
| advertisement, advertise, adverse, averse | |
| advice, advise, advisedly, adviser, advisor |
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Paid form of a nonpersonal message communicated through the various media by industry, business firms, nonprofit organizations, or individuals. Advertising is persuasive and informational and is designed to influence the purchasing behavior and/or thought patterns of the audience. Advertising is a marketing tool and may be used in combination with other marketing tools, such as sales promotions, personal selling tactics, or publicity.
| Adverse Selection, Adverse Possession, Adverse Opinion | |
| Advocacy Advertising, Affective Behavior, Affiant |
noun
Whether trying to alter spending patterns or simply alert buyers to a firm's existence, business has for centuries turned to advertising. As the type of media has changed, so too has advertising's form. But aside from a fundamental post–World War I shift in the perception of advertising's power, its function is the same today as it was in 1700: Advertising aims to boost sales.
Buyers purchase a product presumably because they perceive a need or desire for it. They decide from whom and what brand to purchase. Awareness of their choices and an evaluation of which option is "best" influences their decisions. Until the twentieth century, advertising sought only to convey information. But modern advertising seeks to "create demand" by influencing buyers' perceived needs or desires.
Before "modern" Advertising
In the American colonial period, advertisements were primarily signboards on inns, taverns, coffeehouses, and the like. Travelers needed information about inns, but locals did not need advertisements in order to find the blacksmith.
The first newspaper to appear continuously, the Boston News-Letter, was established in 1704. It contained sporadic advertisements. Real estate advertisements, rewards for runaway apprentices, and notices of slaves for sale were all common, as were announcements of sale of cordage, wine, and cloth. These advertisements were limited to text; they contained no photographs or drawings.
Benjamin Franklin founded the Pennsylvania Gazette in 1728. The Gazette included more advertisements than did any other colonial newspaper, with up to half the pages devoted to advertising. Franklin is credited with introducing the use of large-point headings, using white space to separate the advertisements from the text, and, after 1750, including illustrations.
Over the next century, there was little subsequent change in advertising. Advertisements provided information about goods for sale, arrivals and departures of ships, and stagecoach schedules. Print advertisements were confined primarily within column rules; advertisements spanning more than one column were yet to come.
In the 1860s, newspaper circulation increased, and magazine and periodical advertising began. Advertising volume increased markedly. Multicolumn display advertisements were designed; their first use was to call attention to the transcontinental railroad bonds that were being sold to the public. By the 1870s, multicolumn advertisements were common.
Along with advertising, publicity also works when it comes to boosting sales. The similar effects of advertising and free publicity were illustrated in the 1870s by American showman P. T. Barnum, who sought new patrons for his circus show. Barnum owned a field near railroad tracks over which passenger trains passed. To attract the attention of train passengers, he put an elephant to work plowing the field. Newspapers ran articles about the elephant. The publicity generated such enthusiasm for his show that others sought to emulate his free-publicity-as-unpaid-advertising success.
Industrialization and Advertising
Diffusion of steam power in the 1850s paved the way for a wave of technological change in the 1870s and 1880s. The American system of mass production characterized much of American manufacturing by 1890. Increased mechanization generated increased fixed costs, creating an economic incentive to build large factories that could enjoy economies of scale in production but which were dependent on mass demand. The transcontinental railroad allowed relatively low-cost shipment of goods, making regional or national markets economically feasible. Telegraph wires allowed low-cost and fast nationwide transmission of information. Manufacturers created brand names and sought to familiarize buyers nationally with their product. Where a housewife had once ordered a pound of generic baking powder, now she was encouraged to insist on known quality by requesting only Royal Baking Powder. Similar national advertising campaigns were undertaken in the 1880s and early 1890s by, among others, Corticelli Best Twist Silk Thread, Quaker Oats Company, and Procter & Gamble's Ivory soap.
Manufacturers believed that buyers were primarily interested in the quality of the product; competition by price was uncommon. National firms included drawings of sprawling factories and factory owners in their advertisements; the larger the factory and thus the more successful the firm, the higher quality the merchandise could be presumed to be. Singer Sewing Machines, Steinway Pianos, and McCormick Harvesters and Reapers all produced advertisements of this sort.
Following industrialization, seasonal or cyclical declines in demand could drive firms to bankruptcy because the now high fixed costs continued unabated even when sales and production dropped. The need to maintain demand became especially apparent during the 1893–1897 economic depression. Many businesses failed; many more came close. Businesses needed methods to insulate themselves from cyclical downturns in sales and production. Advertising was one tactic they employed.
The U.S. population increased from 31 million in 1860 to 76 million in 1900. Only 20 percent of the population lived in urban areas in 1860, increasing to nearly 40 percent by 1900. The need for easy provision of consumer goods increased as more people therefore lived divorced from the land. Standardized production and transportation improvements further contributed to the development of the department store. Stores such as R. H. Macy and Company of New York City, John Wanamaker's of Philadelphia, and Marshall Field of Chicago, all established by 1870, advertised regularly in newspapers. Rural families turned to mail-order catalogs—in essence, large books filled cover-to-cover with advertisements. Montgomery Ward's first catalog was issued in 1872; Sears, Roebuck and Co. entered the field in 1893.
By 1900, advertising in newspapers was supplemented by advertising on streetcars, on billboards, and in magazines. Full-page advertisements, especially in women's magazines, sought to influence women's choices. Ladies' Home Journal, established in 1883 by Cyrus H. K. Curtis, led the way. The Crowell Publishing Company founded Women's Home Companion. William Randolph Hearst began Cosmopolitan, Good Housekeeping, and Harper's BAZAAR. Between 1890 and 1905 the monthly circulation of periodicals increased from 18 million to 64 million.
Development of Advertising Agencies
Advertising agents were middlemen in 1850: they bought advertising space from newspapers and resold it at a profit to a company seeking to place an advertisement. Beginning in about 1880, N. W. Ayer and Son of Philadelphia offered its customers an "open contract" under which Ayer would be the company's sole advertising agent and, in exchange, would price advertising space at cost plus a fixed-rate commission. The idea caught on. Manufacturers were soon blocked from buying advertising space without an agent. In 1893, the American Newspaper Publishers Association agreed to not allow discounts on space sold to direct advertisers. Curtis Publishing Company, publishers of Ladies' Home Journal, inaugurated the same practice in 1901, and other magazine publishers soon followed suit. The cost-plus-commission basis for the agency was accepted industry wide in 1919, with the commission standardized at 15 percent.
Until the 1890s, conceptualization and preparation of advertising copy were the responsibility of the firm placing the advertisement. But as companies followed N. W. Ayer & Son's cost-plus-commission pricing policy, agents could no longer compete with each other on price; they needed some other means of distinguishing their services from those of competing agents. Advertising agents—soon to be known as advertising agencies—took on their modern form: writing copy; creating trademarks, logos, and slogans; and overseeing preparation of artwork. Ayer hired a full-time copywriter in 1892; Procter and Collier of Cincinnati did so by 1896; Lord & Thomas of Chicago did so by 1898. By 1910, advertising agencies were universally characterized by the presence of full-time copywriters and artists.
Advertising slogans that lasted nearly 100 years came from these advertising specialists. Ivory soap's slogan "99-44/100% Pure" appeared in 1885; Prudential's "Rock of Gibraltar" started in 1896; and N. W. Ayer and Son suggested the brand name "Uneeda" to the National Biscuit Company (later Nabisco) in 1900. Trademarks such as the Morton Umbrella Girl made famous by Morton Salt did not become common until after 1905, when federal legislation allowed the registration of trademarks for a period of 20 years with provision for renewal.
Advertising men were widely seen as no better than P. T. Barnum's sideshow barkers falsely hawking two-headed freaks rather than professionals presenting dignified, honest, and compelling images of bath soap. One step in convincing others that advertising was a profession to be taken seriously was the 1917 formation of the American Association of Advertising Agencies. The Association crafted broadly defined industry standards. Thereafter, the industry was quickly afforded the respect it desired. In 1926, President Calvin Coolidge addressed the Association's annual convention. For its ability to create mass demand, he credited advertising with the success of the American industrial system.
Modern Advertising
Modern advertising—advertising with the goal of creating desire for a product where none previously existed—began in the early twentieth century. With the blessing of leaders in the advertising industry, academic psychologists had begun applying principles of psychology to advertising content in the late 1890s. In 1901, psychologist Walter Dill Scott, speaking on the psychology of advertising, addressed a gathering of businessmen. His book The Theory of Advertising appeared in 1903. Advertisers were initially skeptical of Scott's thesis that psychological principles, especially the concept of suggestion, could be effectively applied to advertising.
An ongoing conflict thus arose in the early twentieth century between two types of advertising: "reason-why" and "atmosphere" advertising. Dominant in the late nineteenth century, reason-why advertising consisted of long, detailed discourses on the features of a product. Atmosphere advertising reflected psychology's influence; it emphasized visual imagery that evoked emotions. The conflict between the two types of advertising was especially intense in the decade before World War I (1914–1918). In 1909, the advertisers of Colgate toothpaste took the conflict directly to consumers, giving them the opportunity to decide "Which Is the Better Ad?"—the one that offered a detailed explanation of the health advantages of Colgate toothpaste, or the one that used illustrations to associate the use of Colgate with a happy family life.
Most practitioners and advertisers were won over by about 1910. Psychologists were judged correct; advertising could change needs and desires. After 1910, most advertising copy emphasized buyers' needs and desires rather than the product's objectively described characteristics. Advertising's success during World War I fully settled the issue. American advertisements sounded a patriotic pitch as they sought to sell Liberty and Victory Bonds, raise money for the Red Cross, and more. Some advertising historians even credited the industry with shortening the war.
By the mid-1920s, the two types of advertising peacefully coexisted. Reason-why copy was deemed appropriate for industrial advertising where decision-making rested on a "rational" profit motive. Atmosphere advertising dominated consumer goods advertising; with increasing standardization of consumer products eliminating many of the real differences between brands, the emphasis of advertising shifted to the "imagined" advantages.
A number of advertising textbooks appeared in the 1920s, authored by professors of psychology whose academic affiliations were often with schools of business. Surveys sought to ascertain the fundamental wants or desires of human beings. A typical list would include appetite, love, sexual attraction, vanity, and approval by others. Atmosphere advertisements emphasized how a product could satisfy these desires.
Advertisers increasingly looked upon themselves as quite set apart from the consumers who saw their ads. Copywriters were male. Consumers were female. Roland Marchand, author of Advertising the American Dream (1985), found that advertisers in the 1920s and 1930s were predominantly male, white, Christian, upper-class, well-educated New Yorkers who frequently employed servants and even chauffeurs, and whose cultural tastes ran to modern art, opera, and symphonies. They saw their audience as female, fickle, debased, emotional, possessing a natural inferiority complex, having inarticulate longings, low intelligence, and bad taste, and being culturally backward. The copy and visual imagery created by these advertising men often emphasized the woman's desire to be loved or her desire to be a good mother.
Ironically, just at the time advertisers sought increased respect through formation of their own professional association, the advertisements they were writing conveyed ever more disrespect for their readers. Many advertising historians note the post–World War I change in advertising's tone. Frederick Lewis Allen, author of the renowned history of the 1920s Only Yesterday (1931) wrote:
"[In the 1920s], no longer was it considered enough to recommend one's goods in modest and explicit terms and to place them on the counter in the hope that the ultimate consumer would make up his or her mind to purchase.… [T]he copywriter was learning to pay less attention to the special qualities and advantages of his product, and more to the study of what the mass of unregenerate mankind wanted—to be young and desirable, to be rich, to keep up with the Joneses, to be envied. The winning method was to associate the product with one or more of these ends, logically or illogically, truthfully or cynically. …" (pp. 141–2)
Advertising is often charged with creating a culture of consumerism in which people define themselves by the goods they buy. Certainly the first big boom in advertising volume and the rise of consumerism are coincidental: Consumerism first characterized the United States in the early twentieth century; advertising volume increased at an annual rate of nearly 9 percent between 1900 and 1920. Moreover, it was in this period that advertising first began emphasizing the ability of goods to meet emotional needs and, more to the point, first began its efforts to create needs where none had previously been felt.
Television and Beyond
The function of advertising has remained constant since the advent of modern advertising but its form has evolved as new forms of media have appeared. Radio broadcasting began in 1922 and with it, radio advertising. By 1930, 40 percent of households owned a radio; more than 80 percent owned one by 1940. Radio advertising expenditures doubled between 1935 and 1940 to $216 million in 1940.
Television began in the 1950s and quickly found its way into almost everyone's living room: 11 percent of households owned a television in 1950 but 88 percent owned one just a decade later. Television advertising expenditures increased nearly tenfold between 1950 and 1960, reaching $1.6 billion by 1960.
Outdoor advertising increased with paved mileage. In the decade after World War II (1939–1945), outdoor advertising expenditures, adjusted for inflation, increased 5 percent annually as paved mileage in the United States increased 3 percent annually. One of the more famous billboard campaigns, begun in 1925, was for Burma-Shave, a brushless shaving cream manufactured by the American Safety Razor Company. Their jingles appeared one line per sign over the course of a mile or more, always ending with the name of the product:
If you think
She likes
Your bristles
Walk bare-footed
Through some thistles
Burma-Shave
The introduction of the videocassette recorder (VCR) led to more changes in advertising. New in 1980, by 1990 over two-thirds of U.S. households owned a VCR. Viewers could fast-forward through commercials when watching taped shows, presenting a new challenge to advertisers. "Product placement" was the result. Firms now paid to have their products used in television shows and films. The practice was spurred by one phenomenal success: the use of Reese's Pieces candy in the 1982 film E. T. The Extra-Terrestrial had increased candy sales by over 65 percent. By 2000, product placement was pervasive.
Table 1
| Advertising Volume | ||
| SOURCE: 1900–1970, U.S. Bureau of the Census, Historical Statistics of the United States: Colonial Times to 1970, Series T444. 1990, 2000, U.S. Census Bureau, Statistical Abstract of the United States: 2001, Table 1271. | ||
| Amount | Average rate of growth | |
| (billions of dollars) | (percent) | |
| 1900 | 0.5 | — |
| 1920 | 2.9 | 8.8 |
| 1929 | 3.4 | 1.7 |
| 1946 | 3.3 | -0.1 |
| 1960 | 11.9 | 9.5 |
| 1970 | 19.6 | 5.1 |
| 1990 | 129.6 | 9.9 |
| 2000 | 236.3 | 6.2 |
The most recent media development, the Internet, was advertisement-free until the first banner advertisements were sold in 1994. Ownership of computers and use of the Internet are both increasing rapidly; by 1999, 34 percent of adults nationwide claimed access to the Internet or an online service. Internet advertising increases apace.
Consumer objections to advertising and its tactics have resulted in legislation, lawsuits, and voluntary restraint. The 1914 Federal Trade Commission Act empowered the Federal Trade Commission (FTC) with the authority to regulate "unfair methods of competition." The 1938 Wheeler-Lea Amendment extended the FTC's powers to "unfair or deceptive acts or practices." The detrimental effects of billboards on the countryside inspired the federal Highway Beautification Act in 1965, which regulated placement of billboards near interstate highways. The "Joe Camel" campaign for Camel cigarettes introduced by R. J. Reynolds in the 1970s resulted in a 1990s federal lawsuit because of the campaign's alleged attempt to hook kids on smoking. A voluntary ban on television advertising by the Distilled Spirits Council of the United States was just one part of its Code of Good Practice regarding marketing and advertising, first adopted in 1934. Political advertising, with the goal of swaying voters rather than consumers, enjoys First Amendment protection but does face some constraints under state laws and under the Federal Communications Commission's Equal Access Law as well as the Federal Election Campaign Act.
Advertising Statistics
Data on advertising expenditure and employment in the industry is summarized in the annual Statistical Abstract of the United States, available online and in any reference library. As seen in Table 1, advertising expenditure has had several periods of rapid growth: the 1910s, 1950s, and 1980s. Advertising volume in 2000 was just over 2 percent of gross domestic product. Over 400,000 people worked in advertising in 2000, a nearly threefold increase since 1980. Approximately 40,000 establishments provided advertising and related services in 2000, about one-third of which had paid employees.
What constitutes an advertisement has changed over time: a name on a wooden signboard; an information-packed display in a newspaper; a full-color glossy advertisement in a magazine; a beautiful blonde singing about a new Chevrolet; candy scattered in a wood for an extraterrestrial alien; logos on the side of coffee mugs; Nike swooshes on professional sports team uniforms; pop-up advertisements on the Internet. The changes will continue as media opportunities develop.
Bibliography
Fox, Stephen. The Mirror Makers: A History of American Advertising and Its Creators. New York: Morrow, 1984.
Laird, Pamela Walker. Advertising Progress: American Business and the Rise of Consumer Marketing. Baltimore: Johns Hopkins University Press, 1998.
Marchand, Roland. Advertising the American Dream: Making Way for Modernity, 1920–1940. Berkeley: University of California Press, 1985.
Norris, James D. Advertising and the Transformation of American Society, 1865–1920. New York: Greenwood Press, 1990.
Pope, Daniel. The Making of Modern Advertising. New York: Basic Books, 1983.
Presbrey, Frank. The History and Development of Advertising. Garden City, N.Y: Doubleday, 1929.
Scott, Walter Dill. The Theory of Advertising: A Simple Exposition of the Principles of Psychology in Their Relation to Successful Advertising. Boston: Small, Maynard and Company, 1903.
—Martha L. Olney
Bibliography
See M. Mayer, Madison Avenue, U.S.A. (1958); R. Glatzer, The New Advertising (1970); R. Hovland and G. Wilcox, ed., Advertising in Society (1988); W. Wells et al., Advertising: Principles & Practice (4th ed. 1998); J. B. Twitchell, Adcult, USA (1995) and 20 Ads That Shook the World: The Century's Most Groundbreaking Advertising and How It Changed Us All (2000).
Many a small thing has been made large by the right kind of advertising.
— Mark Twain (1835-1910); American writer; pen name for Samuel Langhorne Clemens
LearnThatWord.com is a free vocabulary and spelling program where you only pay for results!
Quotes:
"Advertising is the genie which is transforming America into a place of comfort, luxury and ease for millions."
- William Allen White
"Advertisers are the interpreters of our dreams -- Joseph interpreting for Pharaoh. Like the movies, they infect the routine futility of our days with purposeful adventure. Their weapons are our weaknesses: fear, ambition, illness, pride, selfishness, desire, ignorance. And these weapons must be kept as bright as a sword."
- Elwyn Brooks White
"Advertising is legalized lying."
- H.G. Wells
"However far your travels take you, you will never find the girl who smiles out at you from the travel brochure."
- Source Unknown
"Advertising is a racket, like the movies and the brokerage business. You cannot be honest without admitting that its constructive contribution to humanity is exactly minus zero."
- Source Unknown
"Advertising is the modern substitute for argument; its function is to make the worse appear the better."
- George Santayana
See more famous quotes about Advertising
The making of public statements about services offered and facilities available in a professional practice. Personal advertisement in this way is frowned upon because of the risk that there will be misrepresentation and that it will unfairly attract business to the detriment of the client. The contrary view is that the public is disadvantaged because they will not be aware of the range of services offered and the fees attached to them. In most countries now, in which it used to be controlled by the registering authority, the scope of personal advertising is left to the discretion of the individual. Corporate advertising which advertises the profession as a whole is encouraged.
Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

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This article includes a list of references, related reading or external links, but its sources remain unclear because it lacks inline citations. Please improve this article by introducing more precise citations. (April 2012) |
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Advertising is a form of communication used to encourage or persuade an audience (viewers, readers or listeners. Sometimes a specific group of people.) to continue or take some new action. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common. The purpose of advertising may also be to reassure employees or shareholders that a company is viable or successful. 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 blogs and 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 $142.5 billion in the United States and $467 billion worldwide [1]
Internationally, the largest ("big four") advertising conglomerates are Interpublic, Omnicom, Publicis, and WPP.[citation needed]
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Contents
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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.[2] 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 18th 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.[3]
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".[4]
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).[5] 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 a 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.[8] 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.[11]
A recent advertising innovation is "guerrilla marketing", which involves 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 increasingly 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.
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.
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.
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:
This approach suggests that an advertisement should contain a message or means that leads the consumer to a desired end state.
It is designed to move the consumer from understanding a product's benefits to linking those benefits with personal values.
The political economy of advertisement is the theory that a few powerful groups, or ‘knowledge monopolies,’ control the thoughts, behaviors, and actions of the public through mass media as communication. As a form of communication, advertisement uses repeated verbal and visual images to develop and alter society. Over time, these repeated images and symbols become associated with either positive or negative attributes and can modify the public’s evaluation of such cultural objects as people, religions, ethnic groups, and societal roles. Thus, the media forms the beliefs and values of the public through media portrayals. The messages of the ((political economy)) commonly correlate with current economic interests.[13]
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.
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.[21]
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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.[citation needed]
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.[22] Another successful use of digital signage is in hospitality locations such as restaurants.[23] and malls.[24]
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.
Reasons for online 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’.
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.
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.[citation needed]
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.[citation needed]
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.[citation needed]
Some companies have proposed placing messages or corporate logos on the side of booster rockets and the International Space Station.[citation needed]
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, 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.
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.[citation needed]
Controversy exists on the effectiveness of subliminal advertising (see mind control), and the pervasiveness of mass messages (see propaganda).[citation needed]
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 ).[citation needed]
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.[25]
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.[26] Chevrolet held a similar competition for their Tahoe line of SUVs.[26] 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".[27][28]
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.[29]
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.[30]
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.[31]
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 a 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.
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”.[32] 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".[33]
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 has become widely popular with bachelor, master and doctorate degrees becoming available in the emphasis.[citation needed] 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.[34] Organizations such as American Advertising Federation and AdU Network partner established companies with students to create these campaigns.
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.[35] Advertising is increasingly invading public spaces, such as schools, which some critics argue is a form of child exploitation.[36] In addition, advertising frequently uses psychological pressure (for example, appealing to feelings of inadequacy) on the intended consumer, which may be harmful. Many even feel that often, advertisements exploit the desires of a consumer, by making a particular product more appealing, by manipulating the consumers needs and wants.
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".[37]
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.
In the US many communities believe that many forms of outdoor advertising blight the public realm.[38] As long ago as the 1960s in the US there were attempts to ban billboard advertising in the open countryside.[39] Cities such as São Paulo have introduced an outright ban[40] with London also having specific legislation to control unlawful displays.
Many advertisers employ a wide-variety of linguistic devices to bypass regulatory laws (e.g. In France, 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).[41] 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 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.
Today’s culture is made up of meanings between consumers and marketers. These meanings depict signs and symbols that are encoded in everyday objects.[42]Semiotics is the study of signs and how they are interpreted. Advertising has many hidden signs and meanings within brand names, logos, package designs, print advertisements, and television advertisements. The purpose of semiotics is to study and interpret the message being conveyed in advertisements. Logos and advertisements can be interpreted at two levels known as the surface level and the underlying level. The surface level uses signs creatively to create an image or personality for their product. These signs can be images, words, fonts, colors, or slogan. The underlying level is made up of hidden meanings. The combination of images, words, colors, and slogan must be interpreted by the audience or consumer.[43] The “key to advertising analysis” is the signifier and the signified. The signifier is the object and the signified is the mental concept.[44] A product has a signifier and a signified. The signifier is the color, brand name, logo design, and technology. The signified has two meanings known as denotative and connotative. The denotative meaning is the meaning of the product. A television’s denotative meaning would be that it is high definition. The connotative meaning is the product’s deep and hidden meaning. A connotative meaning of a television would be that it is top of the line.[45]
Apple is an excellent example of using semiotics in their advertising campaign. Apple’s commercials used a black silhouette of a person that was the age of Apple's target market. They placed the silhouette in front of a blue screen so that the picture behind the silhouette could be constantly changing. However, the one thing that stays the same in these ads is that there is music in the background and the silhouette is listening to that music on a white iPod through white headphones. Through advertising, the white color on a set of earphones now signifies that the music device is an iPod. The white color signifies almost all of Apple’s products.[46]
The semiotics of gender plays a key influence on the way in which signs are interpreted. When considering gender roles in advertising, individuals are influenced by three categories. Certain characteristics of stumuli may enhance or decrease the elaboration of the message (if the product is perceived as feminine or masculine). Second, the characteristics of individuals can affect attention and elaboration of the message (traditional or non-traditional gender role orientation). Lastly, situational factors may be important to influence the elaboration of the message.[47]
There are two types of marketing communication claims-objective and subjective.[48] Objective claims stem from the extent to which the claim associates the brand with a tangible product or service feature. For instance, the camera has auto focus features. Subjective claims convey emotional, subjective, impressions of intangible aspects of a product or service. They are non-physical features of a product or service that cannot be directly perceived, as they have no physical reality. For instance the brochure has a beautiful design.[49] Males tend to respond better to objective marketing communications claims while females tend to respond better to subjective marketing communications claims.[50]
When advertising to different genders it is important to remember how men and women process information. Females process information comprehensively. Males process information through heuristic devices such as procedures, methods or strategies for solving problems.[51] Men prefer to have available and apparent cues to interpret the message where females engage in more creative, associative, imagery-laced interpretation.
In advertisements, men are represented as independent. They are shown in more occupations than women. Women are represented mainly as housewives and mothers. Men are more likely to be shown advertising cars or business products, while women advertise domestic products. Men are more likely to be shown outdoors or in business settings. Women are depicted in domestic settings. Men are more often portrayed as authorities. As far as ads go, with age men seem to gain wisdom and authority. On the other hand women seem to disappear with age. Voiceovers are commonly used in advertising. Most voiceovers are men (figures of up to 94% have been reported). There have been more female voiceovers in recent years but mainly for food, household products, and feminine care products.[52]
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