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Learning objectives

Chapter 1 Where marketing communication began: the development of advertising in Australia and New Zealand. Learning objectives. To define advertising—looking at its importance and its function. To trace the history of advertising in Australia and New Zealand.

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Learning objectives

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  1. Chapter 1Where marketing communication began: the development of advertising in Australia and New Zealand

  2. Learning objectives To define advertising—looking at its importance and its function. To trace the history of advertising in Australia and New Zealand. To explore the changing advertising environment. To introduce marketing communication concepts—such as consumer empowerment and engagement, the push–pull marketplace and interactive advertising, digital and social media—that will be fundamental to the rest of the book.

  3. Importance Structure & function Definition Future of advertising History Advertising News channels Changes in ad agencies Empowered Consumers Social media Interactive advertising Engagement Digital media

  4. Traditional definition Advertising is any paid form of non-personal communication about an organisation, product, service or idea by an identified sponsor. Traditional definition Advertising is any paid form of non-personal communication about an organisation, product, service or idea by an identified sponsor. Paid:The space or time for an advertising message must be purchased. Non-personal: Involves mass media (e.g. TV, radio, newspapers, magazines) in one-way communications. What is advertising? Traditional definition Advertising is any paidform of non-personal communication about an organisation, product, service or idea by an identified sponsor.

  5. The best job in the world The best job in the world campaign, but how much advertising did it use?

  6. A new definition of advertising Traditional definition Advertising is any paid form of non-personal communication about an organisation, product, service or idea by an identified sponsor. New, improved definition Advertising is a paid, mediated form of communication from an identifiable source, designed to persuade the receiver to take some action, now or in the future.

  7. Importance of advertising

  8. Importance of advertising

  9. Advertising has many functions Communicate & interact The nature and purpose of advertising differs from one industry to another and across situations. Engage & involve Brand awareness Brand equity Brand image

  10. Brand awareness Building brand awareness is especially important for new products.

  11. Brand image Even established brands need to build and maintain brand image.

  12. History of advertising

  13. Function and structure Client options In-house advertising Advertising agency

  14. Types of agencies Full service Creative boutiques Types of agencies Media buying services Other

  15. Research Planning advertising • General • communications • Sales promotion • Direct marketing • Interactive • Package design • Public relations • Publicity Creating advertising Producing advertising Selecting media Full-service agencies Full range of marketing, communication and promotion services

  16. Artists Copywriters Researchers Photographers Media analysts Other skills Ad agencies have skilled specialists

  17. Great Australian ads

  18. Importance Structure & function Definition Future of advertising History Advertising News channels Changes in ad agencies Empowered consumers Social media Interactive advertising Engagement Digital media 1-18

  19. Advertising timeline (Australia) 1911 Media commissions introduced 1821 First magazine 1800 First ad (poster) 1946 National industry association (AANA) 1803 First newspaper ad 1912 First industry association (Melbourne) 1901 First advertising service agency (Sydney) 1923 Commercial radio 1956 Commercial TV 13-19

  20. Advertising timeline (NZ) 1901 Newspaper Publishers Association 1931 11 accredited agencies in operation 1960 1st television broadcast 1821 First magazine 1927 Advertisers Association of NZ 1923 Broadcasting regulations 1906 First advertising agency 1989 Te Mangai Paho (Maori Broadcasting) established 13-20

  21. History of advertising Early newspaper advertisements were confined to printed text only. Illustrations were rare until the 1860s. Source: Walter Powell Advertisement for Paragon Kitchens, 1862 State Library of Victoria, Pictures Collection

  22. Advertising today—Australia Media expenditure: $12.6 billion Advertising agencies: 1000+

  23. Advertising today—Australia (cont.) Radio licences 374 commercial 358 community Television (FTA) 54commercial 83community Subscription TV 2588 Metro and regional daily newspapers: 50+ Consumer magazines 140 (audited) Cinema screens: 1994 Population: 21 million

  24. Advertising today—NZ Media expenditure: $2045 million Advertising agencies: 200+

  25. Advertising today—NZ (cont.) 300 radio stations 150 newspapers 87 TV channels 6000 magazines 455 cinema screens Population: 4.18 million

  26. Breakdown of advertising expenditure (Australia)

  27. Media expenditure in New Zealand: 2007

  28. Importance Structure & Function Definition Future of Advertising History Advertising News Channels Changes in Ad Agencies Empowered Consumers Social Media Interactive Advertising Engagement Digital Media 1-28

  29. Consumer empowerment Push-pull marketplace Digital media and interactive advertising Social media New rules of engagement The changing advertising landscape

  30. Consumer empowerment and the push-pull marketplace • Insert figure 1.7 • Push pull marketplace

  31. Digital media and interactive advertising

  32. Interactive advertising

  33. Social media Social media defined: Social media has been defined as ‘a group of internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of user-generated content. David Schumann, Andy Artis & Rachel Rivera, ‘The future of interactive advertising through an IMC lens’, Journal of Interactive Advertising, vol. 1, no. 2,. 2001

  34. Consumers are consumers of content Consumers are producers of content Brands are owned by companies Brands are a shared creation Marketers define brand meanings and values Consumers define brand meanings and values Social media Traditional view Contemporary view Key opportunity: How to engage consumers by inviting them to create content around a product?

  35. Social media

  36. New rules of engagement

  37. Importance Structure & Function Definition Future of Advertising History Advertising News Channels Changes in Ad Agencies Empowered Consumers Social Media Interactive Advertising Engagement Digital Media 1-37

  38. The future of advertising • Harsh economic environment leading to advertising budget cuts • Mass media advertising is dying • Rise of new communications technologies • Fragmentation of media and markets • Search for big ‘consumer insight’ • From great executions to strong strategy

  39. Summary and conclusions • Advertising in Australia and New Zealand has a long heritage with its roots dating back to the 1800s. • Advertising has evolved from a push by marketers to reach audiences to a more complex and interactive approach. • Consumer empowerment has led to an emphasis on shared dialog rather than pushed messages. • Definitions of advertising have changed to accommodate new technologies and interactivity. • The advertising industry has also adapted to current changes. • Advertising continues to be the best way to reach large audiences.

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