Transcript Where Marketing Communication Began

Chapter 1
Where marketing communication
began: the development of
advertising in Australia and New
Zealand
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Learning objectives
1. To define advertising—looking at its importance
and its function.
2. To trace the history of advertising in Australia and
New Zealand.
3. To explore the changing advertising environment.
4. To introduce marketing communication
concepts—such as consumer empowerment and
engagement, the push–pull marketplace and
interactive advertising, digital and social media—
that will be fundamental to the rest of the book.
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Importance
Structure &
function
Definition
Future of
advertising
History
Advertising
News
channels
Empowered
Consumers
Changes in
ad agencies
Social media
Interactive
advertising
Engagement
Digital media
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What is advertising?
Traditional definition
Advertising is any paid
paid form
form of
of non-personal
non-personal
non-personalcommunication
communication
communicationabout
about
about
an organisation, product, service or idea by an identified sponsor.
Paid: The space or time for
an advertising message must
be purchased.
Non-personal: Involves mass
media (e.g. TV, radio,
newspapers, magazines) in oneway communications.
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The best job in the world
The best job in the world campaign, but how much
advertising did it use?
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A new definition of advertising
Traditional definition
Advertising is any paid form of non-personal
communication about an organisation, product,
service or idea by an identified sponsor.
New, improved definition
Advertising is a paid, mediated form of communication
from an identifiable source, designed to persuade the
receiver to take some action, now or in the future.
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Importance of advertising
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Importance of advertising
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Advertising has many functions
Communicate & interact
The nature and
purpose of
advertising differs
from one industry
to another and
across situations.
Engage & involve
Brand awareness
Brand equity
Brand image
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Brand awareness
Building brand awareness is especially important for
new products.
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Brand image
Even established brands need to build and maintain
brand image.
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History of advertising
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Function and structure
Client options
In-house
advertising
Advertising
agency
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Types of agencies
Full service
Types of agencies
Creative boutiques
Media buying services
Other
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Full-service agencies
Planning
advertising
Creating
advertising
Research
Full range of
marketing,
communication
and promotion
services
Producing
advertising
General
communications
 Sales promotion
 Direct marketing
 Interactive
 Package design
 Public relations
 Publicity
Selecting media
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Ad agencies have skilled
specialists
Artists
Copywriters
Researchers
Photographers
Media analysts
Other skills
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Great Australian ads
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Importance
Structure &
function
Definition
Future of
advertising
History
Advertising
News
channels
Empowered
consumers
Changes in
ad agencies
Social media
Interactive
advertising
Engagement
Digital media
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Advertising timeline (Australia)
1800
First ad
(poster)
1821
First
magazine
1803
First
newspaper
ad
1911
Media
commissions
introduced
1912
First industry
association
(Melbourne)
1901
First advertising
service agency
(Sydney)
1946
National industry
association
(AANA)
1923
Commercial
radio
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1956
Commercial
TV
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Advertising timeline (NZ)
1901
Newspaper
Publishers
Association
1906
First
advertising
agency
1821
First
magazine
1931
1927
11 accredited
Advertisers
agencies in
Association of operation
NZ
1923
Broadcasting
regulations
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1960
1st television
broadcast
1989
Te Mangai
Paho
(Maori
Broadcasting)
established
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History of advertising
Early newspaper
advertisements
were confined to
printed text only.
Illustrations were
rare until the
1860s.
Source: Walter Powell Advertisement for Paragon Kitchens, 1862 State Library of Victoria, Pictures Collection
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Advertising today—Australia
Media expenditure: $12.6 billion
Advertising agencies: 1000+
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Advertising today—Australia (cont.)
Radio licences
374 commercial
358 community
Television (FTA)
54 commercial
83 community
Subscription TV
2588
Metro and regional daily
newspapers: 50+
Consumer magazines
140 (audited)
Cinema screens: 1994
Population: 21 million
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Advertising today—NZ
Media expenditure:
$2045 million
Advertising agencies: 200+
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Advertising today—NZ (cont.)
300 radio stations
150 newspapers
87 TV channels
6000 magazines
455 cinema screens
Population: 4.18 million
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Breakdown of advertising
expenditure (Australia)
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Media expenditure in New
Zealand: 2007
Media Platform
2008
2009
($million)
($million)
Newspapers
760
623
Television
647
570
Radio
268
236
Magazines
249
217
Outdoor
74
68
Cinema
9
6
Addressed mail
56
58
Unaddressed mail
64
65
Interactive
193
214
Source: New Zealand Advertising Standards Board
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Importance
Structure &
Function
Definition
Future of
Advertising
History
Advertising
News
Channels
Empowered
Consumers
Changes in
Ad Agencies
Social Media
Interactive
Advertising
Engagement
Digital Media
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The changing advertising
landscape
 Consumer empowerment
 Push-pull marketplace
 Digital media and interactive advertising
 Social media
 New rules of engagement
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Consumer empowerment and
the push-pull marketplace
• Insert figure 1.7
• Push pull marketplace
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Digital media and interactive
advertising
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Interactive advertising
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Social media
Social media defined:
Social media has been defined as ‘a group
of internet-based applications that build
on the ideological and technological
foundations of Web 2.0, and that allow
the creation and exchange of usergenerated content.
David Schumann, Andy Artis & Rachel Rivera, ‘The future
of interactive advertising through an IMC lens’, Journal of
Interactive Advertising, vol. 1, no. 2,. 2001
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Social media
Traditional view
Contemporary view
Consumers are
consumers of content
Consumers are
producers of content
Brands are owned
by companies
Brands are a shared
creation
Marketers define brand
meanings and values
Consumers define brand
meanings and values
Key opportunity: How to engage consumers by
inviting them to create content around a product?
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Social media
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New rules of engagement
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Importance
Structure &
Function
Definition
Future of
Advertising
History
Advertising
News
Channels
Empowered
Consumers
Changes in
Ad Agencies
Social Media
Interactive
Advertising
Engagement
Digital Media
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The future of advertising
 Harsh economic environment leading to advertising
budget cuts
 Mass media advertising is dying
 Rise of new communications technologies
 Fragmentation of media and markets
 Search for big ‘consumer insight’
 From great executions to strong strategy
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Summary and conclusions
 Advertising in Australia and New Zealand has a long
heritage with its roots dating back to the 1800s.
 Advertising has evolved from a push by marketers to
reach audiences to a more complex and interactive
approach.
 Consumer empowerment has led to an emphasis on
shared dialog rather than pushed messages.
 Definitions of advertising have changed to accommodate
new technologies and interactivity.
 The advertising industry has also adapted to current
changes.
 Advertising continues to be the best way to reach large
audiences.
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