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Chapter 10

Chapter 10. ADVERTISING and Commercial Culture. Outline. Evolution of advertising Role of advertising in transforming America into a consumer society Functions of advertising agencies Advertising strategies used in advertising Advertising as commercial speech Issues in advertising.

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Chapter 10

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  1. Chapter 10 ADVERTISING and Commercial Culture

  2. Outline • Evolution of advertising • Role of advertising in transforming America into a consumer society • Functions of advertising agencies • Advertising strategies used in advertising • Advertising as commercial speech • Issues in advertising

  3. Evolution of Advertising • Shop signs - Babylon • Town Criers - Greece • Billboards- Egypt • Posters/handbills • Newspaper ads • 1841 First advertising agency in the U.S. (Palmer)- ad space broker • 1869 First full service ad agency (NW Ayer) • Major advertisers in the early age: patent medicines and department stores

  4. What do you think? • “In a mobile society, commercial products with familiar names provide people with some sense of identity and continuity in their lives” • Michael Schudson, 1984 (Author, “Advertising: The Uneasy Persuasion”)

  5. Characteristics of Successful Advertising (PPRAM) • Pervasive • Persuasive • Repetitive • Adding value to a brand • Memorable

  6. What has been the CULTURAL and SOCIAL IMPACT of advertising on 20th-century American society?

  7. Social and Cultural Transformations • shift from agrarian, small-town life to urban, consumer-driven lives • associated with capitalist economic system • both creates and satisfies our desires and needs as consumers • provide funding to all our mass media industries

  8. Role of advertising in social change • influenced shift to consumer-driven society • promoted technological advances • encouraged economic growth by increasing sales • recognized women as primary decision-makers about consuming

  9. FUNCTIONS OF AD AGENCIES • MARKET RESEARCH • CREATIVE DEVELOPMENT • MEDIA SELECTION • ACCOUNT SERVICES

  10. Market Research • Demographics • Psychographics • Geodemographics (clusters)

  11. Advertising Strategies • Product Positioning • Market segmentation • The Cinderella syndrome: instant change/improvement by using the advertised product

  12. The ASSOCIATION Principle • to associate a product with a cultural value or image that has a positive connotation (including celebrity endorsement)

  13. COMMERCIAL SPEECH and the REGULATION of ADVERTISING Does the First Amendment apply to commercial speech -- that is, any print or broadcast message for commercial purpose?

  14. ETHICAL ISSUES IN ADVERTISING • Comparative Advertising • Puffery & Misleading ads • Advertising to children and minority groups • Advertising of Health-hazardous products • Political Advertising • Privacy Invasion

  15. Do YOU think there should be regulations placed on advertising?

  16. Regulators of U.S. advertising • Better Business BureauAd Council • Federal Trade Commission • Industry associations: e.g. American Association of Advertising Agencies’ Code of Ethics

  17. Issues concerning Advertising Today • Audience fragmentation by abundance of media • Audience avoidance of advertising • New media such as the Internet pose challenges to creative persuasion and privacy invasion: self-selection and comparative info

  18. The Internet as New Advertising Medium • banner ads • paid positive reviews, weighted search engine results • affiliate referrals (links) • direct marketing based upon personal data collected on web sites

  19. Internet Advertising Expenditure Jan-Jun 2000=US$4 billion

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