Chapter 15 - Advertising

The Dynamics of Mass Communication – 12th Edition

Critical Thinking Quiz #5

• What would society be like without advertising? Do you think it could ever actually happen?

Hint: Think about every place you see advertisements. Then think about what it would be like if they weren’t there.

Consider the economic, informational, societal, environmental impacts and any other impact you can think of.

Photo Collage of São Paulo, Brazil, Immediately After the Advertising Ban Took Place

• http://www.flickr.com/photos/tonydemarco/sets/72157600075508212/

Defining Advertising

• Advertising = any form of nonpersonal presentation and promotion of ideas, goods, and services usually paid for by an identified sponsor.

• Advertising is part of the overall marketing process• Marketing consists of the development, pricing, distribution,

and promotion of ideas, goods, and services. • Advertising is only part of the general promotion process.

Defining Advertising

• 5 Functions of Advertising 1. It serves a marketing function

2. It is educational

3. It plays an economic role

4. It reaches a mass audience

5. It performs a social function

Defining Advertising

5 Ways Advertising Can Be Categorized

1. Target audience– Consumer advertising = targets the people who buy goods and

services for personal use

– Business-to-business advertising = aimed at people who buy products for business use

2. Geographic focus, such as international, national, or local (retail) audiences.

3. Purpose = some ads are for specific products/services; others ads try to improve a company’s image or influence public opinion on an issue

Defining Advertising

4. Primary vs. selective demand– Primary demand advertising = promotes a product category rather

than a specific brand

– Selective demand advertising = promotes a particular brand of product or service

5. Direct vs. indirect action advertising– Direct action advertising = promotes direct, short-term action from

consumers (call now, use the coupon this week etc.)

– Indirect action advertising = promotes long-term brand recognition and consumer awareness

A Brief History

• The invention of the printing press in the 1400s allowed the creation of several new advertising media: posters, handbills, and newspaper ads.

• Most early newspaper ads looked like today’s classified ads.

• Magazine distribution from coast to coast make national advertising possible

• The increase in advertising lead to the birth of the advertising agency = an organization that specializes in providing advertising services to clients

• Radio became a vehicle for advertising in the 1920s

A Brief History

• Moving into current times… Contemporary advertising is trying to cope with technological and social change.

• The consumer is taking more control over his/her media choices (e.g., the Internet, DVRs, iPods, cell phones, etc).

• The traditional advertising model, in which advertisers interrupt a program or insert ads around articles, is becoming harder to justify because many young people don’t get news and entertainment from traditional media.

• Advertisers are rethinking their Internet strategies, and contemporary advertising is more targeted, interactive and engaging

“Social Issues”

• Read the box on page 353

• Consider the arguments… Is advertising good or bad?

• Do you watch TV commercials?

Advertising in the Digital Age

Online advertising = began in 1994 when the digital magazine HotWired started a Web site with about a dozen sponsors who paid to have advertising banners embedded on the site.

AUDIENCE CONTROL• As consumers are taking more control over their media choices and

technologies, they are increasingly making choices to avoid advertising.

• These developments have forced advertisers to look for other means to reach audiences, such as product placement and viral advertising.

• Viral advertising = a technique where companies create messages (example: YouTube video) that are so compelling that consumers willingly share them with others through social networking sites, cell phones or e-mail.

Advertising in the Digital Age

NEW CHANNELS• The digital revolution has opened up

additional avenues for advertising using blogging, podcasting, and social media.

• Every major ad campaign during the past few years has included a social media dimension.

Advertising in the Digital Age

MOBILE MEDIA: APPS & ADVERTISING:• As more people are accessing the Internet using mobile

devices, companies are developing apps to reach customers.

• Unlike traditional ads that interrupt programs, apps give the user control over the process, as the consumer elects to download the app and decides when to use it.

• Advantages of apps = they connect with consumers wherever they are, they keep a brand in the consumer’s consciousness, and they offer a gateway to a brand’s services.

• Experts predict that revenue from mobile apps will top $40 billion by 2015.

Advertising in the Digital AgeDECOUPLING = the migration of advertisers away from traditional media (TV and radio programming)

• Internet advertising, lets advertisers target ads at the people most likely to buy the product or service. – For example, instead of spending huge amounts on TV ads, Sony could pay Google

to have an ad displayed next to the search results whenever anybody searches for “television set.”

– The Internet also makes it easier for advertisers to collect huge amounts of data from large groups of people, enabling them to learn more about how best to advertise to them.

• Advertisers are also putting more of their budgets into non-media sources, such as viral marketing, sponsorship of special events and public relations efforts.

Cultural Meaning and Trade Characters

• Read the Critical Cultural Issues box on page 354

• What other trade characters stand out in your mind as effective ways to remember products or service?

Organization of the Consumer Advertising Industry

3 main components of the advertising industry

1. advertisers – national and retail (or local)

2. advertising agencies = independent business organizations composed of creative people and business people who develop, prepare, and place advertising for sellers trying to reach customers.

3. the media = the connection between a company and its customers. TV, radio, newspaper, Internet, billboards etc.

The Economics of Advertising

ADVERTISING VOLUME IN VARIOUS MEDIAS• Global advertising spending totaled $390 billion in 2010.

• Newspapers and magazines have seen a decrease in their relative share of advertising volumes

• Television has shown a significant increase

• Outdoor advertising has shown modest growth.

• Internet advertising will probably show increased growth in the future

This Most Successful Advertising Campaigns of the Past Century

• http://dealnews.com/features/The-Top-10-Ad-Campaigns-That-Made-Us-Run-Out-and-Buy-Stuff/815802.html

Business-to-Business Advertising

BUSINESS-TO-BUSINESS ADVERTISING– designed to sell products/services not to general consumers but to other

businesses– Typically via trade publications, direct mail, email, Web sites, professional

journals and display advertising at trade shows

• 4 Main Categories of B-to-B Advertising1. Trade = goods and services aimed at wholesalers and retailers, who in turn, resell these items to a more general audience

2. Industrial = items used in the production of goods and services, such as copy machines and forklifts

3. Professional = services aimed at doctors, architects, nurses, teachers, who might influence the buying process or use the product in their profession

4. Agricultural = goods and services aimed at farmers, such as seed, fertilizer, and chemicals

Business-to-Business Advertising

CONSUMER VS. B-TO-B ADVERTISING

4 ways B-to-B advertising is different than consumer advertising:

1. The target audience in business advertising is narrower and less diverse

2. Most of the products in business advertising tend to be technical, complicated and high-priced

3. Business advertising generally relies on rationality more than emotional appeals

4. Personal selling plays a greater role in business advertising

Group Discussion TopicWatch Media Talk clip: http://highered.mcgraw-hill.com/sites/0073526193/student_view0/media_talk__nbc_.html#

- Can you remember an McDonald’s commercials from your childhood?

- Do you think that McDonald’s unfairly targets children who are too young to know about commercials?- Should McDonald’s stop advertising aimed at children?

Read “Ethical Issues” on page 369• Is it right to advertise to children? • If you think it is appropriate to advertise to children, what special

considerations (if any) should be applied to ads?

Chapter 14 – Public Relations

The Dynamics of Mass Communication – 12th Edition

Defining Public Relations

• 3 Main Differences Between Public Relations and Advertising

1. Public relations is a function of management whereas advertising is a marketing function

2. public relations uses all forms of communication where as advertising using mass media and machine assisted communication but not interpersonal communications

3. Public relation messages appear as features, news stories or editorials and the space or time involved is not paid for. Advertising is paid for

Defining Public Relations• What do PR people do?

– PR involves working with public opinion = It attempts to influence public opinion in ways positive to the client.

– PR is concerned with communication = The PR professional explains the client's actions to its various publics (internal and/or external groups involved with or affected by the client).• Internal publics = employees, managers, unions, stockholders• External publics = consumers, governments, dealers, suppliers, community

members, mass media

– PR is a management function = Its goal is to help a company set its goals and adapt to a changing environment. It is a planned, goal-oriented activity.

Chapter 14 – Public Relations, Promotion and Publicity

• Public relations, promotion, and publicity are NOT the same things.

• Public relations for any given organization can be done by either internal PR departments or external resources. Many large companies use both.

• The PR industry is dominated by giant PR firms owned by ad agencies.

Chapter 14 – Public Relations

• The Internet has added several new dimensions to public relations = it has opened up new channels of communication between organizations and the public and between public relations practitioners and the media. It has also become a major channel of feedback for organizations interested in their public image.

• Public relations is considered a management function.

• The public relations professional focuses on communication, especially two-way communication.

The Importance of Public Relations

Since then, PR has grown in importance. Some reasons include:

• Corporations have acknowledged their social responsibility to the public. It is up to the PR department to finds the means to fulfill this responsibility.

• Increasing consumerism is forcing organizations to be more responsive and communicative with their customers. This task falls to PR professionals.

• The increasing complexity of modern organizations has made it difficult for them to get their messages to the public without using a PR professional.

Chapter 14 – Public Relations

• The following changes in U.S. society have led to a surge in the importance of PR in our society:– corporate acceptance of their social responsibility – increased consumerism – increased organizational complexity and career specialization

• Although more expensive, the advantages of using an external rather than an internal PR provider are:– greater objectivity of perspective– greater ability to come up with fresh ideas – wider variety of services

Chapter 14 – Public Relations

• One of the 13 areas in which PR is practiced is professional associations. For example, a PR firm specializing in representing professional associations might be employed by the American Medical Association or the American Dairy Association.

• An interrelated world economy has helped make international PR one of the fastest-growing sectors of PR.

• The 4 main steps involved in developing a typical PR campaign =– Information gathering– Planning– Communication– Evaluation

Public Relations in the Digital Age

• Communicating with the Audience: Social Media– Companies and organizations are embracing social

media to get their messages across. – Big and small companies have Facebook pages and

Twitter accounts. – Politicians have adopted social media to stay in

touch with voters.

Public Relations in the Digital Age

• Social media can be helpful in PR by:– serving as an early warning system, so the

company can learn of potential problems with their product or service

– providing information to the public about the launch of new products or services

– dealing with customer complaints – providing new connections between a company

and its customers

Discussion Question

• How much faith does the public have in the credibility of PR professionals? Why?

• Consider the question again after reading the “Media Probe” on page 342– Did your answer change?– Are you surprised at where PR professionals rank

compared to other people and professions?– Before reading the box, who would you have

guessed ranked that highest?– Who would you have guessed ranked the lowest?