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117 Cards in this Set
- Front
- Back
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Demand Creation Debate
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- Critics: an external message drives people to feel a need or want (sometimes unnecessary)
- Proponents say companies invest in research to find out what consumers want. |
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Shape vs. Mirror Debate
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- Critics say advertising creates social trends, dictating how people think and act.
- Advertisers say they spot trends and develop advertising messages that connect with them. Advertising both shape and mirror |
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Overcommercialization Debate
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- Advertising heigthens expectation and primes the audience to belive that the answer is always a product
- Critics say the lines between advertising, news, and entertainment are blurred. - How do you know sponsors aren’t influencing content? - Does product placement change how we view programming? |
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Social responsibility issues (5)
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1) Poor taste and offensive advertising
2) Stereotyping 3) Body image and self-image (closely related to stereotyping) 5) Message-related issues 6) Product related |
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1) Poor taste and offensive advertising
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- Viewer reaction may be affected by sensitivity: timing, product category, viewer or group, context
- Creating guidelines is difficult because "good taste" varies - "offensive" changes over time |
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Poor taste and offensive advertising: sex in advertising
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It’s becoming more blatant, especially when it’s not relevant to the product.
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2) Stereotyping
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- Gender stereotypes
(3) body image and self-image - racial and ethnic stereotypes - cultural differences in global advertising - age-related stereotypes |
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5) Message-related issues
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- false advertising
- puffery - misleading claims - comparative advertising - endorsements |
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Comparative advertising:
Lanham Act |
1)False statements have been made
2) The claim has the tendency to deceive a substantial portion of the audience 3) The deception was “material”/ meaningful, meaning its likely to influence purchasing decisions. 4) The goods were sold in interstate commerce. 5) The suing company will/was injured by the false statements. |
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6) Product-related issues
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- Advertising controversial products
- unhealthy/ dangerous products - prescription drugs |
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Legal Environment
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Trademark Protection
Copyright protection |
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Trademark Protection
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A trademark is a brand, corporate or store name, or a distinctive symbol identifying a seller’s brand and differentiating it from other brands.
- Retired brands - Exclusive use, as long as its for a specific product - Lanham Act - URLs also have to be registered and protected. First come, first serve basis |
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Copyright Protection
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A copyright gives organizations exclusive rights to use or reproduce an ad/or package design, for a period of time.
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Regulatory Environment:
Federal Trade Commission FTC |
Established in 1914 regulates deceptive and misleading, focusing on:
- Fairness: unfair competition and deceptive practices - Deception: issues cease and desist orders - Violations: can fine companies for violating 1) a trade regulation rule or, 2) cease and desist order. - Consumer participation, fund the participation of consumer groups and other interest groups in rule-making proceedings |
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FTC:
Regulating Deception |
- Current policy contains three elements:
- Misleading—representation, omission, practice Have to proof a advertising was misleading - Reasonableness—“reasonable consumer” Proof you are not an idiot - Injurious—must cause material injury, must influence consumers’ decision making about products and services *Deception is difficult to prove due to vague and hard-to-measure criteria |
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Regulating Substantiation
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- Type and specificity of claim made
- Type of product - Possible consequences of the false claims - Degree of reliance on the claims by consumers - Type and accessibility of evidence available for making the claim - Injurious—must cause material injury (will influence your decision making) |
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Steps for FTC
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- First step: Consent decrees
Advertiser agrees to stop the deceptive practice after being notified by FTC - Cease and desist order, when advertiser refuses to consent decree A process similar to court trial precedes the order. - Corrective advertising Advertiser runs messages correcting the false impressions. - Consumer redress Cancel or reform contracts, refund money or return property, pay for damages, or public notification. - Ad agency legal responsibility Agency is liable along with advertiser and subject to the same penalties. |
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Food and Drug Administration (FDA)
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- Regulatory division of the Department of Health and Human Services
- Oversees package labeling, ingredient listings, and advertising for food and drugs - Determines the safety and purity of foods, cosmetics - Watchdog for drug advertising, specifically direct-to-consumer ads for prescription drugs |
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Federal Communications Commission (FCC)
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- Regulates radio and television broadcast communications (media, not advertisers)
- Can issue and revoke licenses, ban deceptive messages or those in poor taste - Responds to complaints but doesn’t initiate actions - Works closely with FTC to eliminate false and deceptive advertising |
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Media Review of Advertising
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- The media screens and rejects advertising that violate their standards of truth and good taste.
- The First Amendment lets publishers refuse to run ads that the company does not want to public, and this sometimes creates battles between media companies and advertisers Political ads are an exception |
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Three Types of Self Regulation
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1. Self-discipline
2. Industry self-regulation |
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2. Industry self-regulation
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- National Advertising Review Council (NARC)
- National Advertising Division (NAD), full time agency made up of people form the field of advertising, of the Better Business Bureau (BBB) - Negotiates voluntary withdrawal of national advertising that professionals consider deceptive. - National Advertising Review Board (NARB), 50 member regulatory group that represents national advertisers, advertising agencies, and other professional fields. *non of these are government agencies* |
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How to determine what's ethical
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1. Personal Ethics
2. Professional Ethics 3. Potter's Box: what can I do? 4. International standards and code |
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2. Professional Ethics
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- In Gallup poll, advertising practitioners ranked just above HMO managers and car salesmen.
The American Association of - - Advertising Agencies publishes a code of “standards of practice”. |
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Key Media Players for print
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- Media sales people work for a magazine, newspaper, or TV station.
- Media reps or brokers - Media researchers - Media planners - Media buyers - Media buying companies independent companies |
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Media sales people work for a magazine, newspaper, or TV station. with:
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- Sales kits - packets of information, profile information about the people who watch, listen, or read the medium, along with the number describing audience size, and geographical coverage
- Cross-media/ cross-platform/ multi-channel - integrated channels |
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Media reps or brokers
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Are people/companies who sell space (print) and time (broadcast) for a variety of media, allowing the media buyer to place the buy with one order.
- Mediaplanning - best way to deliver a message. |
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Media researchers
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Compile audience measurement data, media costs, and availability data for the various media options.
Media planners develop the strategic decisions outlined in the media plan, such as where and when to advertise and which type of media to use. |
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Media planners
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develop the strategic decisions outlined in the media plan, such as where and when to advertise and which type of media to use.
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Media buying companies independent companies
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Undertake media research, planning, and buying. They may be a spin off from an advertising agency and now work for a variety of clients.
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Media buyers
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implement the media plan by contracting for specific amounts of time or space, based on the plan developed by the media planner.
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5 media trends: (Donald Jugenheimer)
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1. Convergence of media,
2. Interactivity 3. Engagement 4. Commoditization 5. Cadence |
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5. Cadence
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Includes the pace an schedule for an advertising campaign, with the introductory, sustaining, and reminder phases all scheduled for maximized effect (things move faster, attention spans are shorter)
What does this mean for advertisers? |
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4. Commoditization
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When a product or service become indistinguishable from others (customers often decide on price)
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Media Driven lives - Middletown Media Studies
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We spend 9 hours a day with media (including mass media, iPods, cell phones, books, email).
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Media multitasking - BIGresearch project
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Investigation of simultaneous media use, about 68% of people use other media with TV, 96% reading newspapers, 71% browsing online, 56% listening to radio.
Consider how this may influence advertising. |
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Media Plan
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Identifies the best media to use to deliver an advertising message efficiently to a targeted audience
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Measuring Print Audiences
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Impressions
Circulation Gross Impressions |
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Impression
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One person’s opportunity to be exposed one time to an ad. Can be added up as a measure of size of the audience for one type of medium or media mix. How might this number differ?
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Gross Impression
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Estimate of total impressions; if an ad runs in three issues, the gross impressions are impressions times three.
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Key Media Concepts
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- Reach
- Frequency - The goal of a media plan is to reach as many people in the target audience as often as the budget allows. |
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Advertising: Reach
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The percentage of the media audience exposed at least once to the advertiser’s message during a specific time frame.
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Frequency
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- The number of times a person is exposed to an advertisement
- Rule of thumb: You have to hear/see an ad three times for it to make an impact. |
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Print advertising.
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- Ads in newspapers, magazines, brochures, posters*, outdoor* (*out-of-home media)
- Can provide more information, richer imagery, and longer message life than broadcast media. - Often used to generate cognitive responses. |
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Characteristics print advertising for cognitive responses:
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- More flexible, allows to stop and reread, read in different order, put aside read later.
- more concrete than broadcast, readers spend more time absorbing its message more carefully. - more engaging when targeted to special interest audiences, ex. Better Homes& Gardens |
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Newspaper advertising
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- Newspaper’s primary function is to carry news
- People read newspapers as much for the ads as they do for the news stories. - Readership is declining, especially among younger people. - In terms of ad sales, it accounts for approximately 25% of traditional ad sales. - Newspapers are a local, mass medium, primary advertising - Note: Local newspapers are declining. National regional and national newspapers are increasing in sales. - Market selectivity allows newspapers to target specific consumer groups. |
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Newspaper Ad Sales
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- Ads are sold based on size of the space
- Ads are sold by local sales staff or brokers - Introduction of SAU (Standard Ad Units), standardized sizes for newspaper ads - Coop advertising |
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Coop advertising
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A local retailer places an ad and the manufacturer pays for part of the ad.
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Rate cards
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lists of the charge for advertising space and the discounts: Local advertisers and volume buyers get discounts; national advertisers pay a premium
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Types of Newspaper Advertising
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- National vs local
- Classified - Display - Supplements |
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Types of Newspaper Advertising: Display
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- Any size, placed anywhere except editorial section.
- Run-of-paper (can run anywhere) or preferred-position (select sections where ad runs). |
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Types of Newspaper Advertising: Classified
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Advertising by individuals to sell their personal goods and advertising by local businesses. (40% total newspaper ads)
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Types of Newspaper Advertising: Supplements
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- Independent, magazine-style publications sold to newspapers.
- Free-standing inserts (FSI) are preprinted ads (like grocery ads) inserted for a fee. |
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Newspapers measure their audiences to attract advertisers who want to reach their readers can do this through:
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Audit Bureau of Circulation (ABC)—independently verifies statements about newspaper circulation statistics
Simmons |
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Simmon
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annually measures readership profiles in approximately 70 of the nation’s largest cities
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Audit Bureau of Circulation (ABC)
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independently verifies statements about newspaper circulation statistics
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Magazine advertising.
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- Over 92% of all U.S. adults read one magazine per month, spending 44 minutes per issue.
- Quality of reproduction is their greatest strength, thus also for magazine advertising. - Most magazines focus on niche markets related to hobbies, sports, business, and professions. - Over half of all new magazines fail. - Zines, online versions of traditional magazines, represent the greatest growth area. |
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Types of Magazines
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Consumer Magazines
Business Magazines |
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Types of Business Magazines
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- Trade paper
- Industrial magazines - Professional magazines - Farm magazines |
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Vertical publication
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Presents stories and information about an entire industry (ex Women’s wear daily, discusses the production, marketing, and distribution of women’s fashion)
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Horizontal publication
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Deals with a business function that cuts across industries (Ex. direct marketing)
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Classifications of Magazines
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- Geography
- Demographics - Editorial Content - Physical characteristics - Ownership - Distribution and circulation |
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Classifications of Magazines
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- Geography
- Demographics - Editorial Content - Physical characteristics - Ownership - Distribution and circulation |
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Classifications of Magazines:
Geography |
- National, regional editions
- Help encourage local retail support by listing the names of local distributors in the advertisements. - National magazines also offer a zone edition that carry different ads per zone |
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Classifications of Magazines:
Demographics |
- Age, income, occupation, etc.
- ZIP- editions, for upper-income homes sent to subscribers who live in specific zip codes, and share common demographic traits. |
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Classifications of Magazines:
Physical characteristics |
media planners and buyers need to know the physical characteristics of a magazine because ads containing various elements of words and pictures require a different amount of space
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Classifications of Magazines:
Ownership |
Some magazines are owned by publishing companies, and some by organizations (AARP)
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Classifications of Magazines:
Distribution and circulation |
magazine revenues come form ads, subscriptions, and single-copy sales
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Magazine Advertising: Format
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- Premium positions
- Double-page spread - Bleed page - Gatefold - Special ad page or section which looks like editorial but says advertisement at the top - Fractional page space |
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Readership Measurement for magazines
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- Magazine circulation - number of copies of an issue sold, not the readership of the publication
- Readership represents total audience which includes pass-along readers. - Objective, outside measurement companies: |
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Objective, outside readership measurement companies for magazines
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- Audit Bureau of Circulation (ABC) verifies circulation statistics.
- Media Mark—MRI leader in measures readership for many popular national and regional magazines. - Simmons Market Research Bureau (SMRB) provides psychographic data on readers plus what products they buy. - Companies like Starch, Gallup & Robinson provide audience size and behavior information. |
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Directory Advertising
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- Directories list people or companies, phone numbers, and addresses. In addition, many directories publish advertising from marketers who want to reach the people who use the directory
- It is a form of pull advertising/ directional advertising - About 90% of the people who consult the Yellow Pages follow up with action. - Issue: Retailers can buy display space for larger ads, but directories can be cluttered. - In addition to Yellow pages, 7,500 directories for professional and interest groups. |
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Out-of-home advertising
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- OOH includes billboards, hot-air balloons, buses, posters on walls, kiosks, blimps, airport displays.
Ads on public spaces, including buses, posters on walls, etc. - Ranks second to the Internet in terms of growth! - Its successful because It’s situational: can target specific people at a specific time when they’re most interested. - Consumers are usually exposed for a very short time to a traditional billboard message (3-5 seconds) - Message is about 8 to 10 words, visual and have stopping power |
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Outdoor advertising: Two primary uses
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1. As reminder advertising for target audience(e.g. McDonald’s)
2. As a directional, it acts as primary medium when the board is in close proximity to the product |
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Outdoor advertising: Size and format
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- Printed Poster
- Painted bulletin - extensions/cutouts - digital displays |
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Outdoor advertising: Buying Outdoor
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- Sold in “showings,” standard unit for space sales based on the opportunity a person has to see a particular outdoor board, based on traffic counts
- Boards are rented for 30 days’ - Painted bulletiens are bought on individual basis, usually for 1-3 year. |
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On-Premise Signs
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- Identify a store
- Help locate businesses - Directional and informational - Attempt to do these well! |
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Posters
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- Used on buildings, kiosks, vehicles, and bulletin boards
- Impact of poster derived from striking design - Usually have few words - Kiosks are designed for posters |
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Which media to use and when
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- newspaper for announcements of something new, or for targeting local markets.
- magazines for targeting people with special interests; they’re also good for brand image or longer explanations. - outdoor for people on the move to provide directional information; also good for brand reminders. - directories to catch people when they’re shopping. |
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Packaging
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-A container and a communication vehicle.
- “even if you can’t afford a big advertising budge, you’ve got a fighting chance if your product projects a compelling image from the shelf” - Often the last thing a person sees before making a purchase decision. - A brand reminder - Can communicate brand benefits |
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Broadcast media
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media forms that transmit sounds or images electronically
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Broadcast media characteristics
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- bought in time
- messages are fleeting effect viewer's emotions for a few seconds and then disappear - Radio advertising engages the imagination and television creates powerful brand imagery. - Both radio and TV use emotion and repetition to intensify memory. |
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Radio basic characteristics
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- More than 10,000 commercial radio stations, mostly serving local markets.
- Radio industry growth is flattening, with only a 5% increase in national ad spending for 2007, and only a 1% decrease in local ad spending. |
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Radio Industry Structure
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- Signals: AM/FM
- Public Radio - Web radio/webcasting - Cable - Low-power - satellite radio |
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Using Radio effectively
Pros and cons |
Pros:
- Highly targeted and inexpensive - Excellent reminder/reinforcement capabilities, frequency through repetition - Inexpensive, so can be repetitious - Targets audiences through specialized programming - Sparks imagination through “theater of the mind” - Messages have higher level of acceptance than TV due to -loyalty of listeners to programs/stations Cons: - Timing is critical, depends on understanding target audience’s aperture. - A given radio advertisement must “break through” the clutter, often used as background music for our activities - Lack of visuals hinder demonstration of products |
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The Radio Audience
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- Highly segmented based on special interests and musical taste
- Advertisers considering radio are most concerned with the number of people listening to a particular station at a given time, audiences grouped by dayparts. |
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Radio audience: Dayparts
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- Morning Drive Time: 6–10 a.m.
- Announce things that are going on later on that day - Mid-Day: 10 a.m.–3 p.m. - Evening Drive Time: 3–7 p.m. *Most expensive ad time. - Evening: 7 p.m.–midnight - Late Night: midnight–6 a.m. - What is played (commercials) at this time? |
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Radio Audience Measurement
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- Coverage
- Ratings - Audience rating services |
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Radio Audience Measurement:
Coverage |
Number of homes in a geographic area that are able to pick up station: tuned in or not
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Radio Audience Measurement:
Ratings |
percent of homes tuned to a station
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Radio: Audience rating services
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- Arbitron Ratings Company: estimates audiences for 250 markets in United States
- RADAR (Radio’s All-Dimension Audience Research), owned by Arbitron: estimates audiences for both local and network radio |
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Radio advertising
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- Delivers high frequency using jingles for repetition.
- Has the power to engage the imagination and communicate on a more personal level than other forms of media - Uses drama to engage the imagination as in public service announcements (PSAs) which are created free by agency personnel and run broadcast free by media. |
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Radio Revenue Categories
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- Network Radio Advertising (5%)
- Spot Radio Advertising (75%) - Syndicated Radio Advertising (20%) |
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Radio Revenue Categories:
Network Radio Advertising |
- Group of local affiliates connected to one or more national networks (ABC, CBS, Westwood One, Unistar, Clear Channel biggest one with 1200 stations) through telephone wires and satellites
- National medium for food, beverages, cars, over-the-counter drugs - Growth has contributed to increase in syndicated radio (below), creating more opportunity for advertising. |
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Radio Revenue Categories:
Spot Radio Advertising |
- Advertiser places ads with an individual station, not a network
- Makes up nearly 80% of all radio advertising due to flexibility - Messages can be tailored for particular audiences - Flexibly in content, timing, and rates |
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Radio Revenue Categories:
Syndicated Radio AdvertisinG |
- Offers advertisers a variety of high-quality, specialized, and usually original programs
- Advertisers value syndicated programming because of the high level of audience loyalty. |
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Television Advertising basic characteristics
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- Television is pervasive.
98% of U.S. homes have at least one television; 60% have three or more televisions. - Parents and early childhood experts are concerned about children’s TV use. - U.S. kids spend about 4 hours/day watching TV - Television advertising is tied to television programming, so its effectiveness is determined by the popularity of the television program, as well as the correct targeting of your audience. |
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Network
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- whenever two or more stations are able to broadcast the same program that originates form a single source. FCC: defines a network as a programs service with 15 or more hours of prime-time programming per week between 8-11pm
- Think ABC, CBS, NBC, FOX, CW - Mainly do not focus on sub-populations, problem because its audience is eroding as other viewing opportunities make inroads. |
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Cable
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- subscription television, people sign up for service and pay a monthly fee
- Initially to improve reception, mountainous regions and large cities - Now provides highly targeted, special interest programs. - Stealing ad revenue from network TV. |
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Network buys
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– purchases time on a network in one or more regions (perhaps nation wide).
- Easier, but costly when considering the targeting of a group. |
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Public Radio and Television
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- Formerly commercial free, now offers program sponsorships
- Reaches an otherwise difficult-to-reach target—the well-educated, affluent household, and households with children. - No price or quality comparisons, or ask for purchase - Run only during 2.5-minute program breaks |
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Public Radio and Television
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- Formerly commercial free, now offers program sponsorships
- Reaches an otherwise difficult-to-reach target—the well-educated, affluent household, and households with children. - No price or quality comparisons, or ask for purchase - Run only during 2.5-minute program breaks |
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The Television Audience
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- Many advertisers still consider TV their primary advertising medium
- Challenges faced by advertisers include viewers bypassing ads with TiVo or similar systems. - Advertisers must learn to address “clutter” by creating breakthrough messages. |
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TV Audience Measurement
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- Households Using Television (HUT) measures exposure based on houses with sets on.
- Impressions - Ratings - Share - Nielsen measures national and local audiences using people meters (record what TV shows are being watched, the number of households that are watching, and which family members are viewing) - viewer diaries (send out during the sweeps period, when more extensive audience data and demographics are gathered) |
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TV Audience Measurement: Impressions
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the number of viewers watching a program—measured by:
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TV Audience Measurement: Ratings
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converts gross impressions to a percentage; one ratings point equals 1% of all the nation’s TV homes
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TV Audience Measurement: Share
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Share of audience is percent of viewers based on the number of sets turned on
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Television Advertising
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- Tells stories, engages emotions, creates fantasies, has great visual impact
- Demonstrates how things work - Brings brand images to life and adds personality to a brand |
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Forms of TV Advertising
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- Sponsorship
- Participants - Spot announcements |
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Forms of TV Advertising:
Sponsorship |
- <10% network advertising
- Advertiser assumes total financial responsibility for producing the program and providing the commercials |
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Forms of Advertising:
Participation |
- 90% of network advertising
- Advertisers pay for 10, 15, 20, 30, or 60 seconds of commercial time during a program |
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Forms of Advertising:
Spot announcements |
- Commercials, sold by local affiliates to local, regional, and national advertisers, that appear in the breaks between programs
- Price based on program rating and daypart |
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Using Television advertising Effectively
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- Although network audiences have splintered, TV’s mass appeal and wide reach make it cost-effective for delivering a mass media message to a large audience.
- Creates “buzz” when friends talk about favorite programs. - Strong visual and emotional impact, creating “engagement.” - Good for messages that need action, movement, demonstration, drama. - Commercial breaks are cluttered and viewers often leave sets. - Wasted reach — messages reach consumers not in the target market. - Viewers avoid commercials (how to prevent this?) - Advertising time and production costs are expensive . - As Clutter increased advertisements are becoming more , intrusive, and therefore create irritation. |
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Change and Trends in advertising
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- New forms of television advertising:
-Battle for control over who will control digital TV technology between telecommunication industry and cable industry. - Digitization will allow information to flow into households just as electricity does today - Convergence and blurring of media as video images are being moved to the Internet. - Advertisers considering new delivery methods like streaming web video and cell phones. - TV becoming an increasingly fragmented medium, making it harder to reach mass audiences. |
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Changes and Trends in advertising: 3 New forms of television advertising
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- Sponsorships
- Product placement - Advertiser-controlled programming |
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Film and Video advertising
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- Trailers, previews advertising upcoming films, but some are national commercials for brands or ads for local businesses
- Movie theaters trailers reach captive audiences - Push for Truth PSAs before movies with smoking DVD/video distributors placing ads before movies - Promotional video/radio in stores, offices, truck stops, taxi cabs etc. - Marketers producing video clips to run (for free) on cable video-on-demand, company Web sites, MySpace, video.google.com, YouTube.com |
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Product Placement
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company pays for verbal or visual brand exposure in a movie or TV program
Pros: - Less intrusive - Celebrities demonstrate product in natural setting - Unexpected; occurs when viewer resistance is down - “Ad” lasts through the ages! - After ET comes out: Reece’s - Pieces sees 65% spike in sales in the first month. - Cost?: $10’s to 100’s of thousands of dollars. Cons: - May go unnoticed; may not match movie or audience; and movie may not be successful |
