Creating Images That Matter: Advertising in the New World

1
Creating Images That Matter Advertising in the
New World
2
Purpose of my Research

• To define the present conditions of Internet
  advertising using the history of TV advertising
  as a measure.
• Ultimately, I would like to use this research and
  findings to be able to prepare and predict the
  future of Internet advertising and incorporate
  into a successful e-commerce business plan for
  myself.

3
Theory

• Advertising defined
• The Federal Trade Commission (FCC) has defined
  advertising as any action, method, or device
  intended to draw the attention of the public to
  merchandise, to services, to persons, and to
  organizations.
• Symbolic Interaction theory
• People are motivated to act based on the
  meanings they assign to people, things, and
  events. Further, meaning is created in the
  language that people use with others and in
  private thought. Language allows people to
  develop a sense of self and to interact with
  others in community.

4
Examination of the Past

• Using TV as the comparison for the Internet-
• TV advertisements provide the ability to
  communicate sight, sound, motion and emotion.
  Radio and print ads are limited based on the
  format. The Internet has the ability to utilize
  the same advantages of TV because of the flexible
  format. The Internet and TV advertising forum is
  most similar and therefore is a valuable
  comparison
• TV Advertising Timeline
• 1946 5000 TV sets in homes throughout the US.
• 1952 15 million people in US owned TV set, over
  1/3 of population. TV system was quickly geared
  towards generating advertising revenue because of
  the ability to reach nationwide audiences.
  Advertising revenues, programs and personnel were
  transferred from radio with ease. By 1952, 70
  of all broadcasting advertising revenues were
  from TV.

5
TV Advertising Timeline Cont

• 1952-1956 Video tape-recording technology
  instilled making pre-recorded commercials a
  possibility. Commercials could be better planned
  out and mass-produced in order to enforce the
  branding concept.
• Hazel Bishop lipstick sales skyrocketed from
  50,000 a year in 1950, to 4.5 million two years
  later thanks to TV advertising.
• Late 1950s TV ads had become ordinary and the
  market became saturated with advertisements that
  aimed not to offend the public. Advertisers had
  not really adjusted to the new format of TV
  advertising to create new innovations.
• 1959 Volkswagen campaign Think Small debuted
  and seemed
• to transform the industry. Black and White
  photography and
• simple images positioned VW as an honest car and
  renewed
• the art of advertising.

6
TV Advertising Timeline Cont

• 1960s Counter culture era brought on revolution
  in advertising. Deeper meanings in
  advertisements and more symbolic images.
  Memorable images from Johnson Johnsons
  heartwarming evocation of mother love to the
  national Urban Leagues revolting message that
  the US better give a damn about its black
  underclass.
• 1970s Expanding scope of businesses and reach
  brought on imaginative campaigns that reinforced
  brands and a common message across the global
  market.
• Early 1980s Network TV began to lose many
  viewers to cable market. Big conglomerate
  advertising agencies had taken over the market
  and were driving toward scientific methods not
  creativity.
• Late 1980s Viewer demands became less tolerant
  of ordinary scientific method ads of the time.
  Dozens of new small agencies produced a new
  generation of writers and designers who saw
  advertising as a craft, a work of art and a
  commentary on social expectations.

7
Defining the Present

• Formats for Advertising on the internet
• Banner Ads Most popular form of advertisements,
  usually at top of screen, often contains links to
  website, product, or coupon.
• PopUp Ads Appears in separate screen upon
  opening of webpage, similar characteristics of
  banner ads.
• Online Sponsorships Text based message typically
  embedded in the context of a website, related to
  the subject matter of the site. Considered
  alternative to traditional style banner or PopUp
  ads.

8
Choosing to Advertise

• Advantages of internet Advertising
• Ability to precisely target customers by
  effective ad placement.
• Internet provides advertisers a quick-response to
  ads without wasting time and money on testing
  ads.
• Reaching a sophisticated global market.
• Direct links to products.
• Disadvantages
• Difficult to measure effectiveness with click
  through rate reliability
• Shared bandwidth with content on a webpage.
• Users can choose to ignore advertisement, and
  utilize anti-ad software.

9
Measuring Effectiveness

• Current Share of Advertising dollars by medium
• TV 24.8
• Newspaper 18.3
• Radio 7.7
• Internet 2.3
• Other 46.9
• Click rates are the measure of success
• Click rates started in 1996 at around 7 per
  Internet banner advertisement. Currently click
  rates are around .7. This is problematic
  because advertisers do not typically allocate
  budgets to media that are not effective.

10
Perceptions

• Why are click rates so low?
• Shared bandwidth banner ads typically occupy
  less than 10 of webpage.
• Experienced web surfers have ability to train
  themselves into recognizing banner ads for what
  they are without having to actually focus on
  them.
• Study performed in 2003 revealed that only 50 of
  banner ads are viewed by Internet users. TV ads
  are viewed at over 90 by viewers.
• Advertising Agencies are Reluctant
• A study conducted by the Journal of Advertising
  Research in 2002 revealed that Large advertising
  agencies lack experience and expertise with
  Internet advertising. Study concludes that the
  potential for advertising on the Internet has not
  been fully unleashed due in part because of the
  technological hesitation perceived by large
  advertising agencies.

11
Conclusion and Future Considerations

• The Internet is still a relatively new medium and
  much like with television advertisers have not
  found an innovative way to effectively reach the
  huge market that the Internet provides.
• In the early stages of TV advertising, it was a
  creative revolution that many times rejuvenated
  the industry when it seemed it had lost touch
  with the public.
• Internet advertisers must find new creative ways
  to reach its audience through meaningful content.
• There has to be more positive hype around
  Internet advertising, something that could create
  as much excitement as the Super Bowl commercials
  seen on TV.
• Advertisers must present greater advantages or
  appeal to Internet users, and users need time to
  accept the advantages of being advertised to
  through the internet.