Richard E. CaplanThe University of Akron

10. Advertising

Paying for our Pleasures

• “Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor”– American Marketing Association

• Advertising is not a medium – It finances the media– TV, radio, newspapers, magazines and web sites, etc.

AP/Wide World Photos

Early Ads in Newspapers & Magazines

• First newspaper classified ads– 1704

• Penny press and advertising– 19th century– Patent Medicines– “Not responsible”

• Ladies Home Journal, 1887– 1st magazine to profit from ads– Led anti-patent medicine crusade

• Federal Trade Commission, 1914– Regulates fair advertising

Advertising in Radio/TV

• 1st radio advertisement – New York -1922 (real estate)

• Radio heavily sponsored– Continuous reference to products– Large increase in sales for sponsors

• Same principle for TV– Inherited from radio– Sponsor-produced shows– Direct sponsorship

Advertising on the Internet

• Internet ads’ early boom– Banner ads – Pop up ads

• Internet ads largely unsuccessful – Click through rate less than 1%

• In 2000 online ads reached $8 billion– Declined since

• New ad formulas– “advertainments”

• Short movies

– Viral marketing• “word of mouth”

jmmelton/motleyimage

How Advertising Works

• A change in the meaning of the word advertise – From “to take note” to “to persuade”

• The “rhetoric of democracy” – Daniel J. Boorstin

• Common characteristics– Repetition – Advertising style

• “Plain talk” and “Talk talk”

– Ubiquity (it’s everywhere)– Attention grabbing

jmmelton/motleyimage

How Ads Appeal to Consumers

• Need – for sex– for affiliation– to nurture– for guidance– to aggress– to achieve– to dominate– for prominence– for attention– for autonomy– to escape– to feel safe– for aesthetic

sensations– to satisfy

curiosity– physiological

AP/Wide World Photo

Finding the Audience: Demographics

• Demographics– Sex– Age– Income level– Marital status– Geographic Location– Occupation

• Audience Analysis– Defining the audience– Who desires the product

– Enough to make the ad worth the money spent

AP/Wide WorldPhoto

Pros & Cons of Advertising • Cost of products

– P: Helps make goods available and lowers prices– C: Consumers pay for advertising

• Need vs. want– P: Stimulates new products; consumers will not continue to buy an unsatisfactory product

– C: People buy what they don’t need, even dangerous products

• Competition– P: Less expense then other forms of sales – C: High cost of advertising limits entry into the market place

• Advertising Power– P: Helps people meet needs– C: The power to deceive

Working in Advertising

• Some global agencies• Most agencies bill less than $1 million/yr

• Commissions – Commonly 15%

• Agencies produce TV, radio, print and Net ads for their clients– Bill clients for additional production services

©The New Yorker Collection 2000 Ruben Bolling from cartoonbank.com

Top 10 Advertisers

Illustration 10.1

Top 10 Advertisers

Illustration 10.1

Jobs in Advertising Agencies

• Market research– Establish target audience

• Media selection– Suggest media for client

• Creative activities– Create copy and design

• Account management – Liaison between agency and client

• Administration– Business management

• Public relations• Ad Campaigns• Ad careers

Dependence on Advertising

• Media/Advertising Interdependence – With various media– With national economy

• Economic Impacts– Ad budgets– Media platforms and cost

• Advertising Age

AP/Wide World Photos

Television Advertising

• Expensive to place– Avg. 30 sec ad $100,000 (primetime)– 30 sec ad on Super Bowl $2 million

• Networks and stations sell 10, 15 and 30 second ads

• National advertising on networks handled by national advertising agencies

• Ad purchases based on CPM– Cost-per-thousand

• Expensive to produce– As much as a $1 million per minute

• Other media more cost effective ?

Lucy Nicholson/Rueters/Corbis

Internet, Print & Radio

• Different media, different audiences • Fierce competition

– Competing claims• Print advertisers attack TV ads• Time vs. Newsweek• Radio advertisers attack print

• Local advertising– Most goes to newspaper– Local ad agencies– Local media ad services

• Ad rep firms– Localized national marketing

Regulating Advertising

• Federal Trade Commission– 1914– Stop businesses that restrict competition, injure or deceive consumers

– Can require corrective ad

• Food and Drug Administration– Oversees claims that appear on food labels

• Federal Communications Commission– Misleading or tasteless ads

• Distilled Spirits Council– Hard liquor ads, 1996

• National Advertising Review Council (NARC)– Hears complaints

Andre Lichtenstein/The Image Works

Delivering New Markets

• American agencies make half the world’s ad dollars

• Expanding international markets

• Adapting to new technologies

• Shifting demographics– Surging Hispanic population

• Following the audience

Critical Discussion

1. Do you agree or disagree with the criticism that says ads create a “wants” over “needs” mentality in society?

2. To what extent is it legitimate for advertisers to track consumer buying behavior? When does it go too far?

Joe Raedle/Getty Images

Advertising Approaches

1. Informational: Before 19th century-price lists-signs on walls, printed announcements

-limited competition-

-people bought what they needed

Attention Approach

Start 19th century –factories turning out goods that needed “attention” to sell

Used : Borders, Headline type, increased white space

late 19th century-large sizes or type were used and graphic design

Repetition

• Resulted because many large city newspapers objected to large size type

• So to attract attention used repetition in ads!

Association

• Associate pleasant things with product

• Pleasing graphics/appealing pictures

• Color printing

Product-Benefit Approach

• Products-more complex• Explain what products were and why consumer would benefit from their use

• USP-Unique Selling Proposition-every ad must present the product as unique; USP had a benefit that no other brand could offer!

• http://www.adflip.com/addetails.php?adID=12488&showLargeJpg=yes

Motivation

• 1930’s Motivation Research was discovered by ad agencies

• Products were seen to have psychological meanings (unconscious motives) “The needs list”

• http://www.adflip.com/addetails.php?adID=13145

Entertainment

• 1950’s• Doyle Dane Bernbach Agency credited• Ads could entertain rather than just inform

• Wendy’s “Where’s the Beef?”• Europe’s Best Commerical

Behavioral

• 1980’s• Consumers were critical and better educated

• Studied consumer needs and buying patterns to present a product image that would be seen as satisfying a “real” customer need

• Examples “low fat or low carb”• Jared• http://www.slate.com/id/2089167/

Advertising Claims

• Almost every ad makes what is called a “product claim”

• A claim is simply what the ad says about the product.

– Two kinds of Ad Claims– One that provides useful information in making a purchase decision

– One that tells little or nothing factual

The Unfinished Claim

• Ad claims that the product is Better or has More of something, but does not finish the comparison.

• Examples: • “more head room in our vehicle”• “Twice as much of the pain reliever doctors recommend most”

• “Scott makes it better for you”• “Supergloss does it with more color, more shine, more sizzle”

The Weasel Word Technique

• A modifier that makes what follows nearly meaningless

• Empty claims• Common Weasel Words: helps, virtual, virtually, like, acts or works, can be, as much as, refreshes, comforts, fights, the feel/look of, tastes, fortified, enriched, better, best, strengthened

• adflip.com ^ Ads archive, greeting cards of automobile, celebrity, audio magazines advertising and more!

• “Helps control dandruff with regular use”• “Leaves dishes virtually spotless”• “The look, the feel of Cotton”

We’re different and unique claim

• There is nothing else quite like the product advertised.

• Uniqueness is supposed to be interpreted by the consumer as superiority.

• “There is no other mascara like it.”• “Only Inca has this unique filter system.”• “If it doesn’t say Goodyear, it can’t be Polyglas*” (trademark for fiberglass belts)

The “Water is Wet” Claim

• Say something about the product that is true for any brand in that product category.

• Made to sound like an advantage• “Folgers-the 100 percent Columbian Coffee”• “Super lash greatly increases the diameter of every lash.”

• http://www.adflip.com/addetails.php?adID=10671

The Vague Claim

• Technique is simply not clear.• Often overlaps with other claims• Use of colorful words, but meaningless words

• Use of subjective and emotional opinions• Many contain weasels• “For skin like peaches and cream”• “Its deep, rich lather makes hair feel new again.”

• “Lips have never looked so luscious”

Endorsement/Testimonial

• A celebrity or authority lends his or her stellar qualities to the product (may or may not use the product)

• “Michael Jordan for Hanes”• http://www.adflip.com/addetails.php?adID=14404&showLargeJpg=yes

Scientific/Statistical Claim

• Refers to some sort of scientific proof or experiments, to very specific numbers, or to impressive sounding mystery ingredient.

• “Certs contains a sparkling drop of Retsyn.’

• “Four out of Five doctors recommend…”

Compliment the Consumer

• Flatter the consumer• “You’ve come a long way baby.”• “For the real man.”• “For the special person you are.”• http://www.adflip.com/addetails.php?adID=2652&showLargeJpg=yes

• http://www.wclynx.com/burntofferings/adsvirginiaslims_ads.html

The Rhetorical Question

• Demands a response from the audience-questions worded so that the viewer’s or listener’s answer affirms the goodness

• “Ford-isn’t that the kind of car America wants?”

• “Shouldn’t your family be drinking Hawaiian Punch?”

• “Wouldn’t you really rather have a Buick?”

Claim #1

• Everbright toothpaste helps get your teeth whiter and cleaner. Its special ingredient XT-40 fights tooth decay

Claim #2• Brushing with Goodteeth toothpaste helps fight tooth decay. Nine out of ten dentists interviewed agreed that brushing with Goodteeth is effective in combating tooth decay.

Claim # 3

• New improved Blubbers bubble gum now has twice as may sticks of gum. New Green Blubbers is chewed by more professional football players than any other bubble gum. Look for Blubbers in the bright green package wherever gum is sold.

Claim # 4• Strictly controlled scientific tests by an independent testing lab show that Imperial gasoline with PowerTane* outperforms any gasoline mad without PowerTane*. Get Imperial gasoline with PowerTane* to help your car run quieter, smoother, and get more miles to the gallon.