Mm ch 13 advertising

Mass Media

Jason NixJournalism Instructor and Program Director

JOURN 110Spokane Falls Community College

Chapter 13

Advertising: The Media Support System

Chapter Outline• History• Industry• Controversies

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A Brief History of Advertising

Advertising is an Ancient Activity• First printed ads were one-page

handbills• “Come to America! The natives are

friendly and the farmland is fertile.”• trade advertising• consumer advertising• display ads

Advertising

• Stimulative effect of advertising

• Advertising spreads innovation• Consumers are created as

much as they are reached

Penny Press

A Brief History of Advertising

The Advent of Advertising Agencies• 1841, Philadelphia’s Volney Palmer

becomes an ad broker to act as a liaison between advertisers and newspapers.

• By 1860, 30 major agencies were servicing some 4,000 newspapers and magazines.

• N.W. Ayer was founded in 1869 when manufacturers realized they needed agencies to work directly for them as opposed to working for the newspapers. Ayer would not work with products that were dangerous or place ads considered deceptive.

A Brief History of Advertising

Early Industry Control• puffery• By the late 1800s, advertisers were

making outrageous claims and outright deceptions.

• Miracle elixirs containing alcohol, cocaine, heroin

• The Pure Food and Drug Act was passed in 1906 largely in reaction to patent medicine claims.

• The Federal Trade Commission (FTC) was established in 1914 as a national watchdog of business and advertising.

A Brief History of Advertising

Ads Take to the Airwaves• As the radio industry developed in the early

20th Century, there was a movement to leave broadcasting free of advertising and run it as a common carrier of mediated interpersonal communication.

• Britain decided to fund its state-run broadcasting system, the BBC, by license fees paid by radio owners, not advertising. British radio and television did not accept advertising until the 1950s.

• In 1922, the first commercial was run by AT&T’s WEAF in New York.

• By 1926, when network radio began, advertising had become an acceptable means of supporting radio.

A Brief History of Advertising

• Advertising became a specialized art form with the advent of television.•30-second TV commercials feature

entertainment value such as story lines and jingles

• subliminal advertising

A Brief History of Advertising

Diversity and Target Marketing• Target marketing breaks up the

advertising audience into diverse segments•circulation waste•Advertisers direct ad campaigns

toward women, African Americans, Hispanics, young white men and others.

Globalization• Since the 1980s, agencies in the U.S.,

Japan, and Britain have merged into transnational behemoths and adapted to indigenous cultures in new markets.

Understanding Today’s Advertising Industry

• The Client• The Agency• The Medium

Understanding Today’s Advertising Industry• Account executives • Audience research

•Demographics•Psychographics

Understanding Today’s Advertising Industry

Before we consume, we live

What types of consumers are there?

Understanding Today’s Advertising Industry• Positioning: the process of finding the

product’s most specific customer type and creating appeals that will be effective with that customer

• focus groups

Mad Menhttp://www.youtube.com/watch?v=R2bLNkCqpuY

Johnson “daisy” ad (1964)http://www.youtube.com/watch?v=kYk5MNjYhmk&feature=related

1984http://www.youtube.com/watch?v=OYecfV3ubP8http://www.youtube.com/watch?v=6h3G-lMZxjo

Willie Horton ad (1988)http://www.youtube.com/watch?v=Io9KMSSEZ0Y&NR=1

Honda adhttp://www.youtube.com/watch?v=g2VCfOC69jc

Understanding Today’s Advertising Industry

Different types of ads• Newspapers

• Display ads • Classified ads

• Magazines • Television• Direct mail• Specialty ads

• Radio• Yellow Pages• Outdoor ads• Online

• Per click fee• Per 1,000 page

views

Understanding Today’s Advertising Industry

Understanding Today’s Advertising Industry• The Internet is the most rapidly growing

medium of advertising, earning nearly $6.3 billion annually by 2009. Still a small piece of the pie; total ad expenditures $125.23 billion in 2009.

• Web ads are a convergence of all former ads.•Like newspapers and the yellow pages, online

ads are placed precisely where consumers are looking for product information.

•Online ads compete with magazines in terms of artwork.

•They involve motion and sound, and have the entertainment advantages of radio and TV.

•Some users resent Internet ads because they are developing a clutter problem.

Understanding Today’s Advertising Industry•The Internet is the most rapidly

growing medium of advertising, earning nearly $6.3 billion annually by 2009. Still a small piece of the pie; total ad expenditures $125.23 billion in 2009.

•Search remains the largest online ad format: 47% of online ad revenues, up from 45% in 2008.

•Search ad spending increased 1% in 2009 to $10.7 billion.

Understanding Today’s Advertising Industry

Advertising Objectives•The objectives of advertising are:

•Name recognition•Spreading news.• Image advertising •Advocacy ads•Corrective ads•Counter ads•Public service announcements

(PSAs)

Controversies

Controversies

Truth in advertising• Bait-and-switch advertising• Parity statements

Ads and children• Kids as consumer trainees• Junk food ads

Controversies

Alcohol and cigarette ads: A 1999 settlement between tobacco companies and states’ attorneys general banned:• Transit and billboard advertising in

the U.S.• The distribution of apparel and

other merchandise with brand names or logos.

•Brand-name sponsorship of concerts and events with a significant youth audience.

•Payments for the use of tobacco products in movies, TV shows and theater productions.

Controversies

• Should government regulate consumer tracking in the name of target marketing, or should the industry be allowed to self-regulate.

Controversies

Advertiser Influence on Media Content• Devices such as remote controls,

videotape recorders, and TiVo assist viewers in skipping ads. Many industry professionals feel product placement (product integration) – making commercials part of the program – is their only recourse.

Controversies

Economic Clout: Influencing the News• How does advertising affect the way news

sources tell a story?

• flak

Chapter 13

Advertising: The Media Support System

Chapter Outline• History• Industry• Controversies

Mass Media

Jason NixJournalism Instructor and Program Director

JOURN 110Spokane Falls Community College