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 Home > By Career > Media, Films, Mass Communications > Advertising
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Advertising is a form of communication used to persuade an audience (viewers, readers
or listeners) to take some action with respect to products, ideas, or services.
Most commonly, the desired result is to drive consumer behavior with respect to
a commercial offering, although political and ideological advertising is also common.
Advertising messages are usually paid for by sponsors and viewed via various traditional
media; including mass media such as newspaper, magazines, television commercial,
radio advertisement, outdoor advertising or direct mail; or new media such as websites
and text messages.
Commercial advertisers often seek to generate increased consumption of their products
or services through "Branding," which involves the repetition of an image or product
name in an effort to associate certain qualities with the brand in the minds of
consumers. Non-commercial advertisers who spend money to advertise items other than
a consumer product or service include political parties, interest groups, religious
organizations and governmental agencies. Nonprofit organizations may rely on free
modes of persuasion, such as a public service announcement (PSA).
Modern advertising developed with the rise of mass production in the late 19th and
early 20th centuries.
In 2010, spending on advertising was estimated at more than $300 billion in the
United States[1] and $500 billion worldwide[citation needed].
Internationally, the largest ("big four") advertising conglomerates are Interpublic,
Omnicom, Publicis, and WPP.
Definition
1. The non-personal communication of information usually paid for & usually persuasive
in nature, about products (goods & services) or ideas by identified sponsor through
various media. (Arenes 1996)
2. Any paid form of non-personal communication about an organization, product,service,
or idea from an identified sponsor. (Blech & Blech 1998)
3. Paid non-personal communication from an identified sponsor using mass media to
persuade influence an audience. (Wells, Burnett, & Moriaty 1998)
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A Coca-Cola advertisement from the 1890s
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4. The element of the marketing communication mix that is non personal paid for
an identified sponsor, & disseminated through channels of mass communication to
promote the adoption of goods, services, person or ideas. (Bearden, Ingram, & Laforge
1998)
5. An informative or persuasive message carried by a non personal medium & paid
for by an identified sponsor whose organization or product is identified in some
way. (Zikmund & D'amico 1999)
6. Impersonal; one way communication about a product or organization that is paid
by a marketer. (Lamb, Hair & Mc.Daniel 2000)
7. Any paid form of non-personal presentation and promotion of ideas,goods or services
by an identified sponsor. (Kotler et al., 2006)
History
Egyptians used papyrus to make sales messages and wall posters. Commercial messages
and political campaign displays have been found in the ruins of Pompeii and ancient
Arabia. Lost and found advertising on papyrus was common in Ancient Greece and Ancient
Rome. Wall or rock painting for commercial advertising is another manifestation
of an ancient advertising form, which is present to this day in many parts of Asia,
Africa, and South America. The tradition of wall painting can be traced back to
Indian rock art paintings that date back to 4000 BC. History tells us that Out-of-home
advertising and billboards are the oldest forms of advertising.
As the towns and cities of the Middle Ages began to grow, and the general populace
was unable to read, signs that today would say cobbler, miller, tailor or blacksmith
would use an image associated with their trade such as a boot, a suit, a hat, a
clock, a diamond, a horse shoe, a candle or even a bag of flour. Fruits and vegetables
were sold in the city square from the backs of carts and wagons and their proprietors
used street callers (town criers) to announce their whereabouts for the convenience
of the customers.
As education became an apparent need and reading, as well as printing, developed
advertising expanded to include handbills. In the 17th century advertisements started
to appear in weekly newspapers in England. These early print advertisements were
used mainly to promote books and newspapers, which became increasingly affordable
with advances in the printing press; and medicines, which were increasingly sought
after as disease ravaged Europe. However, false advertising and so-called "quack"
advertisements became a problem, which ushered in the regulation of advertising
content.
As the economy expanded during the 19th century, advertising grew alongside. In
the United States, the success of this advertising format eventually led to the
growth of mail-order advertising.
In June 1836, French newspaper La Presse was the first to include paid advertising
in its pages, allowing it to lower its price, extend its readership and increase
its profitability and the formula was soon copied by all titles. Around 1840, Volney
B. Palmer established the roots of the modern day advertising agency in Philadelphia.
In 1842 Palmer bought large amounts of space in various newspapers at a discounted
rate then resold the space at higher rates to advertisers. The actual ad - the copy,
layout, and artwork - was still prepared by the company wishing to advertise; in
effect, Palmer was a space broker. The situation changed in the late 19th century
when the advertising agency of N.W. Ayer & Son was founded. Ayer and Son offered
to plan, create, and execute complete advertising campaigns for its customers. By
1900 the advertising agency had become the focal point of creative planning, and
advertising was firmly established as a profession. [3] Around the same time, in
France, Charles-Louis Havas extended the services of his news agency, Havas to include
advertisement brokerage, making it the first French group to organize. At first,
agencies were brokers for advertisement space in newspapers. N. W. Ayer & Son was
the first full-service agency to assume responsibility for advertising content.
N.W. Ayer opened in 1869, and was located in Philadelphia.
At the turn of the century, there were few career choices for women in business;
however, advertising was one of the few. Since women were responsible for most of
the purchasing done in their household, advertisers and agencies recognized the
value of women's insight during the creative process. In fact, the first American
advertising to use a sexual sell was created by a woman – for a soap product. Although
tame by today's standards, the advertisement featured a couple with the message
"The skin you love to touch".
In the early 1920s, the first radio stations were established by radio equipment
manufacturers and retailers who offered programs in order to sell more radios to
consumers. As time passed, many non-profit organizations followed suit in setting
up their own radio stations, and included: schools, clubs and civic groups.[5] When
the practice of sponsoring programs was popularised, each individual radio program
was usually sponsored by a single business in exchange for a brief mention of the
business' name at the beginning and end of the sponsored shows. However, radio station
owners soon realised they could earn more money by selling sponsorship rights in
small time allocations to multiple businesses throughout their radio station's broadcasts,
rather than selling the sponsorship rights to single businesses per show.
This practice was carried over to commercial television in the late 1940s and early
1950s. A fierce battle was fought between those seeking to commercialise the radio
and people who argued that the radio spectrum should be considered a part of the
commons – to be used only non-commercially and for the public good. The United Kingdom
pursued a public funding model for the BBC, originally a private company, the British
Broadcasting Company, but incorporated as a public body by Royal Charter in 1927.
In Canada, advocates like Graham Spry were likewise able to persuade the federal
government to adopt a public funding model, creating the Canadian Broadcasting Corporation.
However, in the United States, the capitalist model prevailed with the passage of
the Communications Act of 1934 which created the Federal Communications Commission
(FCC). However, the U.S. Congress did require commercial broadcasting companies
to operate in the "public interest, convenience, and necessity".[6] Public broadcasting
now exists in the United States due to the 1967 Public Broadcasting Act which led
to the Public Broadcasting Service (PBS) and National Public Radio (NPR).
In the early 1950s, the DuMont Television Network began the modern practice of selling
advertisement time to multiple sponsors. Previously, DuMont had trouble finding
sponsors for many of their programs and compensated by selling smaller blocks of
advertising time to several businesses. This eventually became the standard for
the commercial television industry in the United States. However, it was still a
common practice to have single sponsor shows, such as The United States Steel Hour.
In some instances the sponsors exercised great control over the content of the show—up
to and including having one's advertising agency actually writing the show. The
single sponsor model is much less prevalent now, a notable exception being the Hallmark
Hall of Fame.
In the 1960s, campaigns featuring heavy spending in different mass media channels
became more prominent. For example, the Esso gasoline company spent hundreds of
millions of dollars on an brand awareness campaign built around the simple and alliterative[7]
theme Put a Tiger in Your Tank.[8] Psychologist Ernest Dichter[9] and DDB Worldwide
copywriter Sandy Sulcer[10] learned that motorists desired both power and play while
driving, and chose the tiger as an easy–to–remember symbol to communicate those
feelings. The North American and later European campaign featured extensive television
and radio and magazine ads, including photos with tiger tails supposedly emerging
from car gas tanks, promotional events featuring real tigers, billboards, and in
Europe station pump hoses "wrapped in tiger stripes" as well as pop music songs.
Tiger imagery can still be seen on the pumps of successor firm ExxonMobil.
The late 1980s and early 1990s saw the introduction of cable television and particularly
MTV. Pioneering the concept of the music video, MTV ushered in a new type of advertising:
the consumer tunes in for the advertising message, rather than it being a by-product
or afterthought. As cable and satellite television became increasingly prevalent,
specialty channels emerged, including channels entirely devoted to advertising,
such as QVC, Home Shopping Network, and ShopTV Canada.
With the advent of the ad server, marketing through the Internet opened new frontiers
for advertisers and contributed to the "dot-com" boom of the 1990s. Entire corporations
operated solely on advertising revenue, offering everything from coupons to free
Internet access. At the turn of the 21st century, a number of websites including
the search engine Google, started a change in online advertising by emphasizing
contextually relevant, unobtrusive ads intended to help, rather than inundate, users.
This has led to a plethora of similar efforts and an increasing trend of interactive
advertising.
The share of advertising spending relative to GDP has changed little across large
changes in media. For example, in the US in 1925, the main advertising media were
newspapers, magazines, signs on streetcars, and outdoor posters. Advertising spending
as a share of GDP was about 2.9 percent. By 1998, television and radio had become
major advertising media. Nonetheless, advertising spending as a share of GDP was
slightly lower—about 2.4 percent.
A recent advertising innovation is "guerrilla marketing", which involve unusual
approaches such as staged encounters in public places, giveaways of products such
as cars that are covered with brand messages, and interactive advertising where
the viewer can respond to become part of the advertising message.Guerrilla advertising
is becoming increasing more popular with a lot of companies. This type of advertising
is unpredictable and innovative, which causes consumers to buy the product or idea.
This reflects an increasing trend of interactive and "embedded" ads, such as via
product placement, having consumers vote through text messages, and various innovations
utilizing social network services such as Facebook.
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Reasons for display advertising
Display ads generate awareness quickly. Unlike search, which requires someone to
be aware of a need, display advertising can drive awareness of something new and
without previous knowledge. Display works well for direct response. Display is not
only used for generating awareness, it’s used for direct response campaigns that
link to a landing page with a clear ‘call to action’.
Public service advertising
The advertising techniques used to promote commercial goods and services can be
used to inform, educate and motivate the public about non-commercial issues, such
as HIV/AIDS, political ideology, energy conservation and deforestation.
Advertising, in its non-commercial guise, is a powerful educational tool capable
of reaching and motivating large audiences. "Advertising justifies its existence
when used in the public interest—it is much too powerful a tool to use solely for
commercial purposes." Attributed to Howard Gossage by David Ogilvy.
Public service advertising, non-commercial advertising, public interest advertising,
cause marketing, and social marketing are different terms for (or aspects of) the
use of sophisticated advertising and marketing communications techniques (generally
associated with commercial enterprise) on behalf of non-commercial, public interest
issues and initiatives.
In the United States, the granting of television and radio licenses by the FCC is
contingent upon the station broadcasting a certain amount of public service advertising.
To meet these requirements, many broadcast stations in America air the bulk of their
required public service announcements during the late night or early morning when
the smallest percentage of viewers are watching, leaving more day and prime time
commercial slots available for high-paying advertisers.
Public service advertising reached its height during World Wars I and II under the
direction of more than one government. During WWII President Roosevelt commissioned
the creation of The War Advertising Council (now known as the Ad Council) which
is the nation's largest developer of PSA campaigns on behalf of government agencies
and non-profit organizations, including the longest-running PSA campaign, Smokey
Bear.
Marketing mix
The marketing mix has been the key concept to advertising. The marketing mix was
suggested by professor E. Jerome McCarthy in the 1960s. The marketing mix consists
of four basic elements called the four P’s. Product is the first P representing
the actual product. Price represents the process of determining the value of a product.
Place represents the variables of getting the product to the consumer like distribution
channels, market coverage and movement organization. The last P stands for Promotion
which is the process of reaching the target market and convincing them to go out
and buy the product.
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An 1895 advertisement for a weight gain product.
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Advertising theory
• Hierarchy of effects model
It clarifies the objectives of an advertising campaign and for each individual advertisement.
The model suggests that there are six steps a consumer or a business buyer moves
through when making a purchase. The steps are:
1. Awareness
2. Knowledge
3. Liking
4. Preference
5. Conviction
6. Purchase
• Means-End Theory
This approach suggests that an advertisement should contain a message or means that
leads the consumer to a desired end state.
• Leverage Points
It is designed to move the consumer from understanding a product's benefits to linking
those benefits with personal values.
• Verbal and Visual Images
Types of advertising
Virtually any medium can be used for advertising. Commercial advertising media can
include wall paintings, billboards, street furniture components, printed flyers
and rack cards, radio, cinema and television adverts, web banners, mobile telephone
screens, shopping carts, web popups, skywriting, bus stop benches, human billboards,
magazines, newspapers, town criers, sides of buses, banners attached to or sides
of airplanes ("logojets"), in-flight advertisements on seatback tray tables or overhead
storage bins, taxicab doors, roof mounts and passenger screens, musical stage shows,
subway platforms and trains, elastic bands on disposable diapers,doors of bathroom
stalls,stickers on apples in supermarkets, shopping cart handles (grabertising),
the opening section of streaming audio and video, posters, and the backs of event
tickets and supermarket receipts. Any place an "identified" sponsor pays to deliver
their message through a medium is advertising.
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Digital advertising
Television advertising / Music in advertising The TV commercial is generally
considered the most effective mass-market advertising format, as is reflected by
the high prices TV networks charge for commercial airtime during popular TV events.
The annual Super Bowl football game in the United States is known as the most prominent
advertising event on television. The average cost of a single thirty-second TV spot
during this game has reached US$3 million (as of 2009). The majority of television
commercials feature a song or jingle that listeners soon relate to the product.
Virtual advertisements may be inserted into regular television programming through
computer graphics. It is typically inserted into otherwise blank backdrops[13] or
used to replace local billboards that are not relevant to the remote broadcast audience.[14]
More controversially, virtual billboards may be inserted into the background[15]
where none exist in real-life. This technique is especially used in televised sporting
events.Virtual product placement is also possible.
Infomercials An infomercial is a long-format television commercial, typically
five minutes or longer. The word "infomercial" combining the words "information"
& "commercial". The main objective in an infomercial is to create an impulse purchase,
so that the consumer sees the presentation and then immediately buys the product
through the advertised toll-free telephone number or website. Infomercials describe,
display, and often demonstrate products and their features, and commonly have testimonials
from consumers and industry professionals.
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A bus with an advertisement for GAP in Singapore. Buses and other vehicles are popular
media for advertisers.
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Radio advertising
Radio advertising is a form of advertising via the medium of radio. Radio
advertisements are broadcast as radio waves to the air from a transmitter to an
antenna and a thus to a receiving device. Airtime is purchased from a station or
network in exchange for airing the commercials. While radio has the limitation of
being restricted to sound, proponents of radio advertising often cite this as an
advantage. Radio is an expanding medium that can be found not only on air, but also
online. According to Arbitron, radio has approximately 241.6 million weekly listeners,
or more than 93 percent of the U.S. population.
Online advertising
Online advertising is a form of promotion that uses the Internet and World
Wide Web for the expressed purpose of delivering marketing messages to attract customers.
Online ads are delivered by an ad server. Examples of online advertising include
contextual ads that appear on search engine results pages, banner ads, in text ads,
Rich Media Ads, Social network advertising, online classified advertising, advertising
networks and e-mail marketing, including e-mail spam.
Product placements
Covert advertising, also known as guerrilla advertising, is when a product
or brand is embedded in entertainment and media. For example, in a film, the main
character can use an item or other of a definite brand, as in the movie Minority
Report, where Tom Cruise's character John Anderton owns a phone with the Nokia logo
clearly written in the top corner, or his watch engraved with the Bulgari logo.
Another example of advertising in film is in I, Robot, where main character played
by Will Smith mentions his Converse shoes several times, calling them "classics,"
because the film is set far in the future. I, Robot and Spaceballs also showcase
futuristic cars with the Audi and Mercedes-Benz logos clearly displayed on the front
of the vehicles. Cadillac chose to advertise in the movie The Matrix Reloaded, which
as a result contained many scenes in which Cadillac cars were used. Similarly, product
placement for Omega Watches, Ford, VAIO, BMW and Aston Martin cars are featured
in recent James Bond films, most notably Casino Royale. In "Fantastic Four: Rise
of the Silver Surfer", the main transport vehicle shows a large Dodge logo on the
front. Blade Runner includes some of the most obvious product placement; the whole
film stops to show a Coca-Cola billboard.
Physical advertising
Press advertising
Press advertising describes advertising in a printed medium such as a newspaper,
magazine, or trade journal. This encompasses everything from media with a very broad
readership base, such as a major national newspaper or magazine, to more narrowly
targeted media such as local newspapers and trade journals on very specialized topics.
A form of press advertising is classified advertising, which allows private individuals
or companies to purchase a small, narrowly targeted ad for a low fee advertising
a product or service. Another form of press advertising is the Display Ad, which
is a larger ad (can include art) that typically run in an article section of a newspaper.
Billboard advertising
Billboards are large structures located in public places which display advertisements
to passing pedestrians and motorists. Most often, they are located on main roads
with a large amount of passing motor and pedestrian traffic; however, they can be
placed in any location with large amounts of viewers, such as on mass transit vehicles
and in stations, in shopping malls or office buildings, and in stadiums.
Mobile billboard advertising
Mobile billboards are generally vehicle mounted billboards or digital screens. These
can be on dedicated vehicles built solely for carrying advertisements along routes
preselected by clients, they can also be specially equipped cargo trucks or, in
some cases, large banners strewn from planes. The billboards are often lighted;
some being backlit, and others employing spotlights. Some billboard displays are
static, while others change; for example, continuously or periodically rotating
among a set of advertisements. Mobile displays are used for various situations in
metropolitan areas throughout the world, including: Target advertising, One-day,
and long-term campaigns, Conventions, Sporting events, Store openings and similar
promotional events, and Big advertisements from smaller companies.
In-store advertising
In-store advertising is any advertisement placed in a retail store. It includes
placement of a product in visible locations in a store, such as at eye level, at
the ends of aisles and near checkout counters (aka POP—Point Of Purchase display),
eye-catching displays promoting a specific product, and advertisements in such places
as shopping carts and in-store video displays.
Coffee cup advertising
Coffee cup advertising is any advertisement placed upon a coffee cup that is distributed
out of an office, café, or drive-through coffee shop. This form of advertising was
first popularized in Australia, and has begun growing in popularity in the United
States, India, and parts of the Middle East.
Street advertising
This type of advertising first came to prominence in the UK by Street Advertising
Services to create outdoor advertising on street furniture and pavements. Working
with products such as Reverse Graffiti, air dancer's and 3D pavement advertising,
the media became an affordable and effective tool for getting brand messages out
into public spaces.
Celebrity branding
This type of advertising focuses upon using celebrity power, fame, money, popularity
to gain recognition for their products and promote specific stores or products.
Advertisers often advertise their products, for example, when celebrities share
their favorite products or wear clothes by specific brands or designers. Celebrities
are often involved in advertising campaigns such as television or print adverts
to advertise specific or general products. The use of celebrities to endorse a brand
can have its downsides, however. One mistake by a celebrity can be detrimental to
the public relations of a brand. For example, following his performance of eight
gold medals at the 2008 Olympic Games in Beijing, China, swimmer Michael Phelps'
contract with Kellogg's was terminated, as Kellogg's did not want to associate with
him after he was photographed smoking marijuana.
Radio advertising
Radio advertising is a form of advertising via the medium of radio. Radio advertisements
are broadcast as radio waves to the air from a transmitter to an antenna and a thus
to a receiving device. Airtime is purchased from a station or network in exchange
for airing the commercials. While radio has the limitation of being restricted to
sound, proponents of radio advertising often cite this as an advantage. Radio is
an expanding medium that can be found not only on air, but also online. According
to Arbitron, radio has approximately 241.6 million weekly listeners, or more than
93 percent of the U.S. population.
Online advertising
Online advertising is a form of promotion that uses the Internet and World Wide
Web for the expressed purpose of delivering marketing messages to attract customers.
Examples of online advertising include contextual ads that appear on search engine
results pages, banner ads, in text ads, Rich Media Ads, Social network advertising,
online classified advertising, advertising networks and e-mail marketing, including
e-mail spam.
Product placements Covert advertising, also known as guerrilla advertising,
is when a product or brand is embedded in entertainment and media. For example,
in a film, the main character can use an item or other of a definite brand, as in
the movie Minority Report, where Tom Cruise's character John Anderton owns a phone
with the Nokia logo clearly written in the top corner, or his watch engraved with
the Bulgari logo. Another example of advertising in film is in I, Robot, where main
character played by Will Smith mentions his Converse shoes several times, calling
them "classics," because the film is set far in the future. I, Robot and Spaceballs
also showcase futuristic cars with the Audi and Mercedes-Benz logos clearly displayed
on the front of the vehicles. Cadillac chose to advertise in the movie The Matrix
Reloaded, which as a result contained many scenes in which Cadillac cars were used.
Similarly, product placement for Omega Watches, Ford, VAIO, BMW and Aston Martin
cars are featured in recent James Bond films, most notably Casino Royale. In "Fantastic
Four: Rise of the Silver Surfer", the main transport vehicle shows a large Dodge
logo on the front. Blade Runner includes some of the most obvious product placement;
the whole film stops to show a Coca-Cola billboard.
Sales promotions
Sales promotions are another way to advertise. Sales promotions are double purposed
because they are used to gather information about what type of customers you draw
in and where they are, and to jumpstart sales. Sales promotions include things like
contests and games, sweepstakes, product giveaways, samples coupons, loyalty programs,
and discounts. The ultimate goal of sales promotions is to stimulate potential customers
to action.
Media and advertising approaches
Increasingly, other media are overtaking many of the "traditional" media such as
television, radio and newspaper because of a shift toward consumer's usage of the
Internet for news and music as well as devices like digital video recorders (DVRs)
such as TiVo.
Advertising on the World Wide Web is a recent phenomenon. Prices of Web-based advertising
space are dependent on the "relevance" of the surrounding web content and the traffic
that the website receives.
Digital signage is poised to become a major mass media because of its ability to
reach larger audiences for less money. Digital signage also offer the unique ability
to see the target audience where they are reached by the medium. Technological advances
have also made it possible to control the message on digital signage with much precision,
enabling the messages to be relevant to the target audience at any given time and
location which in turn, gets more response from the advertising. Digital signage
is being successfully employed in supermarkets. Another successful use of digital
signage is in hospitality locations such as restaurants.[22] and malls.[
E-mail advertising is another recent phenomenon. Unsolicited bulk E-mail advertising
is known as "e-mail spam". Spam has been a problem for e-mail users for many years.
Some companies have proposed placing messages or corporate logos on the side of
booster rockets and the International Space Station. Controversy exists on the effectiveness
of subliminal advertising (see mind control), and the pervasiveness of mass messages
(see propaganda).
Unpaid advertising (also called "publicity advertising"), can provide good exposure
at minimal cost. Personal recommendations ("bring a friend", "sell it"), spreading
buzz, or achieving the feat of equating a brand with a common noun (in the United
States, "Xerox" = "photocopier", "Kleenex" = tissue, "Vaseline" = petroleum jelly,
"Hoover" = vacuum cleaner, "Nintendo" (often used by those exposed to many video
games) = video games, and "Band-Aid" = adhesive bandage) — these can be seen as
the pinnacle of any advertising campaign. However, some companies oppose the use
of their brand name to label an object. Equating a brand with a common noun also
risks turning that brand into a genericized trademark - turning it into a generic
term which means that its legal protection as a trademark is lost.
As the mobile phone became a new mass media in 1998 when the first paid downloadable
content appeared on mobile phones in Finland, it was only a matter of time until
mobile advertising followed, also first launched in Finland in 2000. By 2007 the
value of mobile advertising had reached $2.2 billion and providers such as Admob
delivered billions of mobile ads.
More advanced mobile ads include banner ads, coupons, Multimedia Messaging Service
picture and video messages, advergames and various engagement marketing campaigns.
A particular feature driving mobile ads is the 2D Barcode, which replaces the need
to do any typing of web addresses, and uses the camera feature of modern phones
to gain immediate access to web content. 83 percent of Japanese mobile phone users
already are active users of 2D barcodes.
A new form of advertising that is growing rapidly is social network advertising.
It is online advertising with a focus on social networking sites. This is a relatively
immature market, but it has shown a lot of promise as advertisers are able to take
advantage of the demographic information the user has provided to the social networking
site. Friendertising is a more precise advertising term in which people are able
to direct advertisements toward others directly using social network service.
From time to time, The CW Television Network airs short programming breaks called
"Content Wraps," to advertise one company's product during an entire commercial
break. The CW pioneered "content wraps" and some products featured were Herbal Essences,
Crest, Guitar Hero II, CoverGirl, and recently Toyota.
Recently, there appeared a new promotion concept, "ARvertising", advertising on
Augmented Reality technology.
Rise in new media
With the dawn of the Internet came many new advertising opportunities. Popup, Flash,
banner, Popunder, advergaming, and email advertisements (the last often being a
form of spam) are now commonplace. Particularly since the rise of "entertaining"
advertising, some people may like an advertisement enough to wish to watch it later
or show a friend. In general, the advertising community has not yet made this easy,
although some have used the Internet to widely distribute their ads to anyone willing
to see or hear them. In the last three quarters of 2009 mobile and internet advertising
grew by 18.1% and 9.2% respectively. Older media advertising saw declines: −10.1%
(TV), −11.7% (radio), −14.8% (magazines) and −18.7% (newspapers ).
Niche marketing
Another significant trend regarding future of advertising is the growing importance
of the niche market using niche or targeted ads. Also brought about by the Internet
and the theory of The Long Tail, advertisers will have an increasing ability to
reach specific audiences. In the past, the most efficient way to deliver a message
was to blanket the largest mass market audience possible. However, usage tracking,
customer profiles and the growing popularity of niche content brought about by everything
from blogs to social networking sites, provide advertisers with audiences that are
smaller but much better defined, leading to ads that are more relevant to viewers
and more effective for companies' marketing products. Among others, Comcast Spotlight
is one such advertiser employing this method in their video on demand menus. These
advertisements are targeted to a specific group and can be viewed by anyone wishing
to find out more about a particular business or practice at any time, right from
their home. This causes the viewer to become proactive and actually choose what
advertisements they want to view.
Crowdsourcing
The concept of crowdsourcing has given way to the trend of user-generated advertisements.
User-generated ads are created by consumers as opposed to an advertising agency
or the company themselves, most often they are a result of brand sponsored advertising
competitions. For the 2007 Super Bowl, the Frito-Lays division of PepsiCo held the
Crash the Super Bowl contest, allowing consumers to create their own Doritos commercial.[25]
Chevrolet held a similar competition for their Tahoe line of SUVs.Due to the success
of the Doritos user-generated ads in the 2007 Super Bowl, Frito-Lays relaunched
the competition for the 2009 and 2010 Super Bowl. The resulting ads were among the
most-watched and most-liked Super Bowl ads. In fact, the winning ad that aired in
the 2009 Super Bowl was ranked by the USA Today Super Bowl Ad Meter as the top ad
for the year while the winning ads that aired in the 2010 Super Bowl were found
by Nielsen's BuzzMetrics to be the "most buzzed-about".
This trend has given rise to several online platforms that host user-generated advertising
competitions on behalf of a company. Founded in 2007, Zooppa has launched ad competitions
for brands such as Google, Nike, Hershey’s, General Mills, Microsoft, NBC Universal,
Zinio, and Mini Cooper. Crowdsourced advertisements have gained popularity in part
to its cost effective nature, high consumer engagement, and ability to generate
word-of-mouth. However, it remains controversial, as the long-term impact on the
advertising industry is still unclear.
Global advertising
Advertising has gone through five major stages of development: domestic, export,
international, multi-national, and global. For global advertisers, there are four,
potentially competing, business objectives that must be balanced when developing
worldwide advertising: building a brand while speaking with one voice, developing
economies of scale in the creative process, maximising local effectiveness of ads,
and increasing the company’s speed of implementation. Born from the evolutionary
stages of global marketing are the three primary and fundamentally different approaches
to the development of global advertising executions: exporting executions, producing
local executions, and importing ideas that travel.
Advertising research is key to determining the success of an ad in any country or
region. The ability to identify which elements and/or moments of an ad contribute
to its success is how economies of scale are maximised. Once one knows what works
in an ad, that idea or ideas can be imported by any other market. Market research
measures, such as Flow of Attention, Flow of Emotion and branding moments provide
insight into what is working in an ad in any country or region because the measures
are based on the visual, not verbal, elements of the ad.
Foreign public messaging
Foreign governments, particularly those that own marketable commercial products
or services, often promote their interests and positions through the advertising
of those goods because the target audience is not only largely unaware of the forum
as vehicle for foreign messaging but also willing to receive the message while in
a mental state of absorbing information from advertisements during television commercial
breaks, while reading a periodical, or while passing by billboards in public spaces.
A prime example of this messaging technique is advertising campaigns to promote
international travel. While advertising foreign destinations and services may stem
from the typical goal of increasing revenue by drawing more tourism, some travel
campaigns carry the additional or alternative intended purpose of promoting good
sentiments or improving existing ones among the target audience towards a given
nation or region. It is common for advertising promoting foreign countries to be
produced and distributed by the tourism ministries of those countries, so these
ads often carry political statements and/or depictions of the foreign government's
desired international public perception. Additionally, a wide range of foreign airlines
and travel-related services which advertise separately from the destinations, themselves,
are owned by their respective governments; examples include, though are not limited
to, the Emirates airline (Dubai), Singapore Airlines (Singapore), Qatar Airways
(Qatar), China Airlines (Taiwan/Republic of China), and Air China (People's Republic
of China). By depicting their destinations, airlines, and other services in a favorable
and pleasant light, countries market themselves to populations abroad in a manner
that could mitigate prior public impressions. See: Soft Power
Diversification
In the realm of advertising agencies, continued industry diversification has seen
observers note that “big global clients don't need big global agencies any more”.[31]
This is reflected by the growth of non-traditional agencies in various global markets,
such as Canadian business TAXI and SMART in Australia and has been referred to as
"a revolution in the ad world".
New technology
The ability to record shows on digital video recorders (such as TiVo) allow users
to record the programs for later viewing, enabling them to fast forward through
commercials. Additionally, as more seasons of pre-recorded box sets are offered
for sale of television programs; fewer people watch the shows on TV. However, the
fact that these sets are sold, means the company will receive additional profits
from the sales of these sets.
To counter this effect, a variety of strategies have been employed. Many advertisers
have opted for product placement on TV shows like Survivor. Other strategies include
integrating advertising with internet-connected EPGs, advertising on companion devices
(like smartphones and tablets) during the show, and creating TV apps. Additionally,
some like brands have opted for social television sponsorship.
Advertising education
Advertising education has become widely popular with bachelor, master and doctorate
degrees becoming available in the emphasis. A surge in advertising interest is typically
attributed to the strong relationship advertising plays in cultural and technological
changes, such as the advance of online social networking. A unique model for teaching
advertising is the student-run advertising agency, where advertising students create
campaigns for real companies.[33] Organizations such as American Advertising Federation
and AdU Network partner established companies with students to create these campaigns.
Criticisms
While advertising can be seen as necessary for economic growth, it is not without
social costs. Unsolicited commercial e-mail and other forms of spam have become
so prevalent as to have become a major nuisance to users of these services, as well
as being a financial burden on internet service providers.[34] Advertising is increasingly
invading public spaces, such as schools, which some critics argue is a form of child
exploitation.[35] In addition, advertising frequently uses psychological pressure
(for example, appealing to feelings of inadequacy) on the intended consumer, which
may be harmful.
Regulation
In the US many communities believe that many forms of outdoor advertising blight
the public realm. As long ago as the 1960s in the US there were attempts to ban
billboard advertising in the open countryside.[37] Cities such as São Paulo have
introduced an outright ban[38] with London also having specific legislation to control
unlawful displays.
There have been increasing efforts to protect the public interest by regulating
the content and the influence of advertising. Some examples are: the ban on television
tobacco advertising imposed in many countries, and the total ban of advertising
to children under 12 imposed by the Swedish government in 1991. Though that regulation
continues in effect for broadcasts originating within the country, it has been weakened
by the European Court of Justice, which had found that Sweden was obliged to accept
foreign programming, including those from neighboring countries or via satellite.
Greece’s regulations are of a similar nature, “banning advertisements for children's
toys between 7 am and 10 pm and a total ban on advertisement for war toys".
In Europe and elsewhere, there is a vigorous debate on whether (or how much) advertising
to children should be regulated. This debate was exacerbated by a report released
by the Kaiser Family Foundation in February 2004 which suggested fast food advertising
that targets children was an important factor in the epidemic of childhood obesity
in the United States.
In New Zealand, South Africa, Canada, and many European countries, the advertising
industry operates a system of self-regulation. Advertisers, advertising agencies
and the media agree on a code of advertising standards that they attempt to uphold.
The general aim of such codes is to ensure that any advertising is 'legal, decent,
honest and truthful'. Some self-regulatory organizations are funded by the industry,
but remain independent, with the intent of upholding the standards or codes like
the Advertising Standards Authority in the UK.
In the UK most forms of outdoor advertising such as the display of billboards is
regulated by the UK Town and County Planning system. Currently the display of an
advertisement without consent from the Planning Authority is a criminal offense
liable to a fine of £2,500 per offence. All of the major outdoor billboard companies
in the UK have convictions of this nature.
Many advertisers employ a wide-variety of linguistic devices to bypass regulatory
laws (e.g. printing English words in bold and French translations in fine print
to deal with the Article 120 of the 1994 Toubon Law limiting the use of English
in French advertising).[40] The advertisement of controversial products such as
cigarettes and condoms are subject to government regulation in many countries. For
instance, the tobacco industry is required by law in most countries to display warnings
cautioning consumers about the health hazards of their products. Linguistic variation
is often used by advertisers as a creative device to reduce the impact of such requirements.
Advertising research
Advertising research is a specialized form of research that works to improve the
effectiveness and efficiency of advertising. It entails numerous forms of research
which employ different methodologies. Advertising research includes pre-testing
(also known as copy testing) and post-testing of ads and/or campaigns—pre-testing
is done before an ad airs to gauge how well it will perform and post-testing is
done after an ad airs to determine the in-market impact of the ad or campaign on
the consumer. Continuous ad tracking and the Communicus System are competing examples
of post-testing advertising research types.
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