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Chapter 10

Chapter 10 CS101.docx

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Department
Communication Studies
Course
CS101
Professor
Natalie Coulter
Semester
Fall

Description
CS101 Chapter 10-Advertising Week 7 Importance of Advertising Consumer Economies -When production of foods and services is up, so is advertising Advertising and Prosperity -Advertisings growth has been a product of a plentiful society -Advertising can inspire people to greater individual productivity so that they can have more income to buy the things that are advertised -Advertising creates wants -Advertising is seduction; not brainwashing Advertising and Democracy -Without advertising, many of the media on which people rely for information, for entertainment and for the exchange of ideas on public issues would not exist as we know them Origins of Advertising Stepchild of Technology -Advertising relies on media to carry its messages -First came flyers and THEN advertising Pioneer Agencies -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 Advertising Agencies Agency Structure -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 -Many agencies also employ technicians and producers who turn ideas into camera-ready proofs, colour plates, videotape, audio clips and web based ads Agency Compensation -Commissions-Commission contract – an advertising agency earns an agreed-upon percentage of what the advertising client spends for time and space, traditionally 15% CS101 Chapter 10-Advertising Week 7 -Performance-Performance Contract – an advertising agency earns expenses and an agreed-upon mark-up for the advertising client, plus bonuses for exceeding minimal expectations -Equity-Equity Contract – an advertising agency is compensated with shares of stock in an advertising client Advertiser’s Role in Advertising -Most companies have their own advertising expertise among the people who develop marketing strategies Placing Advertisements Media Plans -Lays out where ads are placed Media Choices -Newspapers-Newspaper readers are predisposed to consider information in advertisements seriously. However, newspapers are becoming less valuable for reaching young adults. -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. Magazines require reservations for advertising space up to three months in advance. -Radio-Time can be bought on short notice. With changes possible until air time. Radio does not allow for
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