Organization of the advertising industry

Organization of the advertising industry

Advertisers – advertising is part of the marketing strategy of any company;

-- no product goes to market without some kind of a marketing strategy

-- this strategy has to include not just advertising by distribution and a plan for sustaining the product in the market

 • National advertisers – see nationwide market for product; this began in modern terms in the 1800s (post Civil War) with growth of mail order catalogues

• Retail or local advertisers – sell to a local (geographic) market

Web is changing local advertising; many finding they can expand their markets – but at what cost?

 Types of advertising

            -- consumer

            -- business to business

            -- professional

Agencies

-- organizations set up to create and place advertising; sometimes located  in-house and sometimes independent

-- Madison Ave. (national, international); local ad agencies

-- seek clients; very competitive

-- full service; media buying; creative boutiques

-- increasing concentration of ownership

Media – final piece of the puzzle

-- traditional – newspaper, magazine, radio, TV

-- non-traditional – point of purchase, direct mail, telephone, telemarketing, movie placements, digital insertions; web targeting

Evaluation media advertising

-- reach – how large is the audience

-- frequency – how many times the message is delivered

-- selectivity – how many potential customers are in the audience

-- efficiency – cost/thousand customers

Online advertising is developing but still one of the big unknowns of the advertising world; many advertisers prefer traditional (old) media, and so do agencies because that's what they're used to.

The advertising campaign

Product

-- product characteristics – what does it do; what's the competition

-- launching

-- positioning and re-positioning

Audience

-- research

-- demographics

Purpose

-- what is the advertising problem

-- what advertising will solve the problem

Medium

-- which medium will bring together the audience and the solution

Follow-up, evaluation

-- did it work?

 Advertising regulation

-- First Amendment (can we really say whatever we want? No)

  • false statements, criminal actions are not protected

-- "caveat emptor" – let the buyer beware

-- "caveat venditor" –let the seller beware

-- Federal Trade Commission

  • broad powers

  • political climate