1. Advertising

2. Learning Objectives After reading the chapter, you should be able to: 1. Name some of the key characteristics of advertising in the media age 2. Understand how advertising audiences are researched and targeted 3. Identify the main types of media used for advertising and their advantages to persuaders 4. List the key challenges to advertisers in the media age and ways advertisers overcome these challenges 5. Discuss various perspectives on advertising’s effects

3. Key Terms Clutter Impression Click Brand Branding Cross-promotion Product placement Relationship marketing

4. Advertising Advertising is perhaps the most frequent encounter with mediated persuasion Typical American adult exposed to some 600–625 advertisements a day 21 st -century mediated environment places new demands on advertisers Cut through the clutter Keep audience members’ attention Find ways of forming relationships with audience members

5. Advertising in the Media Age James B. Twitchell (1996) – several qualities of today’s advertising Ubiquitous – all around us Cannot not be found – newspapers, magazines, television, Internet, Olympic broadcast, athletic venues Symbiotic – lives on other cultural organisms, thriving on success of cultural icons and events Profane – shocking, repetitious, of this world, nothing supernatural; must gain our attention Magical – consumer expects to magically feel different because of purchasing an item

6. Challenges to Advertisers in the Media Age 1. Media-user behavior challenges Audience members have more control over exposure to media and how they are exposed Time-shifted video viewing influences viewing time and commercials Viewers can bypass commercial ads today Zapping (watching other channels) Zipping (fast-forwarding)

7. Challenges to Advertisers in the Media Age 2. Audience demographic challenges Fragmented society of diverse people with diverse interests, educations, and viewpoints Media are diverse, reaching small audiences with narrow interests and tastes Broadcast networks can no longer guarantee advertisers a mass audience Finding the right media strategy is more complicated Cable networks that target smaller niche audiences are receiving just as much ad revenue as broadcast networks Finding right audience difficult with ad-free pay-per-view, streaming video, and video games

8. Challenges to Advertisers in the Media Age 3. Advertising environment challenges For an advertisement to persuade an audience, it must somehow capture and keep their attention Clutter – the amount of time devoted to nonprogram content on television, including product commercials, program promotions, and public service announcements (McAllister, 1996) Quantity – amount of advertising Competitiveness – similarity and proximity of advertising Intrusiveness – degree to which advertisement disrupts message processing

9. Challenges to Advertisers in the Media Age Clutter has increased in recent years 1. More media outlets than ever before – average US home received 118 TV channels in 2007 2. Media are carrying more advertisements than ever before – 20 minutes of every hour of programming devoted to commercial messages, which are shorter than before but more numerous 3. Audience’s perception of clutter has increased because of how ads are grouped

10. Challenges to Advertisers in the Media Age Clutter results in several communication problems Hinders the audience’s search for information Disrupts message processing Results in more negative attitude toward advertising in general May lead to ad avoidance by audience members

11. Challenges to Advertisers in the Media Age Clutter – television perceived to have the greatest clutter, followed by direct mail, magazines, radio, newspaper, and yellow pages Disruption – highest for television, followed by magazines, radio, newspapers, direct mail, and yellow pages Negative attitude toward advertising – direct mail most offensive Ad avoidance – most likely for television; followed by yellow pages, newspapers, radio, and direct mail

12. Researching Audiences for Advertising Ad agencies must conduct research about clients’ product or service to determine appropriate target audience Research process is usually hidden from consumers Three major approaches to reach advertising audience 1. Mass marketing 2. Segmentation 3. Mass customization

13. Researching Audiences for Advertising Targeting audiences Mass marketing worked in 1940s and 1950s with few media, few products, more homogenous customers Audience segmentation Demographics – age, sex, race, religion Psychographics – personality and lifestyle characteristics Geodemographics – where particular audiences live

14. Researching Audiences for Advertising Targeting audiences (cont.) 1970s – great increase in number of products, number and type of media channels, and consumer diversity Relationship marketing – uses database technology to reach consumers on an individual basis Facebook – uses a variety of methods so that user- specific advertising can be targeted for selective display

15. Researching Audiences for Advertising Measuring audiences Reach – number of targeted audience members who see a particular advertisement Frequency – number of target audience exposures to a particular ad Social media and Web-based advertising – measures impressions and clicks Impression – measure of the delivery of an ad from a delivery system in response to a user request Click – user obtains additional content or initiates a transaction or other activity

16. Media Selection After target audience is determined, ad agencies must select appropriate medium or media for the ad Social media – inexpensive way to narrowly focus ads 1. Users “like” or “follow” – implies endorsement of person/organization 2. Engaging with persuaders tells advertisers your preferences Web – uses keywords to target ads to people searching for similar products or ideas Nearly every Web page features advertising Google is one of largest companies that sells Web- based ads

17. Media Selection Mobile – uses many of the same audience analysis techniques as the Web Mobile-device advertising projected to cost $2.61 million in 2012 Mobile phones can be traced to a specific location – geodemographics becomes a more viable technique Limitations include size of phone screen Users may fear they are being tracked too closely

18. Media Selection Television – attractive for advertising because it delivers mass audiences to advertisers Local television provides medium for local businesses Television advertising is expensive Advertisers now spend as much on cable as on broadcast networks 1. Narrowcasting means that TV channels seen by increasingly more narrow audience segment 2. Increase in available TV channels 3. Digital recording gives audience members more control over exposure to commercials 4. Programming control being passed from networks to local cable operators and satellite programmers

19. Media Selection Newspapers – print media use has declined Media sources developing new ways of using online publications to attract users and advertisers Locally, newspapers are largest advertising medium Provides a way for advertisers to present longer, more detailed messages than television format Radio Advertising continues to grow Often used in conjunction with other media (outdoor billboards and Internet) Less expensive than television – ads can be repeated Satellite and Internet radio will force advertisers to adapt

20. Media Selection Magazines – challenged by reduced readership Digital advertising revenue has increased but has not offset print ad revenue decline Magazine audiences more homogenous Advertisers see magazines as an efficient way to reach target audiences Out-of-Home Advertising Place-based advertising Billboards, newsstands, bus shelters reach on-the-go consumers Digital billboards allow for more interactive messages that can be changed quickly

21. Media Selection Direct Mail Newsletters Postcards Special promotions Direct mail is the most effective form of advertising for many businesses

22. The Content of Advertising Branding Cross-promotion Product placement Relationship marketing

23. Branding Brand – the visual and verbal elements of a product, service, or corporate operation that symbolize the brand identity and help audiences remember the brand Branding – process through which objects obtain value; brand name conveys information about what use of product means Brand salience – targets which brands audience members think about Brand image – the ideas that consumers have about a brand

24. Branding Brand image 1. Advertisers help consumers understand the brand’s equity, the value or meaning of the brand to them 2. Advertisers develop an appealing, unique position for the brand to distinguish it from competitors 3. Advertisers seek to reinforce position of brand Brands should be as popular as possible to attract a wide range of customers

25. Cross-promotion Cross-promotion – two or more companies seek to reach the same audience pool with a joint persuasive campaign 1. Microcommercial function – impressions – the number of times consumer is exposed to a message is increased 2. Multilevel commercial function – maximizes promotional advantage by advertising several products at once 3. Multiplaced commercial function – reach market through various channels, or places

26. Cross-promotion McAllister (1996) warns of four dangers: 1. Amplified voices – advertisers teaming up creates more buzz about messages 2. Impersonated voices – commercials that don’t appear to be 3. Controlled voices – one promoter may have voice controlled by the other 4. Nonstop voices – long-term agreements between cross-promotion partners

27. Product Placement Produce placement – featuring branded products in entertainment media James Bond in a shiny BMW iPad featured as birthday gift in Modern Family episode Product placements function as a type of celebrity endorsement and create buzz about a product Video games also feature virtual product placements

28. Relationship Marketing Relationship marketing – a persuasive strategy aimed at keeping customers loyal by communicating with them one-to-one on a regular basis; also called one-to-one marketing Based on the idea it is easier to keep a customer than make a new one 80% of all advertising is spent on people who are not prospective customers Relationship marketing keeps customers by recognizing them, communicating with them, and responding to their needs

29. Relationship Marketing 1. Identification of individual customers 2. Distinguishing between customers is based on individual characteristics of need and value 3. Interaction with customers directly on a personal basis, reflecting their needs 4. Customization of the service or product to reflect customer needs

30. Relationship Marketing Relationship marketing cuts through clutter of competing messages Relationship marketing keeps customers loyal Limitations Large number of relationships customers are asked to be part of Customers can easily discard offers Companies not always friendly or loyal in customer relationship Such methods sometimes seen as unwarranted invasion of customer privacy

31. Advertising’s Effects Twitchell (1996) – advertising does not have a strong effect on what we buy, but it creates our culture Advertising creates a culture that values the pursuit of certain lifestyles 600 ads a day; 80 are noticed; 12 receive a reaction Plays a strong role in creating awareness of products and brands Provides information to consumers

32. Advertising’s Effects Builds brand images Reminds audience members about products or brands Adcult – refers to process by which culture is transmitted through advertising Berlin Wall fell and China opened its doors to the Western world because their citizens desired to consume goods not provided under a closed government system Advertising plays a more profound function in contemporary culture than simply identifying products and their benefits