Advertising & Commercial Culture

1. Advertising & Commercial Culture Chapter 11

2. Culture Influenced by Ads “Advertising has long played a prominent role in contemporary life….As big players like Google take advantage of … technological advances, the advertising business itself is evolving. Only time will reveal what direction this major support system for mass media industries will take in the future.”

3. Advertising comes in many forms • Without consumer advertisements, most media businesses would cease to function in their present form. • How has advertising evolved? • Early history of advertising • Importance of visual design/impact of Internet • Persuasive techniques • Deception in advertising • Impact on democracy

4. Events in advertising, 1850s-1950s • Industrial Revolution - Linked villages, towns, cities together • Merchants advertised in newspapers, magazines • Space brokers- individuals who purchased space in newspapers then sold to merchants.

5. Firsts in Advertising Volney Palmer First fully modern ad agency opened in 1869 in Philadelphia, N.W. Ayer who created content for his clients. 1841 opened the first ad agency in Philadelphia, charged 25% commission, sold space to clients in newspapers. N.W. Ayer

6. Brand Names • Retail stores sold in bulk, manufacturers wanted to increase profits so they turned to advertising to increase “visibility.” • Consumers started asking for “brand name” products and stores were forced to begin stocking goods. • Patent Medicines: Making outrageous claims. • Led to the creation of the Food & Drug Administration in 1906

7. Patent Medicine Advertisements

8. Fueling Consumer Demand Department Stores Transforming Society Stimulating demand for consumption Targeted ads at women who were seen to control household purchasing decisions. • Newspapers carried Dept. Stores advertisements

9. Early Regulation Efforts • Better Business Bureau -Monitored deceptive advertising • Federal Trade Commission (FTC) -Monitored ad abuses • Audit Bureau of Circulation (ABC) -Monitored circulation figures to decrease fraud https://www.youtube.com/watch?v=64lzPYFiVIU • https://www.youtube.com/watch?v=4liwCLuvLAg

10. Early Regulation Efforts • War Advertising Council • Organized World War II bond sales, blood donor drives, and rationing of scarce goods • Became Ad Council after war • Produces pro bono public service announcements • National Association of Broadcasters • Banned use of subliminal ads • Demonstrated willingness of industry to self-regulate

11. Mad Men • https://www.youtube.com/watch?v=gQqVM140Npk • Volkswagen ad • https://www.youtube.com/watch?v=GALMX2BO5ps • Lucky Strike Pitch • https://www.youtube.com/watch?v=fVI7-ufWR6I • Lipstick

12. Evolution of U.S. Advertising: 1950-today • Visual Design becomes integral to ads beginning in 1960s • Inspired by European designers, TV, video • Mega-agencies offer a full range of services • PR ,ads, radio and TV production. • Examples: Omnicom, WPP, and Publicists • Boutique agencies • More personal service to limited clients, more creative

13. Ad Agency Structure • Account Planning develops strategy Market Research assesses consumer behavior Includes demographics, psychographics, focus groups, VALS strategy • Creative Development is nerve center Teams of writers and artists create ads • Media Buying selects media for clients Finds media best suited to product, consumer • Account Management brings in business Manage relationships with clients

14. Data Collection: Market research • Demographics/Psychographics & focus groups • Value and Lifestyles (VALS) http://www.marketing91.com/vals-values-attitude-lifestyle/

15. Internet alters ad landscape • Rise of Web Advertising Banner ads displayed on Web pages • How Online Ads Work Agencies track ad impressions & click throughs, gather information Mobile phones, tablets allow ads for specific locations • Advertising Invades Social Media Provide data on consumers and a venue for ads • Web Advertising’s Growing Power Web companies buy agencies, become brokers

16. Persuasive Techniques in Advertising • Famous-person testimonial • Product endorsed by famous person • Serena Williams spokeswoman for Nike • Plain-folks pitch • Product associated with simplicity • Example: GE “Imagination at work” • Snob appeal • Product use will maintain or elevate status

17. Classic Techniques https://www.youtube.com/watch?v=kRAtX7yK6O8

18. Persuasive Techniques in Advertising • Bandwagon effect • Everyone is using the product • Example: “America’s favorite” • Hidden-fear appeal • Plays on consumers’ insecurity • Example: fear of personal hygiene problems • Irritation • Creates brand recognition by being annoying • Example: “UNBELIEVABLE BARGAINS!”

19. Association Principle • Product associated with some cultural icon or value • Patriotism after 9/11 • “Green,” “real,” or “natural” products • The “Marlboro man” • Product sometimes linked with stereotyped caricatures • Men as idiots who cannot cook, do laundry

20. Telling Stories • Many ads contain elements of myths • Mini-drama featuring characters, settings, plots • Character experiences conflict • Conflict resolved by end of ad as result of product purchase • Example: GEICO cavemen

21. Product Placement • Placing ads in movies, TV shows, comic books, video games • Burger King in Iron Man • Diet Snapple on 30 Rock • Watchdog organizations calling for consumer alerts about product placement • FTC rejected • FCC unresponsive

22. Regulation Concerns • Advertising is commercial speech • First Amendment unclear on rights to protection • Critics demand regulation for destructive ads • Ads for unhealthy products • Dangerous behaviors • Medications • Influence of ads unclear • Up to 90% of new products fail despite ads • Concerns over ads persist

23. Targeting Children and Teens • Children influence family spending • Children’s Television Act of 1990 • Prompted in part by Action for Children’s Television (ACT) • Networks mandated to provide some educational content • Hard to enforce, little impact • Ads invade schools • Channel One and others find loopholes

24. Problems Blamed on Ads • Anorexia among girls and women • Ads feature unnaturally thin women • Widespread obesity in U.S. • Ads hawk corn-syrup-laden soft drinks, fast food, junk food, etc. • Smoking promotion • Ads previously targeted kids with cartoons (Joe Camel)

25. Problems Blamed on Ads (cont.) • Drinking promotion • Ads target minorities • Snoop Dogg • Ads link drinking to power, romance, sexual prowess, or athletic skill • Prescription drug promotion • Ads market drugs directly to consumer • Creating consumer demand • Spreading limited or false information

26. Watchdog Organizations • Commercial Alert • Checks commercialism • Challenges marketing tactics allowing corporate intrusion into civic life • American Legacy Foundation • The “Truth” project • FTC • Plays investigative role in substantiating ad claims • Imposes monetary civil penalties

27. Advertising in a Democratic Society • Political Ads • Ad techniques used to “sell” candidates • Less affluent candidates can’t compete • Issues can’t be explained in short TV commercial • Advertising maintains its hold • Sustains media business model • Consumers enjoy, accept advertising • We need to understand its benefits and costs to our country

28. Samsung • https://www.youtube.com/watch?v=DT4ikdAS-P0