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Advertising

Advertising

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Advertising

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Presentation Transcript

  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%.