6/13/2012 1 ADVERTISING Advertising: A paid, mediated presentation of information about services, products or ideas with the specific goal of influencing the consumers of the information > Advertising is a form of promotion - promotion: making the public aware of a company, candidate, product, service or issue - promotion includes advertising, public relations, packaging, personal selling and gifts
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chap 11 - advertising - California State University, …commfaculty.fullerton.edu/tclanin/Comm233/lectures/chap_11_adve… · 6/13/2012 1 ADVERTISING Advertising: A paid, mediated
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6/13/2012
1
ADVERTISING
Advertising:A paid, mediated presentation of information about
services, products or ideas with the specific goal of
influencing the consumers of the information
> Advertising is a form of promotion
- promotion: making the public aware of a
company, candidate, product, service or issue
- promotion includes advertising, public relations,
packaging, personal selling and gifts
6/13/2012
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Importance of advertising
> Consumer economics
interaction of the supply and demand in the advertising market
connection between advertising market and consumer market
> Advertising and prosperity
> Advertising and democracy
> Persuasion vs. coercion
Origins of advertising
> Stepchild of technology
> Mercantile press and advertising
- mercantile newspapers served businesses
announced arrival of goods from England
real estate sales
services offered
Origins of advertising
> Development of mass advertising
- 1840s: Penny Press caused explosion in circulation
merchants could reach thousands of readers each day – it was the first mass advertising
papers began to sell advertising space by the column inch
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Origins of advertising
> Development of Mass Advertising
- patent medicines (let the buyer beware)
prompted government to create truth-in advertising laws
1906: Pure Food and Drug Act
1914: Federal Trade Commission established
1931: Food and Drug Administration established
regulate advertising and interstate trade
crack down on false advertising
Origins of advertising
> Development of mass advertising
- rise of advertising agents
go-between for newspapers/magazines and advertisers
could place the same ad in many publications
created the first newspaper directory
evolved into today’s advertising agencies
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Origins of advertising> Broadcasting arrives
- radio was first instantaneous national medium
could reach millions of people at the same time
Origins of advertising
> Broadcasting arrives
- rise of advertising agencies
+ more choices for advertisers
+ agencies became full-service organizations
research audiences
advise client where to place the ad
buy ad space in newspapers, radio, TV etc.
write the ad copy
create the ad illustrations, video etc.
Origins of advertising
> Broadcasting arrives
- TV let viewers see product & hear national message
persuasive message is much more effective
TV has the greatest growth in ad revenue
- 1980s: rise of cable TV
advertiser can reach segmented audiences
target products or campaigns to different audiences