Difference between revisions of "Advertising" - New World Encyclopedia

From New World Encyclopedia
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==History==
 
==History==
In ancient times the most common form of '''advertising''' was by word of mouth; however, commercial messages and [[politics|political]] campaign displays have been found in the ruins of [[Pompeii]]. Egyptians used [[papyrus]] to create sales messages and wall posters, while lost-and-found advertising on papyrus was common in [[Ancient Greece|Greece]] and [[Ancient Rome|Rome]]. Wall or rock painting for commercial advertising is another manifestation of an ancient media advertising form, which is present to this day in many parts of [[Asia]], [[Africa]], and [[South America]]. For instance, the tradition of wall paintings can be traced back to [[India]]n rock-art paintings that goes back to 4000 B.C.E.<ref name= Bhatia>Bhatia, Tej K. 2000. ''Advertising in Rural India: Language, Marketing Communication, and Consumerism'' Tokyo Press. ISBN 4872977823. pp. 62-68</ref>. As printing developed in the fifteenth and sixteenth century, advertising expanded to include handbills. In the seventeenth century advertisements started to appear in weekly [[newspapers]] in [[England]].
+
In ancient times the most common form of '''advertising''' was by word of mouth; however, commercial messages and [[politics|political]] campaign displays have been found in the ruins of [[Pompeii]]. Egyptians used [[papyrus]] to create sales messages and wall posters, while lost-and-found advertising on papyrus was common in [[Ancient Greece|Greece]] and [[Ancient Rome|Rome]]. Wall or rock painting for commercial advertising is another manifestation of an ancient media advertising form, which is present to this day in many parts of [[Asia]], [[Africa]], and [[South America]]. For instance, the tradition of wall paintings can be traced back to [[India]]n rock-art paintings that goes back to 4000 B.C.E.<ref>Bhatia, Tej K. 2000. ''Advertising in Rural India: Language, Marketing Communication, and Consumerism'' Tokyo Press. pp. 62-68. ISBN 4872977823</ref>. As printing developed in the fifteenth and sixteenth century, advertising expanded to include handbills. In the seventeenth century advertisements started to appear in weekly [[newspapers]] in [[England]].
  
 
[[Image:Ad_Encyclopaedia-Britannica_05-1913.jpg|thumb|250px|A print advertisement for the 1913 issue of the ''Encyclopædia Britannica'']]
 
[[Image:Ad_Encyclopaedia-Britannica_05-1913.jpg|thumb|250px|A print advertisement for the 1913 issue of the ''Encyclopædia Britannica'']]
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Retrieved December 23, 2006 </ref> pictured above]]     
 
Retrieved December 23, 2006 </ref> pictured above]]     
 
[[Image:Pedapodviews.jpg|thumb|right|Transit advertising is combined with experiential marketing using pedapods in [[Australia]]]]     
 
[[Image:Pedapodviews.jpg|thumb|right|Transit advertising is combined with experiential marketing using pedapods in [[Australia]]]]     
Other components of the promotional mix include publicity, [[public relations]], personal selling, and sales promotion.
+
 
Commercial [[mass media|media]] can include wall paintings, billboards, street furniture components, printed flyers, [[radio]], cinema, and [[television]] advertizing, , skywriting, bus stop benches, magazines, newspapers, [[town crier]]s, sides of buses, taxicab doors and roof mounts, musical stage shows, subway platforms and trains, elastic bands on disposable diapers, stickers on apples in [[supermarket]]s, the opening section of [[Streaming media|streaming]] audio and video, [[poster]]s, chicken niblets, and the backs of event tickets and supermarket receipts. Any place an "identified" sponsor pays to deliver their message through a medium is advertising.    
+
Commercial [[mass media|media]] can include wall paintings, billboards, street furniture components, printed flyers, [[radio]], cinema, and [[television]] advertising, skywriting, bus stop benches, magazines, newspapers, town criers, sides of buses, taxicab doors and roof mounts, musical stage shows, subway platforms and trains, stickers on products in [[supermarket]]s, the opening section of streaming audio and video, [[poster]]s, and the backs of event tickets and store receipts. Any place an "identified" sponsor pays to deliver their message through a medium is advertising.
 +
   
 
===Covert Advertising===
 
===Covert Advertising===
Covert advertising embedded in other entertainment media is known as [[product placement]].    
+
Covert advertising embedded in other entertainment media is known as "product placement." A common version of this involves advertising in film, by having a main character use an item of a definite brand. Examples include a [[computer]] or a watch with its logo clearly visible, a particular brand of shoes mentioned frequently as "classics" by the lead character, or a particular brand of automobile used in action sequences.  
 
 
A more recent version of this is advertising in film, by having a main character use an item or other of a definite [[brand]] - an example is in the movie ''[[Minority Report (film)|Minority Report]]'', where [[Tom Cruise]]'s character Tom Anderton owns a computer 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 (film)|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. [[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]] and [[BMW]] cars featured in recent [[James Bond]] films.  
 
  
 
===Commercials===
 
===Commercials===
The [[television commercial|TV commercial]] is generally considered the most effective mass-market advertising format and this is reflected by the high prices TV networks charge for commercial [[airtime]] during popular TV events. The annual [[Super Bowl]] [[American football|football]] game in the United States is known as much for its commercial advertisements as for the game itself, and the average cost of a single thirty-second TV spot during this game has reached $2.5 million (as of 2006).     
+
The [[television]] commercial is generally considered the most effective mass-market advertising format and this is reflected by the high prices TV networks charge for commercial airtime during popular TV events. The annual [[Super Bowl]] [[American football|football]] game in the [[United States]] is known as much for its commercial advertisements as for the game itself, and the average cost of a single thirty-second TV spot during this game has reached $2.5 million (as of 2006).     
 
          
 
          
 
===Virtual Advertisements===
 
===Virtual Advertisements===
Virtual advertisements may be inserted into regular television programming through computer graphics. It is typically inserted into otherwise blank backdrops[http://www.usatoday.com/money/advertising/2002-10-17-fake-ads_x.htm] or used to replace local billboards that are not relevant to the remote broadcast audience[http://www.theglobeandmail.com/servlet/story/LAC.20060315.RVIRTUAL15/TPStory/Business]. More controversially, virtual billboards may be inserted into the background[http://www.canwestmediaworks.com/television/nontraditional/opportunities/virtual_advertising/] where none existing in real-life. Virtual product placement is also possible[http://www.nytimes.com/glogin?URI=http://www.nytimes.com/2006/01/02/business/media/02digital.html&OQ=_rQ3D1&OP=295c0536Q2FQ5B6ZQ3DQ5BamQ2BpemmbtQ5BtQ3FQ3FQ3AQ5BQ3FqQ5BQ3FtQ5BQ3DQ24p.Q5DZppQ5BIZa.Q2FQ5BQ3Fta.d.bQ2FyPibIy] [http://www.ecommercetimes.com/story/48956.html].        
+
Virtual advertisements may be inserted into regular [[television]] programming through [[computer graphics]]. These may be inserted into otherwise blank backdrops<ref>[http://www.usatoday.com/money/advertising/2002-10-17-fake-ads_x.htm Digitally inserted ads pop up more in sports]Michael McCarthy, ''USA Today''. Retrieved December 23, 2006.</ref> or used to replace local billboards that are not relevant to the remote broadcast audience<ref>[http://www.theglobeandmail.com/servlet/story/LAC.20060315.RVIRTUAL15/TPStory/Business No, those Casino Rama ads aren't running in NYC] Keith McArthur. 15/03/06 ''globeandmail.com'' Retrieved December 23, 2006.</ref> Virtual product placement is also used to include items that did not exist in the actual scene.<ref>[http://www.nytimes.com/glogin?URI=http://www.nytimes.com/2006/01/02/business/media/02digital.html&OQ=_rQ3D1&OP=295c0536Q2FQ5B6ZQ3DQ5BamQ2BpemmbtQ5BtQ3FQ3FQ3AQ5BQ3FqQ5BQ3FtQ5BQ3DQ24p.Q5DZppQ5BIZa.Q2FQ5BQ3Fta.d.bQ2FyPibIy Advertising's Twilight Zone: That Signpost Up Ahead May Be a Virtual Product] By Sam Lubell. January 2, 2006. ''The New York Times''. Retrieved December 23, 2006.</ref><ref>[http://www.ecommercetimes.com/story/48956.html Virtual Product Placement Infiltrates TV, Film, Games]by Nancy Cohen ''E-Commerce Times'' 02/23/06 5:00 AM PT. Retrieved December 23, 2006.</ref>         
Increasingly, other mediums such as those discussed below are overtaking television due to a shift towards consumer's usage of the Internet as well as devices such as [[TiVo]].
 
 
 
Advertising on the [[World Wide Web]] is a recent phenomenon. Prices of Web-based advertising space are dependent on the "relevance" of the surrounding web content and the traffic that the website receives.             
 
  
[[E-mail]] advertising is another recent phenomenon. Unsolicited bulk E-mail advertising is known as "[[e-mail spam|spam]]".
+
[[Internet]] advertising developed rapidly at the end of the twentieth century. Prices of web-based advertising space are dependent on the "relevance" of the surrounding web content and the traffic that the website receives. E-mail advertising is another phenomenon connected to the development of the internet, following the same pattern as direct mail advertising and telemarketing. Unsolicited bulk E-mail advertising is known as "spam."
  
 
===Word of Mouth===
 
===Word of Mouth===
Unpaid advertising (also called [[word of mouth]] advertising), can provide good exposure at minimal cost. Personal recommendations ("bring a friend", "sell it"), spreading buzz, or achieving the feat of equating a [[brand]] with a common noun ("[[Xerox]]" = "[[photocopier]]", "[[Kleenex]]" = [[Facial tissue|tissue]], and "[[Vaseline]]" = [[petroleum jelly]]) — these are the pinnacles of any advertising campaign. However, some companies oppose the use of their brand name to label an object.
+
Unpaid advertising (also called word of mouth advertising), can provide good exposure at minimal cost. Personal recommendations ("bring a friend"), or achieving the feat of equating a brand with a common noun&mdash;"Xerox" is equivalent to "photocopier", "Kleenex" to tissue, and "Vaseline" to petroleum jelly&mdash;are the pinnacles of any advertising campaign. However, some companies have opposed the use of their brand name to label an object.
  
 
===Public service advertising===
 
===Public service advertising===
The same advertising techniques used to promote commercial goods and services can be used to inform, educate and motivate the public about non-commercial issues, such as AIDS, political ideology, energy conservation, religious recruitment, and deforestation.
+
The same advertising techniques used to promote commercial goods and services can be used to inform, educate, and motivate the public about non-commercial issues, such as [[AIDS]] and other health issues, [[politics|political]] [[ideology]], [[environmentalism|environmental concerns]], [[religion|religious]] recruitment, and [[charitable institution|charitable]] activities.
  
In the United States, the granting of television and radio licenses by the FCC is contingent upon the station broadcasting a certain amount of public service advertising. To meet these requirements, many broadcast stations in America air the bulk of their required Public Service Announcements during the late night or early morning when the smallest percentage of viewers are watching, leaving more day and prime time commercial slots available for high-paying advertisers.
+
In the [[United States]], the granting of [[television]] and [[radio]] licenses by the Federal Communications Commission (FCC) is contingent upon the station broadcasting a certain amount of public service advertising. To meet these requirements, many broadcast stations in America air the bulk of their required Public Service Announcements during the late night or early morning when the smallest percentage of viewers are watching, leaving more day and prime time commercial slots available for high-paying advertisers.
  
 
== Impact ==
 
== Impact ==
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== Criticism and Regulation==
 
== Criticism and Regulation==
As advertising and marketing efforts become increasingly ubiquitous in modern Western societies, the industry has come under criticism of groups such as [[AdBusters]] via culture jamming which criticizes the media and consumerism using advertising's own techniques. The industry is accused of being one of the engines powering a convoluted economic mass production system which promotes consumption. Recognizing the social impact of advertising, [[Mediawatch-uk]], a British special interest group, works to educate consumers about how they can register their concerns with advertisers and regulators.  
+
As advertising and [[marketing]] efforts have become increasingly ubiquitous in modern Western societies, the industry has come under criticism. The industry is accused of being one of the engines powering the economic [[mass production]] system which promotes [[consumption]]. Recognizing the social impact of advertising, special interest groups, such as Mediawatch-UK, began work to educate consumers about how they can register their concerns with advertisers and regulators.  
[[Image:Wrap_advertising_light_rail.jpg|thumb|150px|[[iPod]] advertisement wrapped around a train. Minneapolis, Minnesota, US, (2005)]]
+
[[Image:Wrap_advertising_light_rail.jpg|thumb|150px|iPod advertisement wrapped around a train. Minneapolis, Minnesota, US, (2005)]]
Public interest groups are increasingly suggesting that access to the mental space targeted by advertisers should be taxed, in that at the present moment that space is being freely taken advantage of by advertisers with no compensation paid to the members of the public who are thus being intruded upon. This kind of tax would be a [[Pigovian tax]] in that it would act to reduce what is now increasingly seen as a public nuisance. Efforts to that end are gathering momentum, with Arkansas and Maine considering bills to implement such taxation. Florida enacted such a tax in 1987 but was forced to repeal it after six months, as a result of a concerted effort by national commercial interests, which withdrew planned conventions, causing major losses to the tourism industry, and cancelled advertising, causing a loss of 12 million dollars to the broadcast industry alone.
+
Public interest groups have increasingly suggested that access to the mental space targeted by advertisers should be [[tax]]ed, in that at the present moment that space is being freely taken advantage of by advertisers with no compensation paid to the members of the public who are thus being intruded upon. A proposed tax would be a [[Arthur Cecil Pigou|Pigovian]] tax, acting to reduce what is increasingly seen as a public nuisance. Florida enacted such a tax in 1987 but was forced to repeal it after six months, as a result of a concerted effort by national commercial interests, which withdrew planned conventions, causing major losses to the tourism industry, and cancelled advertising, causing a loss of 12 million dollars to the broadcast industry alone.
  
 
[[Image:Utomhusreklam_i_Lund.jpg|thumb|200px|Billboard in [[Lund]], [[Sweden]], saying "One Night Stand?" (2005)]]
 
[[Image:Utomhusreklam_i_Lund.jpg|thumb|200px|Billboard in [[Lund]], [[Sweden]], saying "One Night Stand?" (2005)]]
  
There have been increasing efforts to protect the public interest by regulating the content and the reach of advertising. Some examples are the ban on television tobacco advertising imposed in many countries, and the total ban on advertising to children under twelve imposed by the Swedish government in 1991. Though that regulation continues in effect for broadcasts originating within the country, it has been weakened by the [[European Court of Justice]], which has found that Sweden was obliged to accept whatever programming was targeted at it from neighboring countries or via satellite.
+
There have been increasing efforts to protect the public interest by regulating the content and the reach of advertising. Some examples are the ban on [[television]] [[tobacco]] advertising and  restrictions on [[alcohol]] advertising imposed in many countries, and the total ban on advertising to children under twelve imposed by the [[Sweden|Swedish]] government in 1991.  
  
Naturally, many advertisers view governmental regulation or even self-regulation as intrusion of their freedom of speech or a necessary evil. Therefore, they employ a wide-variety of linguistic devices to bypass regulatory laws The advertising of controversial products such as cigarettes and condoms is subject to government regulation in many countries. For instance, the tobacco industry is required by law in India and Pakistan to display warnings cautioning consumers about the health hazards of their products. Linguistic variation is often used by advertising as a creative device to reduce the impact of such requirement.
+
Naturally, many advertisers view governmental regulation or even self-regulation as intrusion of their freedom of speech or a necessary evil. Therefore, they employ a wide-variety of linguistic devices to bypass regulatory laws The advertising of controversial products such as [[cigarette]]s and condoms is subject to government regulation in many countries. For example, the tobacco industry is required by law in [[India]] and [[Pakistan]] to display warnings cautioning consumers about the health hazards of their products. However, linguistic variation is often used by advertising as a creative device to reduce the impact of such requirement <ref>Bhatia, Tej K. 2000. ''Advertising in Rural India: Language, Marketing Communication, and Consumerism'' Tokyo Press. pp. 217-218. ISBN 4872977823</ref>
  
 
==Value of Advertising==
 
==Value of Advertising==
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Another significant trend to note for the future of advertising is the growing importance of niche or targeted ads. Also brought about by the Internet and the theory of [[The Long Tail]], advertisers will have an increasing ability to reach narrow audiences. In the past, the most efficient way to deliver a message was to blanket the largest mass market audience possible. However, usage tracking, customer profiles and the growing popularity of niche content brought about by everything from blogs to social networking sites, provides advertisers with audiences that are smaller but much better defined, leading to ads that are more relevant to viewers and more effective for companies marketing products.
 
Another significant trend to note for the future of advertising is the growing importance of niche or targeted ads. Also brought about by the Internet and the theory of [[The Long Tail]], advertisers will have an increasing ability to reach narrow audiences. In the past, the most efficient way to deliver a message was to blanket the largest mass market audience possible. However, usage tracking, customer profiles and the growing popularity of niche content brought about by everything from blogs to social networking sites, provides advertisers with audiences that are smaller but much better defined, leading to ads that are more relevant to viewers and more effective for companies marketing products.
 +
 +
== Notes ==
 +
<references />
  
 
== Bibliography ==
 
== Bibliography ==
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*Wernick, Andrew (1991) "Promotional Culture: Advertising, Ideology and Symbolic Expression (Theory, Culture & Society S.)", London: Sage Publications Ltd, ISBN 0-8039-8390-5
 
*Wernick, Andrew (1991) "Promotional Culture: Advertising, Ideology and Symbolic Expression (Theory, Culture & Society S.)", London: Sage Publications Ltd, ISBN 0-8039-8390-5
  
=== References ===
+
 
<div style="font-size: 90%">
 
<references />
 
</div>
 
  
 
===External links===
 
===External links===

Revision as of 22:35, 23 December 2006


Billboards and street advertising in Shinjuku, Tokyo, Japan, (2005)


Advertising is the business of drawing public attention to goods and services, and is performed through a variety of media. It is an important part of an overall promotional strategy.

History

In ancient times the most common form of advertising was by word of mouth; however, commercial messages and political campaign displays have been found in the ruins of Pompeii. Egyptians used papyrus to create sales messages and wall posters, while lost-and-found advertising on papyrus was common in Greece and Rome. Wall or rock painting for commercial advertising is another manifestation of an ancient media advertising form, which is present to this day in many parts of Asia, Africa, and South America. For instance, the tradition of wall paintings can be traced back to Indian rock-art paintings that goes back to 4000 B.C.E.[1]. As printing developed in the fifteenth and sixteenth century, advertising expanded to include handbills. In the seventeenth century advertisements started to appear in weekly newspapers in England.

A print advertisement for the 1913 issue of the Encyclopædia Britannica
Edo period advertising flier from 1806 for a traditional medicine called Kinseitan

As the economy expanded during the nineteenth century, the need for advertising grew at the same pace. In the United States, classified ads became popular, filling pages of newspapers with small print messages promoting all kinds of goods. The success of this advertising format led to the growth of mail-order advertising such as the Sears Catalog, at one time referred to as the "Farmer's Bible". In 1843, the first advertising agency was established by Volney Palmer in Philadelphia. At first, these agencies were just brokers for ad space in newspapers, but by the twentieth century, advertising agencies started to take over responsibility for the content as well.

The 1960s saw advertising transform into a modern, more scientific approach in which creativity was allowed to shine, producing unexpected messages that made advertisements more tempting to consumers' eyes. The Volkswagen advertising campaign featuring such headlines as "Think Small" and "Lemon" ushered in the era of modern advertising by promoting a "position" or "unique selling proposition" designed to associate each brand with a specific idea in the reader or viewer's mind.

The late 1980s and early 1990s saw the introduction of cable television. Pioneering the concept of the music video, the MTV channel ushered in a new type of advertising: the consumer tunes in "for" the advertisement, rather than it being a byproduct or afterthought. As cable (and later satellite) television became increasingly prevalent, "specialty" channels began to emerge, and eventually entire channels, such as QVC, Home Shopping Network, and ShopTV, were devoted to advertising merchandise.

Marketing through the Internet opened new frontiers for advertisers and led to the "dot-com" boom of the 1990s. Entire corporations operated solely on advertising revenue, offering everything from coupons to free Internet access. At the turn of the twenty-first century, the search engine Google revolutionized online advertising by emphasizing contextually relevant, unobtrusive ads intended to help, rather than inundate, users. This has led to a plethora of similar efforts and an increasing trend of interactive advertising.

Types of Advertising

Paying people to hold signs in public places is one of the oldest forms of advertising such as the "board guy"[2] pictured above
Transit advertising is combined with experiential marketing using pedapods in Australia

Commercial media can include wall paintings, billboards, street furniture components, printed flyers, radio, cinema, and television advertising, skywriting, bus stop benches, magazines, newspapers, town criers, sides of buses, taxicab doors and roof mounts, musical stage shows, subway platforms and trains, stickers on products in supermarkets, the opening section of streaming audio and video, posters, and the backs of event tickets and store receipts. Any place an "identified" sponsor pays to deliver their message through a medium is advertising.

Covert Advertising

Covert advertising embedded in other entertainment media is known as "product placement." A common version of this involves advertising in film, by having a main character use an item of a definite brand. Examples include a computer or a watch with its logo clearly visible, a particular brand of shoes mentioned frequently as "classics" by the lead character, or a particular brand of automobile used in action sequences.

Commercials

The television commercial is generally considered the most effective mass-market advertising format and this is reflected by the high prices TV networks charge for commercial airtime during popular TV events. The annual Super Bowl football game in the United States is known as much for its commercial advertisements as for the game itself, and the average cost of a single thirty-second TV spot during this game has reached $2.5 million (as of 2006).

Virtual Advertisements

Virtual advertisements may be inserted into regular television programming through computer graphics. These may be inserted into otherwise blank backdrops[3] or used to replace local billboards that are not relevant to the remote broadcast audience[4] Virtual product placement is also used to include items that did not exist in the actual scene.[5][6]

Internet advertising developed rapidly at the end of the twentieth century. Prices of web-based advertising space are dependent on the "relevance" of the surrounding web content and the traffic that the website receives. E-mail advertising is another phenomenon connected to the development of the internet, following the same pattern as direct mail advertising and telemarketing. Unsolicited bulk E-mail advertising is known as "spam."

Word of Mouth

Unpaid advertising (also called word of mouth advertising), can provide good exposure at minimal cost. Personal recommendations ("bring a friend"), or achieving the feat of equating a brand with a common noun—"Xerox" is equivalent to "photocopier", "Kleenex" to tissue, and "Vaseline" to petroleum jelly—are the pinnacles of any advertising campaign. However, some companies have opposed the use of their brand name to label an object.

Public service advertising

The same advertising techniques used to promote commercial goods and services can be used to inform, educate, and motivate the public about non-commercial issues, such as AIDS and other health issues, political ideology, environmental concerns, religious recruitment, and charitable activities.

In the United States, the granting of television and radio licenses by the Federal Communications Commission (FCC) is contingent upon the station broadcasting a certain amount of public service advertising. To meet these requirements, many broadcast stations in America air the bulk of their required Public Service Announcements during the late night or early morning when the smallest percentage of viewers are watching, leaving more day and prime time commercial slots available for high-paying advertisers.

Impact

File:Smithwick's ale billboard NYC May 2005.jpg
Billboard, New York City, (2005)

The impact of advertising has been a matter of considerable debate and many different claims have been made in different contexts. During debates about the banning of cigarette advertising, a common claim from tobacco companies was that cigarette advertising does not encourage people to smoke who would not otherwise. The (eventually successful) opponents of advertising, on the other hand, claimed that advertising did in fact increase consumption.

According to many media sources, the past experience and state of mind of the person subjected to advertising may determine the impact that advertising has. For example, young children (under the age of four) may be unable to distinguish advertising from other television programs, whilst the ability to determine the truthfulness of the message may not be developed until the age of eight. In any event, it is undeniable that advertising exposes the public to the product and/or a brand name, leading to subsequent recognition of the item or brand on a future occasion.

Ethics of Advertising

Because of the potential impact on society, advertisers face a number of ethical dilemnas. The International Chamber of Commerce suggests maintaining transparent, accessible identities so that consumers will know exactly who is advertising what. The ICC also suggests that advertisers protect data on consumers, and that their messages are not perceived as pornographic, violent, racist, or otherwise offensive.[7]

There are a number of advertising practices deemed illegal. One such practice, known as "bait and switch," involves advertisements for tremendous savings on a product but when consumers inquire about the product, they are told it is sold out. More often than not, consumers will spend money on a similar item with no discount.[8] One problem brought about through advances in internet technology occurred when online advertisements were charged based on how many people click on them. Unethical companies continuously click on their competitors' ads in order to quickly exhaust their advertising budget, a practice known as "click fraud."[9]

Criticism and Regulation

As advertising and marketing efforts have become increasingly ubiquitous in modern Western societies, the industry has come under criticism. The industry is accused of being one of the engines powering the economic mass production system which promotes consumption. Recognizing the social impact of advertising, special interest groups, such as Mediawatch-UK, began work to educate consumers about how they can register their concerns with advertisers and regulators.

File:Wrap advertising light rail.jpg
iPod advertisement wrapped around a train. Minneapolis, Minnesota, US, (2005)

Public interest groups have increasingly suggested that access to the mental space targeted by advertisers should be taxed, in that at the present moment that space is being freely taken advantage of by advertisers with no compensation paid to the members of the public who are thus being intruded upon. A proposed tax would be a Pigovian tax, acting to reduce what is increasingly seen as a public nuisance. Florida enacted such a tax in 1987 but was forced to repeal it after six months, as a result of a concerted effort by national commercial interests, which withdrew planned conventions, causing major losses to the tourism industry, and cancelled advertising, causing a loss of 12 million dollars to the broadcast industry alone.

File:Utomhusreklam i Lund.jpg
Billboard in Lund, Sweden, saying "One Night Stand?" (2005)

There have been increasing efforts to protect the public interest by regulating the content and the reach of advertising. Some examples are the ban on television tobacco advertising and restrictions on alcohol advertising imposed in many countries, and the total ban on advertising to children under twelve imposed by the Swedish government in 1991.

Naturally, many advertisers view governmental regulation or even self-regulation as intrusion of their freedom of speech or a necessary evil. Therefore, they employ a wide-variety of linguistic devices to bypass regulatory laws The advertising of controversial products such as cigarettes and condoms is subject to government regulation in many countries. For example, the tobacco industry is required by law in India and Pakistan to display warnings cautioning consumers about the health hazards of their products. However, linguistic variation is often used by advertising as a creative device to reduce the impact of such requirement [10]

Value of Advertising

Advertising has a number of benefits to society and business. Businesses are able to make potential customers aware of their products, which leads to a more efficient market as consumers have more information available to them. Further knowledge of a market increases consumer choice, leading to lower prices overall. Advertising helps companies build a brand, letting the public know that they are reliable.

Advertising also benefits society. Advertising completely supports such industries as television and radio. Stations are able to broadcast programming to the public at no charge to the public because advertisers underwrite the costs of production and broadcast.

Future

Technology has provided both opportunity and threats to the advertising world. The internet is an entirely new frontier for advertisers. Other advances, such as TiVo pose problems for advertisers as users are able to record programs for later viewing enabling them to fast forward through commercials. Additionally, as more seasons or “Boxed Sets” come out of Television shows; fewer people are watching their shows on TV. However, the fact that these sets are sold, means that the company will additionally receive profits from the sales of these sets. To counter this effect, many advertisers have opted for product placement on TV shows like Survivor.

Another significant trend to note for the future of advertising is the growing importance of niche or targeted ads. Also brought about by the Internet and the theory of The Long Tail, advertisers will have an increasing ability to reach narrow audiences. In the past, the most efficient way to deliver a message was to blanket the largest mass market audience possible. However, usage tracking, customer profiles and the growing popularity of niche content brought about by everything from blogs to social networking sites, provides advertisers with audiences that are smaller but much better defined, leading to ads that are more relevant to viewers and more effective for companies marketing products.

Notes

  1. Bhatia, Tej K. 2000. Advertising in Rural India: Language, Marketing Communication, and Consumerism Tokyo Press. pp. 62-68. ISBN 4872977823
  2. The 'board guys' of London's west endThe Guardian Wednesday November 16, 2005 Retrieved December 23, 2006
  3. Digitally inserted ads pop up more in sportsMichael McCarthy, USA Today. Retrieved December 23, 2006.
  4. No, those Casino Rama ads aren't running in NYC Keith McArthur. 15/03/06 globeandmail.com Retrieved December 23, 2006.
  5. Advertising's Twilight Zone: That Signpost Up Ahead May Be a Virtual Product By Sam Lubell. January 2, 2006. The New York Times. Retrieved December 23, 2006.
  6. Virtual Product Placement Infiltrates TV, Film, Gamesby Nancy Cohen E-Commerce Times 02/23/06 5:00 AM PT. Retrieved December 23, 2006.
  7. New international code covers ethics of on-line advertising Paris, 19 April 1998 Retrieved from International Chamber of Commerce website November 30, 2006
  8. Ethics in Advertising Retrieved from Rubak website November 30, 2006
  9. Trouble clicks November 23, 2006 Retrieved from The Economist website November 30, 2006
  10. Bhatia, Tej K. 2000. Advertising in Rural India: Language, Marketing Communication, and Consumerism Tokyo Press. pp. 217-218. ISBN 4872977823

Bibliography

  • Bhatia, Tej K. 2000. Advertising in Rural India: Language, Marketing Communication, and Consumerism. Institute for the Study of Languages and Cultures of Asia and Africa. Tokyo University of Foreign Studies. Tokyo Press: Japan. ISBN 4-87297-782-3
  • Graydon, Shari (2003) "Made You Look - How Advertising Works and Why You Should Know", Toronto: Annick Press, ISBN 1-55037-814-7
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