Transcript Advertisers
THE DYNAMICS OF MASS COMMUNCATION Joseph R. Dominick University of Georgia--Athens McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Specific Media Professions McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Chapter 14 Chapter Outline Advertising McGraw-Hill Defining Advertising A Brief History of Advertising Organization of the Consumer Advertising Industry Advertising Online Producing Advertising Economics Business-to-Business Advertising Advertising © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Defining Advertising Advertising is any form of nonpersonal presentation and promotion of ideas, goods, and services usually paid for by an identified sponsor. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Defining Advertising • Four basic functions of advertising – Marketing – helps companies sell products – Educational – teaches people about products – Economics – allows competition that lowers prices – Social – encourages a climate of free enterprise McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Defining Advertising Elements of Advertising Business-to-business advertising Geographic focus sells products for business use targets specific geographical regions Target audience specific people to whom product appeals Direct action ad promotes specific buying behavior for quick results Purpose advertising Consumer advertising accomplishes a distinct goal promotes long-term brand recognition Selective demand advertising promotes product category, not specific brand Primary demand advertising Indirect action ad McGraw-Hill sells products for personal use promotes a particular product brand © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Defining Advertising Marketing consists of the development, pricing, distribution, and promotion of ideas, goods, and services. Advertising is part of the general promotion process, along with personal selling, sales promotions, and public relations. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. A Brief History of Advertising • Ancient Babylonian clay tablets – shoe making services • English handbill (1480) – prayer book • Ben Franklin’s classified ads – white space and large headlines • Industrial Revolution – mass production, mass markets, mass consumption McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. A Brief History of Advertising • Critical mass achieved (1865 – 1900) – Railroads throughout the continent – U.S. population doubled – New communication media • Telephone Typewriter High-speed printing press • Motion pictures National magazines Photography • Rural mail delivery – More economic production and disposable income McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. A Brief History of Advertising • Birth of the advertising agency – Volney Palmer in Philadelphia (1842) – space brokerage – N. W. Ayer and Son (late 19th C) – full ad campaigns • 1920s – Radio makes national ads a reality • 1929 crash and WW II slow industry • Cold and Korean Wars distrust of advertising • The Hidden Persuaders McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. A Brief History of Advertising • Changes in 1960s – 1980s – Media environment – Transportation – Internationalization of marketplace – Cultural diversity • 1990s and beyond – Internet ads fall short – Internet bubble – Advent of PVRs McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Organization of the Consumer Advertising Industry Media Ad Industry McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Organization of the Consumer Advertising Industry • Advertisers – National – brand names, product, service – Local – prices, sales, local stores • Basic advertising activities – Plan ads – Determine how and where the ads will appear – Budget appropriate funds for advertising – Coordinate ads inside the company – Supervise outside ad agency – Follow-up on effectiveness McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Organization of the Consumer Advertising Industry • Agencies – Trend towards global mega-agencies – Full-service agency • Handles all campaign phases; studies market; studies product; presents findings – Launches execution phase & follow-up • Provides other marketing services (trade shows, etc.) – Media buying service • Buys, resells, monitors television and radio slots – Creative boutique • Creates imaginative ads and ad campaigns McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Organization of the Consumer Advertising Industry Table 14-1 Top Five Advertising Agencies, 2002 McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Organization of the Consumer Advertising Industry • Media – Four important dimensions Reach How many people can get the message? Frequency How often will the message be received? Selectivity Will the medium reach the right people? Efficiency How much does it cost to reach a certain number of people? – Also important: creative/technical nature of the medium McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Organization of the Consumer Advertising Industry Figure 14-1 Advertising Expenditures in Various Media, 1999 (Dollar figures are in billions) McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Advertising Online • 1994 – HotWired’s website with ads • Roller-coaster success since, but 2005 revival: – – – – – Lower ad prices Innovative technology People online more Selection of effective ad techniques (e.g., pop-ups) Changing methods of paying for ads • 2004 – online ads were 3% of U.S. ad dollars McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Advertising Online Types of Online Ads Banner ads Sponsored chat rooms Pop-ups Floating ads Pop-unders Mousetrapping Splash pages Product-specific web sites Skyscrapers McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Producing Advertising • Four major departments – Creative services produce the ads – Account services – Marketing services – Administration McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Producing Advertising An advertising campaign consists of a large number of advertisements, all stressing the same major theme or appeal, that appear in a number of media over a specified time. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Producing Advertising Six phases of an ad campaign 1) Choose the strategy Radio mediaproduction production Print 6 TVmedia ads Television media production 2) Select the theme -Script with music, FX -- Rough thumbnail 5 Radio adsdialog,sketches -- Storyboard and feedback 3) Translate the theme into -- Rough -Recording layouts (actual size) 4 Print ads -- Filming media -Postproduction -- Comprehensive layout -- Special effects -- Master tape 4) Produce the ads -- Use of outside specialists 5) Buy space and time 6) Execute and evaluate Curvy mountain roads McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Producing Advertising • Advertising Research – Formative research (before campaign starts) • Guides creative efforts – Audience defining (demographics) – Audience profiling • Identifies attitudes, motivation, lifestyles – Message research • Stage 1: pre-test ads • Stage 2: screen ad prototypes and refine ads – Tracking studies (post-campaign effects) McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Economics • $245B spent on advertising in U.S. (2004) • Agency compensation – Commissions • 15% commission on time and space from media • Pay-for-performance gradually taking over – Agency charges – Fees McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Economics Figure 14-1 Advertising Expenditures in Various Media, 2002 McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Business-to-Business Advertising • • Selling products to other businesses Four main categories of B2B advertising: 1) Industrial: Advertising items used in production of goods and services 2) Professional: Advertising services aimed at doctors, nurses, teachers, and other professionals 3) Trade: Advertising goods and services to wholesalers and retailers 4) Agricultural: Advertising goods and services aimed at farmers McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Business-to-Business Advertising • Consumer vs. B2B advertising – B2B: much smaller target audience – Business products and corresponding ads tend to be technical, complicated, and high priced – Business buyers are professional purchasing agents • Purchases based on reason and research • Decisions often made in-committee – Personal selling more important in B2B • Ad efforts tend to support the seller, not do the selling McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Business-to-Business Advertising • Media – Small audience + personal selling personalized media – Trade magazines, trade papers, brochures – Direct mail – Trade catalogs – Specialized cable channels and programs – Horizontal publications aim at particular job function – Vertical publications cover entire single industry McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Business-to-Business Advertising • Appeals – Business ad copy • Fact-filled, detailed, technical, accurate, complete • Little, if any, emotional appeal – Common business ad formats • • • • Testimonials Case histories New-product news Demonstrations – Recent developments in warming up B2B ads McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Advertising • Employment down 16% (20002003) • Entry-level – Creative • Junior copywriter • Junior art director Creative trainee Production assistant – Business • Courses in advertising and business; marketing • Assistant media buyer Research assistant • Junior account executive Account service trainee McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Advertising • Upward Mobility – Excellent advancement opportunities – Creative • Senior copywriter Creative director • Senior art director – Business • Media director Research director • Account executive Management supervisor McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved.