Transcript Advertising PPT - People Server at UNCW

Chapter 7 Updated Jan. 10, 2006
Advertising
“Advertising - ‘nonpersonal
communication for products,
services, or ideas that is paid
for by an identified sponsor
for the purpose of influencing
an audience.’”
- Medoff & Kaye, quoting
Vanden Bergh & Katz, p. 142
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Marketing
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All the efforts by
any person, group,
or organization
intended to
advance the
exchange of a
particular good or
service
QuickTime™ and a
TIFF (LZW) decompressor
are needed to see this picture.
Advertising: One element
of the marketing mix.
Copyright © 2005 by Allyn & Bacon
History-3000 B.C to 1900
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3000 B.C.-Babylon
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Clay tablets
exchanged on which
names of merchants
were inscribed.
100 A.D.-Rome
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Merchants hung stone
signs outside their
shops, advertising the
goods inside
1525-Germany
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A publisher printed a
communication that
advertised a book
1841-Boston
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Volney Palmer sells
newspaper space to
those who wish to
advertise in newspapers
1875-Philadelphia
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N. W. Ayer starts first
full-service advertising
agency:
Ayer writes & produces
ads & places them in
newspapers & magazines
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History-1901 to 1923
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1922-Long Island, NY
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A radio station sells air
time to an advertiser
1923-New York City-The
Browning King Orchestra, a
program featuring music
by that band, is wholly
sponsored by Browning
King clothiers
1923-General Mills
produces a jingle for its
Wheaties cereal. Sales
zoom.
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History-1924 to Present
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1940s- New York City
CBS founder William
Paley airs first
programs sponsored by
more than one
company
Bulova Watch Co. first
to buy commercial
(“spot”) time on a
“magazine”-style
program on both radio
and tv
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1970s- 30-second
(:30) spot becomes the
most popular ad “buy”
1990s- 15-second
(:15) spot becomes
common
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History-1924 to Present II
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2000s
Return of sponsorship being tested (CBS 60
Minutes)
Product placement/brand placement
increasing…began in films, now a staple in
TV narratives.
Pay-per-view as an additional revenue
stream
Advertising specific digital stations and on
the web (accessible through broadband)
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Role of Advertising in U.S. Media
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Advertising dollars provide foundation of
most mass media.
Advertising finances most radio,
television, cable television.
Advertising “model” has dominated since
1920s.
New media are changing mix of financial
support
Other financial support models:
Subscription
Pay per view
Membership
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Why Advertise?
Benefits for
advertiser.
An ad can:
 inform target
audiences of a good or
service
 foster product & brand
loyalty
 develop product &
brand images
Benefits for
consumer.
An ad can:
 provide useful
product information
 reinforce widelyshared cultural
values, such as
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capitalism &
competition
social cohesion
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Why Advertise?
Disadvantage for
advertiser.
 advertising is
expensive
 difficult to measure
direct results
Disadvantage for
consumer.
 annoyance factor
 disrupts media
consumption
 annoyance factor
 too much influence
over content
 …annoyance…
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Radio advertising
Benefits for advertiser
Radio advertising:
 localizes a selling effort to:
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a specific area
a specific age, gender, &/or income
can cost less to make than ads for other
media (range from $10-20/spot and up)
has high reach; three out of four
Americans listen to radio every day
can be very creative - theater of the mind
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Radio advertising
Disadvantages for advertiser
 products can’t be seen--yet
 radio tends to be used as a background medium
 ethereal medium - here and gone (no “shelf life”)
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Why Advertise
on Broadcast TV?
Benefits for advertiser
Broadcast TV advertising:
 products can be seen
 has high reach
 can be tailored to more program types than
radio advertising
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Why Advertise
on Broadcast TV?
Disadvantages for advertiser
Broadcast TV advertising:
 can be “zipped” through & “zapped” off
 is streamed through a medium not yet as portable
as radio & print
 tends to cost more to produce--& display--than
radio & print ads.
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Why Advertise
on Cable TV?
Benefits for advertiser
Market Shares of Top 3 Channels
Cable TV advertising:
 can reach a greater variety of
target audiences than either radio
or broadcast TV
 can be tailored to more program
types than either radio or broadcast
TV
CNN
FNC
HBO
 is less costly to display at more
desirable times of the day than
broadcast TV or some radio
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Why Advertise
on Cable TV?
Disadvantages:
Same as for Broadcast TV Plus
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30% less reach than Broadcast TV
Higher audience “turnover” (subscribers
who don’t re-subscribe)
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Why Advertise
on the Internet?
Internet (web)
advertising has yet to
be fully defined
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A Company Website:
Marketing, or public
relations--not
advertising
Buying space on another
company’s website-advertising
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Why Advertise
on the Internet?
Benefits for advertiser
Internet advertising can:
 reach a global audience
 reach a greater variety of
target audiences than any
other medium
 be least costly of all other
media to produce & display
at more desirable dayparts
 prompt immediate sales
 detailed consumer data
Disadvantages for
advertiser
Internet advertising:
 requires an interactive
audience member
 resists accurate
measurement
 is disfavored by some
parents
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Spam
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Unsolicited messages
requiring Internet users to
actively decline them
are activated when a website
visitor inadvertently triggers
a permission to receive
unsolicited emails
can prompt displeasure with
advertising in general
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Agency Types
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full service
creative boutique- specializes
in ad production & campaign
development
media buying servicespecializes in placing an ad in
those media outlets where it
will most likely achieve
advertiser goals
agencies work closely w/local
media
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Local Ad Sales - TV & Radio
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Sales Manager
National Accounts Manager
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Account Executives
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Handles national accounts: Coke, Ford…
Buys done strictly ‘by the numbers’
Local sales agents
Account lists & cold calling
Selling an “intangible”
Per spot pricing
Run-of-schedule vs. specialized buys
Traffic - places ads in schedule
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Local Ad Sales - TV & Radio
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Station will produce the spot and may
provide talent.
Some regional/national production
companies specialize in producing ads.
Competitive business
Pay is commission on sales
Many local stations have a 40%+ profit
margin!
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Criticism of advertising
Ads, say critics
 promote materialism, consumption
 reinforce stereotypes about
historically subordinated social
groups
 can mislead consumers about
product benefits
 exploit children
 invade & pervade
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