Advertising Lecture

Thursday, September 27, 2012 6:35 PM

Consumer Culture
Ambient Marketing Management Ad blindness - ubiquity. There is so much clutter of ads surrounding us at all times that we tend to ignore them so we're not always distracted. A branded environment can further relationships Creativity breaks through the ad clutter and forces people to pay attention Advertisers have to do something different for us to notice. 84% of young people say the don't notice ads on social sites. Very few people say that ads actually affect their purchases (40% GenY), in comparison to 45% of the general adult population. - Potentially the third person effect - people think that advertising doesn't impact their shopping decisions, but it actually does. Relevancy and Search Engine Marketing Google encourages us to desire ads that are more relevant. - Increases intolerance for advertising that is irrelevent - Permission based and relevant to what we are doing on that moment - Customized and interesting Search engine advertising delivers messages to you that are relevant to what you want. You don't want ads to interrupt you, you want them to add to your experience online or on TV. In game ads: product placement increase realism and are non intrusive. Particularly noticeable in sports games Microsoft reported that product placement within games translates to brand economic prosperity. Gatorade sponsored uniforms and put branding on courts, and noticed a 24% increase in household spending Dynamic ads: 0.5 second exposure can lead to brand recall. - Obama billboard in racing game targeted a new demographic of voters Slashdot concluded that the best place to put an advertisement in a game, and expect ad recall, is during a moment of violence (like about to run over a pedestrian) Brand Integration and Product Placement Since we have become good at ad skipping, product integration advertising becomes more important: include advertisements that are relevant to the product, [ex] - Extreme Home Makeover should play commercials for Rona, Maytag, Ikea, etc. - Clean Break television series is threaded with advertisements for razors, which demonstrates the "clean shave" theme of the program Product placement - placing their products in TV shows, movies, etc to promote products (its free advertising). - Apple appeared in 42% of Hollywood films - audience exposure that they didn't pay for - Brand perception can shape characters - Apple products in Mission Impossible - Gossip Girl characters all use iPhones All types of media are ad supported. If you take away the ads, we don't have sponsorship, so we don't have a product. Content Marketing
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Content Marketing Advertising can be consumed as content - awesome advertising is fun to watch Big advertising is big budget. - High production values = awesome content that people want to share Creating commercials that people look forward to watching. Increases chance of going viral. - Top viral videos each week are advertisements - Some commercials are made for the web (too long for television spots) Infographics: more interesting than reading yet another webpage - eye candy Appvert and Gamevert Appvert: Branded apps can be advertisements Gameverts promote sustainability. - Axe company developed a game of girls bouncing on pogo sticks - Hilton Worldwide created a free app that decodes businesss acronyms for you. It appeals to your intellect, thus, a specific demographic - Coke's virtual spin the bottle application is a fun party app that appeals to GenY demographic 26% apps are only used once - Description is misleading - It was free - Hoard apps - Forget you have it if you have a lot of apps - Get bored of using app - Introductory preview makes you purchase the rest, and you don't want to - Not good at the game - Just as easy to delete as it is to download. Social Advertising We want to share and add value to our network Find links that are "status-worthy" Though leadership is developed by being the first to share content of a specific nature Social relationship marketing strategies make you more likely to recall specific brands. Facebook research shows that social relationship marketing results in a 10% uplift brand recall People remember the things that their friends post

Facebook Beacon controversy: a primitive platform extension that allowed users to tell their friends where they were shopping. - Tracked online activity on websites that were in partnership with Facebook, and purchases were automatically displayed online - They opted everyone in automatically by default. - Launched during the holiday season (2007) - purchases were inadvertently revealed - It became a problem because proposals were spoiled. - Beacon was unplugged The Like Economy 51% more likely to purchase a brand after liking it 56% more likely to recommend a brand to friends after liking it It's effortless, social word of mouth Socially relevant ads Sponsored stories: turn your likes into advertisements - image can be used for sponsored stories on your friend's newsfeeds. - Can be negative/risky for the brand because Facebook profile pictures may not be indicative of brand messages/values Frictionless Sharing
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Frictionless Sharing Brands have signed on to enable you to share your media content automatically. Brands have access to your personal information. Facebook open graph (shows being watched on Netflix, articles read from the Washington Post) - Can be opted out Personalization Personalization and mass customization advertisements have a better chance of being shared - Coca cola puts your name on a can (not cost effective - designed to cause word of mouth surrounding the brand) - Old Spice engaged with Twitter audience (more cost effective) Mass customization needs to be cost effective to scale, or it doesn't work - Design your own Nivea lip balm cap and enter it in a contest - showcases users' digital creative skills - Hellman's receipt personalization: receipt technology recognized Hellman's mayonnaise purchase, and combined with other purchased groceries to generate a recipe and print it on the receipt. Sales increased 44% over 3 months of receipt software installation Mobile Marketing QR codes have not caught on - one in six Canadians will scan this month. - Scan codes for payment at movie theatres and have popcorn delivered to your seat (won't miss the movie, no lines, won't lose your seat, do it to see if it works, - mCommerce - scan the code and get first chapter free, see what you think and decide whether you want to read the rest Digital Discoverability - Geosocial Networking People sharing their locations Less than 10% actually use it McDonalds ran a foursquare contest by offering a gift certificate if people checked in. - 33% increase in foot traffic Early adoption of geosocial/mobile marketing might be risky if people don't know how to participate in the promotion. 74% smartphone owners use phones to get directions, but not for geosocial apps - Location is the most personal information of all - the people who need to know your location will know - Social seating through ticket master allows you to find a seat near where your friends are. - Seating on a plane fCommerce hasn't worked - Unsure about security of network - Not using Facebook for shopping - Feels like spam Social gifting is an opportunity for successful mobile fCommerce - Karma is a mobile app (that has been purchased by Facebook) - Notification of friends birthday - Put together a gift and have it delivered - Convenient Relevant messaging - brand need to understand everyone buying to customize message and position brand accordingly. Generation segregation Values, lifestyles, and aspirations are targeted - tweak messages accordingly Geodemographics: region, neighborhoods, target them differently than others. Cultural Proximity: ads that reflect things they already think and feel.
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Cultural Proximity: ads that reflect things they already think and feel. You can build an affinity path to purchase - no bumps or wrinkles.

Advertising Strategies
Consumer Types When designing effective marketing campaigns, you must know your customer really well, and their interests/preferences. This gives you the capability to target more effectively and personalize content with offers that are of interest. Market Segmentation targeting a particular consumer with a message - Healthy choices menu at fastfood restaurants Cohort Analysis Generational difference Messages differ based on age Psychographics Values and lifestyles LuluLemon targets people who value health and bases their marketing strategies around these lifestyles Geodemographics location Differ from big to small cities Cultural Proximity: People prefer messaging that resonates with their own lifestyles, values, attitudes, self image, aspirations, tastes preferences, interests, opinions. Based on relevance to experiences Seeking to build affinity paths to purchase. We want a smooth path from being inspired to the actual purchase of a product or service. Advertising that resonates with things that they value Ads combine the following strategies: Rely on the Association principle: must be associated with something that we value. It need to hook into something that the consumer segment considers valuable Find something that everybody loves and build advertisements around trends that people are into - Catvertising: cute cat theory of media use Emotional sell: sells emotion (disgust, fear, disgust, sexuality, joy). Trying to provoke an emotion Advertisements try to resonate on an emotional level so we will remember it Sexual sell - can be done in a classy way or tied with humour - Trying to break through the advertising clutter Humor Fear factor WINNING THE ATTENTION WAR Vignette advertisements: rapid succession of images and music move quickly, linked to MTV style, quick cuts and pounding music, and fleeting sexual images that captivate your attention. Its about feeling, not thinking. Velocity gives you the feeling that life is fleeting, so you have to buy quickly Difficult to watch passively, always involved - Researchers found that alcohol ads are most recalling - Values in alcohol ads: romance, adventure, sex appeal, relaxation, popularity, masculinity Shockvertising strategy: trying to arrest your attention - visual technique that interrupts the glance effect. Almost impossible to look away Popular with fashion brands and public service announcements Interrupting the glance theory
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 Interrupting the glance theory - 51% disgusted people are more receptive to the new (new and improved) - Harvard business review - More likely to pay more after disgust-evoking clips Blipvert: if you blink, you miss it. Plays on our short attention span, appeals to intellect, will watch again if you missed the first time Humour association principle is combined with many different advertising strategies - inject joy into someone's life, and associate that joy with a brand Defensive advertising: fear ads - Apply to your body - make you feel bad about yourself to avoid the feeling of shame, make purchases to avoid humiliation - Social shaming MASS APPEAL Band wagon ads: evented traditions makes you think that its a tradition - everyone has been doing it forever. Plain folks pitch: associates a product or service with everyday people. A product that is simple and fits easily and effortlessly into every day life. It can be acquired and used easily. Down to earth Families are represented Cause marketing - appeals to folks who want to make a difference Speaks loudest to moms and millenials Many consumers would rather do business with a company that stand for something beyond profits Helps people feel good about their purchases - it's a justification They want to believe the brands are making a diffference, not just in it for profit Snob appeal: the best in class. Distinctive items stand out amongst peers. Class membership Brand recognition Conspicuous and competitive consumption Upscale emulation - driven by the desire to have exclusive goods and services that only a few people can actually afford - Climbing the ladder - aspiring to be a member of a higher class Exclusivity Factor - Only the best/brightest/most tasteful consumers To be in the prestige economy, they must be scarce and expensive - Limit availability - Raise prices - No sales - Status goods that remain exclusive Masstige brands: luxury brands move to products for the masses - Can become mainstream (apple) - Somewhat affordable Celebrity endorsement: short hop from identifying a celebrity to emulating a celebrity Bring a set of establishing meanings with them to your marketing message - Products associated with Tiger Woods suffered - You need celebrities that are popular, well-liked, not controversial Cut through advertising noise and clutter - Parasocial power - Participatory culture: More celebrities are signing on with brands and becoming designers. - Celebrities have an attention capital that they already own, and you can bring this with you to the
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- Celebrities have an attention capital that they already own, and you can bring this with you to the brand Comparison ads: mentioning competitor in advertisements. If your product is the same, you need to find a creative way to compare the two products and communicate brand distinction Parity products are all the same - there needs to be brand distinction The pretty good problem - you don't know what to buy because everything looks pretty good. - USP (unique selling proposition): figuring out what makes the product unique Have to set product apart Distinguish yourself using celebrities, humor, Communicate uniqueness through stereotypes Stereotyping: The power/stickiness of generalizations can play to humor Invisible stereotyping - Isn't super obvious; we only see certain people in certain roles looking a certain way. We can't imagine things differently because of repetition (no diversity - certain people are never cast in certain roles) - Have a grain of truth - Visual association

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Advertising Readings
Sunday, December 09, 2012 7:00 PM

Introduction
Pg. 319-320 2010 marked a significant turn in advertising strategies, because the revenue from Internet advertising surpassed newspaper advertising revenue Mobile advertising also grew large enough to gain the attention of the advertising industry, with some of the largest international media companies making huge investments to bring advertisements to smartphone and tablet screens. - Media forecasters predict that the mobile market will dominate the advertising industry in the future - Google, who already dominates the advertising market, bought AdMob, a company that serves ads to mobile screens, in order to bring advertisements to the network of mobile devices that use Google's Android platform. - Apple also purchased a mobile advertising platform, Quattro Wireless, in 2010, but has since focused its energy on developing their own company, iAd. As Steve Jobs said, "iAd offers advertisers the emotion of TV with the interactivity of the web, and offers users a new way to explore ads without being hijacked out of their favorite apps"

The First Advertising Agencies

Pg. 323 There were very few goods and products until the 1830s so advertising wasn't particularly prevalent until after the Industrial Revolution. The minimal advertising that did exist usually featured local merchants selling goods and services in their own communities. The first advertising agencies were newspaper space brokers Individuals who purchased space in newspapers and sold it to merchants 1941, Volney Palmers opened a prototype of the first ad agency in Boston

Advertising in the 1800s

Pg. 323 - 325 TRADEMARKS AND PACKAGING Advertising let manufacturers establish a special identity for their products, separate from those of their competitor Product differentiation associated with brand-name packaged goods represents the single biggest triumph of advertising The high price of many contemporary products results from advertising costs. PATENT MEDICINES AND DEPARTMENT STORES The role of the publisher changed from being a seller of a product to consumers to gatherer of consumers for the advertisers Many patent medicines made outrageous claims about what they could cure, leading to increased public cynicism department stores were frequently criticized for undermining small shops and businesses They could buy bulk items and could price their brand-name products cheaper than small local stores which increased sales and more money towards advertising. This drove small local stores out of business. ADVERTISING'S IMPACT ON NEWSPAPERS The ratio of news material to advertisements space has changed from 3:1 to approximately 1:1 by the early 1900s
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the early 1900s The recession decreased newspaper advertisement revenue from a peak of $49 billion in 2005 to $22.3 billion by 2014 - For most papers, fewer ads meant smaller papers, not more room for articles.

Promoting Social Change and Dictating Values

Pg. 326 Advertising significantly influenced the transition from a producer-directed to a consumer-driven society. By stimulating demand for new products, advertising helped manufacturers create new markets and recover product start-up costs quickly. Advertising promoted technological advances by showing how new machines could improve your daily life. Advertising encouraged economic growth by increasing sales APPEALING TO FEMALE CONSUMERS Early 1900s, women constituted 70 to 80 percent of magazine readers yet 99 percent of the copy writers and ad executives at the time were men. They emphasized stereotypes with intentions to help female consumers feel good about defeating lifes problems. They glorified cleaning products and appliances etc. 1930s the US federal government bought advertising space to promote involvement in the war. Criticism of advertising grew as the industry appeared to be dictating values as well as driving the economy to promote a more positive image, the industry developed voluntary groups and ads (blood drives, war bond sales, rationing of scarce goods etc). the postwar extension of advertisings voluntary efforts became known as the Ad council with fundraising campaigns, PSAs etc DEALING WITH CRITICISM After a decline in ad revenues during the Great Depression, WWII brought rejuvenation in advertising because the federal government bought large quantities of ad space for war propaganda. The industry began to actively deflect criticism that advertising created consumer needs that ordinary citizens never knew they had - The industry developed the war advertising council - a voluntary group of agencies and advertisers that organized war bond sales, blood donor drives, and the rationing of scarce goods. The ad council continues to produce pro bono public service announcements on a wide range of topics, including literacy, homelessness, drug addiction, smoking and AIDS education

Early Ad Regulation
Pg. 326-327 advertisers wanted a formal service that tracked newspaper readership, guaranteed accurate audience measures, and ensured that papers could not overcharge ad agencies and their clients. As a result, the Audit Bureau of Circulation (ABC) was made in 1914 The advent of television dramatically altered advertising Subliminal advertising: hidden or disguised print and visual messages that allegedly register in the subconscious and fool people into buying products Subliminal advertising was banned in 1858

The Influence of Visual Design

Pg. 327-328 In the 1960s and 1970s, a new design era began to affect advertising
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In the 1960s and 1970s, a new design era began to affect advertising MTV was a great influence in the 1980s of advertising and visual techniques MTV started a trent of hit songs in commercials As the web became a mass medium in the 1990s, TV and print designs often mimicked the drop down menu of computer interfaces small images for phones and portable media players and 3d animation and interactive media were created for computers

Types of Advertising Agencies

Pg. 328-329 Mega-Agencies: Large ad firms that formed by merging several agencies and that maintain regional offices worldwide Small- boutique agencies - devote their talents to only a handful of select clients. MEGA-AGENCIES 4 main agencies - WPP, Omnicom, publicis and interpublic Some consider large agencies a threat to the independence of smaller firms, which are slowly being bought out another concern is that these 4 firms now control more than half the distribution of advertising dollars globally BOUTIQUE AGENCIES visual revolutions in 1960s elevated the standing of designer and graphic artists, who became closely identified with the look of particular ads. many broke away from mega agencies to form their own boutiques.

The Structure of Ad Agencies

Pg. 330-334 Traditional ad agencies, regardless of their size generally divide the labor of creating and maintian advertising campaigns among four departments: - account planning - creative development - media coordination - account management ACCOUNT PLANNING, MARKET RESEARCH, AND VALS Market Research assessment of behaviours and attitudes of consumers toward particular products long before any ads are created Demographics studies and documentation of audience members age, gender, occupation, ethnicity, education and income Psychographics a research approach that attempts to categorize consumers according to their attitudes, beliefs, interests, and motivations - relies on focus groups Focus Groups a small-group interview technique in which a moderator leads discussions about a product or an issue, usually with 6 to 12 people. Values and Lifestyle (VALS) strategy Uses questionnaires to measure psychological factors to divide consumers into types. Different groups focus on different factors (Ideals, achievement, self expression) that are important to them Innovators, Thinkers, Achievers, Experiencers, Believers, Strivers, Makers and Survivors CREATIVE DEVELOPMENT the creative department outlines the rough sketches for print and online ads and then develops the
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 the creative department outlines the rough sketches for print and online ads and then develops the words into graphics and create storyboards Storyboard a sort of blueprint or roughly drawn comic-strip version of the potential ad. viral marketing: short videos or other content that (marketers hope) quickly gains widespread attention as users share it with friends online, or by word of mouth MEDIA COORDINATION: PLANNING AND PLACING ADVERTISING Ad agency media departments are staffed by media planners and media buyers Media buyers people who choose and purchase the types of media that are best suited to carry a clients ads, reach the targeted audience, and measure the effectiveness of those ad placements. Saturation advertising a variety of media are inundated with ads aimed at target audiences

ACCOUNT AND CLIENT MANAGEMENT Account Executives: client liaisons, responsible for bringing in new business and managing the accounts of established clients. Function as liaisons between the advertiser and the agencys creative team. Account reviews: the process of evaluating and reinvigorating a products image by reviewing an ad agencys existing campaign or by inviting several new agencies to submit new campaign strategies

Trends in Online Advertising

Pg. 334-337 Banner ads: the printlike display ads that load across the top or side of a web page Interstitials: pop up in new screen windows as a user clicks to a new Web page Spam: unsolicited commercial email ONLINE ADVERTISING CHALLENGES TRADITIONAL MEDIA Because internet advertising is the leading growth area, advertising mega agencies have added digital media agencies and departments to develop and sell ads online. ONLINE MARKETERS TARGET INDIVIDUALS Marketers can develop consumer profiles that direct targeted ads to specific Web site vistors they do this by collecting information about each internet user through their cookies and online surveys Ad impressions: how often ads are seen click throughs: how often ads are clicked on mobile phones are increasing important offers advertisers the bonus of tailoring ads according to either a specific geographic location or the user demographic ADVERTISING INVADES SOCIAL MEDIA allows advertisers to target and monitor their ad campaigns. promote products to a growing online audience for virtually no cost companies and organizations also buy traditional paid advertisement on social media sites earned media: convincing online consumers to promote products on their own Social media is helping advertisers use such personal endorsements to further their own products and marketing messages

Conventional Persuasive Strategies

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Conventional Persuasive Strategies

Pg. 337-338 Famous Person testimonials: a product is endorsed by a well-known person Plain-folks pitch: associates a product with simplicity Snob-appeal approach: persuade consumers that using a product with maintain or elevate their social status band-wagon effect: points out in exaggerated claims that everyone is using a particular product hidden-fear appeal: plays on consumers sense of insecurity. frequently invoke anxiety. irritation advertising: creating product name recognition by being annoying or obnoxious

The Association Principle

Pg. 338-340 a persuasive technique used in most consumer ads that associate a product with a positive cultural value or image even if it has little connection to the product a popular use is to claim that products are real and natural DISASSOCIATION AS AN ADVERTISING STRATEGY allows for companies to disassociate from negative publicity disassociation often links new brands in a product line to eccentric or simple regional places rather than to images conjured up by multinational conglomerates

Advertising as Myth
Myth analysis: insights into how ads work at a general cultural level. myths help us define people, organizations, and social norms. according to myth analysis, most ads are narrative with stories to tell and social conflicts to resolve 3 common mythical elements: 1. Ads incorporate myths in mini-story form, featuring characters, settings, and plots 2. Most stories in ads involve conflicts, pinning one set of characters or social values against another 3. such conflicts are negotiated or resolved by the end of the ad, usually by applying or purchasing a product. in advertising, the product and those who use it often emerge as the heroes of the story - most advertisers do not expect consumers to accept without question the stories or associations they make in ads; they do no make the mistake of asking for belief - ads are most effective when they create attitudes and reinforce values

Product Placement
Pg. 341 strategically placing ads or buying space - in movies, tv shows, comic books, video games, blogs, music videos etc so products appear as part of a storys set environment

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Advertising Quiz
Sunday, December 09, 2012 11:37 PM

1) A company that wants to get consumers to buy a more expensive version of an item, such as fancy bottled water, might try which persuasive technique? A. Bandwagon effect B. Plain-folks pitch C. Snob-appeal approach D. Irritation advertising E. Famous-person testimonial 2) An example of objectionable television advertising aimed at children would be ______. A. a half-hour infomercial talking about a new stain-fighting detergent B. a public service announcement featuring a cartoon frog that encourages kids to eat their vegetables C. All of the options are correct. D. a Saturday morning commercial for a breakfast cereal called Double Frosted Sugar Bombs E. a Saturday morning commercial selling a brand of minivan 3) Which of the following is not an example of the association principle of advertising at work? A. A commercial shows a man surrounded by attractive women after using a brand of cologne. B. A store puts up extra flags and red, white, and blue decorations to create an image of national pride. C. An ad for a green cleaning product shows the bottle in a woodland setting. D. A noisy, high-powered, gas-guzzling vehicle is shown in a rustic setting. E. A brand of candy bar made by a major candy company is portrayed as a working-class treat made by local efforts. 4) Online advertising could take the form of ______. A. a video that is spread from person to person by e-mail B. paid search engine advertising C. billboards and signs in online video games that promote an actual company or product D. ads that pop up on the computer screen when someone clicks on a Web site E. All of the options are correct. 5) Historically, one controversial use of the association principle in advertising is when it has led to ______. A. commercials playing on the insecurities of consumers to make them think a product can reduce that anxiety B. women being portrayed as sex objects to be awarded to men who use a particular product C. the use of celebrities to sell products D. the placement of brand-name products in television programs and movies E. large corporations trying to pretend they are smaller, friendlier companies 6) Which of the following is not an example of product placement? A. A character on a sitcom eats a peanut butter and jelly sandwich. B. The line Brewed by Starbucks is added to the logo of a morning cable television news program. C. The title character in the movie E.T. eats Reese's Pieces. D. A character in Iron Man 2 drives an Audi and uses an LG phone. E. Coca-Cola products are often visible on the set of television program American Idol. 7) Even though boutique agencies give creative people the freedom to do good work, they haven't been able to attract any major clients. False
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able to attract any major clients. False 8) Because of the backlash against social networking Web sites, advertisers are moving their advertising dollars back to traditional media outlets like television and radio. False 9) The amount spent on Internet advertising still lags behind the amount spent to advertise in newspapers. False 10) An obnoxious car dealer or appliance salesman yelling at the camera in a TV commercial is using which questionable persuasive strategy? A. Irritation advertising B. Hidden-fear appeal C. Product placement D. Plain-folks pitch E. Snob-appeal approach 11) An owner of a discount appliance store who dresses in a goofy costume and yells at the camera is utilizing ______. A. the hidden-fear appeal B. the plain-folks pitch C. irritation advertising D. subliminal advertising E. overt advertising 12) One of the benefits of online advertising is that it tends to protect the privacy of consumers who use the Internet. False 13) Ads that portray women as sex objects exemplify the association principle. True 14) In an ad showing a salesman talking about how his father taught him to be honest and hardworking and to understand the value of treating people fairly, auto manufacturer Ford demonstrates ______. A. propaganda B. an appeal to the bandwagon effect C. the famous-person testimonial D. myth analysis E. the plain-folks pitch 15) In an effort to attract more viewers, the four major TV networks have reduced the number of commercials aired during prime time. False

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