Advertising Lecture Notes Review

Introduction

• American consumers primarily fund media (newspapers, magazines, radio, television) through exposure to advertisements.

• The American Marketing Association defines advertising as "any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor."

Advertising Supports Mass Media

• Advertising has existed for at least 3,000 years.

• Around 1200 B.C., Phoenicians used painted messages on stones near popular paths.

• In the 6th century B.C., ships arriving in port employed town criers with signboards to announce their goods.

• By the 13th century A.D., the British began mandating trademarks to protect consumers and identify quality product manufacturers.

Advertising in Newspapers

• The first newspaper ad in the U.S. appeared in The Boston News-Letter in 1704; it was an ad for the newspaper itself.

• The penny press era of the 1800s relied on advertising to cover costs.

• Newspapers during the 1800s were heavily dependent on ad revenue and accepted almost any advertisement.

Advertising in Magazines

• Magazines were initially hesitant about advertising until Cyrus H. K. Curtis, founder of The Ladies’ Home Journal in 1887, advocated for advertising as a key to success.

• The Federal Trade Commission (FTC) was established in 1914 to monitor deceptive advertising practices.

Advertising on Radio

• WEAF in New York aired its first advertisement in 1922, promoting apartments in New Jersey.

• In September 1928, The Lucky Strike Dance Orchestra debuted on NBC, leading to a 47% increase in Lucky Strike sales.

• By 1938, radio advertising revenue surpassed that of magazines.

Advertising on Television

• Television started as an advertising medium.

• Television ad spending:

  • 1949: $12.3$$$12.3$$ million

  • 1950: $40.8$$$40.8$$ million

  • 1951: $128$$$128$$ million

• In 2010, U.S. television advertising revenue totaled $70$$$70$$ billion.

• Early television programs often used direct sponsorship, a practice carried over from radio.

• Advertising agencies evolved into television programmers.

• The commercial television industry is heavily reliant on advertising revenue.

Advertising on the Internet

• Advertisers quickly adopted major Internet sites.

• Banner advertising was a primary method, with ads scrolling across or appearing in boxes on websites.

• "Pop-up" advertisements were also used.

• Internet advertising did not always guarantee increased sales.

• The "click-through rate" (the rate at which users click on an ad to learn more) is less than 1 percent.

• By 2010, Internet ad spending reached nearly $26$$$26$$ billion.

Three Characteristics of Ads

• The word "advertise" originally meant to take note or consider but evolved to mean "to persuade" by the 1700s.

• Daniel Boorstin identifies three key characteristics of advertising:

  • Repetition: Reinforcing a simple message through repeated exposure.

  • Advertising style: Using plain-talk and tall-talk that may not be explicitly untrue but can be misleading in connotation.

  • Ubiquity: Placing ads in numerous locations to capture consumer attention, such as shopping carts, sports stadiums, and parking meters.

Advertising at Work

• Advertising agencies can be divided into departments:

  • Marketing research: Examining product potential, target market, and sales locations.

  • Media selection: Recommending the best combination of media buys (TV, newspapers, magazines, billboards, Internet).

  • Creative activity: Developing the ads, including copy for TV, radio, print, and online.

  • Account management: Acting as a liaison between the agency and the client, handling complaints and suggestions.

  • Administration: Managing finances and paying bills.

  • Public relations: Providing public relations services for clients without a separate PR department.

Mass Media Dependence on Advertising

• Advertising and media industries are interdependent.

• The advertising business is strongly tied to the nation’s economic health.

• During economic recessions, advertisers may adjust their strategies.

• The success of an ad agency is measured by the results of its ad campaigns.

• Agencies must analyze the benefits of different advertising types (broadcast, print, Internet) and recommend the most efficient combinations for their clients.

Important Questions

• What is Advertising?

• Define the word advertise?

• Daniel Boorstin says advertising in America shares three characteristics- What are they?

• How does mass media depend on advertising?

• Define click through rate?

• Briefly describe how advertising work and the six department.

• When did advertising happen in Newspapers?

• When did advertising happen in Magazines?

• When did advertising happen in Radio?