterdam Interactieve Media What’s the problem Today marketing communications as a whole and advertising in particular faces two (connected) issues The selective nature of human perception This has always been the case The changing media landscape This is a relatively new phenomenon These are perhaps most difficult for advertising Hogeschool van Amsterdam Interactieve Media Watch the video Count how many passes do the team in white make to each other? http://viscog.beckman.uiuc.edu/grafs/demos/15.html Hogeschool van Amsterdam Interactieve Media The selective nature of human perception Selective perception The tendency of human beings to filter most information they receive - this is called attention We see around 1,500 ads per day, we remember 4 or 5 1 Selective distortion The tendency of human beings to adapt information to fit in with their existing views The “Pepsi Taste Challenge” only works when blind tasting 2 Selective retention The tendency of human beings to forget things that do not fit with their “world-view” 1. Fiske, J. (1989), Understanding Popular Culture, London, Routledge 2. McClure, S. M., (2004), “Neural Correlates of Behavioral Preference for Culturally Familiar Drinks” Hogeschool van Amsterdam Interactieve Media Changes in the marketing environment have made this worse Over the past few decades the marketing environment has changed significantly Consumers have become more sophisticated and better informed Mass markets have fragmented into smaller market segments Developments in communications technology and legislation has led fragmentation of communications channels This has led to increasingly segmented markets and communication channels Hogeschool van Amsterdam Interactieve Media The changing marketing communications environment Hogeschool van Amsterdam Interactieve Media What this actually means The old (1950’s) mass communication model is less effective Communication has to be targeted IMC and cross-media campaigns For advertising this means it’s role in the promotions mix is changing X Hogeschool van Amsterdam Interactieve Media What advertising is good at Hogeschool van Amsterdam Interactieve Media Advertising as priming Priming involves preparing a person to be more open to receive a message It is not subliminal advertising (which has been never been proved to work) Advertising might be very good at priming Hogeschool van Amsterdam Interactieve Media Please choose one Hogeschool van Amsterdam Interactieve Media Priming even works on advertisers http://youtube.com/watch?v=ZyQjr1YL0zg Hogeschool van Amsterdam Interactieve Media The job of advertising Advertising Product Pioneer • Build awareness • Explain a new product Institutional Competitive Remind / reinforce • Unique benefits • Remind about product • Comparisons • Reinforce benefits • Encourage repeat purchase Hogeschool van Amsterdam Pioneer • Information on new developments Interactieve Media Image building • Reinforce image • Create or maintain the character of organization in public mind Advocate • Communicate the company's views Advertising and the marketing mix Advertising is not effective “stand-alone” Advertising should support the marketing mix and the rest of the promotional mix Priming the target group Selling activities Generating leads Supporting intermediaries Reduce seasonality Sales promotional activities Short-term promotion campaigns Positioning or repositioning the company or product Defending against competitors Changes in STEP factors Hogeschool van Amsterdam Interactieve Media Summary Advertising is Paid for Delivered via mass media Has an identifiable sponsor Advertising is good for awareness, interest and creating priming effects But works best when integrated into an overall campaign Read the attached stuff about channels and IAM and advertising Hogeschool van Amsterdam Interactieve Media Appendix Hogeschool van Amsterdam Interactieve Media Advertising channels Message Print Broadcast Hogeschool van Amsterdam Interactieve Media Print: Outdoor Billboards Bus shelters Transport (trams, taxis, airplanes. Etc.) Hogeschool van Amsterdam Interactieve Media Print: Indoor In-store Public buildings, schools, offices etc. On public transport Hogeschool van Amsterdam Interactieve Media Print: Published Newspapers Magazines Classifieds Hogeschool van Amsterdam Interactieve Media Broadcast Television Cinema Radio Hogeschool van Amsterdam Interactieve Media Advertising channels Message Print Broadcast Interactive media Hogeschool van Amsterdam Interactieve Media Interactive media E-mail Websites Other online E.g. pop-ups and banners Adwords CD-ROMS Viral & “Downloadables” In / though game SMS / MMS / i-Mode / UTMS / Bluetooth RDS, Digital / Interactive TV, Digital Radio, GPS Narrowcasting Hogeschool van Amsterdam Interactieve Media Issues with interactive media Still not clear how it should be used as an advertising medium The ability to combine elements can be ignored New media is dynamic not static Sometimes seen as separate from mainstream advertising It is not integrated well All of this is changing gradually Hogeschool van Amsterdam Interactieve Media Guidelines for interactive media It must be integrated into the overall campaign Take advantage of material developed for other media Base it on same creative concept Avoid the annoying the target audience Always a risk with e-mail, banners, pop-ups and viral Use the potential of the media Do not simply take existing material and digitize it Avoid online catalogues and static banners Avoid simply streaming your TV spot Think about how “new” media can enhance the campaign What can it do that other media cannot Virtual experiences? Hogeschool van Amsterdam Interactieve Media