The Dynamics of Mass Communication

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The Dynamics ofMass Communication
Seventh Edition

• Joseph R. Dominick

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Part 4 Specific Media Professions
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Chapter 14 Advertising
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Defining Advertising

• Simply defined, advertising is any form of
  non-personal presentation and promotion of ideas,
  goods, and services usually paid for by an
  identified sponsor.

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Advertising Functions

• Advertising fulfills four basic functions in
  society
  
• serves as a marketing function -- helps
  companies sell products or services
  
• advertising is educational -- people learn
  about new or improved products or services
  
• advertising plays an economic role --
  encourages new competition and lower prices
  
• it performs a social function -- helps
  increase productivity and raises the standard of
  living

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Advertising can be classified several ways

• target audience specific people to whom
  product appeals
  
• consumer advertising goods and services for
  personal use
  
• business-to-business products for business use
• geographic focus targets specific geographical
  regions
  
• purpose advertising designed to accomplish a
  distinct goal
  
• primary demand promotes product category, not
  specific brand
  
• selective demand promotes a particular product or
  service brand
  
• direct action ad promotes direct, short-term
  feedback
  
• indirect action ad promotes long-term brand
  recognition

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A Brief History of Advertising

• Advertising, in a variety of forms, dates to
  antiquity. The first serious and repeated ads
  appear shortly after Gutenbergs invention of
  moveable type in the form of handbills, posters,
  and periodicals.
• Most newspaper advertising continued to look more
  or less like crowded classified ads until the
  18th century.
  
• Ben Franklin improved the look of ads in his
  newspapers by using more white space and
  attractive fonts.

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A Brief History of Advertising (Cont)

• With the advent of mass production in the 1800s
  came the parallel need for mass consumption and
  mass markets. That rapid consumer evolution
  became most apparent after the Civil War ended,
  helped along in large part because . . .
• railroads linked the continent, and linked
  manufacturers with consumers
  
• U.S. population doubled 1870-1900 (more
  consumers)
  
• new media (telephone, typewriter, high-speed
  printing press, motion pictures, national
  magazines, photography, and rural mail delivery)
  increased communication potential
• people now had more money to spend on new products

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A Brief History of Advertising (Cont)

• Demand for advertising expertise quickly gave
  rise to the advertising agency.
  
• Radio networks make national ads a reality in
  1920s.
  
• The Great Depression and WW II slow advertising
  industry growth down during the 1930s, 1940s.
  
• From that time on, advertising content and appeal
  generally reflects the prevailing mood of the
  country.

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ORGANIZATION OF THECONSUMER ADVERTISING INDUSTRY

• Three components of the advertising industry
• ADVERTISERS
• national emphasis on brand names, product,
  service
  
• local emphasis on prices, sales, local stores
• Anyone in charge of advertising must
• plan the ads, deciding how and where they will
  appear
  
• budget appropriate funds for advertising
• coordinate ads with departments within the
  company
  
• supervise any outside agency handling the ad
  account

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ORGANIZATION OF THE CONSUMER ADVERTISING INDUSTRY
(Cont)

• AGENCIES
• full-service agency handles all phases of the
  ad campaign
  
• media buying service buys, resells, monitors
  TV/radio slots
  
• creative boutique creates imaginative ad
  campaigns

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ORGANIZATION OF THE CONSUMER ADVERTISING INDUSTRY
(Cont)

• MEDIA
• Advertisers evaluate media under four criteria,
  deciding which ones will give them the best
  results for their marketing goals
  
• reach how many people can get the message?
• frequency how often will the message be
  received?
  
• selectivity will the medium reach the right
  people?
  
• efficiency whats the cost to reach a certain
  number of people (expressed in cost per
  thousand)?

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Evaluating Potential Ad Media
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Advertising Online

• Online advertising is a new and rapidly evolving
  ad medium, one that provides a wide range of
  creative outlets.
  
• banner ads
• free-link exchange ads
• sponsored chat room and bulletin boards
• e-mail campaigns
• product and service-specific web sites

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Four Typical Operational Departmentsof an
Advertising Agency

• creative services people who create the ads
• account services client-agency liaison staff
• marketing services suggest appropriate media
• administration routine business operations

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Six Steps of an Advertising Campaign

• A campaign consists of any number of ads, each
  stressing the same major theme or appeal that
  appear in a number of media over a specified
  time. Here are six typical phases
• choosing the marketing agency
• selecting the main appeal or theme
• translating the theme into the various media
• producing the ads
• buying space and time
• executing and evaluating the campaign

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Advertising Research

• Ad research goes on during all phases of the
  campaign to help agencies and clients make
  informed decisions about the direction and
  efficiency of their strategies and tactics
• formative research done before campaign starts
  to help guide creative efforts
  
• audience defining identifies audiences
  demographics
  
• audience profiling identifies attitudes,
  motivation, lifestyles
  
• message research
• stage 1 pre-test ads for clarity,
  understanding
  
• stage 2 screen ad prototypes and refine ads
• tracking studies evaluate post-campaign effects

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ADVERTISING ECONOMICS

• About 215 billion was spent on advertising in
  the United States in 1999. Television and
  newspapers accounted for almost half the total
  amount spent
• Agency Compensation Three common methods
• Commissions media give agencies 15 commission on
  time and space they buy from media though in
  transition, most common payment method.
  
• Agency charges fees added from agencys
  production costs
  
• Fees services such as research, focus groups,
  market analysis--types of services not
  traditionally covered by commission

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Business-to-Business Advertising
Though the low-profile side of the ad industry,
business-to-business ads still rang up 150
billion in sales in 2000. There are four main ca
tegories of B2B advertising   . Trade goods an
d services to wholesalers, retailers
. Industrial items used in production of goods,
services . Professional services aimed at doctor
s, nurses, teachers . Agricultural goods and ser
vices aimed at farmers
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Consumer vs. Business Advertising

• Target audience in business advertising is much
  smaller.
  
• Most advertised business products tend to be
  technical, complicated, and high priced.
  
• Business buyers will be professional purchasing
  agents, basing purchases on reason and
  research.
  
• Personal on-site selling plays a much greater
  role in the business sector.

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Business Advertising Media
Business advertisings targets are much narrower
than the consumer market, so a mix of highly
selective media, usually magazines, works best.
Two usual formats horizontal magazines aimed a
t particular job function without regard to the
industry vertical magazines covers all levels
and interests within an entire single industry
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Business Advertising Appeal
Business ad copy tends to be long, fact filled,
detailed, technical, accurate, and complete, with
little, if any, emotional appeal, yet business
buyers pay very close attention to these ads and
place a premium on data accuracy and
completeness. Some of the most common busines
s ad formats are testimonials, case histories,
new-product news, and demonstrations
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End of Chapter 14Advertising