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125 views

Advertising

Uploaded by

krishna yuwanda
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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ADVERTISING

ISSUES AND TRENDS IN


ADVERTISING
 Advertising is everywhere and cannot be avoided.
 Advertisers in the United States spent approximately
$285 billion on advertising in 2008 or about $900 per
person.
 Advertisers attempt to create a sense of
dissatisfaction among consumers in order to generate
demand for their products and services.
 Because advertising is the primary source of revenue
for most media, the media off er a friendly environment
for advertisers.
 Advertisers and advertising agencies engage in both
qualitative and quantitative research to identify and
reach their target markets.
 New media create new opportunities for advertisers
A BRIEF HISTORY OF THE
ADVERTISING INDUSTRY

 Advertising historians cite branding as a precondition of


advertising. Branding is not as old as you may think, as
it did not become common until the American Industrial
Revolution in the mid 1800s.
 The Industrial Revolution brought mechanization, mass
manufacturing of both products and packaging. Mass-
produce products generated the need to mass market
those products.
 Early advertisements were relatively simple and did little
selling. By the early 1900s, advertisers realized that they
had to compete more aggressively against each other,
and instead of creating their own advertising, many
began to seek the help of advertising agencies.
 Advertising agencies evolved from fi rms that merely
placed advertisements in publications to full-service
fi rms that provide a full range of creative and strategic
services.
A BRIEF HISTORY OF THE ADVERTISING
INDUSTRY

 From the beginning of the Industrial Revolution through


the early twentieth century, most advertising appeared
in print media, such as newspapers and magazines,
along with billboards where local governments allowed
them. This is because those were the only mass media
available.
 The fi rst electronic advertising medium, commercial
radio, arose in the 1920s, and television followed twenty
years later. This combination of electronic and print
media remained unchanged until the commercialization
of the Internet in the 1990s.
 The Internet’s power as a mass communication medium
continues to evolve, and newspaper and magazine
publishers that have created web presences have yet to
capture suffi cient advertising revenue from their online
publications to off set declining advertising revenue from
their print publications
THE ADVERTISING INDUSTRY TODAY

 Advertising agencies & advertisers. Advertisers are the


clients of advertising agencies. Advertisers pay
advertising agencies to create advertisements and place
them in various media
 The media charge advertisers for advertising based on
space or time.
 The price of advertising is also based on how many people
will see the advertisement. Two concerns for advertisers
are:
 Reach is a measurement of how many people are exposed to an
advertisement.
 Frequency is the number of times an advertisement is
communicated.
 Advertisers look at CPM, or cost per thousand
impressions. The media in which those advertisements
appear measure RPM or revenue per thousand impressions
(check the readership, listenership, viewership),
TOP ADVERTISERS
ADVERTISING’S TARGET:
CONSUMERS

 Advertisers and advertising agencies divide


consumers into demographics and psychographics
 Sometimes, advertisers will run diff erent types of
advertisements at the same time, to see which type
of advertisement gets the most response
(quantitative research), In their analysis advertisers
will examine how diff erent types of people respond to
diff erent types of advertisements (qualitative
research)
 Certain goods & services meet basic human needs
and are advertised to a broad range of consumers.
Other goods & services are used by relatively small
groups of people (niches)
ADVERTISING’S MESSAGE

 Professional advertising agencies do not merely


announce that a product is for sale; they try to give
us a “reason why” we should buy the advertised item
 Advertisers typically seek to create a greater sense of
psychological need for their product than the product
itself may suggest
ADVERTISING’S MESSAGE

 Advertisers want people to buy things. They do this by


portraying a world without their product as one of
deprivation and lost opportunities. Advertisers emphasize
how unhappy we should be without their product.
 Many of us claim that, although advertising is a powerful
force in society, it has little eff ect on us personally.
Ironically, we tend to acknowledge the power of the mass
media, but only as it applies to other people. This third-
person eff ect is exactly what advertisers and advertising
agencies want us to believe.
 Consumers’ willingness to view or listen to
advertisements with a casual attitude means that we are
not thinking about those advertisements in a critical
manner. This makes it even easier for advertisements to
infl uence our attitudes about the products and services
advertised, as well as infl uence our attitudes about
ourselves
ETHICAL ISSUES IN ADVERTISING

 Many advertisements rely on puff ery and make a


claim that sounds good, but cannot really be
evaluated. Many advertisements use comparative
terms (“better than ever ”) or superlative terms
(“hottest deal in town”) without off ering an objective
basis of measurement
 Creating pseudo-event for an event that is staged
primarily for marketing purposes.
 Stealth marketing
ADVERTISING BY MEDIUM

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