1. Hogeschool van Amsterdam Interactieve Media Advertising and the changing media landscape Hoorcollege marketing communication blok 4 week 3

2. Hogeschool van Amsterdam Interactieve Media Why do we bother advertising?

3. Hogeschool van Amsterdam Interactieve Media Learning goals  By the end of the colleges and the reading you should:  Be able to define advertising  Be aware of how the changing media landscape affects advertising as a communications channel  Understand the benefits of- and the issues with advertising  Have an awareness of the different advertising channels available  Be aware of the threats and opportunities interactive media generates for advertising

4. Hogeschool van Amsterdam Interactieve Media Agenda  A definition of advertising  Issues facing advertising  What is the job of advertising today?  Summary  Appendix  Advertising channels  Advertising and “new” media

5. Hogeschool van Amsterdam Interactieve Media A definition of advertising  Advertising can be defined as any paid for non-personal promotion broadcast through a mass medium where there is an identifiable sponsor  Mass media  TV, radio, cinema, magazines, newspapers, outdoor media  Perhaps “New” Media  The world of advertising is full of noise  Some argue that the aim of any form of advertising is to attract and hold the attention of the target audience  But perhaps this is not always the case  Advertising must be consistent internally, within the communications mix AND the marketing mix  Advertising must be truthful

6. Hogeschool van Amsterdam Interactieve Media What advertising is not  It is not just television  The majority of advertising is print-based  It is not dying, but it must change  Internet, iTV, PVRs, in-game, etc. are changing the face of advertising  It is not the only element of the promotions mix  Advertising is great for creating awareness and interest  But to increase sales it must be combined with other elements of the promotions mix

7. Hogeschool van Amsterdam Interactieve Media Issues facing advertising

8. Hogeschool van Amsterdam Interactieve Media What’s the problem  Today marketing communications as a whole and advertising in particular faces two (connected) issues  The selective nature of human perception  This has always been the case  The changing media landscape  This is a relatively new phenomenon  These are perhaps most difficult for advertising

9. Hogeschool van Amsterdam Interactieve Media Watch the video  Count how many passes do the team in white make to each other? http://viscog.beckman.uiuc.edu/grafs/demos/15.html

10. Hogeschool van Amsterdam Interactieve Media The selective nature of human perception  Selective perception  The tendency of human beings to filter most information they receive - this is called attention  We see around 1,500 ads per day, we remember 4 or 5 1  Selective distortion  The tendency of human beings to adapt information to fit in with their existing views  The “Pepsi Taste Challenge” only works when blind tasting 2  Selective retention  The tendency of human beings to forget things that do not fit with their “world-view” 1.Fiske, J. (1989), Understanding Popular Culture, London, Routledge 2.McClure, S. M., (2004), “Neural Correlates of Behavioral Preference for Culturally Familiar Drinks”

11. Hogeschool van Amsterdam Interactieve Media Changes in the marketing environment have made this worse  Over the past few decades the marketing environment has changed significantly  Consumers have become more sophisticated and better informed  Mass markets have fragmented into smaller market segments  Developments in communications technology and legislation has led fragmentation of communications channels  This has led to increasingly segmented markets and communication channels

12. Hogeschool van Amsterdam Interactieve Media The changing marketing communications environment

13. Hogeschool van Amsterdam Interactieve Media What this actually means  The old (1950’s) mass communication model is less effective  Communication has to be targeted  IMC and cross-media campaigns  For advertising this means it’s role in the promotions mix is changing X

14. Hogeschool van Amsterdam Interactieve Media What advertising is good at

15. Hogeschool van Amsterdam Interactieve Media Advertising as priming  Priming involves preparing a person to be more open to receive a message  It is not subliminal advertising (which has been never been proved to work)  Advertising might be very good at priming

16. Hogeschool van Amsterdam Interactieve Media Please choose one

17. Hogeschool van Amsterdam Interactieve Media Priming even works on advertisers http://youtube.com/watch?v=ZyQjr1YL0zg

18. Hogeschool van Amsterdam Interactieve Media The job of advertising Advertising ProductInstitutional Pioneer Build awareness Explain a new product Competitive Unique benefits Comparisons Remind / reinforce Remind about product Reinforce benefits Encourage repeat purchase Pioneer Information on new developments Image building Reinforce image Create or maintain the character of organization in public mind Advocate Communicate the company's views PRIMING

19. Hogeschool van Amsterdam Interactieve Media Advertising and the marketing mix  Advertising is not effective “stand-alone”  Advertising should support the marketing mix and the rest of the promotional mix  Priming the target group  Selling activities  Generating leads  Supporting intermediaries  Reduce seasonality  Sales promotional activities  Short-term promotion campaigns  Positioning or repositioning the company or product  Defending against competitors  Changes in STEP factors

20. Hogeschool van Amsterdam Interactieve Media Summary  Advertising is  Paid for  Delivered via mass media  Has an identifiable sponsor  Advertising is good for awareness, interest and creating priming effects  But works best when integrated into an overall campaign  Read the attached stuff about channels and IAM and advertising

21. Hogeschool van Amsterdam Interactieve Media Appendix

22. Hogeschool van Amsterdam Interactieve Media Advertising channels Message PrintBroadcast

23. Hogeschool van Amsterdam Interactieve Media Print: Outdoor  Billboards  Bus shelters  Transport (trams, taxis, airplanes. Etc.)

24. Hogeschool van Amsterdam Interactieve Media Print: Indoor  In-store  Public buildings, schools, offices etc.  On public transport

25. Hogeschool van Amsterdam Interactieve Media Print: Published  Newspapers  Magazines  Classifieds

26. Hogeschool van Amsterdam Interactieve Media Broadcast  Television  Cinema  Radio

27. Hogeschool van Amsterdam Interactieve Media Advertising channels Message PrintBroadcast Interactive media

28. Hogeschool van Amsterdam Interactieve Media Interactive media  E-mail  Websites  Other online  E.g. pop-ups and banners  Adwords  CD-ROMS  Viral & “Downloadables”  In / though game  SMS / MMS / i-Mode / UTMS / Bluetooth  RDS, Digital / Interactive TV, Digital Radio, GPS  Narrowcasting

29. Hogeschool van Amsterdam Interactieve Media Issues with interactive media  Still not clear how it should be used as an advertising medium  The ability to combine elements can be ignored  New media is dynamic not static  Sometimes seen as separate from mainstream advertising  It is not integrated well  All of this is changing gradually

30. Hogeschool van Amsterdam Interactieve Media Guidelines for interactive media  It must be integrated into the overall campaign  Take advantage of material developed for other media  Base it on same creative concept  Avoid the annoying the target audience  Always a risk with e-mail, banners, pop-ups and viral  Use the potential of the media  Do not simply take existing material and digitize it  Avoid online catalogues and static banners  Avoid simply streaming your TV spot  Think about how “new” media can enhance the campaign  What can it do that other media cannot  Virtual experiences?