1. Advertising & Commercial Culture
Chapter 11

2. Advertising in the Digital Age
In 2014, Internet ads comprised almost 25% of worldwide ad revenue – and their share is still growing.

3. Advertising in the Digital Age
By 2016, Internet ad revenue will equal or surpass TV ad revenue. Meanwhile, ad-free online streaming services (e.g. Netflix) are on the rise, putting traditional TV advertisers in a difficult position.

4. A Brief History of Advertising
Advertising is an Ancient Activity
Ancient Egyptians had roadside billboards carved in stone.
Gladiator shows advertised on walls in ancient Rome.
Ancient Egypt/Greece had town criers shouting in the streets.
Sometimes accompanied by musicians
Ancient advertisers knew the value of entertainment in their message.

5. A Brief History of Advertising
Advertising is an Ancient Activity
The first printed advertisements were handbills
Announcements on single sheets of paper
Often posted on the doors of churches.

6. A Brief History of Advertising
Advertising Comes to America
Many settlers came to America because of advertisements they read in England touting free and fertile farmland.
American newspaper, the Boston News Letter,
Trade advertising
Notices of wares for sale from manufacturers & local merchants.
Not much use for consumer advertising
Most Americans made their own clothing and grew their own food.

7. Advertising in the 1800s Trademarks and packaging
Manufacturers found that consumers
Asked for products specifically
If they were distinctive and associated with quality.

8. Advertising in the 1800s (cont.)
Ads let manufacturers create an identity for products.
19th-century ads created the impression of significant differences among products.
Early & enduring brands
Smith Brothers (1850s)
Campbell Soup (1869)
Quaker Oats (1877)

9. A Brief History of Advertising
Ads and the Industrial Revolution
Advertising led to the diffusion of almost every type of innovation.
Encouraged people to bathe more often.
Encouraged teeth brushing and clothes washing.
Encouraged men to shave daily rather than visit a barber every few days.
Autos advertised as the solution to air pollution caused by dried horse manure blowing through the streets.

10. Promoting Social Change & Values
Ads led to social changes.
From producer to consumer driven society
Promoted new tech advances that made life easier
Emphasized appeals to women
Accused of inciting for unnecessary products
Formation of the Ad Council

11. A Brief History of Advertising
Early Industry Control
Advertisers were prone to exaggeration, or puffery.
Late 1800s, advertisers made outrageous claims & deceptions.
Miracle elixirs promised to cure ailments but many were flavored drinks made mostly alcohol & addictive drugs
Such as heroin and morphine.

12. Advertising in the 1800s (cont.)
Patent medicines
By the end of the 1800s, 1/6th of print ads came from
Patent medicine & drug companies.
Patent medicine ads were often fraudulent.
Advertisers developed industry codes.
Federal Food & Drug Act was passed
in part due to patent medicine claims.

13. Advertising in the 1800s (cont.)
Department stores
More than 20% of ad space by the early 1890s
Criticized for undermining small businesses
Impact on newspapers
Advertising changed the ratio of copy at most papers.
Recession hit papers hard.

14. A Brief History of Advertising
Ads Take to the Airwaves
In 1922, the 1st radio commercial AT&T’s WEAF in N.Y.
For an apartment complex
By 1926, when network radio began, advertising had become an acceptable means of supporting radio.

15. Early Ad Regulation Subliminal advertising
Hidden or disguised messages
No more effective than regular ads
One failed but controversial attempt at a new style of promotion involved subliminal advertising,
Advertising that the consumer was not consciously aware of.
Subliminal Message Video

16. Today’s Advertising Industry
Advertising begins w/clients with the product to be sold.
Clients spend about 20 % of revenue on ads.
The gross dollar amount spent is known as billings.
There are about 14,000 ad agencies in the U.S.
In-house agencies
Are built into the client’s corporate structure.
Boutique agencies
Specialize in creative services but do not cover aspects such as media buys.
Full service agencies
Supply advertising, marketing, and often public relations services the client needs.

17. Today’s Advertising Industry
Positioning
Finding the product’s specific customer type
Creating appeals that will be effective with that customer.
Research can involve focus groups
Potential users who sit around &and chat about a potential product
Under the guidance of a researcher.

18. Today’s Advertising Industry
Newspapers
Easy-to-find ads on the most current local sales, “money off” coupons.
Television
Perfect for image advertising
Encourages name recognition better than other media.
Extremely expensive.
Clutter,
The glut of commercials that compete for the viewer’s attention.
Infomercials
Are program length commercials disguised as information and talk shows.

19. Today’s Advertising Industry
The Internet is the most rapid growing medium of advertising,
Earning nearly $7 billion annually by 2007.
Global earning nearly $148 billion annually by 2013.
Web ads are a convergence of all former ads.
Million Dollar Homepage

20. Online Advertising
Online ads are where consumers looking for product info.
Online ads compete with magazines in terms of artwork.
Involve motion, sound & have entertainment of radio & TV.
Some users resent web ads because of a clutter problem.
Do you think internet ads are effective

21. Online Advertising Types of online ads Leading advertisers
Video ads, sponsorships, & “rich media” (pop-ups)
Classified ads & ads
Spam
Paid search advertising
Leading advertisers
Moving more ad campaigns & money to digital media.

22. Online Advertising Targeting individuals
Collect info through cookies & web surveys
Track ad impressions & click-throughs
Build profiles for consumers based on this info
Smartphone technology to tailor ads
By geographic location or user demographic

23. Online Advertising Diversity & Target Marketing Target marketing
Breaks up the audience into segments to reach individuals likely to purchase a product.
Advertisers like to minimize circulation waste,
Part of advertising received by people not trying to be reached.
Advertisers direct ad campaigns toward specific audiences

24. Online Advertising Social media
Social networks provide advertisers with a lot of data.
Some sites ask whether users liked each ad.
Companies buy paid ads on social networking sites.

25. The Association Principle
Association of product with positive value or image
Even if it has little connection
Used in most consumer ads
Disassociation
Responding to consumer backlash
Major corporations present products
As though from smaller, independent companies.

26. Today’s Advertising Industry
Advertising Objectives
Image advertising –
Promoting an idea associated with the product in the audiences mind.
Adding value to the product that is not inherently within it
A sexy model draped over the hood of a car,
Seemingly offering herself to the male consumer who is the main customer for new cars.

27. Controversies Bait and switch advertising
Provides bait in the form of an advertised bargain and a “switch” when the customer is talked into a more expensive product.

28. Controversies Critics feel ads shouldn’t be directed at young children
They see ads as entertainment & don’t understand persuade goal.
Kids as consumer trainees:
Suggests importance stems from possessions rather than who you are.
Junk food ads:
Critics are concerned about unrestricted “junk food ads” directed at children.
Blame growing obesity problem partially on these ads.

29. Critical Issues in Advertising
Advertising toys & sugary cereals to children
Advertising in schools
Impact on health
Eating disorders
Tobacco
Alcohol
Prescription drugs

30. 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.
What do you think of these?

31. Product Placement Ads in movies, TV, comics, video games, etc.
Starbucks on Morning Joe (MSNBC)
100+ placements in Man of Steel, worth $160 Million

32. Alternative Voices “Truth” campaign
National youth smoking prevention campaign works to deconstruct the images that have long been associated with cigarette ads.
Recognized by 80% of teens
By 2007, ranked
Top 10 “most memorable teen brands”