What is advertising?
-A form of communication used to persuade audiences to take action
-But also to vote a certain way, to donate, or to change behaviour (PSA)
Advertising and Prosperity
-Advertisings growth has been a product of a plentiful society
-Advertising creates wants
-Advertising is seduction; not brainwashing
-By 1869, merchants recognized the value of advertising, but they grumbled about the time it took away from
their other work
-The Ayer agency created ads, but also offered:
-counsel on selling products and services
-design services; actually creating ads and campaigns
-expertise on placing ads in media
-ad agencies conduct market research for the clients, design and produce advertisements and choose the
media in which the ad will run
-Creativity-copywriters, graphic experts, and layout people
-Liaison-work with clients to understand needs, and then communicate the needs back to the creative staff
-Buying-determine the most effective media to place ads and then place them
-Research-generate information about target consumer groups
-Commissions an advertising agency earns an agreed-upon percentage of what the advertising client spends
for time and space, traditionally 15%
-Performance- an advertising agency earns expenses and an agreed-upon mark-up for the advertising client
-Equity- an advertising agency is compensated with shares of stock in an advertising client
-Media Plans-Lays out where ads are placed
-Newspapers-Newspaper readers are predisposed to consider information in advertisements seriously.
-Magazines-Magazines have a longer shelf life, and people pass along magazines and the ad is around
for a long time and touches a lot of people.
-Radio-Time can be bought on short notice. With changes possible until air time.
-TV-King of all media 34% of advertising pie. Though there is an ad clutter so many competing ads
that all lose impact.
-Online Services-Readers can click to deeper levels of information.
-Google Ads-Narrowly focused advertisements. Google earns the most from internet advertising. Importance of Brands
-A challenge for advertising people is that mass-produced products are alike toothpaste is toothpaste
-Brand Names-Aims to make the product a household word Kleenex for facial tissue.
-Brand Image-Isnt the whisky they choose but rather it is the image they choose the whisky for
Lowest Common Denominator
-Messages for broadest audience possible
-To reach an audience that includes members with IQs of 100, the pitch cannot exceed their level of
understanding, even if some people in the audience have IQs of 150
-Market Segments-Targeting ads for specific consumer groups
-Repetition of media messages
-Different techniques of redundancy:
-Barrages-scheduling ads in intensive bursts
-Bunching-promoting a product in a limited period
-Trailing-running condensed versions of ads after the original has been introduced
-Multimedia Trailing-using less expensive media to reinforce expensive ads
-Stealth Ads-ads, often subtle, in non-traditional unexpected places. Ex. An ad on a sidewalk
-Product Placement-writing a brand-name product into a television or movie script. Ex. ET and Reeses pieces
-Informercials-program-length broadcast commercial
-Zine-magazine whose entire content articles and ads pitches a single product or product line
-Retailers are pushing store brands which score 10% higher profits.
-Ads are losing their touch
Advertising Regulation and Self-Regulation
-Competition Act any ad must adhere to specific guidelines
-Clear information on price, availability, and performance of goods
-Warranties must be explained fully
-Ads cannot exploit violence, gender, or sexuality. It should always be in good taste.
-The number of ads we see in a day continues to increase
-2006-Approximately 5000 ads per day
Part of our Culture
-Permeates our cultural environment (Corporate speak bbm someone)
-Is a privileged form of discourse and an integral component of modern culture
-An accepted part of everyday life not critical of it anymore
-Flyers were the first form of advertising -In 1468 William Caxton printed the first ad
History of Advertising
-Mid-1800s-Advertising goes national
-Tran transportation = creates new networks for distribution
-Magazines reach out to national markets
-1869-Ayer Agency [people begin to specialize in advertising advertising agencies]
-1889-Anson McKim-first ad agency in Canada
Advertising is part of the Economy
-Advertising is a fundamental part of the economy
1. Big Business -Canadian companies in -2009 $6.97 billion
-2007 $385 billion worldwide
-US-500 agencies employ over 120 000 people
2. Central to Consumer Capitalism -informs us about goods
-seduces us to buy goods (Andrew Potter)
-creates wants for goods (John Kenneth Galbraith)
3. Drives the Media -Advertising=revenue for media
Advertising to Children
Early 20 Century-Children were ignored as a direct market
1. Considered vulgar a company wouldnt associate itself with talking to children
2. Local television is not national in the 1940s and 50s
-The mother was the consumer because she was the gatekeeper to family consumption
-Since the 1950s-Children are integrated into the market and defined as a consumer market
Children3 markets - James McNeal
1. Current market
2. Future market (brandable)
-get em while theyre young
3. Influential market Pester Power children as advocated for goods within the home
-- family conflict Public Relations
Defining Public Relations
-A management tool to establish beneficial relationships
-Canadian Public Relations Society says that public relations is the management function which evaluates
public attitudes, identifies the policies of an individual or organization with the public interest, and plans and
executes a program of action to earn public understanding and acceptance.
Four steps are necessary for public relations to accomplish its goals:
-Identify existing relationships, evaluate the relationships, design policies to improve the relationships,
implement the policies
-Manage the communication between an organization (or individual) and its publics stakeholders affected
by various policies
-Edward Bernays Public relations is a manipulation of the opinions of the masses
Public Relations in a Democracy
-Public relations is a means for the public to have its desires and interests felt by the institutions in our society
-Public relations is a means to achieve mutual adjustments between institutions and groups
-Public relations is a safety valve for freedom
-Public relations is an essential element in the communication system that enables individuals to be informed
on many aspects of subjects that affect their lives.
-Public relations people can help to activate the social conscience of the organizations for which they work.
The Ideas of Ivy Lee
-Lee began a career that rewrote rules on how corporations deal with their various publics. The following are
among his accomplishments:
-Converting Industry toward Openness-Railroads had been secretive about business policies and accidents. Lee
arranged for a special car to take reporters to the scene and take pictures.
-Turning negative news into positive news-Some bad things have good results
-Putting corporate executives on display-When something goes bad in a company it is important to but the
corporate executive who is responsible for it on display to take the blame for what has happened
-Avoiding puffery and fluff-Everything needs to be accurately said and provide verification
-Converted industry toward openness
-Turned negative news into positive news a spin
-News stories needed to leak out because corporations would not have control on it then
How Public Relations is Organized
-No two organizations are organized in the same way
-Public relations department usually has three functional areas of responsibility:
-External relations-Communication with groups and people outside the organization, including customers,
dealers, suppliers, and community leaders.
-Internal relations-Involves developing optimal relations with employees, managers, unions, shareholders and
other internal groups.
-Media relations-Communication with large groups of people outside an organization is practicable only
through the mass media. An organizations coordinator of media relations issues news releases.