1 / 32

Advertising: Part I

Advertising: Part I. reasons to study advertising power of advertisements advertising and mass media development of the advertising industry new media age effect on advertising industry effect on consumers. Lecture Outline.

rae-garza
Télécharger la présentation

Advertising: Part I

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Advertising: Part I

  2. reasons to study advertising • power of advertisements • advertising and mass media • development of the advertising industry • new media age • effect on advertising industry • effect on consumers Lecture Outline

  3. “communication that is paid for and is usually persuasive in nature” • falls under realm of marketing • public relations • sales promotions (coupons, etc) • direct marketing (e-mail, telemarketing, etc) • product placement What is advertising?

  4. No Longer just for Business

  5. development of the advertising industry over time • from the ‘Big Five’ media to IMC (integrated marketing communication) • link between the advertising industry and the mass media • impact on consumers Reasons to Study Advertisements

  6. hard sell vs. soft sell • short-term power: • conveying new information, building awareness, enhancing credibility, etc. • long-term power: • conveying brand image, attaching emotional values to the brand, building positive reputation, etc. creativity entertainment Power of Advertisements

  7. ads can influence buyer decisions • cultural force: changing our minds and values • commercial force: creating desire for something we do not need • advertising imagery is a cultural consequence of transition in local and global societies Information and Manipulation

  8. word-of-mouth is the most effective form of advertisement • recommendation by someone else • ties into trust and credibility • “bad news” very powerful Still …

  9. interdependence • media depend on advertising revenue • advertising depends on media to provide audiences • advertising = primary income source for mass media • big corporations sell relatively privileged audiences to other businesses Advertising and Mass Media

  10. private media organisations: • all depend on advertising • public media organisations: • ratios vary between all publicly funded to partial dependence on advertisers Private versus Public

  11. free of adverts and independent of advertisers • paid for through TV license fees • one per household • international website now carries adverts

  12. early 1800s: • US and Europe after Industrial Revolution • 1990s onwards: • former Eastern bloc countries increase advertising expenditure • China and India seen as relatively new targets • market liberalisation and globalisation • equates to increase in global advertising expenditure Development of Advertising Industry

  13. Source: World Advertising Trends, 2007

  14. changes in role of ad agencies • in the past: • ad agencies operate in-between media owners and advertisers • sell media space to advertisers • get commission from media owners • now: • advertising companies have become formally independent of the media owners • in addition to selling space, they create the ad Development of Advertising Industry cont’d …

  15. increased options for advertisers • traditional advertisement platforms: • newspapers, television (incld. product placement), magazines, radio, direct mail adverts, some outdoor • contemporary advertisement platforms: • cinema, outdoor, online, email, mobile phones, stand-alone digital screens Development of Advertising Industry cont’d …

  16. traditional markets changing rapidly and remain unstable • typically less government intervention in markets • fragmented consumers • globalisation = global brands, cultural differences in advertising • age of new media Development of Advertising Industry cont’d …

  17. new media: • technologies associated with digital computers as opposed to print and analog broadcast • link to pervasive CMC What is the New Media Age?

  18. desire to catch up but not necessarily to understand consumer behaviours and changes within the new media age • Web 2.0 • UGC – user generated content • interactivity • ‘transference’ tends to be the norm • strategies for traditional platforms transferred directly to contemporary platforms Effect on Industry

  19. multiplicity of platform options • increased choice = more complex marketing strategies? • effectiveness uncertain • heavy competition • creativity important • brand identity formation • increased access to consumer • TV – limited access • finite source of information • new media – expanded access • responsive and flexible data source • personalized consumer relationship potential Effect on Industry

  20. Attention • Interest • Desire • Action AIDA Traditional Model of Advertising

  21. attention is a scarce commodity • deficit in attention is result of surplus of information • media and advertisers all competing for audience attention; follow consumers anywhere and everywhere • “attention economics” devoted to finding ways of getting consumers to consume advertising The “Attention Economy”

  22. advert-free spaces reduced • information pollution/ information overload • clutter • spam • daily interruptions • consumers cannot process it all • harder to make decisions Effect on Consumers

  23. empowerment? • spam filters • online ad filters • easily ignore banner ads • research products before purchase • ratings from other consumers • link to word-of-mouth/recommendations? • decreased control? • database marketing: • collecting and storing information about consumers • involves ‘data mining’ Effect on Consumers

  24. consumer culture • personal worth • identity • everything can be purchased • freedom • prestige • success • love products we purchase Effect on Consumers

  25. Cappo, J. (2003) The Future of Advertising: New Media, New Clients, New Consumers in the Post-Television Age, Chicago : McGraw-Hill. • Stafford, M. R. and Faber, R. J. (2005) Advertising, Promotion and New Media, New York: M.E. Sharpe. • http://books.google.co.uk/books?id=bwS3klAb7nMC&printsec=frontcover • Nielsen, A. C. (2007) “Word of Mouth the Most Powerful Selling Tool: Nielsen Global Survey”, Market Research World, • http://www.marketresearchworld.net/index.php?option=com_content&task=view&id=1651&Itemid=48 • Davenport, T. H. and Beck, J. C. (2002) The Attention Economy: Understanding the New Currency of Business, Boston: Harvard Business School Press. • http://books.google.co.uk/books?id=j6z-MiUKgosC&printsec=frontcover&source=gbs_summary_r • Rigby, R. (2006) “Warning: Interruption Overload”, Financial Times, • http://www.ft.com/cms/s/0/d0f71fb6-3243-11db-ab06-0000779e2340,dwp_uuid=4e612cca-6707-11da-a650-0000779e2340,print=yes.html?nclick_check=1 References

  26. read Introduction to Advertising and the End of the World • will be uploaded to WebCT Reading for Next Week

More Related