Transcript Top 10 Advertisers

10. Advertising
Richard E. Caplan
The University of Akron
Paying for our Pleasures
• “Any paid form of non-
personal presentation and
promotion of ideas, goods,
or services by an identified
sponsor”
AP/Wide World Photos
– American Marketing
Association
• Advertising is not a medium
– It finances the media
– TV, radio, newspapers,
magazines and web sites, etc.
Early Ads in Newspapers & Magazines
• First newspaper classified ads
– 1704
• Penny press and advertising
– 19th century
– Patent Medicines
– “Not responsible”
• Ladies Home Journal, 1887
– 1st magazine to profit from ads
– Led anti-patent medicine crusade
• Federal Trade Commission, 1914
– Regulates fair advertising
Advertising in Radio/TV
• 1st radio advertisement
– New York -1922 (real estate)
• Radio heavily sponsored
– Continuous reference to products
– Large increase in sales for sponsors
• Same principle for TV
– Inherited from radio
– Sponsor-produced shows
– Direct sponsorship
Advertising on the Internet
• Internet ads’ early boom
– Banner ads
– Pop up ads
• Internet ads largely unsuccessful
– Click through rate less than 1%
• In 2000 online ads reached $8
billion
– Declined since
• New ad formulas
• Short movies
– Viral marketing
• “word of mouth”
jmmelton/motleyimage
– “advertainments”
How Advertising Works
• A change in the meaning of the word advertise
– From “to take note” to “to persuade”
• The “rhetoric of democracy”
– Daniel J. Boorstin
• Common characteristics
– Repetition
– Advertising style
– Ubiquity (it’s everywhere)
– Attention grabbing
jmmelton/motleyimage
• “Plain talk” and “Talk talk”
How Ads Appeal to Consumers
AP/Wide World Photo
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Need
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for sex
for affiliation
to nurture
for guidance
to aggress
to achieve
to dominate
for prominence
for attention
for autonomy
to escape
to feel safe
for aesthetic sensations
to satisfy curiosity
physiological
Finding the Audience: Demographics
• Demographics
Sex
Age
Income level
Marital status
Geographic Location
Occupation
• Audience Analysis
– Defining the audience
– Who desires the product
– Enough to make the ad worth
the money spent
AP/Wide WorldPhoto
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Pros & Cons of Advertising
• Cost of products
– P: Helps make goods available and lowers prices
– C: Consumers pay for advertising
• Need vs. want
– P: Stimulates new products; consumers will not continue to buy
an unsatisfactory product
– C: People buy what they don’t need, even dangerous products
• Competition
– P: Less expense then other forms of sales
– C: High cost of advertising limits entry into the market place
• Advertising Power
– P: Helps people meet needs
– C: The power to deceive
Working in Advertising
– Commonly 15%
• Agencies produce TV,
radio, print and Net ads
for their clients
– Bill clients for additional
production services
©The New Yorker Collection 2000 Ruben Bolling from cartoonbank.com
• Some global agencies
• Most agencies bill less
than $1 million/yr
• Commissions
Top 10 Advertisers
Illustration 10.1
Top 10 Advertisers
Illustration 10.1
Jobs in Advertising Agencies
• Market research
– Establish target audience
• Media selection
– Suggest media for client
• Creative activities
– Create copy and design
• Account management
– Liaison between agency and client
• Administration
– Business management
• Public relations
• Ad Campaigns
• Ad careers
Dependence on Advertising
• Media/Advertising
Interdependence
• Economic Impacts
– Ad budgets
– Media platforms and
cost
• Advertising Age
AP/Wide World Photos
– With various media
– With national economy
Television Advertising
• Expensive to place
– Avg. 30 sec ad $100,000 (primetime)
– 30 sec ad on Super Bowl $2 million
• Networks and stations sell 10, 15 and 30 second ads
• National advertising on networks handled by national
advertising agencies
• Ad purchases based on CPM
• Expensive to produce
– As much as a $1 million per minute
• Other media more cost effective ?
Lucy Nicholson/Rueters/Corbis
– Cost-per-thousand
Internet, Print & Radio
• Different media, different audiences
• Fierce competition
– Competing claims
• Print advertisers attack TV ads
• Time vs. Newsweek
• Radio advertisers attack print
• Local advertising
– Most goes to newspaper
– Local ad agencies
– Local media ad services
• Ad rep firms
– Localized national marketing
Regulating Advertising
• Federal Trade Commission
– 1914
– Stop businesses that restrict competition, injure or deceive
consumers
– Can require corrective ad
– Oversees claims that appear on food labels
• Federal Communications Commission
– Misleading or tasteless ads
• Distilled Spirits Council
– Hard liquor ads, 1996
• National Advertising Review Council (NARC)
– Hears complaints
Andre Lichtenstein/The Image Works
• Food and Drug Administration
Delivering New Markets
• American agencies make half the world’s ad dollars
• Expanding international markets
• Adapting to new technologies
• Shifting demographics
– Surging Hispanic population
• Following the audience
Critical Discussion
1. Do you agree or disagree
with the criticism that says
ads create a “wants” over
“needs” mentality in
society?
Joe Raedle/Getty Images
2. To what extent is it
legitimate for advertisers to
track consumer buying
behavior? When does it go
too far?
Advertising Approaches
1. Informational: Before
19th century-price listssigns on walls, printed
announcements
-limited competition-people bought what
they needed
Attention Approach
 Start 19th century –factories turning out goods that
needed “attention” to sell
 Used : Borders, Headline type, increased white space
 late 19th century-large sizes or type were used and
graphic design
Repetition
• Resulted because many large
city newspapers objected to
large size type
• So to attract attention used
repetition in ads!
Association
• Associate pleasant things with
product
• Pleasing graphics/appealing
pictures
• Color printing
Product-Benefit Approach
• Products-more complex
• Explain what products were and why consumer would
benefit from their use
• USP-Unique Selling Proposition-every ad must present
the product as unique; USP had a benefit that no other
brand could offer!
• http://www.adflip.com/addetails.php?adID=12488&showL
argeJpg=yes
Motivation
• 1930’s Motivation Research was discovered by ad
agencies
• Products were seen to have psychological meanings
(unconscious motives) “The needs list”
• http://www.adflip.com/addetails.php?adID=13145
Entertainment
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1950’s
Doyle Dane Bernbach Agency credited
Ads could entertain rather than just inform
Wendy’s “Where’s the Beef?”
Europe’s Best Commerical
Behavioral
• 1980’s
• Consumers were critical and better educated
• Studied consumer needs and buying patterns to present
a product image that would be seen as satisfying a “real”
customer need
• Examples “low fat or low carb”
• Jared
• http://www.slate.com/id/2089167/
Advertising Claims
• Almost every ad makes what is called a “product claim”
• A claim is simply what the ad says about the product.
– Two kinds of Ad Claims
– One that provides useful information in making a purchase
decision
– One that tells little or nothing factual
The Unfinished Claim
• Ad claims that the product is Better or has More of
something, but does not finish the comparison.
• Examples:
• “more head room in our vehicle”
• “Twice as much of the pain reliever doctors recommend
most”
• “Scott makes it better for you”
• “Supergloss does it with more color, more shine, more
sizzle”
The Weasel Word Technique
• A modifier that makes what follows nearly meaningless
• Empty claims
• Common Weasel Words: helps, virtual, virtually, like,
acts or works, can be, as much as, refreshes, comforts,
fights, the feel/look of, tastes, fortified, enriched, better,
best, strengthened
• adflip.com ^ Ads archive, greeting cards of automobile,
celebrity, audio magazines advertising and more!
• “Helps control dandruff with regular use”
• “Leaves dishes virtually spotless”
• “The look, the feel of Cotton”
We’re different and unique claim
• There is nothing else quite like the product advertised.
• Uniqueness is supposed to be interpreted by the
consumer as superiority.
• “There is no other mascara like it.”
• “Only Inca has this unique filter system.”
• “If it doesn’t say Goodyear, it can’t be Polyglas*”
(trademark for fiberglass belts)
The “Water is Wet” Claim
• Say something about the product that is true for any
brand in that product category.
• Made to sound like an advantage
• “Folgers-the 100 percent Columbian Coffee”
• “Super lash greatly increases the diameter of every lash.”
• http://www.adflip.com/addetails.php?adID=10671
The Vague Claim
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Technique is simply not clear.
Often overlaps with other claims
Use of colorful words, but meaningless words
Use of subjective and emotional opinions
Many contain weasels
“For skin like peaches and cream”
“Its deep, rich lather makes hair feel new again.”
“Lips have never looked so luscious”
Endorsement/Testimonial
• A celebrity or authority lends his or her stellar qualities to
the product (may or may not use the product)
• “Michael Jordan for Hanes”
• http://www.adflip.com/addetails.php?adID=14404&showL
argeJpg=yes
Scientific/Statistical Claim
• Refers to some sort of scientific proof or experiments, to
very specific numbers, or to impressive sounding mystery
ingredient.
• “Certs contains a sparkling drop of Retsyn.’
• “Four out of Five doctors recommend…”
Compliment the Consumer
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Flatter the consumer
“You’ve come a long way baby.”
“For the real man.”
“For the special person you are.”
http://www.adflip.com/addetails.php?adID=2652&showLa
rgeJpg=yes
• http://www.wclynx.com/burntofferings/adsvirginiaslims_ad
s.html
The Rhetorical Question
• Demands a response from the audience-questions
worded so that the viewer’s or listener’s answer affirms
the goodness
• “Ford-isn’t that the kind of car America wants?”
• “Shouldn’t your family be drinking Hawaiian Punch?”
• “Wouldn’t you really rather have a Buick?”
Claim #1
• Everbright toothpaste helps get your teeth whiter and
cleaner. Its special ingredient XT-40 fights tooth decay
Claim #2
• Brushing with Goodteeth toothpaste helps fight tooth
decay. Nine out of ten dentists interviewed agreed that
brushing with Goodteeth is effective in combating tooth
decay.
Claim # 3
• New improved Blubbers bubble gum now has twice as
may sticks of gum. New Green Blubbers is chewed by
more professional football players than any other bubble
gum. Look for Blubbers in the bright green package
wherever gum is sold.
Claim # 4
• Strictly controlled scientific tests by an independent
testing lab show that Imperial gasoline with PowerTane*
outperforms any gasoline mad without PowerTane*. Get
Imperial gasoline with PowerTane* to help your car run
quieter, smoother, and get more miles to the gallon.