Advertising and the changing media landscape

1. Advertising and the changing media landscape Hoorcollege marketing communication blok 4 week 3

2. Why do we bother advertising?

3. Learning goals • By the end of the colleges and the reading you should: • Be able to define advertising • Be aware of how the changing media landscape affects advertising as a communications channel • Understand the benefits of- and the issues with advertising • Have an awareness of the different advertising channels available • Be aware of the threats and opportunities interactive media generates for advertising

4. Agenda • A definition of advertising • Issues facing advertising • What is the job of advertising today? • Summary • Appendix • Advertising channels • Advertising and “new” media

5. A definition of advertising • Advertising can be defined as any paid fornon-personal promotion broadcast through a mass medium where there is an identifiable sponsor • Mass media • TV, radio, cinema, magazines, newspapers, outdoor media • Perhaps “New” Media • The world of advertising is full of noise • Some argue that the aim of any form of advertising is to attract and hold the attention of the target audience • But perhaps this is not always the case • Advertising must be consistent internally, within the communications mix AND the marketing mix • Advertising must be truthful

6. What advertising is not • It is not just television • The majority of advertising is print-based • It is not dying, but it must change • Internet, iTV, PVRs, in-game, etc. are changing the face of advertising • It is not the only element of the promotions mix • Advertising is great for creating awareness and interest • But to increase sales it must be combined with other elements of the promotions mix

7. Issues facing advertising

8. What’s the problem • Today marketing communications as a whole and advertising in particular faces two (connected) issues • The selective nature of human perception • This has always been the case • The changing media landscape • This is a relatively new phenomenon • These are perhaps most difficult for advertising

9. Watch the video • Count how many passes do the team in white make to each other? http://viscog.beckman.uiuc.edu/grafs/demos/15.html

10. The selective nature of human perception • Selective perception • The tendency of human beings to filter most information they receive - this is called attention • We see around 1,500 ads per day, we remember 4 or 51 • Selective distortion • The tendency of human beings to adapt information to fit in with their existing views • The “Pepsi Taste Challenge” only works when blind tasting2 • Selective retention • The tendency of human beings to forget things that do not fit with their “world-view” Fiske, J. (1989), Understanding Popular Culture, London, Routledge McClure, S. M., (2004), “Neural Correlates of Behavioral Preference for Culturally Familiar Drinks”

11. Changes in the marketing environment have made this worse • Over the past few decades the marketing environment has changed significantly • Consumers have become more sophisticated and better informed • Mass markets have fragmented into smaller market segments • Developments in communications technology and legislation has led fragmentation of communications channels • This has led to increasingly segmented markets and communication channels

12. The changing marketing communications environment

13. What this actually means • The old (1950’s) mass communication model is less effective • Communication has to be targeted • IMC and cross-media campaigns • For advertising this means it’s role in the promotions mix is changing X

14. What advertising is good at

15. Advertising as priming • Priming involves preparing a person to be more open to receive a message • It is not subliminal advertising (which has been never been proved to work) • Advertising might be very good at priming

16. Please choose one

17. Priming even works on advertisers http://youtube.com/watch?v=ZyQjr1YL0zg

18. The job of advertising Advertising PRIMING Product Institutional • Remind / reinforce • Remind about product • Reinforce benefits • Encourage repeat purchase • Competitive • Unique benefits • Comparisons • Advocate • Communicate the company's views • Image building • Reinforce image • Create or maintain the character of organization in public mind • Pioneer • Build awareness • Explain a new product • Pioneer • Information on new developments

19. Advertising and the marketing mix • Advertising is not effective “stand-alone” • Advertising should support the marketing mix and the rest of the promotional mix • Priming the target group • Selling activities • Generating leads • Supporting intermediaries • Reduce seasonality • Sales promotional activities • Short-term promotion campaigns • Positioning or repositioning the company or product • Defending against competitors • Changes in STEP factors

20. Summary • Advertising is • Paid for • Delivered via mass media • Has an identifiable sponsor • Advertising is good for awareness, interest and creating priming effects • But works best when integrated into an overall campaign • Read the attached stuff about channels and IAM and advertising

21. Appendix

22. Advertising channels Message Print Broadcast

23. Print: Outdoor • Billboards • Bus shelters • Transport (trams, taxis, airplanes. Etc.)

24. Print: Indoor • In-store • Public buildings, schools, offices etc. • On public transport

25. Print: Published • Newspapers • Magazines • Classifieds

26. Broadcast • Television • Cinema • Radio

27. Advertising channels Message Print Broadcast Interactive media

28. Interactive media • E-mail • Websites • Other online • E.g. pop-ups and banners • Adwords • CD-ROMS • Viral & “Downloadables” • In / though game • SMS / MMS / i-Mode / UTMS / Bluetooth • RDS, Digital / Interactive TV, Digital Radio, GPS • Narrowcasting

29. Issues with interactive media • Still not clear how it should be used as an advertising medium • The ability to combine elements can be ignored • New media is dynamic not static • Sometimes seen as separate from mainstream advertising • It is not integrated well • All of this is changing gradually

30. Guidelines for interactive media • It must be integrated into the overall campaign • Take advantage of material developed for other media • Base it on same creative concept • Avoid the annoying the target audience • Always a risk with e-mail, banners, pop-ups and viral • Use the potential of the media • Do not simply take existing material and digitize it • Avoid online catalogues and static banners • Avoid simply streaming your TV spot • Think about how “new” media can enhance the campaign • What can it do that other media cannot • Virtual experiences?