Chapter 4: Financing and Shaping the Media
Chapter 4: Financing and Shaping the Media Comm 130
Popular in Mass Media and Society
Popular in Communication
This 5 page Class Notes was uploaded by Deja Jackson on Wednesday February 10, 2016. The Class Notes belongs to Comm 130 at University of Pennsylvania taught by Joseph Turow in Spring 2016. Since its upload, it has received 89 views. For similar materials see Mass Media and Society in Communication at University of Pennsylvania.
Reviews for Chapter 4: Financing and Shaping the Media
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 02/10/16
Chapter 4: Financing and Shaping the Media (The Ad Industry) 2/9/16 9:20 PM The Advertising Industry Advertising: the activity of explicitly paying for media space or time in order to direct favorable attention to certain goods or services; general advertising involves far more than explicit messages — an entire industry supports it 1. Advertisers pay for the space or time they receive 2. Advertising clearly states its presence 3. Advertising involves persuasion Advertising agencies: companies that specialize in the creation of ads for placement in media that accept payment for exhibiting those ads; hired by advertisers (ex: WPP, Publicis, Interpublic) • Agency holding companies: firms that OWN full service ad agencies, specialty agencies, and even PR agencies; own the biggest ad agencies o Have client conflicts: situations that occur when agencies serve companies that compete with one another; traditionally drive away companies unless a totally different network agency is involved o Tend to be located in largest cities (NY, Chicago, LA) o What they do: § Business-to-business agencies: carry out work for companies that are interested in persuading personnel in other companies to buy from them instead of from their competitors § Consumer agencies: carry out work for advertisers that want to persuade people in their non-work roles to buy products § General agencies: invites business from all type of advertisers § Specialty agencies: tackles only certain types of clients and accounts (ec: internet agency, direct-to-consumer: “ask your doctor if ___ is right for you..” § Traditional agencies: creates and distributes persuasive messages with the aim of creating a favorable impression of the product in the minds of the target consumers that will lead them to buy it in stores § Direct-market agencies: focus on consumer mailings, telemarketing, TV commercials and other appeals to elicit purchases; right then and there • Agency networks: ad agencies with branch offices in cities worldwide; work with other organizations in the industry to carry out 3 basic functions: 1. Creative persuasion: set of imaginative activities involved in producing/creating ads 2. Market research: focus groups, surveys, social media trending topics § Becoming more unobtrusive these days § What should target customers be? What do they think of the brand? How? Why? 3. Media planning and buying: involves purchasing media space/time on strategically selected outlets that are deemed best-suited to carry a client’s message Production in the Ad Industry Positions involved: • Account executive: moves info between the advertiser and agency; makes sure all production, distribution and exhibition activities take place as planned. • Creative/creative personnel: work relates directly to the creation of their firm’s media materials Involves market segmentation: dividing society into different categories for consumers; creatives conduct a sales pitch based on the answers to the following: • What are the product’s strengths? • What kinds of people buy it? • Who are the best potential customers? • Why do/don’t they buy the product? Distribution in the Ad Industry *Media fragmentation has increased the number of ad vehicles, but deciding where to place ads is becoming much harder; this is the job of media planners Media planners track computerized and psychographic data and do syndicated studies about the number/kinds of people that media outlets to answer the following questions: • Where would I place TV commercials for GEICO if I want to reach young adults? • Where would I place web ads to convey the same message? Outdoor and in-store media are becoming of increasing importance for some marketers • Outdoor media: encompass a great variety of stationary billboards and signs; moving media such as buses and trains • In-store media: print and audiovisual ads that people see when they walk into retail spaces (ex. grocery cart ads) o “captive” advertisements: cabs, planes, restrooms, buses, elevators When a media planner decides an audience segment they’re aiming for can be found in an outlet, they ask: • What is the outlet’s reach with respect to that target audience? • What % of the target audience will the outlet reach? • Considering the costs of running an and there, how efficient is the outlet in reaching that audience compared to other outlets? o CPM (cost per thousand): basic measurement of advertisement efficiently; evaluates how much space they will buy in a given medium and what price they’ll pay Exhibition in the Ad Industry *The goal of the production and distribution of an ad is to exhibit it across a variety of media to a target audience through the following: • Ad campaign: the entire set of ads using a particular theme to promote a certain product for a certain period of time o Ex. Proctor & Gamble’s “Thanks, Mom” ads during the Olympics • Location-based advertising: process of sending commercial messages to the people based on their geographic location o Helps advertisers track individuals across many media Determining and Advertisement’s Success *After an ad campaign is exhibited, the campaign’s success will be evaluated through the following • Direct Marketing campaign => evaluated by certain number of products purchased or dollar amounts • Web ads => eval. depends on the nature of the responses and expectations of the marketers o Click-through ad => may be eval. through direct purchases, but can be difficult to track • Traditional advertising => immediate results are impossible to observe o Can survey the target audience to see how many people recall the ads, comparing the recall of those ads to others o Can compare sales before and after the campaign *Dangers: • People use DVR to skip over ads • Online, people use email filters and pop-blockers to get rid of unwanted ads Key Words: Sales pitch: a presentation to a client, portraying the world of the client’s intended audience and actions, to show how that product is valuable to the world. Media planners: agency personnel who make decisions about where to place advertisements Psychographic data: info that links to personality characteristics of an audience (ex: are they “materialistic” or “confident”?) media plan: the list of media outlets in which companies advertise their products click-through ad: web-based ad that, when clicked on, takes the user to the advertiser’s website
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'