Advertising 3100 Lecture 2 & 3 Notes 8-17 & 19
Advertising 3100 Lecture 2 & 3 Notes 8-17 & 19 ADPR 3100-0
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This 4 page Class Notes was uploaded by Bridget Notetaker on Monday August 22, 2016. The Class Notes belongs to ADPR 3100-0 at University of Georgia taught by Nathaniel J. Evans in Fall 2016. Since its upload, it has received 78 views. For similar materials see Principles of Advertising in Advertising at University of Georgia.
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Date Created: 08/22/16
Principles of Advertising 3100 Lecture 2 Notes Rise of Agencies: o What problem did business (advertisers) and ththmedia (newspapers and publishers) face in the 19 century conditions? o How did agencies solve problems for businesses and media? o What were the emerging and changing roles of ad agents and agencies? Advertising problems for businesses (advertisers): o Which publications to advertise in? 20,000 nationally No central list Today we have a number of sources o Ex: SRDS (Standard Rate Delivery Service) Advertising problems for media (newspapers, etc.…) o How to keep track of advertising revenue Up to 300-400 separate advertisers (businesses) per issue o How to increase profits Increase price? Increase quantity? Ad agencies: o For businesses (advertisers) Agencies manages advertising placement o For media companies (newspapers, etc.…) Agencies took over billing Agencies created a new revenue source: Sell audiences to Changing role of agents: o Media space wholesaler (George Rowell) Businesses o Conflict of interest o Rowell published a central directory for businesses to know how much was to be charged for ad space Two changes: N.W. Ayers & Co. o Open contracts Publicize cost for ad space No secret deals o Agents worked only for businesses Bought space only Added creative services: o Beginning in 1800, prepared ad copy More specialized roles: o By the early 20 century: Editorial bureau wrote ads Art bureau designed ads Rise of the Agency: o New relationships with other industries o New ways to organize increasingly complex work o Reflects increasing centrality of advertising in a capitalist economy Principles of Advertising 3100 Lecture 3 Notes Advertising in Capitalist Markets: o 9 assumptions about the function and role of advertising (we are only covering 5): 1. Advertising is a powerful force in shaping consumer preferences Some advertising is powerful but if consumers were to respond immediately to every ad they saw our lives would be utter chaos; so most advertising gets lost in the competitive clutter Media environment has changed drastically since the 60s and even 10-15 years ago o Advertisers have to work harder to grab and keep our attention What is really influential? o Traditional advertising or something else? o It is now about interaction, involvement, and engagement 5. Even if advertising seems ineffective, stopping it could be dangerous Advertisers and agencies may argue suspension would mean consumers who were only exposed to competitive campaigns would ultimately fall victim to the competition So in order to survive one must advertise? o Maybe it comes down to how competitive the category is? Pepsi vs. Coke or Apple vs. PC 7. Advertising is highly profitable The assumption might come from the link between advertising intensity (amount) and market share ($) but due to a flood of competitive activity, much advertising is, in reality, cancelled out o When advertisers increase weight in an effort to pull ahead of the competition, the advertisers often end up adding to their costs more than they do their profits 8. Logic or argument is the most effective advertising appeal Consumers like to think of themselves as rational decision makers nevertheless, emotional ads are found to be: o More interesting o More easily remembered o More prone to lead to action o Less likely to arouse consumers defenses The power of emotion in advertising is more effective for a couple of reasons o Not many true differences between products in some category; helpful to create perceived differences o Requires less “mental energy” to process Memories are more closely tied with feelings/emotion instead of numbers/facts 9. Advertising is amoral in its practice; corrupts people’s values Amoral: without morals/responsibility Immoral: actively doing what is wrong Does this corrupt value or is it a reflection of existing values? o Given that advertising has limited power it would seem that it does not corrupt