Mass Communications 2000 Exam 4/Final Study Guide: An Overview of The Advertising Industry, Study notes of Communication

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Mass Communications 2000 Exam 4/Final Study Guide Chapter 15: The Advertising Industry

• Advertising is the activity of explicitly paying for media space or time in order to direct favorable attention to certain goods or services o Advertisers pay for the space or time they receive o Advertising clearly states its presence o Advertising involves persuasion History of advertising
• Advertising as old as selling
• Criers in Roman Empire
• Print ads on papyrus in ancient Egypt
• Criers and shop signs in medieval England Early Colonial Period
• Benjamin Franklin – successful seller/writer of ads
• Until 1840s, advertising involved direct negotiation between sellers/manufacturers of products and newspapers 1840s
• Volney Palmer – first to start an advertising agency
• 15-25% commission charged by an advertising agent Industrial Revolution
• Creation of brands
• Changes in the functions of an ad agency
• Reason-why and image ads
• 1914: Audit Bureau of Circulation – verified claims about a periodical’s audience Types of Ads
• Reason-why Ads – ads that list the benefits of a product in ways that would move the consumer to purchase it
• Image ads – ads that tie the product to positive feelings Self-Regulation
• Many misleading and false advertising claims
• Advertising professionalized: o The Association of National Advertisers, The American Associate of Advertising Agencies, establish norms of proper ad-business behavior, and stave off government intervention 1920s
• Radio advertising o Birth of the audience rating business o New advertising strategies for then new medium o Advertising clients actually owned programs 1930s
• During Depression, ad revenue dropped
• Did not recover much during WWII 1940s
• TV advertising o Dramatic shift of ad revenue from radio to TV o Advertisers bought half blocks of time from TV or sponsored entire shows 1960s
• Networks decide to develop own programs – changes:

o Ads throughout entire flow of program o Time on TV expensive o Length of commercial decreased 1960s-1990s

• Rise of research industry aimed at identifying effect of commercials on purchase decision
• Motivation research
• Subliminal persuasion Modern Advertising Industry
• Trends o Shift toward global presence o Agency holding companies  Ad agencies, specialty agencies, direct-marketing firms, research companies, public relations agencies
• Advertising holding company o Idea: offer clients range of services beyond advertising o 1950s: Interpublic Group of Companies o Big Agencies: Omnicom, Interpublic, WPP, Dentsu, Havas
• Types of advertising agencies o Business-to-business vs. Consumer o General vs. Specialty o Traditional vs. Direct-Marketing o Agency networks vs. Stand-alone firms
• 3 Functions of Ad Work o Creative persuasion, Market research, Media planning & buying Production
• Branding – creating a specific image of a product that makes it stand out in the market place; the creation of brands is one of the most important activities in advertising.
• Steps in creating a brand: o 1. Interaction between ad agency personnel and client o 2. Actual creation of the targeted message that portrays the brand in its social environment
• Creating portraits o 1. Sales Pitch o 2. Produce ad/collection of ads illustrating the sales pitch o 3. Positioning  Making a particular target group of consumers feels that brand relates to their interests and lifestyle o 4. Testing
• People who work in the advertising industry’s production area are called creatives Distribution
• Media planners – responsible for determining where to place campaign ads and rely on demographic, psychographic, and lifestyle data
• Factors in media planning decisions: o Media outlet’s reach and efficient in reaching target audience; CPM = cost per thousand o Other factors include content environment surrounding ad and the ad’s relative visibility Exhibition
• Goal: Exhibit an ad across a variety of media to a target audience

• Advertising campaign – the entire set of ads using a particular theme to promote a product for a certain period of time
• Media conglomerate – advantages: o Cross-platform deals  Deal between cross-media conglomerate and advertiser  Agreements with one part of conglomerate across many media brands o Tracking consumers  Location-based advertisement – use of mobile phones to serve ads based on the location of consumer o 3 Strategies to grab attention  Increase relevance of ad to specific audiences  Make deleting/skipping ads impossible  Disguise the ad (product placement, viral, buzz, or environmental marketing) Media Literacy
• Criticism of impact of commercialism on social life, impact of advertising on democracy, and power of conglomerates
• Commercialism o Teaches that society is just marketplace o Ties identity formation to the buying of products o Exploits children & environment
• Ads & Democracy o Advertising industry’s power over media prevents people from learning about social groups not attractive to advertisers
• Power of Conglomerates o Consolidation increases advertising power over media content o Ad & Media clutter