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THE
DYNAMICS
OF MASS
COMMUNCATION
Joseph R. Dominick
University of Georgia--Athens
McGraw-Hill
© 2007 The McGraw-Hill Companies, Inc. All Rights reserved.
Specific Media
Professions
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Chapter 14
Chapter Outline
Advertising
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Defining Advertising
A Brief History of Advertising
Organization of the Consumer Advertising
Industry
Advertising Online
Producing Advertising
Economics
Business-to-Business Advertising
Advertising
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Defining Advertising
Advertising is any form of nonpersonal presentation and
promotion of ideas, goods, and
services usually paid for by an
identified sponsor.
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Defining Advertising
• Four basic functions of advertising
– Marketing – helps companies sell products
– Educational – teaches people about products
– Economics – allows competition that lowers prices
– Social – encourages a climate of free enterprise
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Defining Advertising
Elements of Advertising
Business-to-business advertising
Geographic focus
sells products for business use
targets specific geographical regions
Target audience
specific people to whom product appeals
Direct action ad
promotes specific buying behavior for quick results
Purpose advertising
Consumer advertising
accomplishes a distinct goal
promotes long-term brand recognition
Selective demand advertising promotes product category, not specific brand
Primary demand advertising
Indirect action ad
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sells products for personal use
promotes a particular product brand
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Defining Advertising
Marketing consists of the development,
pricing, distribution, and promotion
of ideas, goods, and services.
Advertising is part of the general
promotion process, along with
personal selling, sales promotions,
and public relations.
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A Brief History of Advertising
• Ancient Babylonian clay tablets – shoe
making services
• English handbill (1480) – prayer book
• Ben Franklin’s classified ads – white space
and large headlines
• Industrial Revolution – mass production,
mass markets, mass consumption
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A Brief History of Advertising
• Critical mass achieved (1865 – 1900)
– Railroads throughout the continent
– U.S. population doubled
– New communication media
• Telephone Typewriter High-speed printing press
• Motion pictures National magazines Photography
• Rural mail delivery
– More economic production and disposable income
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A Brief History of Advertising
• Birth of the advertising agency
– Volney Palmer in Philadelphia (1842) – space
brokerage
– N. W. Ayer and Son (late 19th C) – full ad
campaigns
• 1920s – Radio makes national ads a reality
• 1929 crash and WW II slow industry
• Cold and Korean Wars  distrust of
advertising
• The Hidden Persuaders
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A Brief History of Advertising
• Changes in 1960s – 1980s
– Media environment
– Transportation
– Internationalization of
marketplace
– Cultural diversity
• 1990s and beyond
– Internet ads fall short
– Internet bubble
– Advent of PVRs
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Organization of the
Consumer Advertising Industry
Media
Ad
Industry
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Organization of the
Consumer Advertising Industry
• Advertisers
– National – brand names, product, service
– Local – prices, sales, local stores
• Basic advertising activities
– Plan ads
– Determine how and where the ads will
appear
– Budget appropriate funds for advertising
– Coordinate ads inside the company
– Supervise outside ad agency
– Follow-up on effectiveness
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Organization of the Consumer
Advertising Industry
• Agencies
– Trend towards global mega-agencies
– Full-service agency
• Handles all campaign phases; studies market; studies
product; presents findings
– Launches execution phase & follow-up
• Provides other marketing services (trade shows, etc.)
– Media buying service
• Buys, resells, monitors television and radio slots
– Creative boutique
• Creates imaginative ads and ad campaigns
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Organization of the Consumer
Advertising Industry
Table 14-1 Top Five Advertising Agencies, 2002
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Organization of the Consumer
Advertising Industry
• Media
– Four important dimensions
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 How much does it cost to reach a certain
number of people?
– Also important: creative/technical nature of the
medium
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Organization of the Consumer
Advertising Industry
Figure 14-1 Advertising Expenditures in Various Media, 1999
(Dollar figures are in billions)
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Advertising Online

• 1994 – HotWired’s website with ads
• Roller-coaster success since, but 2005 revival:
–
–
–
–
–
Lower ad prices
Innovative technology
People online more
Selection of effective ad techniques (e.g., pop-ups)
Changing methods of paying for ads
• 2004 – online ads were 3% of U.S. ad dollars
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Advertising Online
Types of Online
Ads
Banner ads
Sponsored chat rooms
Pop-ups
Floating ads
Pop-unders
Mousetrapping
Splash pages
Product-specific web
sites
Skyscrapers
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Producing Advertising
• Four major departments
– Creative services produce the ads
– Account services
– Marketing services
– Administration
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Producing Advertising
An advertising campaign consists of a
large number of advertisements, all
stressing the same major theme or
appeal, that appear in a number of
media over a specified time.
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Producing Advertising
Six phases of an ad
campaign
1) Choose the strategy
Radio
mediaproduction
production
Print
6 TVmedia
ads
Television media production
2) Select the theme
-Script
with
music, FX
-- Rough
thumbnail
5 Radio
adsdialog,sketches
-- Storyboard and feedback
3) Translate the theme into -- Rough
-Recording
layouts
(actual size)
4 Print
ads
-- Filming
media
-Postproduction
-- Comprehensive layout
-- Special effects
-- Master tape
4) Produce the ads
-- Use of outside specialists
5) Buy space and time
6) Execute and evaluate
Curvy mountain roads
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Producing Advertising
• Advertising Research
– Formative research (before campaign starts)
• Guides creative efforts
– Audience defining (demographics)
– Audience profiling
• Identifies attitudes, motivation, lifestyles
– Message research
• Stage 1: pre-test ads
• Stage 2: screen ad prototypes and refine ads
– Tracking studies (post-campaign effects)
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Economics
• $245B spent on advertising in U.S. (2004)
• Agency compensation
– Commissions
• 15% commission on time and space from media
• Pay-for-performance gradually taking over
– Agency charges
– Fees
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Economics
Figure 14-1 Advertising Expenditures in Various Media, 2002
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Business-to-Business
Advertising
•
•
Selling products to other businesses
Four main categories of B2B advertising:
1) Industrial: Advertising items used in production
of goods and services
2) Professional: Advertising services aimed at
doctors, nurses, teachers, and other professionals
3) Trade: Advertising goods and services to
wholesalers and retailers
4) Agricultural: Advertising goods and services
aimed at farmers
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Business-to-Business
Advertising
• Consumer vs. B2B advertising
– B2B: much smaller target audience
– Business products and corresponding ads tend to be
technical, complicated, and high priced
– Business buyers are professional purchasing agents
• Purchases based on reason and research
• Decisions often made in-committee
– Personal selling more important in B2B
• Ad efforts tend to support the seller, not do the
selling
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Business-to-Business
Advertising
• Media
– Small audience + personal selling
 personalized media
– Trade magazines, trade papers, brochures
– Direct mail
– Trade catalogs
– Specialized cable channels and programs
– Horizontal publications aim at particular job
function
– Vertical publications cover entire single industry
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Business-to-Business
Advertising
• Appeals
– Business ad copy
• Fact-filled, detailed, technical, accurate, complete
• Little, if any, emotional appeal
– Common business ad formats
•
•
•
•
Testimonials
Case histories
New-product news
Demonstrations
– Recent developments in warming up B2B ads
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Advertising
• Employment down 16% (20002003)
• Entry-level
– Creative
• Junior copywriter
• Junior art director
Creative trainee
Production assistant
– Business
• Courses in advertising and business; marketing
• Assistant media buyer
Research assistant
• Junior account executive
Account service
trainee
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Advertising
• Upward Mobility
– Excellent advancement opportunities
– Creative
• Senior copywriter
Creative
director
• Senior art director
– Business
• Media director Research director
• Account executive
Management supervisor
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