ADVERTISING

TOPIC 10

by
Fauziah Din

Prepared by
FAUZIAH DIN
fauziahdin@uitm.edu.my / 011-3163-3414
June, 2020
CHAPTER OUTLINES

After studying this chapter, you should be able to;

1. Outline the history and development of the advertising industry.
2. Evaluate contemporary criticisms and defenses of advertising.
3. Describe how the organizational and economic nature of the
contemporary advertising industry shapes the content of advertising,
especially in an increasingly converged media environment.
4. Identify different types of advertising and their goals.
5. Explain the relationship between advertising content and its
consumers.
 INTRODUCTION TO ADVERTISING
„ Good advertising ; influential, memorable, and, at times, risqué.
„ Advertising can go to work for your company in a variety of ways:
„ To raise awareness for your brand
„ To drive potential customers to your business
„ To promote sales for both new and existing products
„ To introduce a new product or service to the market
„ To differentiate your product from your competitors’
„ Channels; Radio & TV commercials, billboards, digital advertising, and social media etc.
„ Advertising VS marketing;
„ Marketing is the big picture of how a company plans to raise awareness of their brand and convince
customers to make a purchase, while advertising is the process of creating the persuasive messages
around these broad goals.
„ Advertising is a subset of marketing, which is the umbrella term for communicating with your
audience.
 THE HISTORY AND DEVELOPMENT OF THE ADVERTISING INDUSTRY
2 3 1
In the early-18th-
century tobacco label
shows that the British
had already mastered
the use of celebrities
in their advertising.

Today; Advertising
4
everywhere—Sony
hired graffiti artists
in several major
Coke’s ad in 1940s American cities to
spray-paint
commercials for its
PlayStation Portable
A 1930s hard-sell ad on walls and
from Quaker Oats building.
oatmeal.
THE HISTORY AND DEVELOPMENT OF THE ADVERTISING INDUSTRY
 THE HISTORY AND DEVELOPMENT OF THE ADVERTISING INDUSTRY
- MALAYSIA
Many years ago..

1977 was established

20th
First newspaper advertisement
§ Magazine and national
appeared in Prince Of Wales Island’s
newspaper was emerged
Gazette. Published in Penang on 1805
To provide guideline of self-regulatory § Advertiser seek for niche market
system
§ Independent examine advertisement
content
§ High ethical value First advertising agency in Malaya
belongs to Mr. J. R. Flynn Anderson
§ One source of revenue • Brand’s are not
§ Commission based concerned in early age -Advertised his services in The Straits
•
19th § Planning and negotiate for the
media space purchasing
People are easily
persuaded by stunning
Times with the message
“Picture your advertising,
§ Less of brand awareness poster let me help you”
 ADVERTISING & ITS AUDIENCES

„ Every person in the world watching TV

and thus make us as the audience of
some ads or commercial.

„ However, besides the bright side a

company could gain by advertising, it
sometimes suffers from a severe
complaint by different segment of
society
CRITICISMS OF ADVERTISING

Advertising
Advertising
is intrusive is
deceptive

Advertising
Advertising
demeans &
exploits
corrupt
children
culture
 CRITICISMS OF ADVERTISING
- ADVERTISING IS INTRUSIVE

„ Advertising is everywhere, and it interferes with and alters our experience.

„ Giant wall advertisements change the look of cities.
„ Ads beamed by laser light onto night skies destroy evening stargazing.
„ School learning aids provided by candy makers asking students to “count the Tootsie Rolls” alter education.
„ Constant commercials diminish the television-viewing experience.
„ These intrusive experiences led to online ad blockers installation by consumers “to kill off digital ads”.
 CRITICISMS OF ADVERTISING
- ADVERTISING IS DECEPTIVE

„ Deceptive advertising also known as false advertising

refers to a condition where manufacturer’s use
confusing, misleading or blatantly untrue statements
when promoting a product (Nanda, 2013).
„ By this, customers are swayed and eventually
consume the products which irrelevant or useful for
them.
„ Advertising is inherently deceptive in which
sometimes promises to improve people’s lives
through the consumption or purchase of a sponsor’s
products (Baran, 2013).
 CRITICISMS OF ADVERTISING
- ADVERTISING EXPLOITS CHILDREN
 CRITICISMS OF ADVERTISING
- ADVERTISING DEMEANS & CORRUPT CULTURE

„ Consumer culture—a culture in which personal worth

and identity reside not in ourselves but in the products
which we surround ourselves.
„ The consumer culture is corrupting because it imposes
new definitions that serve the advertiser and not the
culture on traditionally important aspects of our lives.
„ If love, for example, can be bought rather than being
something that has to be nurtured, how important can
it be? Example; a Tiffany ring will create happier and
everlasting relationship?
„ An advertising strategy for stimulating desire and imply
that we are inadequate and should not be satisfied with
ourselves as we are. Example; The Dove ad, which
showed a black woman turning into a white woman
after using the brand’s body wash.
DEFENSES OR BRIGHT SIDE OF ADVERTISING

Advertising supports economic system

Advertising as a medium of information gathering

Advertising provides entertainment and source of democracy.

Advertising increases national productivity (as people work harder to

acquire more of these products) and improves the standard of living
Scope and Nature of the Advertising Industry
„ The organizational and economic nature of the modern advertising industry
shapes the content of advertising, especially in an increasingly converged
media environment.
„ The goal of any advertising is ultimately to initiate action for monetary return.
„ To maximise impact and audience reach, therefore, advertisements are tuned to
be relevant to the customers.
„ Given advancing technology, shifts in consumer consumption patterns and
lifestyle, the platforms for communications are apparently becoming more
complex.
„ Hence, today’s markets illustrate advertising to be radically different from that
of past years, where new means and ways coupled with innovative ideas have
not only transformed traditional media advertising, but have also transcended
to the new media, to gain better reach of the audience.
SCOPE AND NATURE OF THE ADVERTISING INDUSTRY
- CHANGING ADVERTISING-AGENCY RELATIONSHIPS

„ The advertising-agency relationship refers to

the way in which advertisements are
presented to the targeted market by
advertising agencies.
„ This relationship is changing as traditional
ways to reach mass markets shift into the
digital era.
„ Over the last two centuries, advertising
agencies have been brokers of media space,
buying pages in newspapers and periodicals
and selling them to advertisers.
„ Today, the process become more complex
for the media agencies; process and revenue.
SCOPE AND NATURE OF THE ADVERTISING INDUSTRY
- CHANGING ADVERTISING-AGENCY RELATIONSHIPS
SCOPE & NATURE OF ADVERTISING INDUSTRY
- TYPES OF ADVERTISING

„ There are many types of advertising from different company that has attracted the consumers’ attention
to buy their product by exploring new ways for their advertisement to be known by public.

Institutional Trade or Retail Promotional

or corporate professional
advertising retail advertising
advertising advertising

National
Industrial Direct market Out-of-home
consumer
advertising advertising advertising
advertising

Public service
advertising
 TRENDS AND CONVERGENCE IN ADVERTISING
„ The advertising industry today is showing a change in the
traditional media to include the digital media in order to
reach audience more effectively.
„ Digital advertising is now mainstream, the digital advertising
allows changes in the relationship between advertisers and
customer from traditional one-way broadcast to interactive
media formats.
„ The new media environment is able to offer sophisticated
measurement and consumer-targeting capabilities to reach
the exact consumer segments desired.
„ Online advertising in formats such as search advertising,
display advertising, video advertising, classified advertising,
e-mail marketing, affiliate marketing, mobile Internet
advertising and advertising on social networks is expected
to be a key factor driving online advertising.
TRENDS AND CONVERGENCE IN ADVERTISING

NEW &
CONVERGING
TECHNOLOGIES

NEW
RELATIONSHIPS NEW
ELEMENTS
WITH ECONOMICS
CONSUMER

NEW
CREATIVITY
TRENDS AND CONVERGENCE IN ADVERTISING
- NEW AND CONVERGING TECHNOLOGIES

The production of advertising Computer graphics, morphing

has been altered by computers

Computer databases and Digital advertising with new

computerized have fueled the digital technologies, that is
rapid growth of direct market attracting the most industry
advertising interest such as web or internet
advertising
 TRENDS AND CONVERGENCE IN ADVERTISING
- NEW AND CONVERGING TECHNOLOGIES

Artificial intelligence (AI) in Digital Advertising

„ Previously, advertisers use “one advertisement fit all” format.
„ Today, artificial intelligence tools ; can automatically optimize advertising spend and
targeting.
„ AI can process ad spend and targeting data, results, then learn what actions (spending
changes, targeting changes, etc.) will drive better performance and across a large number of
complex campaigns.
„ AI improves personalisation technique and strategies in digital advertising; consumer online
activities, interests and devices used are taken into consideration when putting up an
advertisement.
„ AI can create a stronger brand connect with consumers, offering consumers with their
preferred and frequently used products and services.
„ For instance, ASTRO has implemented AI in collaboration with Microsoft in identifying user
profiles, such as media consumption habits and social media activities.
„ This approach enables advertisers to deliver relevant content at the right time, through the
right channel, aligned to consumer demand.
 TRENDS AND CONVERGENCE IN ADVERTISING
- NEW ECONOMICS

„ Why the rush toward digital?

„ The biggest factor is the lure of greater returns.
„ Media buyers believe the convergence of digital and traditional advertising, and the large
amounts of data increasingly available, will help them more effectively target their
audience.
„ This will lead to greater returns on their ad investments. Businesses think convergence
and data will help them maximize the use of inventory, thus boosting revenues.
 TRENDS AND CONVERGENCE IN ADVERTISING
- NEW CREATIVITY / CREATIVE CONTENT
„ Creativity is the soul of advertising and
branding.
„ The industry today is more creative in
its content creation and how it gets
them to desired consumers.
„ Numerous experiments have found
that creative messages get more
attention and lead to positive attitudes
about the products being marketed.
„ Examples—product placement, web
based ad, video and video blogging ,
digital ad or mobile technologies based
ads, funny and strange concepts of ads,
and portable game device
advertisement.
TRENDS AND CONVERGENCE IN ADVERTISING
- NEW RELATIONSHIPS WITH CONSUMER

Today Consumer has Consumer control

consumer’s are the power to and shape the
no longer accept/reject content they
passive media content receive
receiver

Permission Marketing;
relationship between advertiser and consumer as partners, sharing
information for mutual benefit.
 TRENDS AND CONVERGENCE IN ADVERTISING
- SOCIAL MEDIA

„ Social media ads put your message in front of your target audience
and encourage them to engage, click-through, and buy.
„ Platforms like Facebook, Instagram, LinkedIn, and Twitter each have
their own version of ads as shown in the pictures below.
 TRENDS AND CONVERGENCE IN ADVERTISING
- CONTENT VIDEO

The video and content video popularity

„ YouTube, Facebook, SnapChat , Tik Tok ; video advertising has become
increasingly widespread and its content’s importance grew.
„ As people become accustomed to watching videos, static images such as
traditional billboards can seem dull by comparison.

Video blogging
„ It is not even about blogging anymore, but about video blogging and video
bloggers taking control of the social media and its endless opportunities offered.
„ smartphones, tablets, notebooks help the content and video creators to be
better, faster and smarter in their communication.
„ the latest trends and convergence in advertising are showing all kinds of new
smart and innovative approaches.
 INCREASED AUDIENCE SEGMENTATION

ADVERTISERS NARROWER
FRAGMENTED AUDIENCE
THEIR AUDIENCE SEGMENTS

THE CHANGE IN ETHNIC A PSYCHOGRAPHIC

COMPOSITION & DEMOGRAPHIC SEGMENTATION (VALUES AND
(such as race/ethnicity, gender, and economic
level) LIFESTYLES)
 GLOBALIZATION & ADVERTISING
„ As media and national economies have
globalized, advertising has adapted and in touch
with these consumers worldwide.
„ Globalization also increase media ad spending
locally and globally.
„ What has changed ; the extent to which digital
media content can be sourced, distributed and
accessed globally.
„ This has led to the rise of media platforms and
content distributors such as YouTube, Facebook,
Twitter and Apple iTunes and others.
„ Effects; international regulatory on advertising
and content media, cultural domination and
‘cultural imperialism’ in relation to advertising
and media content.
THANK YOU
&
STAY SAFE