Advertising and Commercial Culture

1. Advertising and Commercial Culture Chapter 11

2. “(A)dvertising has long played a prominent role in contemporary life….As big players like Google take advantage of … technological advances, the advertising business itself is evolving. Only time will reveal what direction this major support system for mass media industries will take in the future.”

3. Culture Influenced by Ads • Advertising comes in many forms • Classified ads to giant highway billboards • Ads are often seen as intruding on life • Fast-forward through TV commercials • Block pop-up ads on Web browsers • Advertising is in most media • Economic glue that holds media together

4. Early History of Advertising • Industrial Revolution • Linked villages, towns, cities together • Merchants advertised in newspapers, magazines • Newspaper space brokers • Bought newspaper space, sold it to merchants • First “modern” U.S. ad agency • Established in 1869 by N. W. Ayer • Worked for advertisers not newspapers • Wrote, produced, placed ads

5. Early History of Advertising (cont.) • Retail stores • Branding changes price-setting model • Patent medicine • Advertisers begin developing industry codes in reaction to public outcry over patent medicines outrageous claims. • Department stores • Chain stores lure away customers, fuel growth of large-scale consumer culture

6. Ads Transform American Society • Stimulate consumer demand for more products, creating new markets • Make people hungry for new technologies that will make life easier and better • Influence American values, such as what defines a “good” wife

7. Early Regulation Efforts • Better Business Bureau • Monitored deceptive advertising • Federal Trade Commission (FTC) • Monitored ad abuses • Audit Bureau of Circulation (ABC) • Monitored circulation figures to decrease fraud

8. Early Regulation Efforts (cont.) • War Advertising Council • Organized World War II bond sales, blood donor drives, and rationing of scarce goods • Became Ad Council after war • Produces pro bono public service announcements • National Association of Broadcasters • Banned use of subliminal ads • Demonstrated willingness of industry to self-regulate

9. Subliminal Advertising • Disguised visual messages in TV ads • Registered in subconscious mind • Fooled people to buy unnecessary products • Banned in 1958 • Research has proven them to be no more effective than regular ads

10. Evolution of Advertising from 1950s to Today • Visual design • Becomes integral to ads beginning in 1960s • Inspired by European designers, TV, video • Ad Agencies • Mega-agencies offer full range of services • PR ,ads, radio and TV production. • Examples: Omnicom, WPP, and Publicis • Boutique agencies • More personal service to limited clients, more creative

11. Ad Agency Structure • Account Planning develops strategy • Market Research assesses consumer behavior • Includes demographics, psychographics, focus groups, VALS strategy • Creative Development is nerve center • Teams of writers and artists create ads • Media Buying selects media for clients • Finds media best suited to product, consumer • Account Management brings in business • Manage relationships with clients

12. Internet alters ad landscape • Rise of Web Advertising • Banner ads displayed on Web pages • How Online Ads Work • Agencies track impressions, gather information • Mobile phones, tablets allow ads for specific locations • Advertising Invades Social Media • Provide data on consumers and a venue for ads • Web Advertising’s Growing Power • Web companies buy agencies, become brokers

13. Persuasive Techniques in Advertising • Famous-person testimonial • Product endorsed by famous person • Serena Williams spokeswoman for Nike • Plain-folks pitch • Product associated with simplicity • Example: GE “Imagination at work” • Snob appeal • Product use will maintain or elevate status

14. Persuasive Techniques in Advertising (cont.) • Bandwagon effect • Everyone is using the product • Example: “America’s favorite” • Hidden-fear appeal • Plays on consumers’ insecurity • Example: fear of personal hygiene problems • Irritation • Creates brand recognition by being annoying • Example: “UNBELIEVABLE BARGAINS!”

15. Association Principle • Product associated with some cultural icon or value • Patriotism after 9/11 • “Green,” “real,” or “natural” products • The “Marlboro man” • Product sometimes linked with stereotyped caricatures • Men as idiots who cannot cook, do laundry

16. Telling Stories • Many ads contain elements of myths • Mini-drama featuring characters, settings, plots • Character experiences conflict • Conflict resolved by end of ad as result of product purchase • Example: GEICO cavemen

17. Product Placement • Placing ads in movies, TV shows, comic books, video games • Burger King in Iron Man • Diet Snapple on 30 Rock • Watchdog organizations calling for consumer alerts about product placement • FTC rejected • FCC unresponsive

18. Regulation Concerns • Advertising is commercial speech • First Amendment unclear on rights to protection • Critics demand regulation for destructive ads • Ads for unhealthy products • Dangerous behaviors • Medications • Influence of ads unclear • Up to 90% of new products fail despite ads • Concerns over ads persist

19. Targeting Children and Teens • Children influence family spending • Children’s Television Act of 1990 • Prompted in part by Action for Children’s Television (ACT) • Networks mandated to provide some educational content • Hard to enforce, little impact • Ads invade schools • Channel One and others find loopholes

20. Problems Blamed on Ads • Anorexia among girls and women • Ads feature unnaturally thin women • Widespread obesity in U.S. • Ads hawk corn-syrup-laden soft drinks, fast food, junk food, etc. • Smoking promotion • Ads previously targeted kids with cartoons (Joe Camel)

21. Problems Blamed on Ads (cont.) • Drinking promotion • Ads target minorities • Snoop Dogg • Ads link drinking to power, romance, sexual prowess, or athletic skill • Prescription drug promotion • Ads market drugs directly to consumer • Creating consumer demand • Spreading limited or false information

22. Watchdog Organizations • Commercial Alert • Checks commercialism • Challenges marketing tactics allowing corporate intrusion into civic life • American Legacy Foundation • The “Truth” project • FTC • Plays investigative role in substantiating ad claims • Imposes monetary civil penalties

23. Advertising in a Democratic Society • Political Ads • Ad techniques used to “sell” candidates • Less affluent candidates can’t compete • Issues can’t be explained in short TV commercial • Advertising maintains its hold • Sustains media business model • Consumers enjoy, accept advertising • We need to understand its benefits and costs to our country