Advertising

1
Advertising

• Any paid form of nonpersonal presentation and
  promotion of ideas, goods or services by an
  identified sponsor.
• - American Marketing Association

2
Advertising

• Advertising is the art of convincing people to
  spend money they dont have for something they
  dont need.
• - Will Rogers

3
How Its Done

• Television 30, Split 30, 60 second spots
• Radio 30, Split 30, 60 second spots
• Newspaper By the column inch
• Magazines size of ad
• Internet pop-ups and click through rate
• Cost depends on the size of the audience

4
Advertising Revenue 2008

• Internet 23.4 Billion
• Magazines 23.6 Billion
• TV 136.8 Billion
• Newspapers 38.2 Billion
• Radio 16. 7 Billion

5
Top 10 Advertisers

• ATT
• Verizon
• Sprint
• Ford
• Macys
• Toyota
• McDonalds
• Nissan
• Target
• Chevrolet

6
Inundated

• The average American is exposed to 500 ads per
  day.

7
15 Needs (Jib Fowles)

• Sex
• Affiliation
• Nurture
• Guidance
• Aggress
• Achieve
• Dominate
• Prominence
• Attention
• Autonomy
• Escape
• Safety
• Aesthetics
• Curiosity
• Physiological

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Sex

• Blatant appealappears in about 2 of ads.
• http//www.retrojunk.com/details_commercial/286/

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Affiliation

• Most common theme. Friendship. Can be used
  negatively.

10
Nurture

• Puppies, kittens, and children appealing to your
  maternal or paternal instincts.

11
Guidance

• Father or mother figures so you dont have to
  worry.

12
Aggress

• Desire to get even.

13
Achieve

• Ability to accomplish something difficult.

14
Dominate

• The power we lack.

15
Prominence

• We want to admired and respected. We want high
  social status.

16
Attention

• We want people to notice us.

17
Autonomy

• We want to be singled out, or dont be ordinary.
• A breed apart.
• Never blend in.

18
Escape

• Imagining adventures.
• Want to get away.

19
Safety

• Free from threats.
• Many bank ads and insurance companies.

20
Aesthetics

• Beauty attracts us. Classic art or dance makes
  us feel creative and enhanced.

21
Curiosity

• Facts make information quantifiable.
• Numbers and diagrams make info seem scientific.

22
Physiological

• Sleep, eat, drink, etc.

23
Demographics

• Data about consumers characteristics, such as
  age, sex, income level, marital status,
  geographic location and occupation.

24
Geico

• Gecko lizard was created in 1999 during SAG
  strike
• Created the Martin Agency in Richmond, VA

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Who They Want

• "The 18-to-24 demographics is the most coveted
  demographic among consumer advertisers because
  this is where the purchasing habits get
  established,"
• Tom Rocco, President of College Television
  Network (Now MTVU)

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College Students

• "These kids leave home for the first time,
  theyre buying shampoo, pants, razors, socks,
  food for the first time. This is where brand
  purchasing habits and loyalties get established.
• - Tom Rocco

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Criticisms of Advertising

• Adds to the cost of products.
• Causes people to by products they dont need.
• Reduces competition and foster monopolies.

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The Big Four

• Four companies have incredible influence upon the
  500 Billion advertising industry.
• Decide when and where to spend clients budgets.

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The Rest

• 6,000 advertising agencies in the Unite States.

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Advertising Campaign

• A planned advertising effort, coordinate for a
  specific time period.

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Prices

• Average price for 30 second commercial on
  national television is 100,000.
• The price to create a TV commercial can run as
  much as 1 million a minute.
• Fierce competition.
• Much advertising is local only.

32
New Methods

• Beach N Billboard
• Located in Leonia, NJ.
• Has been used in Wildwood.

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How Advertising is Regulated

• Federal Trade Commission (FTC) can put an end to
  deceptive advertising and force advertisers to
  correct it.
• Food and Drug Administration (FDA) If labels are
  deceptive, agency can stop distribution.
• Federal Communications Commission (FCC) Has
  ruled against demonstration of products that were
  misleading or tasteless commercials.

34
Public Service Announcement (PSA)

• A non-commercial advertisement typically on radio
  or television broadcast for the public good.
• The main concept is to modify public attitudes by
  raising awareness about specific issues.

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Ad Council

• Largest distributor of public service
  announcements in the United States.
• A private, non-profit organization
• Produces, distributes and promotes thousands of
  public service campaigns on behalf of non-profit
  organizations and government agencies in issue
  areas such as improving the quality of life for
  children, preventative health, education,
  community well being, environmental preservation
  and strengthening families.

36
Effects of PSAs

• Applications for Big Brothers Big Sisters mentors
  soared from 90,000 a year to 620,000 in nine
  months
• 68 of Americans say that they have personally
  stopped someone who had been drinking from
  driving. The old saying "One more for the Road,"
  has been replaced with "Friends Don't Let Friends
  Drive Drunk."
• Safety belt usage is up from 14 to 79 since the
  Safety Belt campaign launched in 1985 - saving an
  estimated 85,000 lives.

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National Advertising Review Board (NARB)

• Industry organization that hears complaints
  against advertisers.

38
Cigarette Ads

• Have been banned from television and radio
  airwaves since 1971.
• The tobacco industry spent 15 Billion on
  advertising in 2005.

39
Departments of an Ad Agency

• Marketing Research
• Media Selection
• Creative Activity
• Account Management
• Administration
• Public Relations

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TIVO

• Uses non-removable hard disk storage, and contain
  much more sophisticated software to record
  programs
• Programs user specifically requests and other
  material the user is likely to be interested in.
• Programs being watched "live" can be paused or
  "rewound" to repeat a sequence just watched.
• Used to be able to fast forward through ads.
• Now there are pop-up ads.

41
CPM

• Cost per thousand, the cost of an ad per 1,000
  people reached.

42
Two Big Days for Advertisers

• Superbowl and Academy Awards

43
Advertising Summary

• Ads appear in various mass media.
• Ads target 15 needs.
• Demographics are data about consumer
  characteristics.
• 4 Ad Agencies dominate the industry.
• Ads can increase product costs.
• PSAs use advertising techniques to help society.