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Learning Objectives
After completing this chapter, youll be able to: 1. Identify the different types of advertising used to convince consumers to buy a product.
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Learning Objectives
After completing this chapter, youll be able to: 1. Identify the different types of media used to advertise products.
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Why Its Important Businesses rely on advertising to get your attention and to promote their products. Advertising pays for many of the costs of TV, radio, newspapers, and magazines.
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Advertising Media
1. Advertisements are biased. The product being advertised is the only one you should buy.
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Advertising Media
Mass media are means of communication such as TV, radio, and newspapers.
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Media Types
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Print Media
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Newspapers
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Print Media
Newspaper and magazine rates are based on circulation, or the number of people who read them.
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Print Media
Newspaper and magazine ads are sold by the inch on the page.
Ads that appear on the front or back cover of a magazine cost more than ads inside the magazine.
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Advantage of Newspapers
Advertisers can target people within a certain area.
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Disadvantage of Newspapers
Most people throw their newspapers away after they read them, so an ads lifespan is usually short.
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Disadvantage of Newspapers
Paper is low in quality. Ink rubs off on your hands.
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Magazines
Most magazines are national in scope and appear every week or every month.
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Advantage of Magazines
Special-interest magazines like Teen and Sports Illustrated make it possible to reach target markets on a large scale.
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Advantage of Magazines
People take their time to read magazines and often save them, so magazine ads have a much longer lifespan than newspaper ads.
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Advantage of Magazines
Most magazines are printed in color with much higher quality ink and paper than newspapers.
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Disadvantage of Magazines
Magazines are so broadly circulated they are of little use to local advertisers. Magazine ads cant easily be changed or used to promote a limited offer.
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Disadvantage of Magazines
Quality paper is used so the cost to put an advertisement in a magazine is high.
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Magazine Advertising
Broad circulation Regional/national reach Long lifespan Complex preparation
Quality printing and paper
Expensive
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Direct-Mail Advertising
Direct-mail advertising consists of ads sent by mail to peoples homes.
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Direct-Mail Advertising
Direct mail allows advertisers to reach a specific target market.
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Direct-Mail Advertising
Direct-mail advertisers can use a variety of formatsletters, fliers, postcards, and catalogsand include coupons or free samples.
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Direct-Mail Advertising
The cost of sending ads through the mail can be very high.
Direct mail is often referred to as junk mail because people who receive direct-mail advertising often throw it out without ever looking at it.
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Directory Advertising
Directory advertising, which consists mostly of phone books, is especially useful for local advertisers. The cost of a directory ad is usually very cheap.
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Directory Advertising
Phone books are used in almost every home, in all areas, and kept for at least a year.
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Directory Advertising
A disadvantage of directory ads is that they have to compete with numerous similar ads.
Most directory ads cant be used to advertise prices and sales, and cant be easily updated.
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Outdoor Advertising
The most common form of outdoor advertising is a billboard.
They are useful for local businesses and businesses that cater to travelers.
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Outdoor Advertising
The main disadvantage of billboards is that people often drive by them too quickly to notice.
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Transit Advertising
Transit advertising usually consists of posters placed on the sides of buses, in subway stations, inside trains, and at airports.
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Broadcast Media
Broadcast media are the most effective means of advertising.
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Media Types
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Television
Television has an advantage over any other medium because it combines sounds, images, and motion. Some ads are so effective that they become part of our everyday language. 15 minutes could save you 15% or more on car insurance.
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Television
TV ads can be shown on national, local, or cable stations to reach any kind of market.
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Television
An infomercial is a TV program, usually 30 minutes long, made to advertise a product. Shamwow
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Television
The biggest disadvantage of TV ads is that they can be very expensive to produce.
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Radio
Like TV ads, radio ads can reach a very wide audience. Radio ads use music, dialogue, and sound effects creatively to get an audiences attention.
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Radio
Radio stations broadcast within certain areas so they are a good medium for local advertising.
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Webcasting
A webcast is like a TV or radio broadcast but it is sent and received over the Web.
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Webcasting
A webcast usually consists of a live broadcast made by a Web camera (or cam) crew hired to film a specific location or event.
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Cyber Ads
Cyber ads are ads that appear on the Internet. Cyber ads are different from webcasts in that theyre displayed like magazine ads.
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Cyber Ads
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Pop Up Ads
Pop-up ads appear for a few seconds when you first log onto the Internet or when you click on a site.
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Cyber Ads
Banner ads are displayed across the top or bottom of the screen and remain there.
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Cyber Ads
Screen ads appear at the left or right of the screen and can be printed for future reference.
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Cyber Ads
Cyber ads have an added advantage in that they can use sound effects and animation.
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Advertising Rates
The factors that determine advertising rates are:
The size of an ad The number of people it
reaches How often it appears When it appears Where it is placed
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Figure 14.2
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BIG SPENDERS
This chart shows the five companies who spent the largest sums of money on advertising in a recent year. General Motors Corporation, for example, spent about $2.9 billion on advertising. Think about the advertisements for these five companies. In what media have you seen their advertisements? Why do you think their spending for advertisements is so extensive?
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Superbowl Ads How much do you think it costs for a 30 second commercial during the Superbowl?
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Commercial Contest
$400,000 Winner
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The cost of radio and TV ads depends on the size of the audience.
Broadcast Media
The cost to advertise on a national network is much more expensive than on a local station.
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Broadcast Media
The cost of radio and TV ads also depends on what time of day an ad is shown.
Advertisers also pay more for special events like the Oscar Awards and the Olympics.
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Broadcast Media
Radio and TV advertisers usually pay for ads that are 10, 30, or 60 seconds long.
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Broadcast Media
Advertisers often hire media consultants and ad agencies to put together advertising packages for them.
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The Internet
The cost of Internet advertising is based on the size and format of ads.
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The Internet
Internet advertisers pay a certain amount for every 1,000 people that receive the ad.
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Advertising Media
The type of medium (T.V., billboard, cyber ad, etc.) an advertiser uses depends on the market (type of people) it wants to reach. 1. Demographics (age, where they live) 2. Psychographics (lifestyles, etc.)
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Target Marketing is when a company focuses all its marketing decisions on a specific group of people.
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Products
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Where should they Advertise? 1. Print 2. Broadcast
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Deceptive/Misleading Advertising
The FTC defines this as being a representation, omission, act or practice that is likely to mislead consumers acting reasonably under the circumstances. To be regulated, however, a deceptive claim must also be material.
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What University?
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Hidden Footnote
On select models in lieu of rebates and discounts with approved credit for 72 months. See dealer for details. *Photos are for representational purposes only.
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Advertising Challenge 1. Look through the newspapers and advertisements found on the counter in the front of the room. Find 2 misleading advertisements. 2. Tape them neatly onto a poster sheet. 3. Underneath the ad, write a short explanation of why/how the ad is misleading. (For example: does not come with IPOD as pictured.) 4. Put your name on the FRONT of the poster sheet and tape it to the classroom wall.
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Figure 14.1
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Advertising slogans have become so well known in many cases that people all over the country recognize them. Here are ten slogans from advertisements.
How many of the products or services can you name?
CATCHY SLOGANS
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