Advertising

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 media5billion 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

• redundancyrepetition
• 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, cont

• 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.