Class+11+-+Advertising

Advertising Overview

• Advertising is prevalent in daily life, with various formats and channels evident everywhere.

  • Broadcast TV: 18 minutes of advertisements per hour, increased from 13 minutes in 1992.

  • Print Media: Advertising occupies half of a typical daily newspaper.

  • Outdoor Advertising: Billboards are found nearly everywhere, creating constant visibility.

  • Digital Advertising: Spam in email boxes, music rights bought by advertisers, and promotional merchandise.

Daily Exposure to Advertising

• On an average day, Americans are bombarded by numerous advertising messages.

  • Estimates suggest between 350 to 10,000 ads depending on the counting method used.

Purpose of Advertising

• Advertising targets mass audiences primarily to sell products or services.

  • Cost-Effectiveness: It is the cheapest way for sellers to gain attention.

  • Message Control: Advertisers create and control their messages by purchasing space and time.

History of Advertising

• Advertising has existed for thousands of years.

  • Ancient Civilizations: Egyptians used stone billboards and papyrus ads; Greeks employed town criers supported by musicians for engaging advertisements.

  • Early Printed Ads: The first advertisements were handbills in the 15th century, typically found on church doors, giving rise to mass communication.

Rise of Advertising in Industrial Age

• The industrial revolution increased the demand for advertising due to the introduction of mass-produced goods in the late 1800s.

  • Companies needed to distinguish similar products, leading to the birth of branding.

Formation of Advertising Agencies

• Volney Palmer established the first advertising agency in 1841, introducing lasting business models.

  • Agency Functions: Provided circulation data, copies of ads, and recommended commissions for services.

  • Famous slogans emerged, e.g., "A Diamond is Forever" by DeBeers.

Development of Television Advertising

• Commercials gained popularity in the television landscape, with the number of advertisers growing rapidly since 1948.

  • The introduction of standard commercial lengths, from 60 seconds in the 1960s to 30 seconds in the 1970s, created new advertising dynamics.

Understanding Branding

• The term "branding" correlates with burning a mark into a product, signifying the distinctiveness of brands.

  • Brands aim to be memorable and differentiate products from competitors.

Crafting a Brand

• Creating a brand's uniqueness involves developing catchy slogans and distinctive logos.

  • Brands leverage multiple media channels for frequent audience exposure.

Generonyms and Brand Recognition

• Some successful advertising campaigns lead to brand names becoming synonymous with the product itself, such as Kleenex and Xerox.

  • Pros and Cons: While being recognized can indicate widespread success, it may lead consumers to opt for competitor products while using the established brand name.

Trademark and Brand Protection

• Brands are usually trademarked to protect against infringement, which can confuse consumers and damage the original brand's reputation.

  • Brand Equity: Up to 70% of a company's value might be derived from its brand.

Economic Role of Advertising

• Advertising underpins much of the media consumed, often labeled as "free" because advertisers cover production costs.

  • Key Takeaway: If consumers do not pay for a product, they may themselves be the product.

Media Formats for Advertising

• Advertising employs various media channels based on target demographics:

  • Traditional Media: Print (newspapers, magazines), electronic (TV, radio), outdoor (billboards), direct mail, and telemarketing.

  • Digital Media: Includes email marketing, banner ads, and various formats for online ads.

Search Engine Advertising

• Search Engine Optimization (SEO): Involves website design and keyword strategies for organic advertising.

• Search Engine Marketing (SEM): Advertisers pay for sponsored links or top placements in search results.

Pricing and Audiences in Advertising

• Media organizations charge for advertising based on audience size, determined by ratings or CPM (Cost per Mille).

  • Performance-based advertising charges only for results, like click-throughs.

Financial Landscape of Advertising

• The advertising industry is substantial, with digital ads dominating global spending.

  • 2022 Statistics: Digital ads accounted for about 62% of ad spending, while television accounted for 23%.

  • High return on investment (ROI) is common, averaging 4-6x.

Structure of Advertising Agencies

• Four main operational areas in advertising agencies:

  • Creative: Involves copywriters and art directors.

  • Client Management: Account executives communicate with clients.

  • Media Buying: Media planners and buyers purchase advertising space.

  • Research: Researchers analyze media data on consumer behavior.

Challenges and Future of Advertising

• Advertising faces both challenges and benefits from emerging technologies.

  • Consumer Tracking: Enhanced ability to track consumer behavior.

  • Ad Blockers: Tools that impede advertising monetization.

  • Consumer Resistance: Increased resistance to advertising; easier for consumers to skip online ads.

  • Demand for Metrics: Advertisers seek stronger metrics to evaluate ad effectiveness as competition increases.