ADPR 3100 - Exam 1 (What is Advertising)

Old-school thought

• Ads must be paid for

• Ads must be delivered through mass media

• Ads must attempt to persuade

New age view

• “brands communicating with people”

• “Brand related/incentivized/initiated communication intent on impacting participants” (impact =/= sell)

• “Brands communicating in order to make an impact now/at some point in the future

Why the switch?

New advertising methods

Exceptions

Word of mouth

Advertising campaign

Integrated series of ads/promos that communicate a central idea; can span multimedia

Integrated brand

Coordinating promo + advertising to build and maintain awareness, identity and preference

Premarketing Era

pre-printing press, not prevalent

Mass Communication Era

1700s-early 1900s; newspapers, magazines, radio

Interactive Era

Present day; consumer control, psychographics, interactive ads, social media, BIG DATA!

Influences on evolution of advertising

Rise of capitalism, Industrial Revolution, manufacturers’ pursuit of power, rise of mass media

Rise of capitalism

Free market w competition, so stimulate demand and persuade audience

Industrial Revolution

Mass production of products; easier access and more to sell

Manufacturers’ pursuit of power

Branding emerged and distinguished products on shelves to consumers; development of consumer preferences

Rise of mass media

$ from advertisers that put brands in mass media subsidizes operation cost + more access

Holding companies

Parent companies of agencies

George Rowell

Space wholesaler in papers that exposed the truth of space brokers’ prices; broke space broker business model

Assumptions of advertising

• Advertising is a powerful force in shaping consumer preferences

• Even if advertising seems ineffective, it is more dangerous to stop it.

• Advertising is profitable

• Logic/argument appeal is strongest

• Advertising is amoral in practice, corrupts people’s values at worst

Claude Hopkins

Reason-why advertising; advertised snake oil + misled consumers about ingredients and effects; led to the Pure Food and Drug Act

Rosser Reeves

Pioneered the Unique Selling Proposition (USP) and repetitive, simple advertising

David Ogilvy

Emotionally-impactful advertising; broke into business after being a pollster with Gallup

Bill Bernbach

Influential in the Creative Revolution of advertising, pioneered creative teams

Hypodermic Needle, Magic Bullet Theory

Ads directly and uniformly cause a response in consumers

Federal Trade Commission

Formed to help reduce monopolies, scams, frauds and encourage consumer protection and friendly business competition.