Marketing

Communications

John Egan

Chapter 9

Advertising

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 Advertising
Learning Objectives
Understand how advertising developed and the part it
played in creating modern consumer markets.
Recognise and describe the strong and weak theories
of advertising.
Discuss the means by which the advertising industry
measures effectiveness and the problems
associated with such measurements
Describe those characteristics of good advertising.
Understand how advertising standards are maintained.
Discuss the factors currently affecting the
advertising industry.

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 Advertising
Definition
“paid-for, non-personal form of mass
communication from an identified source, used to
communicate information and influence consumer
behaviour.”

paid-for,
non-personal
mass communication
identified source
communicates information
influence on consumer behaviour

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 Advertising
History
Industrial Revolution produced big increases in supply.
“advertising emerged as a tool to try to stimulate the
consumer markets to pay for over-produced goods… the
problem was not so much one of over-production as of
under-consumption.’ (Brierley 2002:7)
So advertising at this time was not a ‘want-satisfying’
mechanism as it is frequently described as today but a
‘want-creating’ one (Varey 2002:269).
late 1700s began to target the growing middleclass
through newspaper advertisements, posters, handbills
and shop signs (Brierley 2002).

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 Advertising
History
Advertisers in the 17th/18th century saw it as having
potential in at least four ways (Jones 2004);
To give information to the consumer
To compensate for the weakness of wholesalers
To boost sales efforts in the retail trade
To attack competitive brands and keep aggressive
rivals at bay.

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 Advertising
How Advertising Works
Two major perspectives in advertising theory
Strong Theory Weak Theory

‘strong’ theory advertising was seen as an almost

irresistible force driving consumption.

“I see modern advertising as an attempt to impel

people to buy what, if it were not for the
advertisement, they would never think of buying.
Advertising begins by taking our money and ends
by depriving us of our freedom.” CP Snow 1936

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 Advertising
How Advertising Works
Strong Theory
These ‘strong theories’ models assume that
advertising can ultimately persuade consumers
to purchase a particular brand.
“I do not think it is too fanciful to talk of the
best of advertising, with the greatest powers of
transformation, as almost performing magic,
turning the familiar and similar into the very
special and unique.”

John Bartle, Founding partner of Bartle, Bogle, Hegarty and President

of the Institute of Practitioners in Advertising from 1995-1997

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 Advertising
How Advertising Works
Hierarchy of Effects Models

KNOWLEDGE FEELING MOTIVATION

ACTION

AIDA Strong ‘25 Attention Interest Desire Action

DAGMAR Colley ‘61 Awareness Conviction

Comprehension Purchase
Lavidge & Steiner ‘61 Awareness Liking Conviction
Knowledge Preference Purchase
Wells et al ‘65 Awareness
Perception Understanding Persuasion

COGNITIVE AFFECTIVE CONATIVE

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Low EFFECTIVENESS High
Advertising
Ad How Advertising Works Ad
Hierarchy of Effects Models

Ad Ad

Ad

AWARENESS INTEREST DESIRE PURCHASE POST-

PURCHASE

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 Advertising
How Advertising Works
Cognitive Response Model
Cognitive Purchase
Attitudes Intent
Responses
Source- Brand
orientated Attitudes
Thoughts

Exposure to Product/ Purchase

Advertisem’t Message Intention
Thoughts

Advertising Attitude
Execution Toward
Thoughts Advertisem’t
Belch and Belch 2001
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 Advertising
How Advertising Works
If there is any direct link between advertising and
sales it is typically delayed or lagged particularly
regarding goods or services that are infrequent
purchases (e.g. insurance, car purchases, etc.)
industry estimates immediate response to an
advertisement as little as 0.01%. (Brierley 2002)
advertising for a particular automobile may have
little effect until the consumer is in the market to
buy (Shimp 2003).
other research into TV advertising indicates the
impact emerges typically within six months
(Wharton 1999).
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 Advertising
How Advertising Works
Weak Theory
Ehrenberg and Goodhart (1979) suggests that the
greater part of the buying experience is rooted in
past experience as indicated in the ATR model

AWARENESS

TRIAL

REINFORCEMENT

NUDGING

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 Advertising
How Advertising Works
Filtering Brands
Vauxhall, Ford, Chrysler, Toyota, Nissan, Volvo,
Volkswagen, Renault, Fiat, Skoda, Audi, etc. Total Set
Vauxhall, Ford, Chrysler, Toyota, Awareness
Volkswagen, Renault, Fiat, Audi. Set
Vauxhall, Ford, Toyota, Consideration
Volkswagen, Audi. Set
Vauxhall, Ford, Choice Set
Volkswagen.

Smith & Taylor 2002 Vauxhall

Decision
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 Advertising
Advertising Effectiveness
Measuring Effect
Recall Recognition
associated with the associated with the
Strong Theory of Advertising Weak Theory of Advertising
Survey respondents are Survey respondents choose
asked what advertising from a selection of
they remember. advertised products/services
Theory: that only Theory: advertising only
advertising that has made a ‘nudges’ the consumer toward
high impact will be recalled the brand this may not be
unprompted by the remembered unaided but will
interviewee. be remembered when the
consumer is prompted

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 Advertising
Advertising Effectiveness
Measuring Effect
Recall Recognition
Both methodologies flawed
Ability of a consumer to recall/recognise a brand does not
mean that they will buy that brand now or in the future.
Brand awareness, recall or recognition whilst being easy to
measure precisely is not directly associated with sales.
Might be said to be strictly an incorrect measure (it is,
therefore, precisely wrong). On the other hand actual
sales directly related to advertising are almost impossible
to gauge accurately (but may be said to be vaguely right).
Shimp 2003
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 Advertising
Advertising Effectiveness
Attitude Scale
-3 -2 -1 0 1 2 3
Modern Old Fash’d

High Qual’ Low Quality

Stylish Basic

Reliable Unreliable

Caring Uncaring

Expensive Inexpensive
Pre-campaign Post-campaign Perception Shift
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 Advertising
Creativity
“you can’t have good advertising for a bad product”
(Marcel Bleusteun-Blanchet, founder Publicis 1926)
advertising objectives
advertising problem (reason the company is advertising)
creative concept (or creative platform),
Effective Creativity
creativity that meets commercial objectives of campaign.
The creative idea expresses the brand’s positioning
through the brand proposition. This ‘proposition’ (aka the
‘single-minded proposition’) should capture the mix of
functional properties and added values which are
projected in successful advertising

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 Advertising
Creativity
Waterloo Effect

uniqueness standing out in a crowd

repetition learning through repetition

relevance direct appeal

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 Advertising
Creativity
Advertising Formats
1. Demonstration Advertising
2. Testimonials or Typical-person Endorsement
3. Expert Endorsement
4. Celebrity Endorsement
5. Slice of Life Advertising
6. Comparative Advertising
7. Logical Appeals
8. Emotional Appeals:
9. Stereotyping
10.Humour 13.Fear
11.Erotica 14.Sensory Appeal
12.Shock Tactics 15.Shape & Colour
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 Advertising
Advertising Industry
Advertising Revenue
Historical Expenditure by Media Sector
1954 1974 1994 2002
Newspapers £76m £434m £3.2bn £4.8bn
Television £0m £176m £2.5bn £3.7bn
Magazines £50m £158m £1.3bn £1.9bn
Outdoor (Posters) £14m £34m £350m £802m
Radio £1m £6m £243m £545m
Cinema £4m £8m £53m £180m
Internet £0m £0m £0m £197m

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 Advertising
Advertising Industry
Advertising Revenue
First Quarter 2006 (year on year % change)

Cinema -21.0%
Regional Newspapers -9.0%
Radio -8.9%
Television -4.8%
National Newspapers -2.2%
Magazines -1.3%
Outdoor & Transport +3.6%
Internet 53.6

Total Q1 2006 vs 2005 +4.0%

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 Advertising
Advertising Industry
Relative Decline in Advertising
Consumer Markets in Relative Decline

Branding Crisis

Sector Bans

Media Fragmentation

Advertising Effectiveness

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