1. Advertising and Commercial Culture Chapter 10

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3. The Rise of Mobile Advertising “Dollars always follow eyeballs,” a media forecaster told the Wall Street Journal, predicting that it was a matter of time before mobile became the next major advertising medium.

4. Early Developments in American Advertising  Advertising used in antiquity  1704: First newspaper ads in America  Most U.S. magazines had advertising by mid-1800s.  Earliest ad agencies were newspaper space brokers. Bought newspaper space, sold it to merchants  N. W. Ayer established the first “modern” U.S. ad agency in 1869.

5. Advertising in the 1800s  Manufacturers realized consumers would ask for their products specifically if they were distinctive, associated with quality.  Advertising let manufacturers establish “brand recognition” for their products.  19th-century ads created the impression of significant differences among products.

6. Advertising in the 1800s (cont.)  By the end of the 1800s, half the ads were for patent medicines or department stores.  Many patent medicines were dangerous and/or fraudulent. Problem led to advertising self-policing.  Federal Food and Drug Act passed in 1906

7. Promoting Social Change and Dictating Values  Powerful ads changed American life. Transition from producer-directed society to consumer-driven society Promoted new technological advances that made life easier  Ads were accused of inciting consumer need for unnecessary products.  Began to use advertising’s power for social good Ad Council founded in the 1940s

8. Early Ad Regulation  Agencies created to self-regulate the ad industry: The Better Business Bureau Audit Bureau of Circulation American Association of Advertising Agencies (AAAA)  Subliminal advertising Hidden or disguised visual messages in films and television programs No more effective than regular ads

9. Types of Advertising Agencies  Top 4 mega-agencies WPP Omnicom Publicis Interpublic  Boutique agencies Often founded by designers and graphic artists empowered by visual revolution of the 1960s Peterson Milla Hooks: one of the biggest boutique agencies in America

10. Figure 10.1 Global Revenue for the World’s Four Largest Agencies (in Billions of Dollars)

11. Figure 10.2 Forecast for 2012: Where will the advertising dollars go?

12. The Structure of Advertising Agencies  Market research assesses the behaviors and attitudes of consumers toward particular products.  Types of market research Demographics Psychographics Focus groups Values and Lifestyles (VALS)

13. The Structure of Advertising Agencies (cont.)  Creative development Writers and artists outline rough sketch of ads. Storyboard (TV), Viral Marketing (Digital)  Media selection Media buyers choose and purchase the types of media best suited to carry a client’s ad and reach the target audience.  Account services Account executives are responsible for bringing in new business and managing the accounts of established clients.

14. Trends in Online Advertising  Pop-up ads, pop-under ads, flash multimedia ads, and interstitials popular today  Fastest-growing segment of ad industry  Advertisers target individuals by tracking ad impressions, click-throughs. Build profiles for consumers based on this information  Social networking sites provide advertisers with a wealth of data.

15. Persuasive Techniques in Contemporary Advertising  Famous-person testimonial  Plain-folks pitch  Snob-appeal approach  Bandwagon effect  Hidden-fear appeal  Irritation advertising

16. The Association Principle  Product associated with some cultural icon or value  Used in most consumer ads  Responding to consumer backlash, major corporations present products as though from smaller, independent companies.

17. Advertising as Myth  Myth Analysis reveals three common mythical elements found in many types of ads: Mini-stories Stories involving conflicts Conflicts are negotiated or resolved by end of ad, usually by applying or purchasing product.

18. Product Placement  Placing ads in movies, TV shows, comic books, video games Starbucks on Morning Joe (MSNBC) Audi in Iron Man 2  Should the FCC mandate that the public be warned about product placement on television?

19. Commercial Speech and Regulating Advertising  Political speech is protected under the First Amendment. Lobbying (PR) Political campaigns  Commercial speech is far more proscribed by case law. Fee-based communications Intended to cause money exchange

20. Critical Issues in Advertising  The heavy promotion of toys, sugary cereals to children  Advertising in schools  Health Eating disorders Tobacco Alcohol Prescription drugs  Puffery Ads featuring hyperbole and exaggeration

21. Alternative Voices  The Truth, a national youth smoking prevention campaign, works to deconstruct the images that have long been associated with cigarette ads. Recognized by 80% of teens By 2007, ranked in the Top 10 “most memorable teen brands”

22. Advertising’s Role in Politics  Since the 1950s, politicians have mimicked advertising techniques in order to get elected.  Broadcasters have long opposed providing free time for political campaigns and issues, since political advertising is big business for television stations.

23. The Future of Advertising  Commercialism has generated cultural feedback that is often critical of advertising’s pervasiveness.  Still, the growth of the industry has not diminished.  Public maintains an uneasy relationship with advertising.