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Advertising

Advertising. Essential role in consumer economies. Financial basis of modern mass media. consumer economies advertising and prosperity advertising and democracy. Origins of advertising. stepchild of technology printing press industrial revolution steam powered presses factories

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Advertising

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  1. Advertising Essential role in consumer economies

  2. Financial basis of modern mass media • consumer economies • advertising and prosperity • advertising and democracy

  3. Origins of advertising • stepchild of technology • printing press • industrial revolution • steam powered presses • factories • immigrants • pioneers

  4. Advertising agencies • Agency structure • creative • account executives • media buyers • research • Agency compensation • three kinds: comm., fees, performance • Advertiser role in advertising

  5. Placing advertisements • media plans • CPM--cost per thousand • media choices • alternative media~$5billion a year • business magazines • gay newspaper ads • Spanish language media • direct mail

  6. Pitching messages • importance of brands • lowest common denominator • market segments • redundancy techniques

  7. Redundancy techniques • “redundancy”=repetition • barrages--”ads in flights” or “waves” • bunching--promoting in limited period • trailing--running condensed versions • multimedia trailing--reinforce ads with less expensive media • saturation--target, block out competition

  8. New advertising techniques • stealth ads • product placement • infomercials • “infotainment” advertising--games • ‘zines • new site ads--sports stadiums

  9. Research and psychology • motivational research • Freud and Dichter • Goebbels • use of fantasies, sexual innuendo • sexual images • subliminal advertising • Jim Vicary, 1957 • “subception”

  10. Conglomeration and globalization • acquisition binge • deregulation in 1970s • hands off business approach • demassification of mass media • fragmentation of audiences • agency consolidation problems • huge profits to spend on acquisitions • financing available

  11. Advertising regulation • media gatekeeping • “caveat emptor” • “caveat venditor” • Edward Bok • codes of ethics

  12. Regulation, con’t • industry self-regulation • public interest advertising • National Advertising Review Council • Codes--AAAA • false, misleading statements/exaggerations • testimonials from unknowledgeable people • unfair disparaging of competitive products • distorted, insufficiently supported claims • offending public decency

  13. Other regulation • “public interest” advertising • government regulation • Federal Trade Commission 1914 • tobacco and liquor industries • Seagram company • nine other agencies • FDA, Postal Service, FCC, SEC • state law against fraud

  14. Problems and issues • advertising clutter • #of ad messages doubled in 60s & 70s • too many commercials during Olympics • NAB code limited quantity; ruled unfair • creative excesses • advertising effectiveness--what works? • mag. ads entice 13%; newspaper ads 15%; TV ads 25%.

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