11.2 Marketing a Small Business Advertising Presentation 2

Any PAID form of

NONPERSONAL presentation of ideas, goods, or

services

Historical Milestones in Advertising  

Advertising goes back to the very beginnings of recorded history. Archaeologists working in the countries around the Mediterranean Sea have dug up signs announcing various events and offers. The Romans painted walls to announce gladiator fights, and the Phoenicians painted pictures promoting their wares on large rocks along parade routes. A Pompeii wall painting praised a politician and asked for the people's votes.  During the Golden Age in Greece, town criers

announced the sale of slaves, cattle, and other goods.  Another early advertising form was the mark that trades-people placed on their goods, such as pottery. As the person's reputation spread by word of mouth, buyers began to look for his or her special mark, just as trademarks and brand names are used today.

The turning point in the history of advertising came in the year 1450, with the invention of the printing press. Advertisers no longer had to produce extra copies of a sign by hand.

In 1622, advertising was given a big boost with the launching of the first English newspaper, The Weekly Newes. Joseph Addison, the publisher, gave this advice to copy writers; “The great art in writing advertising is the finding out the proper method to catch the reader, without which a good thing may pass unobserved, or be lost among commissions of bankrupts." The September 14, 1710, issue of the Tatler contained ads for razor strops, patent medicine, and other consumer products.

Advertising had its greatest growth in the United States. Ben Franklin has been called the father of American advertising because his Gazette, first published in 1729, had the largest circulation and advertising volume of any paper in colonial America.

Types of AdvertisingTypes of Advertising• Promotional Advertising: Communication

designed to increase sales of products and services.

• Institutional Adverting: Promotion designed to create a favorable image and goodwill for business or organizations.

Media?

• On the average, how much time per week do you spend with the following media?– Television– Radio– Magazines– Newspapers– Internet– Outdoor (billboards, bus signs, etc.)

• Which media do you pay the most attention to advertisements?

• What differences do you see in your media habits and those of your parents?

•Print media: Newspapers and magazines

•Broadcast media: Radio and TV

•Direct mail: Mailings sent by the business to the prospective customers

•Outdoor transit media: Billboards, outdoor signs, posters, marquees

•Other media: Specialty advertising, directory advertising, motion picture advertising

Advertising in NewspapersAdvertising in Newspapers

DisadvantagesDisadvantages• Short life span.

• Wasted circulation.

• The quality of production is poor.

AdvantagesAdvantages• High level of reader

involvement.

• Circulation is known.

• The cost of local newspaper advertising is low.

• Great deal of flexibility.

• Frequency

Advertising in MagazinesAdvertising in Magazines

AdvantagesAdvantages• High demographic

selectivity.

• Long advertising life.

• Good reproduction quality.

• Advertisements held in higher regard--Prestige/Credibility

DisadvantagesDisadvantages• Long lead time.

• High cost.

• Inflexibility.

• Lack of penetration

Magazine Magazine AdvertisementsAdvertisements

Can be Can be expensive expensive butbut

reaches a lot of reaches a lot of people.people.

How Important is Advertising to Magazines?How Important is Advertising to Magazines?

The chart below shows the top five magazines and the percentage of their revenues generated by advertising, subscriptions and

newsstand sales.

Total Revenue Advertising Subscribers NewstandTV Guide $1,172,127,000 41.9% 43.2% 14.9%People $1,155,395,000 61.8% 18.9% 19.3%Time $962,651,000 68.4% 27.2% 4.4%Sports Illustrated $905,313,000 67.8% 28.6% 3.6%Better Homes & Garden $595,667,000 74.6% 23.0% 2.4%

Source: Http://www.adage.com (1999 figures)

Radio AdvertisingRadio Advertising

AdvantagesAdvantages• Low cost

• Selectivity

• Flexibility

• Local personalities

• Useful supporting data

DisadvantagesDisadvantages• Lack of prestige• Short life• Shared audience

attention• Audio only

presentation

Television AdvertisingTelevision Advertising

AdvantagesAdvantages• Large audience• Attention getting ability• Low cost per exposure• Personal appeal• Can have flexibility

DisadvantagesDisadvantages• High absolute cost• High degree of clutter• Short message life• Time limitations• Low audience selectivity• Ignored messages

Cost to Advertise on the Super Bowl

Source: Nielsen Advertising Research, Advertising Age Research.

YearPrice for 30

secondsAvg. Number

HomeAvg. Number Viewers

1967 $40,000 22,570,000 51,180,0001970 78,200 23,050,000 44,270,0001975 110,000 29,040,000 56,050,0001980 275,000 35,330,000 76,240,0001985 500,000 39,390,000 85,530,0001990 700,000 35,920,000 73,852,0001995 1,000,000 39,400,000 83,420,0002000 2,100,000 43,618,000 88,465,0002005 2,400,000 45,081,000 86,072,0002006 2,500,000 45,867,000 90,745,0002007 2,600,000 NA NA

Source: Nielsen Advertising Research, Advertising Age Research.

Direct Mail AdvertisingDirect Mail Advertising

Advantages Advantages • Audience selectivity

• Flexibility

• Lack of direct competition

• Personalization

• Measured performance

DisadvantagesDisadvantages • Potential high cost

• Lack of editorial matter

• Negative image

OutdoorAdvertisingOutdoorAdvertising

Disadvantages Disadvantages • Brevity of exposure• Limited message length• Limited selectivity• Attracts criticism

This ad for a portable email device is aimed at busy travelers looking for convenience.

Http://www.billboardinfo.com Http://www.buyelink.com

Advantages of Transit Advantages of Transit AdvertisingAdvertising

• Low cost

• Geographic flexibility

• Large captive audience

• Message length

Transit AdvertisingTransit Advertising

DisadvantagesDisadvantages • Limited target

market• Lack of prestige

Advertising Media Mix in the United States

Television38.7%

Radio13.0%

Magazines12.2%

Outdoor1.8%

Newspapers34.3%

Projected U.S. total ad spending = $134.3 billionAd Spending per capita = $437.60

Source: Http://adage.com/dataplace/topmarkets/us.html