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Advertising and the Mortgage Crisis: A Content Analysis Pamela Morris November 16, 2010 School of Communication Loyola University Chicago National Communication Association Mass Communication Division Poster Session Abstract How did ads differ in 2006 when the economy was on the way up, as compared to 2009, just after a recession had been declared? This research focuses on differences in financial organizations’ newspaper advertising. A content analysis of 554 financial ads finds differences in number and content. Not only were there more of certain kinds of ads in 2006 than in 2009, but the content of those ads inspired consumers’ dreams. Literature Review • Marketers strategically plan ads – Target audiences are at the heart of an advertising campaign (Parente, 2004) – Ads must immediately impress (Bly, 2005) • As commercial messages, ads attempt to influence awareness, perceptions, opinions, attitudes (Belch & Belch, 2009) • Emotional ads better differentiate, create bonds with brands (Pringle & Field, 2009) Hierarchy of Needs • 5 levels (Maslow, 1948) – Hunger/thirst ─ Self-esteem – Safety ─ Self-actualization – Social/sense of belonging • Ads exploit needs to ensure messages connect with audiences (Belch & Belch, 2009) • Big homes more than safety/protection; satisfy social, self-esteem, or selfactualization needs BIG Homes are Status Symbols • Social power, status displayed in homes, cars, handbags, shoes, t-shirts (Eastman, et al., 1997) • Consumers constantly strive to achieve materialistic ideas; comparative and competitive process (Robert & Jones, 2001) Consumers Spent BIG 2006-2007 • Stock market hit highest level Oct. 2007 (Burns, 2009) • Real personal income, industrial production, wholesale, retail sales peaked Nov. 2007June 2008 (Isidore, 2008) • Housing prices topped 2000-2002 (Isadore, 2008) Consumer Attitudes Created Unstable Economic Environment • Savings passé, spending more valued (Ritzer, 1995; Zuckerman, 2000) • Overspending primary reason for personal bankruptcies; before illness, job loss (Wasserman, 2008) • Personal bankruptcies +28.9% July 2007 vs. July 2006 (Grzincic, 2008) • Bigger debt, mortgages, car loans, credit car balances (Wasserman, 2008) Method • Quantitative content analysis • January 1 – March 8, 2006 and 2009 • Main News, Business, Local Sections • Financial ads Coding 1. Newspaper characteristics (date, day of week, # pages by section) 2. # financial ads (2” sq. +) by section 3. Ad size (full pg, ½ pg+, ½ pg –) 4. Photo/illustration/visual (yes or no) 5. Sponsor’s business type (bank, mortgage/ investment, other) 6. Product type (checking/savings, CD/money market, business service, loan/line of credit/mortgage) Results • 4,839 Chicago Tribune pages reviewed • 554 financial ads coded • Ads came from 3 sections – 42% Main News – 40% Business – 18% Local • Size: 70% smaller than ½ pg, 6% full pg, 24% ½ pg to full pg Results • Ads sponsored by – 80% banks – 14% mortgage or investment – 6% other • Product categories – 49% CDs, money markets – 24% loan, line of credit, or mortgages – 21% checking or savings – 6% business services Hypothesis 1 H1: There will be more financial ads in 2006 than in 2009 Per Day Mean 2006 4.66 • Supported 2009 3.20 t=2.43 p<.05 Hypothesis 2 & 3 H2: 2006 financial ads will be larger than in 2009 H3: There will be more pictures in financial ads in 2006 than in 2009 2006 2009 Full Page .07 .24 t=-2.55 p<.05 ½ to Full Pg .96 .88 ns < ½ Pg 3.63 1.98 t=3.60 p<.01 With Visual 2.36 1.00 t=4.36 p<.001 • H2 Not supported; H3 Supported Hypothesis 4 & 5 H4: There will be more bank ads in 2006 than in 2009 H5: There will be more mortgage or investment ads in 2006 than in 2009 2006 2009 Bank ads 3.72 2.94 ns Mortg/Invst .90 .26 t=3.59 p<.01 • H4 Not supported, direction as proposed • H5 Supported Hypothesis 6 & 7 H6: There will be more checking or saving ads in 2006 than in 2009 H7: There will be more CD or money market ads in 2006 than in 2009 2006 2009 Chking/Sving 1.03 .74 ns CD/MM 2.13 1.86 ns • Not supported, direction as proposed Hypothesis 8 & 9 H8: There will be more business service ads in 2006 than in 2009 H9: There will be more loan, credit, or mortgage ads in 2006 than in 2009 2006 2009 Bus Service .34 .14 t=2.32, p<.05 Loan/Crdt/Mort 1.69 .30 t=6.80, p<.001 • Both supported 2006 Appeals – Credit and Loans at/below Prime Charter One Banking. Fully Loaded. Prime -1% Prime -1% guaranteed for the life of your Home Equity Loan. Chase Manage your debt. Don’t let it manage you. Prime Minus 1.01% First American Bank You can’t borrow any better than this. 2006 Appeals – Fast-Track Loans Charter One Introducing our new mortgage pre-approval. Give us five days and we’ll give you all kinds of money. Chase Get approved faster than it’ll take your paint to dry. Harris Bank She gets next-day credit card funding. (So can you.) 2006 Appeals – Easy, No Limits LaSalle Bank It’s never been easier to make your money work harder. Amcore Bank Two Accounts. One Big Return On Investment. Fidelity Short-term cash just sitting in your account? Ditech.com No, you don’t need your eyes checked. 2009 Appeals – Safe, Risk Free Park National Bank A great rate on secure savings! Bank of America FDIC-insured safety. Fifth Third Bank Safe Saver Balances of $50,000 to $250,000 with Safe Saver Package** 2009 Appeals – Stop Worrying, Relax Old Second Bank Stop Worrying About Your Future Park National Bank Save. Earn. Relax. 2009 Appeals – Economy is Tough, Better Days Ahead Great Lakes Credit Union Weather the Financial Storm with Great Lakes Credit Union! We’ve Got You Covered! Amcore Bank It’s Cold Outside! TCF Bank In this economy, what could be more convenient than great rates? 2009 Appeals – Confident, Reliable Bank of America Giving America the credit it deserves. Fixed Rate. Predictable Returns. Discussion • 2006 and 2009 financial ads differed • More financial, more with pictures, more mortgage/investment, business services, loan/credit/mortgage ads in 2006 • 2006 ads gave consumers dreams – images provided situations to live up to • 2009 ads reassured consumers of better days, offered safety Discussion • Ads reflect culture • For a balanced economy, consumers need to live a sustainable lifestyle that they can afford • Content analysis of ads can benefit both producers and consumers • Future studies can review ads in different parts of the country hit hard by the mortgage crisis