Download Chapter 14: Advertising, The Art of Attracting an Audience

Chapter 14
Advertising: The Art of
Attracting an Audience
pp. 210-225
Chapter 14
Learning Objectives
After completing this chapter, you’ll be
able to:
1. Identify the different types of media used
to advertise products.
2. List advantages and disadvantages for
each type of advertising medium.
continued
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 2 of 67
Chapter 14
Learning Objectives
After completing this chapter, you’ll be
able to:
3. Name factors in the cost of advertising.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 3 of 67
Chapter 14
Why It’s Important
Businesses rely on advertising to
get your attention and to promote
their products. Advertising pays
for many of the costs of TV, radio,
newspapers, and magazines.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 4 of 67
Chapter 14
Key Words
advertising
mass media
direct-mail advertising
transit advertising
infomercial
webcast
continued
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 5 of 67
Chapter 14
Key Words
cyber ads
pop-up ads
banner ads
screen ads
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 6 of 67
Chapter 14
Advertising Media
Advertising is the paid, nonpersonal
form of communication that
businesses use to promote their
products.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 7 of 67
Chapter 14
Advertising Media
Mass media are means of
communication such as TV, radio, and
newspapers.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 8 of 67
Chapter 14
Advertising Media
The type of medium an advertiser
uses depends on the market it wants
to reach.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 9 of 67
Chapter 14
Figure
14.1
CATCHY SLOGANS
Advertising slogans
have become so well
known in many
cases that people all
over the country
recognize them. Here
are ten slogans from
advertisements.
How many of the
products or services
can you name?
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 10 of 67
Chapter 14
Print Media
Print media use writing and pictures to
communicate.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 11 of 67
Chapter 14
Newspapers
Newspapers are the main advertising
medium in the United States.
More than 50 percent of adults in the
United States read newspapers.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 12 of 67
Chapter 14
Newspapers
Advertisers can target people within a
certain area.
The cost of printing an ad is fairly
cheap.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 13 of 67
Chapter 14
Newspapers
Most people throw their newspapers
away after they read them, so an ad’s
lifespan is usually short.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 14 of 67
Chapter 14
Magazines
Most magazines are national in scope
and appear every week or every
month.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 15 of 67
Chapter 14
Magazines
Special-interest magazines like Teen
and Sports Illustrated make it possible
to reach target markets on a large
scale.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 16 of 67
Chapter 14
Magazines
People take their time to read
magazines and often save them, so
magazine ads have a much longer
lifespan than newspaper ads.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 17 of 67
Chapter 14
Magazines
Most magazines are printed in color
with much higher quality ink and paper
than newspapers.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 18 of 67
Chapter 14
Magazines
Magazines are so broadly circulated
they are of little use to local
advertisers.
Magazine ads can’t be easily changed
or used to promote a limited offer.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 19 of 67
Graphic Organizer
Chapter 14
Qualities
of Newspaper
Graphic
Organizer and
Magazine Advertising
Newspaper Advertising
Narrow Circulation
Local/regional reach
Short lifespan
Easy preparation
Magazine Advertising
Broad circulation
Regional/national reach
Long lifespan
Complex preparation
Basic printing and paper
Quality printing and paper
Inexpensive
Expensive
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 20 of 67
Chapter 14
Direct-Mail Advertising
Direct-mail advertising consists of
ads sent by mail to people’s homes.
It is the biggest advertising medium
after TV and newspapers.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 21 of 67
Chapter 14
Direct-Mail Advertising
Direct mail allows advertisers to reach
a specific target market.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 22 of 67
Chapter 14
Direct-Mail Advertising
Direct-mail advertisers can use a
variety of formats—letters, fliers,
postcards, and catalogs—and include
coupons or free samples.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 23 of 67
Chapter 14
Direct-Mail Advertising
The cost of sending ads through the
mail can be very high.
Direct mail is often referred to as “junk
mail” because people who receive
direct-mail advertising often throw it
out without ever looking at it.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 24 of 67
Chapter 14
Directory Advertising
Directory advertising, which consists
mostly of phone books, is especially
useful for local advertisers.
The cost of a directory ad is usually
very cheap.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 25 of 67
Chapter 14
Directory Advertising
Phone books are used in almost every
home, in all areas, and kept for at least
a year.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 26 of 67
Chapter 14
Directory Advertising
A disadvantage of directory ads is that
they have to compete with numerous
similar ads.
Most directory ads can’t be used to
advertise prices and sales, and can’t
be easily updated.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 27 of 67
Chapter 14
Outdoor Advertising
The most common form of outdoor
advertising is a billboard.
They are useful for local businesses
and businesses that cater to travelers.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 28 of 67
Chapter 14
Outdoor Advertising
The main disadvantage of billboards is
that people often drive by them too
quickly to notice.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 29 of 67
Chapter 14
Transit Advertising
Transit advertising usually consists
of posters placed on the sides of
buses, in subway stations, inside
trains, and at airports.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 30 of 67
Chapter 14
Broadcast Media
Broadcast media are the most
effective means of advertising.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 31 of 67
Chapter 14
Television
Television has an advantage over any
other medium because it combines
sounds, images, and motion.
Some ads are so effective that they
become part of our everyday
language.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 32 of 67
Chapter 14
Television
TV ads can be shown on national,
local, or cable stations to reach any
kind of market.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 33 of 67
Chapter 14
Television
An infomercial is a TV program,
usually 30 minutes long, made to
advertise a product.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 34 of 67
Chapter 14
Television
The biggest disadvantage of TV ads is
that they can be very expensive to
produce.
Advertisers also have to pay to
broadcast an ad during a TV show.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 35 of 67
Chapter 14
Radio
Like TV ads, radio ads can reach a
very wide audience.
Radio ads use music, dialogue, and
sound effects creatively to get an
audience’s attention.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 36 of 67
Chapter 14
Radio
Radio stations broadcast within certain
areas so they are a good medium for
local advertising.
Advertisers can reach people on the
move.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 37 of 67
Chapter 14
Webcasting
A webcast is like a TV or radio
broadcast but it is sent and received
over the Web.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 38 of 67
Chapter 14
Webcasting
A webcast usually consists of a live
broadcast made by a Web camera (or
“cam”) crew hired to film a specific
location or event.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 39 of 67
Chapter 14
Cyber Ads
Cyber ads are ads that appear on the
Internet.
Cyber ads are different from webcasts
in that they’re displayed like magazine
ads.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 40 of 67
Chapter 14
Cyber Ads
Pop-up ads appear for a few seconds
when you first log onto the Internet or
when you click on a site.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 41 of 67
Chapter 14
Cyber Ads
Banner ads are displayed across the
top or bottom of the screen and remain
there.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 42 of 67
Chapter 14
Cyber Ads
Screen ads appear at the left or right
of the screen and can be printed for
future reference.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 43 of 67
Chapter 14
Cyber Ads
Cyber ads can be sent directly to
people on mailing lists and can include
order forms like direct-mail ads.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 44 of 67
Chapter 14
Cyber Ads
Cyber ads have an added advantage
in that they can use sound effects and
animation.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 45 of 67
Chapter 14
Fast Review
1. What are some of the differences
between newspaper and magazine
ads?
2. What are some disadvantages of
outdoor ads such as billboards?
continued
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 46 of 67
Chapter 14
Fast Review
3. Name places where you would see
transit ads.
4. What are some advantages of
advertising on the radio rather than
on TV?
continued
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 47 of 67
Chapter 14
Fast Review
5. What are the three biggest media
for advertisers?
6. What advantages do print media
and cyber ads share?
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 48 of 67
Chapter 14
Advertising Rates
The factors that determine advertising
rates are:
• The size of an ad
• The number of people it reaches
• How often it appears
• When it appears
• Where it is placed
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 49 of 67
Chapter 14
Figure
14.2
BIG SPENDERS
This chart shows the five companies who spent the largest sums
of money on advertising in a recent year. General Motors
Corporation, for example, spent about $2.9 billion on advertising.
Think about the
advertisements for
these five companies.
In what media have
you seen their
advertisements? Why
do you think their
spending for
advertisements is so
extensive?
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 50 of 67
Chapter 14
Print Media
Newspaper and magazine rates are
based on circulation, or the number of
people who read them.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 51 of 67
Chapter 14
Print Media
Newspaper and magazine ads are
sold by the inch on the page.
Ads that appear on the front or back
cover of a magazine cost more than
ads inside the magazine.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 52 of 67
Chapter 14
Broadcast Media
The cost of radio and TV ads depends
on the size of the audience.
The cost to advertise on a national
network is much more expensive than
on a local station.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 53 of 67
Chapter 14
Broadcast Media
The cost of radio and TV ads also
depends on what time of day an ad is
shown.
Advertisers also pay more for special
events like the Oscar Awards or the
Super Bowl.

Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 54 of 67
Chapter 14
Broadcast Media
Radio and TV advertisers usually pay
for ads that are 10, 30, or 60 seconds
long.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 55 of 67
Chapter 14
Broadcast Media
Advertisers often hire media
consultants and ad agencies to put
together advertising packages for
them.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 56 of 67
Chapter 14
The Internet
The cost of Internet advertising is
based on the size and format of ads.
The length of time an ad runs also
affects the price.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 57 of 67
Chapter 14
The Internet
Internet advertisers pay a certain
amount for every 1,000 people that
receive the ad.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 58 of 67
Chapter 14
Fast Review
1. What factors determine ad costs?
2. On what day and what time might a
film studio advertise an adult action
movie?
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 59 of 67
Chapter 14
What store features a blue police
light flashing?
continued
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 60 of 67
Chapter 14
What do you think was the impetus
behind the creation of Kmart’s
BlueLight Special?
continued
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 61 of 67
Chapter 14
Why do you think Kmart went to
such costly and creative lengths to
create the BlueLight Special
campaign?
continued
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 62 of 67
Chapter 14
How does Kmart’s alliance with
Martha Stewart help Kmart?
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 63 of 67
Chapter 14
Business Building Blocks
Distinguishing Between Relevant and
Irrelevant Information
Information bombards you. On the job,
you’ll have to figure out what information
is necessary, or relevant. Other
information is irrelevant.
continued
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 64 of 67
Chapter 14
Business Building Blocks
Distinguishing Between Relevant and
Irrelevant Information
Relevant information will define, explain,
illustrate, or offer cause-and-effect
relationships concerning the main topic
you’re exploring.
continued
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 65 of 67
Chapter 14
Business Building Blocks
Distinguishing Between Relevant and
Irrelevant Information
If someone gives you irrelevant
information, ask questions that will
redirect his or her focus to what’s
important.
Introduction to Business, Advertising: The Art of Attracting an Audience
Slide 66 of 67
End of Chapter 14
Advertising: The Art of Attracting an
Audience