THE DYNAMICS OF MASS COMMUNCATION Joseph R Dominick University of Georgia Athens McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved Specific Media Professions McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved Chapter 14 Chapter Outline Advertising McGrawHill Defining Advertising A Brief History of Advertising Organization of the Consumer Advertising Advertising Online Producing Advertising Economics Business-to-Business Advertising Advertising © 2007 The McGrawHill Companies, Inc. All Rights reserved Defining Advertising Advertising is any form of non personal presentation and promotion of ideas, goods, and services usually paid for by an identified sponsor McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved Defining Advertising • Four basic functions of advertising – Marketing – helps companies sell products – Educational – teaches people about products – Economics – allows competition that lowers prices – Social – encourages a climate of free enterprise McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved Defining Advertising Elements of Advertising Businesstobusiness advertising Geographic focus Target audience Direct action ad Purpose advertising Consumer advertising Selective demand advertising Primary demand advertising Indirect action ad McGrawHill sells products for business use targets specific geographical regions specific people to whom product appeals promotes specific buying behavior for quick results accomplishes a distinct goal promotes longterm brand recognition promotes product category, not specific brand sells products for personal use promotes a particular product brand © 2007 The McGrawHill Companies, Inc. All Rights reserved Defining Advertising Marketing consists of the development, pricing, distribution, and promotion of ideas, goods, and services Advertising is part of the general promotion process, along with personal selling, sales promotions, and public relations McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved A Brief History of Advertising • Ancient Babylonian clay tablets – shoe making services • English handbill (1480) – prayer book • Ben Franklin’s classified ads – white space and large headlines • Industrial Revolution – mass production, mass markets, mass consumption McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved A Brief History of Advertising • Critical mass achieved (1865 – 1900) – Railroads throughout the continent – U.S. population doubled – New communication media • Telephone Typewriter Highspeed printing press • Motion pictures National magazines Photography • Rural mail delivery – More economic production and disposable income McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved A Brief History of Advertising • Birth of the advertising agency – Volney Palmer in Philadelphia (1842) – space brokerage – N. W. Ayer and Son (late 19th C) – full ad campaigns • 1920s – Radio makes national ads a reality • 1929 crash and WW II slow industry • Cold and Korean Wars distrust of advertising • The Hidden Persuaders McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved Organization of the Consumer Advertising Industry Figure 14-1 Advertising Expenditures in Various Media, 1999 (Dollar figures are in billions) McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved Advertising Online • 1994 – HotWired’s website with ads • Rollercoaster success since, but 2005 revival: – – – – – Lower ad prices Innovative technology People online more Selection of effective ad techniques (e.g., popups) Changing methods of paying for ads • 2004 – online ads were 3% of U.S. ad dollars McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved Advertising Online Types of Online Ads Banner ads Sponsored chat rooms Popups Floating ads Popunders Mousetrapping Splash pages Productspecific web sites Skyscrapers McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved Producing Advertising • Four major departments – Creative services produce the ads – Account services – Marketing services – Administration McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved Producing Advertising An advertising campaign consists of a large number of advertisements, all stressing the same major theme or appeal, that appear in a number of media over a specified time McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved Producing Advertising Six phases of an ad campaign 1) 2) 3) 4) 5) 6) Va riet yd w sgit a n No thieoni h co nsi nsintse Choose the strategy u o sten RP aso Radio media production Print media production 6 TV ads nal aign cy Television media production M Select the theme p i C n Script with dialog, music, FX m Rough thumbnail sketches o u 5 Radio ads nsu t”o rcaa te M Storyboard and feedback nge ” a m f i e Translate the theme into Rough layouts (actual size) h Recording S r tes ams juic id ” “ 4 Print ads s ’ Filming etin e ence r n d a media g s _ ) d s t Comprehensive layout e f n l i i e Nis Postproduction ’hs pob S e d Special effects m l “ d a nw a o i n Master tape e Produce the ads n o f k s D nd teiorlntae, o dat c Use of outside specialists M a ni mlo“bsta ales a Te, or s Buy space and time t n n u (sustthi em onit l a Execute and evaluate SeasonaabJ’s M S Curvy mountain roads McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved Producing Advertising • Advertising Research – Formative research (before campaign starts) • Guides creative efforts – Audience defining (demographics) – Audience profiling • Identifies attitudes, motivation, lifestyles – Message research • Stage1:preưtestads ã Stage2:screenadprototypesandrefineads Trackingstudies(postưcampaigneffects) McGrawưHill â2007TheMcGrawưHillCompanies,Inc.AllRightsreserved Economics ã $245B spent on advertising in U.S. (2004) • Agency compensation – Commissions • 15% commission on time and space from media • Payforperformance gradually taking over – Agency charges – Fees McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved Economics Figure 14-1 Advertising Expenditures in Various Media, 2002 McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved Business-to-Business Advertising • • Selling products to other businesses Four main categories of B2B advertising: 1) Industrial: Advertising items used in production of goods and services 2) Professional: Advertising services aimed at doctors, nurses, teachers, and other professionals 3) Trade: Advertising goods and services to wholesalers and retailers 4) Agricultural: Advertising goods and services aimed at farmers McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved Business-to-Business Advertising • Consumer vs. B2B advertising – B2B: much smaller target audience – Business products and corresponding ads tend to be technical, complicated, and high priced – Business buyers are professional purchasing agents • Purchases based on reason and research • Decisions often made incommittee – Personal selling more important in B2B • Ad efforts tend to support the seller, not do the selling McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved Business-to-Business Advertising • Media – Small audience + personal selling personalized media – Trade magazines, trade papers, brochures – Direct mail – Trade catalogs – Specialized cable channels and programs – Horizontal publications aim at particular job function Verticalpublicationscoverentiresingleindustry McGrawưHill â2007TheMcGrawưHillCompanies,Inc.AllRightsreserved Business-to-Business Advertising ã Appeals Business ad copy • Factfilled, detailed, technical, accurate, complete • Little, if any, emotional appeal – Common business ad formats • • • • Testimonials Case histories Newproduct news Demonstrations – Recent developments in warming up B2B ads McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved Advertising • Employment down 16% (20002003) • Entrylevel – Creative • Junior copywriter • Junior art director Creative trainee Production assistant – Business • Courses in advertising and business; marketing • Assistant media buyer Research assistant • Junior account executive Account service trainee McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved Advertising • Upward Mobility – Excellent advancement opportunities – Creative • Senior copywriter Creative director • Senior art director Business ã Mediadirector Researchdirector ã Accountexecutive Managementsupervisor McGrawưHill â2007TheMcGrawưHillCompanies,Inc.AllRightsreserved ... Excellent advancement opportunities – Creative • Senior copywriter Creative director • Senior art director – Business ã Mediadirector Researchdirector ã Accountexecutive Managementsupervisor McGrawưHill â2007TheMcGrawưHillCompanies,Inc.AllRightsreserved... Professions McGrawHill © 2007 The McGrawHill Companies, Inc. All Rights reserved Chapter 14 Chapter Outline Advertising McGrawHill Defining Advertising A Brief History of Advertising Organization... promotes longterm brand recognition promotes product category, not specific brand sells products for personal use promotes a particular product brand © 2007 The McGrawHill Companies, Inc. All Rights reserved