Advertising

ADVERTISING DURING THE WORLD WAR II

HISTORY OF ADVERTISING During the Second World War, Mass Media developed and had an impact on advertising as well.

HISTORY OF ADVERTISING 1941-1945 – production of consumer products came to a near halt during the war and traditional advertising was limited. 1941 – several national advertising and media associations joined to develop the War Advertising Council.

HISTORY OF ADVERTISING WAR ADVERTISING COUNCIL – used its expertise to promote numerous government programs. – surprisingly, its best known campaign was on behalf of the sale war bonds – their largest campaign to date for a single item: the war bond helped sell 800 million bonds.

HISTORY OF ADVERTISING

Advertisements during the World War II

HISTORY OF ADVERTISING In 1941, several national advertising and media associations joined to develop the War Advertising Council. This council used its expertise to promote numerous government programs. An example of an advertisement by the War Advertising Council

HISTORY OF ADVERTISING • After the war, the group was now called the ADVERTISING COUNCIL.

ADVERTISING COUNCIL – directed its efforts toward a host of public service campaigns on behalf of countless non-profit organizations. One example of the Ad Council’s efforts was Saving the Grand Canyon.

This ad is brought to you by the Advertising Council.

HISTORY OF ADVERTISING The impact of World War II on the size and structure of advertising was significant.

High-excess profits tax – was levied on manufacturers’ wartime profits that exceeded prewar levels. - its goal was to limit war profiteering and ensure that companies did not benefit too greatly from the death and destruction of war.

HISTORY OF ADVERTISING Rather than pay the heavy tariff, manufacturers reduced their profit levels by putting income back to their businesses. Because the lack of raw materials made expansion or recapitalization difficult, many companies invested in CORPORATE IMAGE ADVERTISING.

HISTORY OF ADVERTISING CORPORATE IMAGE ADVERTISING - a common phrase referring to a company's reputation. - It is the "image" that the public is supposed to see when the corporation is mentioned. They may not have products to sell to the public but they knew that the war would end someday and stored-up goodwill would be important.

HISTORY OF ADVERTISING RESULTS OF CORPORATE IMAGE ADVERTISING • Expansion in the number and size of manufacturers’ advertising departments and of advertising agencies • The public was primed by that advertising anticipating the return of consumer goods.

ADVERTISING AND TELEVISION

ADVERTISING AND TELEVISION There was no shortage of consumer products when the war ended. However, people were also having more children and wanted products to enhance their leisure, please their children, and fill in their houses.

ADVERTISING AND TELEVISION Advertising was well positioned to put products and people together, not only because agencies had expanded during the war but also because of TELEVISION. Radio formats, stars and network structure had moved wholesale to the new medium.

ADVERTISING AND TELEVISION Television soon became the primary national advertising medium. Advertisers bought $12 million in television time in 1949; 2 years later they spent $128 million.

ADVERTISING AND TELEVISION Television commercials by the virtue of the fact that consumers could see and hear the product in action, action were different from the advertising of other media. Examples: • Torture test for Timex watches • Smooth shaving Gillette

ADVERTISING AND TELEVISION

1950 Gillette Commercial

ADVERTISING AND TELEVISION UNIQUE SELLING PROPOSITION (USP) - Highlighting the aspect of a product that sets it apart from the other brands in the same product category. - Once an advertiser discovered a product’s USP it could drive it home in repeated demonstration commercials.

ADVERTISING AND TELEVISION PARITY PRODUCTS - brands in a given product category

which are essentially the same - because of this, advertisers were often forced to create a product’s USP.

Example: Candy is candy but M&M’s are unique – they melt in your mouth, not in your hands.

ADVERTISING AND TELEVISION

Classic M&M’s Commercial

ADVERTISING AND TELEVISION Some observers were troubled by this development. Increasingly, products were sold not by touting their value or quality but by emphasizing their unique selling propositions. Ads were offering little information about the product, yet people were increasing their spending.

ADVERTISING AND TELEVISION This led to the growing criticism of advertising and its contribution to consumer culture. The immediate impact was the creation of an important vehicle of industry self-regulation.

ADVERTISING AND TELEVISION Because Because of of the the mounting mounting criticism, criticism, the the industry industry in in 1971 1971 established established the the National National Advertising Advertising Review Review Board Board (NARB) (NARB) to to monitor monitor potentially potentially deceptive deceptive advertising. advertising. The The NARB NARB,, the the industry’s industry’s most most important important selfselfregulatory regulatory body, body, investigates investigates consumer consumer complaints complaints made made by by an an advertiser’s advertiser’s competitors. competitors.

The Evolution of TV Commercials

THE EVOLUTION OF TV COMMERCIALS The history of television commercials themselves is interesting because it highlights the interdependence between medium and advertising message.

THE EVOLUTION OF TV COMMERCIALS Once advertisers no longer owned program content, it became impossibly expensive to be the sole sponsor of a network broadcast. The networks, profiting from this new state of affairs began selling commercial time in 60-second segments.

THE EVOLUTION OF TV COMMERCIALS

With many different “spot” commercials for many different products in the same show, the nature of commercials themselves changed.

THE EVOLUTION OF TV COMMERCIALS Changes that happened in advertising: • A “spot” had to stand out and be remembered – greater creativity came to television advertising. • Because many of the products advertised are essentially the same, the USP became more important, as did the need to boost brand awareness.

THE EVOLUTION OF TV COMMERCIALS Brand Awareness – identification of a product with a particular manufacturer. – it is achieved through slogans and/or jingles of a particular advertisement. Example: “It’s really finger-lickin’ good.” – Kentucky Fried Chicken

Brand Awareness Game: Directions: Guess what brand name has the following slogan/tagline. (could be foreign and local brands)

ONCE YOU POP, THE IT SARAP WON’T TO LET THE YOU THE KEEP YOU’RE 100% HELLO WE MINT WALKING. SKIN LIVE IN WITH MOTO GOOD TO GERM THE ABOT CONNECTING JUST LOVE MO DO KO ANG IT. ‘TO OBEY YOUR THIRST. PASALUBONG NG DO THE DEW. THE FUN DON’T LIKE.NO.OTHER. ASK FOR MORE FRESHMAKER BONES! DOWN. PROTECTION DELIVER. HANDS HOLE. PEOPLE. MUNDO. BAYAN STOP.

THE EVOLUTION OF TV COMMERCIALS In television’s early days, commercials were highly product oriented. This focus changed however, as a result of government regulation of cigarette companies, the televisions biggest advertisers. In 1971, the FCC banned cigarette commercials from the airwaves.

THE EVOLUTION OF TV COMMERCIALS With the loss of this important category of advertisers, the networks quickly discovered that few advertisers could afford to buy a second spot on a popular primetime program. Lowering the price of advertising time was a possible solution, but rising production costs for network shows made this difficult.

THE EVOLUTION OF TV COMMERCIALS In 1953, for example, a 1-hour episode of Studio One cost CBS $30,000 to produce. In 1975, Gunsmoke cost that same network $230,000 for 1-hour.

THE EVOLUTION OF TV COMMERCIALS The network’s solution: • To split up the 60-second spots into more affordable 30-second segments.

Its advantages: • A greater number of advertisers can afford television. • Networks can make more money by selling two 30-second spots at more than the price one full minute.

THE EVOLUTION OF TV COMMERCIALS The networks had solved their problem but advertisers had a new one – their commercials were new aired among twice as many competing messages. In 1965, every network television commercial was a full 60-seconds, although 23% were piggy backed (that is, a single sponsor presented two products in the same minute). In 1975, only 6% were a full minute long.

THE EVOLUTION OF TV COMMERCIALS The number of commercial spots grew, and so did too the number of commercial minutes allowed on television. In 1967, for example there were an estimated 100,000 commercial minutes aired on networks. By 1974, there were 105,622 commercial minutes – 5,600 additional minutes on three commercial networks alone.

THE EVOLUTION OF TV COMMERCIALS As the number of spots grew and the length shrank, commercials became less about the products – there was too little time to give any relevant information – and more about people who use them. Image advertising came to television.

THE EVOLUTION OF TV COMMERCIALS Today, the price of commercial time continues to rise, production costs for programming continue to increase, the number of commercials on the air continues to grow, the air time available continues to expand, and as a result, the length of commercial spots continue to shrink.

Length of TV Commercials (2002) 30 Seconds 0.7 20 seconds

5.8 1.7

15 seconds

1.1 31.9

58.7 0.1

10 seconds or less 90 seconds or more 60 seconds 45 seconds

THE EVOLUTION OF TV COMMERCIALS Fifteen and even 10-second spots are now common. One second spots or blink ads now appear on some stations and networks. More and more spots crammed into a commercial break produces clutter.

Scope and Nature of the Advertising Industry

For our purposes, advertising is mediated messages paid for by and identified with a business or institution that seeks to increase the likelihood that those who consume those messages will act or think as the advertiser wishes.

In 2002 advertisers spent over $236 billion to place their message before the US public, more than $400. An overwhelming proportion of all this activity is conducted through and by advertising agencies.

The Advertising Agency Many agencies also produce the ads they develop, and virtually all buy time and space in various media for their clients. Retainer – production is billed at an

agreed-upon price.  Placement of advertising in media is compensated through Commissions,

typically 15% of the cost of the time or space. Commissions account for as much as 75% income of the larger agencies.

The Advertising Agency Ad agencies are usually divided into departments, the number might contact with outside companies for the operation.

Administration – agency’s management and accounting operation

Account management – typically handled by an account executive who serves as liaison between agency and client, keeping communication flowing between the two and heading the team of specialist assigned by the agency to the client.

The Advertising Agency Creative Department – where the

advertising is developed from idea to ad. Media Department – makes the decisions about where and when to place ads and then buys the appropriate time or space. - The effectiveness of a given placement is judge by its Cost per Thousands (CPM), the cost of reaching 1,000 audience members.

The Advertising Agency Market research – tests product viability in the market, the best venues for commercial messages, the nature and characteristics of potential buyers, and sometimes the effectiveness of the ads.

Public Relation departments.

Types of Advertising Advertising produced and placed by ad agencies can be classified according to the purpose of the advertising and the target market.

Types of Advertising Institutional or corporate advertising - sell products - promote their names and reputations Some institutional or corporate advertising promotes only the organization’s image, such as “FTD Florists supports the U.S. Olympic team”. But some advertising sells the image at the same time it sells the product: “You can be sure if it’s Westinghouse”.

Types of Advertising Trade or Professional advertising –

typically found in trade and professional publications, messages aimed at retailers do not necessary push the product or brand but rather promote product issues of importance to the retailers.

 Retail advertising – focuses on products

sold by retailers. Ads are typically local, reaching consumers where they live and shop.

Trade or Professional advertising

Retail advertising

Types of Advertising Promotional retail advertising – typically

placed by retailers, promotional advertising does not focus on a product but rather on a promotion, a special event held by a retailer. (Mid night Madness sale and Back to School Sale.) Industrial advertising – Advertising products and services directed toward a particular industry is usually found in industry trade publications. It also runs ads from transmitter and camera manufacturers. Broadcasting & cable – primary trade magazine for television industry

Industrial advertising

Types of Advertising National consumer advertising – Constitutes

the majority of what we see in popular magazines and on television. It is usually product advertising, commissioned by the manufacturers – aimed at potential buyers. Direct market advertising – Product or service advertising aimed at likely buyers rather that at all consumers is called direct market advertising. - targeted consumers are reached through direct mail, catalogues and telemarketing. - It can be personalized and customized. - computer data from credit card and other purchases, zip codes, telephone numbers, and memberships are few of the ways consumers are identified.

Direct market advertising

Types of Advertising Public service advertising –

promotes organizations and themes of importance to the public is public service advertising. They are usually carried free of charge by the medium that houses them.

The Regulation of Advertising

The Regulation Of Advertising FTC – the primary federal agency for the regulation of advertising. Options for enforcement when it determines that an advertiser is guilty of deceptive practices:

Cease-and-desist order – demanding that the practice be stopped. - can impose fines.

Corrective advertising – a new set of ads must be produced by the offender that corrects the original misleading effort.

The Regulation Of Advertising Greatest difficulties for FTC:

False or deceptive advertising Puffery – little lie that makes advertising more entertaining than it might otherwise be. (e.g. “whiter than white”, ”stronger than dirt”

The Regulation Of Advertising Advertisement is false if it is:

Lies outright Does not tell the whole truth Lies by implication, using words, design, production device, sound, or a combination of these. Island shot – product is shown in

actual size against a neutral background.

Measuring the Effectiveness of Advertising

Measuring the Effectiveness of Advertising Techniques that may be used before an ad or ad campaign is released:

Copy testing – measuring the

effectiveness of advertising messages by measuring by showing them to consumers. It is used in all form of advertising. Consumer juries – these people, considered to be representative of the target market, review a number of approaches or variations of a campaign or ad.

Measuring the Effectiveness of Advertising Forced exposure – used primary for television advertising, requires advertisers to bring consumers to a theater or other facility, where they see a television program , complete with the new commercials.

Measuring the Effectiveness of Advertising Different tests that can be employed to evaluate the effectiveness of the ad:

Recognition tests – people who have seen a given publication are asked whether they remember seeing specific ads.

Recall testing – consumers are asked to identify

which print or broadcast ads they most easily remember. It can be unaided (researcher offers no hits) or aided (researcher identifies a specific class of products. Advertisers assume that an easily recalled ad is an effective ad.

Measuring the Effectiveness of Advertising Awareness tests – Not aimed at specific ads. Goal is to measure the cumulative affect of a campaign in terms of “consumer consciousness” of a product. A likely question in an awareness test is usually made by phone.

Measuring the Effectiveness of Advertising Their value of these research techniques lies in helping advertisers understand how people react to specific ads and advertising strategies, aiding advertisers in avoiding costly mistakes, and assisting advertisers in planning and organizing immediate and later campaigns.

TRENDS and CONVERGENCE in ADVERTISING

NEW AND CONVERGING TECHNOLOGIES  Cyberadvertising-

the convergence of print and broadcast advertising with the Internet.  Banners (up) and Skyscrapers (down) represented 84% of all Web advertising in 2002 (Gaffney, 2002).  Contextual advertising- ads that automatically intrude into user’s Web sessions whether wanted or not.

NEW BREED OF ONLINE ADVERTISING  Interstitial

ads Images that appear on the screen and then disappear as users click from one page to the next.  Pop-outs Ads that appear in a smaller window at the border of the Web page being read

NEW BREED OF ONLINE ADVERTISING  Extramercials Columns

of ad content that slide down over the page’s content.  Intramercials Attractive, lively commercials that run while people wait for Web Pages to download

NEW BREED OF ONLINE ADVERTISING  Targeted

keyword buys ads had pop up on the screen every time a user types in a sponsor’s name or other word or phrase  Shoshkeles Animated objects, like car or Homer Simpson, that run across the screen

NEW BREED OF ONLINE ADVERTISING  Large

rectangles Oversized ads that appear in the center of the page over existing text  Surround sessions Users served a steady stream of ads from one sponsor during their entire visit to a site

NEW BREED OF ONLINE ADVERTISING  Text

ad Ads that appear alongside search results that somehow relate to the search  Advergames Free, downloadable games that center on a sponsor’s product or have commercial product placements

TRANSACTION JOURNALISM  It is the direct linking of editorial content to

sales  E.g. the New York Times places links to the bookseller barnesandnoble.com next to its book reviews.  They were paid every time a reader links from this page to the Barnes and Noble Web site.

INCREASED AUDIENCE SEGMENTATION

Cyberadvertisers have reined their ability to reach and speak to ever narrower audience segmentation.

PSYCHOGRAPHICS  Psychographic

segmentation

 Appealing

to the consumer groups with similar lifestyles, attitudes, values and behavior patterns

 Demographic  Appealing

segmentation

to the audiences with varying personal and social characteristics such as race/ethnicity, gender and economic level

PSYCHOGRAPHICS  Some

of the demographic identifiers are: Actualizers Fulfilled Believers Achievers Strivers Experiencers Makers Strugglers