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Advertising is an audio or visual form
of marketing communication that employs an openly sponsored,
nonpersonal message to promote or sell a product, service or
idea. Sponsors of advertising are often businesses who wish to promote
their products or services. Advertising is differentiated from
public relations in that an advertiser usually pays for and has control over
the message. It is differentiated from personal selling in that the message is
nonpersonal, i.e., not directed to a particular individual. Advertising is
communicated through various mass media, including old media such as newspapers,
magazines, Television, Radio, outdoor
advertising or direct mail; or new media such as search
results, blogs,
websites or text messages. The actual presentation of the message in a medium
is referred to as an advertisement or "ad".
Commercial
ads often seek to generate increased consumption of their products or services
through "branding," which associates a product name or image with
certain qualities in the minds of consumers. On the other hand, ads that intend
to elicit an immediate sale are known as direct response advertising. Non-commercial advertisers who spend money to
advertise items other than a consumer product or service include political
parties, interest groups, religious organizations and governmental agencies.
Non-profit organizations may use free modes of persuasion, such as a public
service announcement.
Advertising may also be used to reassure employees or shareholders that a
company is viable or successful.
Modern
advertising was created with the techniques introduced with tobacco
advertising in the
1920s, most significantly with the campaigns of Edward Bernays, considered the founder of modern,
"Madison
Avenue"
advertising.
In 2015, the
world spent an estimate of US$529.43 billion on
advertising. Its projected distribution for 2017 is 40.4% on TV, 33.3% on
digital, 9% on newspapers, 6.9% on magazines, 5.8% on outdoor and 4.3% on
radio. Internationally, the largest ("big four") advertising
conglomerates are Interpublic, Omnicom, Publicis, and WPP.
Egyptians
used papyrus to make sales messages and wall
posters.[9] Commercial
messages and
political campaign displays have been found in the ruins of Pompeii and ancient Arabia. Lost and found advertising on papyrus was common
in ancient
Greece and ancient Rome. Wall or rock painting for commercial
advertising is another manifestation of an ancient advertising form, which is
present to this day in many parts of Asia, Africa, and South America. The
tradition of wall painting can be traced back to Indian rock art paintings that date back to 4000
BC.
In ancient
China, the earliest advertising known was oral, as recorded in the Classic of Poetry (11th to 7th centuries BC) of
bamboo flutes played to sell confectionery. Advertisement usually takes in the
form of calligraphic signboards and inked papers. A copper printing plate dated
back to the Song dynasty used to print posters in the form
of a square sheet of paper with a rabbit logo with "Jinan Liu's
Fine Needle Shop" and "We buy high-quality steel rods and make
fine-quality needles, to be ready for use at home in no time" written
above and below is
considered the world's earliest identified printed advertising medium.
In Europe,
as the towns and cities of the Middle Ages began to grow, and the general
population was unable to read, instead of signs that read "cobbler",
"miller", "tailor", or "blacksmith", images
associated with their trade would be used such as a boot, a suit, a hat, a
clock, a diamond, a horse shoe, a candle or even a bag of flour. Fruits and
vegetables were sold in the city square from the backs of carts and wagons and
their proprietors used street callers (town criers) to announce their whereabouts for the
convenience of the customers. The first compilation of such advertisements was
gathered in "Les Crieries de Paris", a thirteenth-century poem by
Guillaume de la Villeneuve.
In the 18th
century advertisements started to appear in weekly newspapers in England. These
early print advertisements were used mainly to promote books and newspapers,
which became increasingly affordable with advances in the printing press; and medicines, which were increasingly
sought after as disease ravaged Europe. However, false advertising and so-called "quack" advertisements became a problem, which ushered in
the regulation of advertising content.
Thomas
J. Barratt from
London has been called "the father of modern
advertising". Working for the Pears Soap company, Barratt created an
effective advertising campaign for the company products, which involved the use
of targeted slogans, images and phrases. One of his slogans, "Good
morning. Have you used Pears' soap?" was famous in its day and into the
20th century.
Barratt
introduced many of the crucial ideas that lie behind successful advertising and
these were widely circulated in his day. He constantly stressed the importance
of a strong and exclusive brand image for Pears and of emphasizing the
product's availability through saturation campaigns. He also understood the
importance of constantly reevaluating the market for changing tastes and mores,
stating in 1907 that "tastes change, fashions change, and the advertiser
has to change with them. An idea that was effective a generation ago would fall
flat, stale, and unprofitable if presented to the public today. Not that the
idea of today is always better than the older idea, but it is different – it
hits the present taste."
As the
economy expanded across the world during the 19th century, advertising grew
alongside. In the United States, the success of this advertising format
eventually led to the growth of mail-order advertising.
In June
1836, French newspaper La
Presse was the
first to include paid advertising in its pages, allowing it to lower its price,
extend its readership and increase its profitability and the formula was soon copied by
all titles. Around 1840, Volney
B. Palmer established the roots of the modern day advertising
agency in Philadelphia. In 1842 Palmer bought large amounts of space in various
newspapers at a discounted rate then resold the space at higher rates to
advertisers. The actual ad – the copy, layout, and artwork – was still prepared
by the company wishing to advertise; in effect, Palmer was a space broker. The
situation changed in the late 19th century when the advertising agency of N.W.
Ayer & Son was founded. Ayer and Son offered to plan, create, and execute
complete advertising campaigns for its customers. By 1900 the advertising
agency had become the focal point of creative planning, and advertising was
firmly established as a profession.
Around
the same time, in France, Charles-Louis
Havas extended the
services of his news agency, Havas to
include advertisement brokerage, making it the first French group to organize.
At first, agencies were brokers for advertisement space in newspapers. N. W. Ayer & Son was the first full-service agency
to assume responsibility for advertising content. N.W. Ayer opened in 1869, and
was located in Philadelphia.
Advertising increased dramatically in the United States as
industrialization expanded the supply of manufactured products. In order to
profit from this higher rate of production, industry needed to recruit workers
as consumers of factory products. It did so through the invention of mass marketing
designed to influence the population's economic behavior on a larger
scale. In the 1910s and 1920s, advertisers in the U.S. adopted the
doctrine that human instincts could be targeted and harnessed – "sublimated" into the desire to purchase
commodities. Edward
Bernays, a nephew of Sigmund
Freud, became associated
with the method and is sometimes called the founder of modern advertising and
public relations. Bernays claimed that:
"[The] general principle, that men are
very largely actuated by motives which they conceal from themselves, is as true
of mass as of individual psychology. It is evident that the successful
propagandist must understand the true motives and not be content to accept the
reasons which men give for what they do."
In other words, selling products by appealing to the rational
minds of customers (the main method used prior to Bernays) was much less
effective than selling products based on the un-conscious desires that Bernays
felt were the true motivators of human action.
In the 1920s, under Secretary of Commerce Herbert
Hoover, the American
government promoted advertising. Hoover himself delivered an address to the
Associated Advertising Clubs of the World in 1925 called 'Advertising Is a
Vital Force in Our National Life." In October 1929, the head of the
U.S. Bureau of Foreign and
Domestic Commerce, Julius Klein, stated
"Advertising is the key to world prosperity." This was part of the
"unparalleled" collaboration between business and government in the
1920s, according to a 1933 European economic journal.
The tobacco companies became major advertisers in order to sell
packaged cigarettes. The tobacco companies pioneered the new advertising techniques
when they hired Bernays to create positive associations with tobacco smoking.
Advertising was also used as a vehicle for cultural assimilation, encouraging workers to exchange their traditional habits and
community structure in favor of a shared "modern" lifestyle. An
important tool for influencing immigrant workers was the American
Association of Foreign Language Newspapers (AAFLN). The AAFLN was primarily an advertising agency but
also gained heavily centralized control over much of the immigrant press.
At the turn of the 20th century, there were few career choices
for women in business; however, advertising was one of the few. Since women
were responsible for most of the purchasing done in their household,
advertisers and agencies recognized the value of women's insight during the
creative process. In fact, the first American advertising to use a sexual sell was created by a woman – for a soap product. Although tame
by today's standards, the advertisement featured a couple with the message
"A skin you love to touch".
In the 1920s psychologists Walter D. Scott and John
B. Watson contributed
applied psychological theory to the field of advertising. Scott said, "Man
has been called the reasoning animal but he could with greater truthfulness be
called the creature of suggestion. He is reasonable, but he is to a greater
extent suggestible". He demonstrated this through his advertising
technique of a direct command to the consumer.
In the early 1920s, the first radio stations were established by
radio equipment manufacturers and retailers who offered programs in order to
sell more radios to consumers. As time passed, many non-profit
organizations followed suit in
setting up their own radio stations, and included: schools, clubs and civic groups.
When the practice of sponsoring programs was popularized, each
individual radio program was usually sponsored by a single business in exchange
for a brief mention of the business' name at the beginning and end of the
sponsored shows. However, radio station owners soon realized they could earn
more money by selling sponsorship rights in small time allocations to multiple
businesses throughout their radio station's broadcasts, rather than selling the
sponsorship rights to single businesses per show.
Commercial television in
the 1950s
In the early 1950s, the DuMont Television
Network began the modern practice of selling advertisement time
to multiple sponsors. Previously, DuMont had trouble finding sponsors for many
of their programs and compensated by selling smaller blocks of advertising time
to several businesses. This eventually became the standard for the commercial
television industry in the United States. However, it was still a common
practice to have single sponsor shows, such as The
United States Steel Hour.
In some instances the sponsors exercised great control over the content of the
show – up to and including having one's advertising agency actually writing the
show. The single sponsor model is much less prevalent now, a notable
exception being the .Hallmark Hall of Fame
Cable television from
the 1980s
The late 1980s and early 1990s saw the introduction of cable
television and particularly MTV. Pioneering the
concept of the music video, MTV ushered in a new type of advertising: the
consumer tunes in for the advertising message, rather than it
being a by-product or afterthought. As cable and satellite
television became increasingly prevalent, specialty channels emerged, including channels
On the Internet from the
1990s
With the advent of the ad server, online advertising grew, contributing to the "dot-com" boom of the 1990s.[34] Entire corporations operated solely on advertising
revenue, offering everything from coupons to free Internet access. At the turn of the 21st century,
some websites, including the search engine Google, changed online advertising by personalizing ads based on web
browsing behavior. This has led to other similar efforts and an increase
in interactive
advertising.
The share of advertising spending relative to GDP has changed
little across large changes in media since 1925. In 1925, the main advertising
media in America were newspapers, magazines, signs on streetcars,
and outdoor posters. Advertising spending as a share of GDP was
about 2.9 percent. By 1998, television and radio had become major advertising
media. Nonetheless, advertising spending as a share of GDP was slightly lower –
about 2.4 percent.
Guerrilla marketing involves unusual approaches such as
staged encounters in public places, giveaways of products such as cars that are
covered with brand messages, and interactive advertising where the viewer can
respond to become part of the advertising message. This type of advertising is
unpredictable, which causes consumers to buy the product or idea. This reflects
an increasing trend of interactive and "embedded" ads, such as
via product placement, having consumers vote through text messages,
and various campaigns utilizing social network
services such as Facebook or Twitter.
The advertising business model has also been adapted in recent
years. In media for equity, advertising is not sold, but provided to start-up
companies in return for equity. If the company grows and is sold, the media companies receive
cash for their shares.
Domain name registrants (usually those who register and renew
domains as an investment) sometimes "park" their domains and allow advertising companies to place
ads on their sites in return for per-click payments. These ads are typically
driven by pay per click search engines like Google or Yahoo, but ads can
sometimes be placed directly on targeted domain names through a domain lease or
by making contact with the registrant of a domain name that describes a
product. Domain name registrants are generally easy to identify through WHOIS records that are
publicly available at registrar websites.
Television advertising is one of the most expensive types of
advertising; networks charge large amounts for commercial airtime during popular events. The annual Super
Bowl football game in the United States is known as
the most prominent advertising event on television – with an audience of over
108 million and studies showing that 50% of those only tuned in to see the
advertisements. The average cost of a single thirty-second television spot
during this game reached US$4 million & a 60-second spot double that figure
in 2014.[43]Virtual advertisements may be inserted into regular programming through computer
graphics. It is typically inserted into otherwise blank backdrops or used to replace local billboards that are not relevant to the
remote broadcast audience. More controversially, virtual billboards may be
inserted into the background where none exist in real-life. This technique is
especially used in televised sporting events. Virtual product placement is also
possible. An infomercial is a long-format television commercial,
typically five minutes or longer. The word "infomercial" is a portmanteau of the words "information" and
"commercial". The main objective in an infomercial is to create
an impulse purchase, so that the target sees the presentation and then immediately
buys the product through the advertised toll-free telephone number or website. Infomercials describe,
display, and often demonstrate products and their features, and commonly have
testimonials from customers and industry professionals.
Radio
Radio advertisements are broadcast as radio
waves to the air from a transmitter to an antenna and a thus to a receiving
device. Airtime is purchased from a station or network in exchange for airing
the commercials. While radio has the limitation of being restricted to sound,
proponents of radio advertising often cite this as an advantage. Radio is an
expanding medium that can be found on air, and also online. According to Arbitron, radio has approximately 241.6 million weekly
listeners, or more than 93 percent of the U.S. population.
Online
Online advertising is a form of promotion that uses the Internet and World
Wide Web for the
expressed purpose of delivering marketing messages to attract customers. Online
ads are delivered by an ad server. Examples of online advertising include
contextual ads that appear on search engine results pages, banner
ads, in pay
per click text ads, rich
media ads, Social network advertising, online classified advertising, advertising networks and e-mail
marketing, including e-mail
spam.[citation needed] A newer form of online advertising is Native Ads; they go in a website's news feed and are supposed to improve
user experience by being less intrusive. However, some people argue this
practice is deceptive.
Domain names
Domain name advertising is most commonly done through pay per
click web search engines, however, advertisers often lease space directly on domain
names that generically describe their products. When an Internet user
visits a website by typing a domain name directly into their web browser, this
is known as "direct navigation", or "type in" web traffic.
Although many Internet users search for ideas and products using search engines
and mobile phones, a large number of users around the world still use the
address bar. They will type a keyword into the address bar such as
"geraniums" and add ".com" to the end of it. Sometimes they
will do the same with ".org" or a country-code Top Level Domain (TLD
such as ".co.uk" for the United Kingdom or ".ca" for
Canada). When Internet users type in a generic keyword and add .com or
another top-level domain (TLD) ending, it produces a targeted sales
lead. Domain name advertising was originally developed by Oingo (later
known as Applied Semantics), one of Google's early acquisitions.
Product placements
Covert advertising is when a product or brand is embedded
in entertainment and media. For example, in a film, the main character can use
an item or other of a definite brand, as in the movie Minority Report, where Tom
Cruise's character John
Anderton owns a phone with the Nokia logo clearly written in the top corner,
or his watch engraved with the Bulgari logo. Another example of advertising in
film is in I, Robot, where main character played by Will
Smith mentions
his Converse shoes several times, calling them
"classics", because the film is set far in the future. I,
Robot and Spaceballs also showcase futuristic cars with
the Audi and Mercedes-Benz logos clearly displayed on the front of
the vehicles. Cadillac chose to advertise in the movie The Matrix Reloaded, which as a result contained many scenes in which Cadillac cars
were used. Similarly, product placement for Omega
Watches, Ford, VAIO, BMW and Aston
Martin cars are
featured in recent James
Bond films, most
notably Casino Royale. In "Fantastic Four: Rise of
the Silver Surfer", the main
transport vehicle shows a large Dodge logo on the front. Blade
Runner includes some of
the most obvious product placement; the whole film stops to show a Coca-Cola billboard.
Global advertising
Advertising
has gone through five major stages of development: domestic, export,
international, multi-national, and global. For global advertisers, there are four, potentially competing,
business objectives that must be balanced when developing worldwide
advertising: building a brand while speaking with one voice, developing economies
of scale in the
creative process, maximising local effectiveness of ads, and increasing the
company's speed of implementation. Born from the evolutionary stages of global
marketing are the three primary and fundamentally different approaches to the
development of global advertising executions: exporting executions, producing
local executions, and importing ideas that travel.
Advertising
research is key to determining the success of an ad in any country or region.
The ability to identify which elements and/or moments of an ad contribute to
its success is how economies
of scale are
maximized. Once one knows what works in an ad, that idea or ideas can be
imported by any other market. Market research measures, such as Flow
of Attention, Flow
of Emotion and branding
moments provide
insight into what is working in an ad in any country or region because the
measures are based on the visual, not verbal, elements of the ad.
Advertising education
In recent
years there have been several media literacy initiatives, and more specifically
concerning advertising, that seek to empower citizens in the face of media
advertising campaigns.
Advertising
education has
become popular with bachelor, master and doctorate degrees becoming available
in the emphasis. A surge in advertising interest is typically attributed to the
strong relationship advertising plays in cultural and technological changes,
such as the advance of online social networking. A unique model for teaching
advertising is the student-run advertising agency, where advertising students create campaigns for real
companies. Organizations such as the American Advertising Federation establish companies with students
to create these campaigns.
Source : Wikipedia.com
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