Broadcast Advertising. Advertising Defined Non-personal CommunicationNon-personal Communication...

Broadcast AdvertisingBroadcast Advertising

Advertising DefinedAdvertising Defined

• Non-personal CommunicationNon-personal Communication

• Usually paid forUsually paid for

• By an identified sponsorBy an identified sponsor

• Persuasive in naturePersuasive in nature

• About products, ideas or servicesAbout products, ideas or services

• Through various mediaThrough various media

Advertising in the Marketing Advertising in the Marketing MixMix

• ProductProduct– Quality, package, appearance, etc.Quality, package, appearance, etc.

• PricePrice– Deep discount to premiumDeep discount to premium

• PlacePlace– Distribution channelsDistribution channels

• PromotionPromotion– POP, personal selling, PR, AdvertisingPOP, personal selling, PR, Advertising

Advertising ClassifiedAdvertising Classified

• By audienceBy audience– ConsumerConsumer– Business to BusinessBusiness to Business

• IndustrialIndustrial• TradeTrade• ProfessionalProfessional• FarmFarm


• GeographicallyGeographically– NationalNational– RegionalRegional– LocalLocal– InternationalInternational


• By mediumBy medium– ElectronicElectronic

• RadioRadio• TelevisionTelevision• CableCable• InternetInternet


• PrintPrint– NewspaperNewspaper– MagazineMagazine

• OutdoorOutdoor– BillboardBillboard– TransitTransit


• SpecialtySpecialty– NoveltiesNovelties– POPPOP– Product placementProduct placement– Etc.Etc.– Etc.Etc.– Etc.Etc.


• By functionBy function– Product -vs- non-productProduct -vs- non-product– Commercial -vs- non-commercialCommercial -vs- non-commercial– Direct action -vs- non-direct actionDirect action -vs- non-direct action

The advertising industryThe advertising industry

• AgenciesAgencies

• The media The media

• The advertisersThe advertisers

• The support services and suppliersThe support services and suppliers

• The regulatorsThe regulators

• The consumersThe consumers

Advertising HistoryAdvertising History

• Functions of advertising:Functions of advertising:– Identify products and differentiate themIdentify products and differentiate them– Communicate information about productCommunicate information about product– Induce consumers to try the productInduce consumers to try the product– Increase product usageIncrease product usage– Build brand preference and loyaltyBuild brand preference and loyalty


• Dates to 1600sDates to 1600s– British newspapers paid noticesBritish newspapers paid notices


• Ben Franklin is credited with introducing Ben Franklin is credited with introducing white space and illustrationswhite space and illustrations


• Magazines became first national Magazines became first national mediummedium

• Volney Palmer – first ad agency – 1841Volney Palmer – first ad agency – 1841– Bought newspaper and magazine space in Bought newspaper and magazine space in

large volumes at discount.large volumes at discount.– Marked up 15%Marked up 15%

• N. W. Ayer – first full service agencyN. W. Ayer – first full service agency

Broadcast Advertising HistoryBroadcast Advertising History

• Out of the debate on how to pay for Out of the debate on how to pay for broadcasting came…broadcasting came…

• ““Toll” broadcastingToll” broadcasting– WEAFWEAF– AT&T station AT&T station

• ““telephone philosophy of paying toll for long distance telephone philosophy of paying toll for long distance calls.calls.

• First commercial broadcast First commercial broadcast • http://www.old-time.com/commercials/1stcom

mercial.html

http://www.old-time.com/commercials/1stcommercial.html

http://www.old-time.com/commercials/1stcommercial.html


• Post WWIPost WWI– Radio grewRadio grew– Lifestyles improvedLifestyles improved– Spending increasedSpending increased– Radio networks emergedRadio networks emerged– Advertising stressed the “Unique Selling Advertising stressed the “Unique Selling

Proposition”Proposition”


• Television explodes post WWIITelevision explodes post WWII– Radio programs shift to televisionRadio programs shift to television– Radio adopts musical formatsRadio adopts musical formats

• Advertising costs increaseAdvertising costs increase• Sponsorships give way to participations Sponsorships give way to participations

or “spots”or “spots”• By the 1960s – advertising entered the By the 1960s – advertising entered the

“image era”“image era”


• Depicting a lifestyle – not product Depicting a lifestyle – not product informationinformation

• Emotional appeals – not logical appealsEmotional appeals – not logical appeals

• Remember the package – not the nameRemember the package – not the name

• Focus on benefits to consumerFocus on benefits to consumer

The contemporary advertising The contemporary advertising industryindustry

• Complicated by the proliferation of Complicated by the proliferation of mediamedia

• Audiences are splinteredAudiences are splintered– NarrowcastingNarrowcasting

• Clutter and competitionClutter and competition

• High costs of media drive demand for High costs of media drive demand for researchresearch

Effects of advertisingEffects of advertising

• On pricesOn prices

• On competitionOn competition

• On product imageOn product image

• On demandOn demand– ““Creating” demands?Creating” demands?– Bran, fiber, carbs, cosmetics, vitamins, etc.Bran, fiber, carbs, cosmetics, vitamins, etc.– Slow a declining market – “repositioning”Slow a declining market – “repositioning”

Media strategyMedia strategy

• Buying patternsBuying patterns– Weekly cyclesWeekly cycles– Monthly cyclesMonthly cycles– Annual cyclesAnnual cycles– Seasonal productsSeasonal products

• Products/service with fixed maximum Products/service with fixed maximum capacitiescapacities

Media strategyMedia strategy

Broadcast Advertising. Advertising Defined Non-personal CommunicationNon-personal Communication...

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