Emerging Technologies Research Paper: Advertising Industry

EMERGING TECHNOLOGIES RESEARCH PAPER ADVERTISING INDUSTRY Caleb Dexter Dionisio S13 [email protected] IT Department, College of Computer Studies, De La Salle University Manila Maria Karinna Littaua S13 [email protected] IT Department, College of Computer Studies, De La Salle University Manila Efren Rodriguez Jr. S13 [email protected] IT Department, College of Computer Studies, De La Salle University Manila

ABSTRACT The Advertising industry came from a long way and it is one of the most effective ways of informing the consumers and the public. In this paper, the history of Advertising or how advertising started will be discussed. Also written in this paper, are the different types of advertising media that are present today. Another topic that the paper will discuss is the local issues that are present in our society today and its trends. And lastly this paper aims to give the readers the view on the role of technology to advertising and how emerging technologies can contribute to this industry. 1. INTRODUCTION According to Manohar, “Advertising is the promotion of a company’s products and services carried out primarily to drive sales of the products and services but also to build a brand identity and communicate changes or new product /services to the customers. Advertising has become an essential element of the corporate world and hence the companies allot a considerable amount of revenues as their advertising budget.” Advertising is the most effective way to send a message to the public. 2. HOW IT BEGAN Advertising has been a form of glorifying or gaining publicity for goods and merchandize since very early times. In fact, advertising has been around as an informal concept since the beginning of civilizations and former methods were oral advertising or claiming the benefits of products verbally when merchants sold goods to people directly on the streets. However with the advent of paper and writing, advertising took a more formal shape. With the growth of mass media and different forms and avenues of communication like radio, TV, newspapers, magazines, and of course the internet in the 20th century, advertising started becoming an important aspect for commercialization of products. People started understanding the potential of advertisements and it became a business with the establishment of advertising agencies with the first advertising agency in US opened in 1841. With advertising becoming a business in itself, the methods of using advertisements became even more formalized, controlled and systematic and the advertisements for products started appearing as newspaper ads, on billboards, hoardings, as handbills, leaflets, on magazines, newspapers, on TV and radio as commercials and more recently on the internet. Web advertising is now a very powerful means to take the message across to the customers. However to actually appeal to customers, advertising will have to work in accordance with the principles of psychology and sociology. Thus an advertiser or an advertising professional will also

have to be a sociologist and a psychologist to really have an impact on the minds of consumers. The principles of advertising are largely based on cognitive psychology and the psychological processes of attention, perception, association and memory to bring out the complete impact or uses of a product or ‘brand’. Any advertisement will have to first focus on the attention that it is able to capture of the consumers. Once the attention is drawn with the colors and the sounds or words, the focus is on retaining consumer interests by using ‘association’. Themes or products which a particular segment of customers could associate with are used thus for baby food, mothers and babies are featured so association would have more to do with relevance or context of the advertisement. The association should be such that it not only serves the purpose of quick understanding and perception of the consumers but is also retained in their memory for a long time. Thus memory or retention is an important aspect of the psychology of advertising as only an advertisement that consumers can easily remember for a long time for its novelty or use of words, colors and figures will be the most effective. The development of a ‘brand’ is just as effective because a brand helps in driving attention, in developing association (for example, we associate Coca Cola with youth, celebration and a soft drink popular for all occasions) and in memory or retention of any image associated with a service or product. A brand is recognized in terms of its name, its quality and its reputation with advertisements these days highlighting the uniqueness of brands. Whatever it is, the mantra is to create an impact and have a lasting effect on the minds of the consumers. The message of the product, the motto of the brand and the mind of the consumer, these are the three Ms that are important in advertising. However it is important to understand that advertising will have to be different for different media. Radio ads should focus on the strength of sounds and words; internet ads will focus on visuals and colors; newspaper ads will focus on space and the theme; and TV ads would focus more on the emotions and the context used. Using motion, capitalized letters, contrasting colors etc are all important and in order to draw attention to the product, some form of highlighting of the product is also done. How does all this affect the masses, the consumers who will actually buy the product? Apart from the attention drawing process, the retention producing sounds and words that help memory and the associative value of the products and the advertisements, there is another factor namely necessity of the consumer. Advertising is not just enough, as a customer is driven to buy a product largely considering the necessity, quality, features and price of the product. The features are as important as the price. Then of course, the ‘hype’ that triggers a certain mass psychology in a certain

way so people sometimes queue up for newly released products The longer term establishment of a product is through real quality, usability and price and all companies should emphasize on these ultimately. Usually most products advertised as unique and not even remotely similar to other products can have a positive effect and can effectively generate hype and consumer curiosity. Focusing on the unique and highlighting the dissimilarity and novelty of a product in a way that attracts curiosity is a certain method to improve popularity of a product, so this gives consumers the reason to know more and they will enter the shops to enquire about the product. The final goal of all advertisers and promoters is to ensure that products and services sell and to increase sales and potential consumer interest creating curiosity is a first short term step while introducing a new product into the market. Retaining customer interest is a different ballgame and requires reputation of the brand, product quality, right pricing and continued high quality advertising to ultimately ensure success of the product [4]. 3. TYPES OF ADVERTISING MEDIA There are different kinds advertising media. Below are some examples of the different media that are used here in the Philippines and abroad. 3.1. Print Advertising

also offers options like promotional brochures and fliers for advertising purposes. 3.2. Outdoor Advertising

Taken From: http://www.summitmedia.com.ph/images/billboards/billboards.jpg

Outdoor advertising is also a very popular form of advertising, which makes use of several tools and techniques to attract the customers outdoors. The most common examples of outdoor advertising are billboards, kiosks, and also several events and tradeshows organized by the company. 3.3. Broadcast advertising

Taken From: www.nestle.com.ph/recipe/nc2/celeb04.asp

Broadcast advertising is a very popular advertising medium that constitutes of several branches like television, radio or the Internet. Taken From: http://ph.88dbmedia1.jobsdb.com/DB88UploadFiles/2008/07/24/9 C1EE92B-E4F5-4BD9-A293-C8AD080A064C.jpg

3.4. Covert Advertising

The print media have always been a popular advertising medium. Advertising products via newspapers or magazines is a common practice. In addition to this, the print media

Covert advertising is a unique kind of advertising in which a product or a particular brand is incorporated in some entertainment and media channels like movies, television shows or even sports. Some of the famous examples for this

sort of advertising have to be the appearance of brand Nokia which is displayed on Tom Cruise’s phone in the movie Minority Report, or the use of Cadillac cars in the movie Matrix Reloaded. 3.5. Surrogate Advertising Surrogate advertising is prominently seen in cases where advertising a particular product is banned by law. Common examples include Fosters and Kingfisher beer brands, which are often seen to promote their brand with the help of surrogate advertising. 3.6. Public Service Advertising

4. LOCAL ISSUES 4.1. AGB-NIELSEN SCANDAL AGB-Nielsen Media Research is a company that provides transparent audience measurement systems. According to GMANews.tv: “GMA Network said that according to AGB Nielsen’s Data Review on the panel intervention issue released on January 15, 2008, ABS-CBN also contacted metered homes during their promotional activities in the Visayas and Mindanao.”. GMA claims that ABS-CBN has visited metered homes to check the signal clarity in exchange for gift offerings and also offering home owners P300.00 monthly and some groceries in exchange for their loyalty to the network. This allegations cannot be determined to be a fact but because of this, AGB Nielsen excluded the some of the ratings of the alleged network. It is hard to say which network is telling the telling the truth because at the end of the day, it is us consumers and viewers who will be affected by this scandal.

Taken From: http://img505.imageshack.us/img505/5265/img3703qg6.th.jpg

Public service advertising is a technique that makes use of advertising as an effective communication medium to convey socially relevant messaged about important matters and social welfare causes like AIDS, energy conservation, political integrity, deforestation, illiteracy, poverty and so on. 3.7. Celebrity Advertising

Taken From: http://www.youtube.com/watch?v=paWg1doei1I

Although the audience is getting smarter and smarter and the modern day consumer getting immune to the exaggerated claims made in a majority of advertisements, there exist a section of advertisers that still bank upon celebrities and their popularity for advertising their products.

5. CONCLUSION The Advertising industry evolved through time. From simple print ads to intricate ads for consumers. Through time the advertisement have evolved to cope with the times. It also has to cope with what the consumers want to see in their ads. There are different kinds of advertising media which was discussed. The most commonly seen in the ads are celebrity endorsing different products. In local settings, the hottest stars can be seen endorsing almost everything. Issues concerning the AGB Nielsen should not be neglected because we, viewers are the most affected since we don’t know which information to trust now, two networks saying different stories and a marketing research firm caught in the middle. In advertising, there is no boundaries in which you can do but they are limitations, specifically credibility and integrity of your company because it is the viewers who make your network gain popularity and high profits. We should advertise information as facts not false facts that deceive its viewers for money. The crab mentality among Filipinos should stop since the advertising industry is very influential that they make an impression to the public that it is ok to make false statements against public figures or fellow countrymen.

REFERENCES [1] Manohar, U. (10 Apr 2008) Different Types of Advertising. Retrieved on January 26, 2009 from http://www.buzzle.com/articles/different-types-of-advertising.html [2] Manohar, U. (6 Oct 2008) Modern Advertising Methods. Retrieved on January 26, 2009 from http://www.buzzle.com/articles/modernadvertising-methods.html [3] (n.d.) Advertising. Retrieved on January 26, 2008 from http://www.buzzle.com/articles/advertising/ [4] Roy, S. (2 Dec 2007) The Psychology of Advertising. Retrieved on January 26, 2009 from http://www.buzzle.com/articles/thepsychology-of-advertising.html [5] (16 Jan. 2008) AGB report says ABS-CBN also contacted panel homes during promos – GMA Network. Retreived Jan. 26, 2009 from http://www.gmanews.tv/story/76782/AGB-report-says-ABS-CBN-also-contacted-panel-homes-during-promos--GMA-Network