| Advertising, in its non-commercial guise, is a powerful educational tool capable of reaching and motivating large audiences. "Advertising justifies its existence when used in the public interest - it is much too powerful a tool to use solely for commercial purposes." - Attributed to Howard Gossage by David Ogilvy
Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service. Many advertisements are designed to generate increased consumption of those products and services through the creation and reinforcement of "brand image" and "brand loyalty". For these purposes, advertisements sometimes embed their persuasive message with factual information. Every major medium is used to deliver these messages, including television, radio, cinema, magazines, newspapers, video games, the Internet and billboards. Advertising is often placed by an advertising agency on behalf of a company or other organization. Advertisements are seen on the seats of shopping carts, on the walls of an airport walkway, on the sides of buses, and are heard in telephone hold messages and in-store public address systems. Advertisements are often placed anywhere an audience can easily or frequently access visual, audio and printed information. Organizations that frequently spend large sums of money on advertising that sells what is not, strictly speaking, a product or service include political parties, interest groups, religious organizations, and military recruiters. Non-profit organizations are not typical advertising clients, and may rely on free modes of persuasion, such as public service announcements. Advertising spending has increased dramatically in recent years. In 2006, spending on advertising has been estimated at $155 billion in the United States[1] and $385 billion worldwide[2], and the latter to exceed $500 billion by 2010. While advertising can be seen as necessary for economic growth, it is not without social costs. Unsolicited Commercial Email and other forms of spam have become so prevalent as to have become a major nuisance to users of these services, as well as being a financial burden on internet service providers.[3] Advertising is increasingly invading public spaces, such as schools, which some critics argue is a form of child exploitation. Newer media and advertising approachesIncreasingly, other media are overtaking television because of 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 "spam". Some companies have proposed to place messages or corporate logos on the side of booster rockets and the International Space Station. Controversy exists on the effectiveness of subliminal advertising (see mind control), and the pervasiveness of mass messages (see propaganda). 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 (in the United States, "Xerox" = "photocopier", "Kleenex" = tissue, "Vaseline" = petroleum jelly, "Hoover" = vacuum cleaner, and "Band-Aid" = adhesive bandage) — these are the pinnacles of any advertising campaign. However, some companies oppose the use of their brand name to label an object. Equating a brand with a common noun also risks turning that brand into a genericized trademark - turning it into a generic term which means that its legal protection as a trademark is lost. As the mobile phone became a new mass media in 1998 when the first paid downloadable content appeared on mobile phones in Finland, it was only a matter of time until mobile advertising followed, also first launched in Finland in 2000. By 2007 the value of mobile advertising had reached 2.2 billion dollars and providers such as Admob delivered billions of mobile ads. One type of mobile ad is based on SMS (Short Message Service) text messages. SMS has become the largest data application on the planet with over 2.4 billion active users. The addition of a text-back number is gaining prevalence as a www address of yesterday. Used as part of your companies 'how to contact us' these can be very effective. These can be a (rented) keyword on a short-code or your own system on a standard number (like Mojio Messenger). The benefit of SMS text messages is people can respond where they are, right now, stuck in traffic, sitting on the metro. The use of SMS text messages can also be a great way to get a viral (word-of-mouth) campaign off the ground to build your own database of prospects see Viral marketing. Interstitial advertisement is a form of advertisement which takes place while a page loads. More advanced mobile ads include banner ads, coupons, MMS picture and video messages, advergames and various engagement marketing campaigns. A particular feature driving mobile ads is the 2D Barcode, which replaces the need to do any typing of web addresses, and uses the camera feature of modern phones to gain immediate access to web content. 83 percent of Japanese mobile phone users already are active users of 2D barcodes. A new form of advertising that is growing rapidly is Social network advertising. It is Online Advertising with a focus on social networking sites. This is a relatively immature market, but it has shown a lot of promise as advertisers are able to take advantage of the demographic information the user has provided to the social networking site. From time to time, The CW airs short programming breaks called "Content Wraps," to advertise one company's product during an entire commercial break. The CW pioneered "content wraps" and some products featured were Herbal Essences, Crest, Guitar Hero 2, Cover Girl, and recently Toyota. Measuring the impact of mass advertisingThe most common method for measuring the impact of mass media advertising is the use of the rating point (rp) or the more accurate target rating point (trp). These two measures refer to the percentage of the universe of the existing base of audience members that can be reached by the use of each media outlet in a particular moment in time. The difference between the two is that the rating point refers to the percentage to the entire universe while the target rating point refers to the percentage of a particular segment or target. This becomes very useful when focusing advertising efforts on a particular group of people. One of the reasons advertising is successful is because it can target a particular audience to build awareness of what the advertiser has to offer Negative effects of advertisingAn effect is the control and vetoing of free information by the advertisers. Any negative information on a company or its products or operations often results in pressures from the company to withdraw such information lines, threatening to cut their ads. This behavior makes the editors of the media self-censor content that might upset their ad payers. The bigger the companies are, the bigger their relation becomes, maximizing control over a single piece of information. Advertisers may try to minimize information about or from consumer groups, consumer-controlled purchasing initiatives (as joint purchase systems), or consumer-controlled quality information systems. Another indirect effect of advertising is to modify the nature of the communication media where it is shown. Media that get most of their revenues from publicity try to make their medium a good place for communicating ads before anything else. The clearest example is television, where broadcasters try to make the public stay for a long time in a mental state that encourages spectators not to switch the channel during advertisements. Programs that are low in mental stimulus, require light concentration and are varied are best for long sitting times. These also make for much easier emotional transition to ads, which are occasionally more entertaining than the regular shows. A simple way to understand objectives in television programming is to compare the content of programs paid for and chosen by the viewer with those on channels that get their income mainly from advertisements. In several books, articles and videos, communication professor Sut Jhally has argued that pervasive commercial advertising, by constantly reinforcing a bogus association between consumption and happiness and by focusing on individual immediate needs, leads to a squandering of resources and stands in the way of a discussion of fundamental societal and long-term needs. Regulation- In the US many communities believe that many forms of outdoor advertising blight the public realm[16]. As long ago as the 1960s in the US there were attempts to ban billboard advertising in the open countryside[17]. Cities such as São Paulo have introduced an outright ban[18] with the UK capital also having specific legislation to control unlawful displays.
There have been increasing efforts to protect the public interest by regulating the content and the influence of advertising. Some examples are: the ban on television tobacco advertising imposed in many countries, and the total ban of 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 had found that Sweden was obliged to accept foreign programming, including those from neighboring countries or via satellite. In Europe and elsewhere, there is a vigorous debate on whether (or how much) advertising to children should be regulated. This debate was exacerbated by a report released by the Kaiser Family Foundation in February 2004 which suggested that food advertising targeting children was an important factor in the epidemic of childhood obesity in the United States of America. In many countries - namely New Zealand, South Africa, Canada, and many European countries - the advertising industry operates a system of self-regulation. Advertisers, advertising agencies and the media agree on a code of advertising standards that they attempt to uphold. The general aim of such codes is to ensure that any advertising is 'legal, decent, honest and truthful'. Some self-regulatory organizations are funded by the industry, but remain independent, with the intent of upholding the standards or codes (like the Advertising Standards Authority in the UK). In the UK most forms of outdoor advertising such as the display of billboards is regulated by the UK Town and County Planning system. Currently the display of an advertisement without consent from the Planning Authority is a criminal offense liable to a fine of £2500 per offence. All of the major outdoor billboard companies in the UK have convictions of this nature. 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 (e.g. printing English words in bold and French translations in fine print to deal with the Article 12 of the 1994 Toubon Law limiting the use of English in French advertising); see Bhatia and Ritchie 2006:542. The advertisement 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 most countries to display warnings cautioning consumers about the health hazards of their products. Linguistic variation is often used by advertisers as a creative device to reduce the impact of such requirements. FutureGlobal advertisingAdvertising 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. (Global marketing Management, 2004, pg 13-18) 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 that contributes to its success is how economies of scale are maximised. 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. (Young, p.131) TrendsWith the dawn of the Internet came many new advertising opportunities. Popup, Flash, banner, advergaming, and email advertisements (the last often being a form of spam) are now commonplace. The ability to record shows on DVRs (such as TiVo) allow users to record the programs for later viewing, enabling them to fast forward through commercials. Additionally, as more seasons of pre-recorded “Boxed Sets” are offered for sale of Television show series; fewer people watch the shows on TV. However, the fact that these sets are sold, means the company will receive additional profits from the sales of these sets. To counter this effect, many advertisers have opted for product placement on TV shows like Survivor. Particularly since the rise of "entertaining" advertising, some people may like an advertisement enough to wish to watch it later or show a friend. In general, the advertising community has not yet made this easy, although some have used the Internet to widely distribute their ads to anyone willing to see or hear them. Another significant trend regarding 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 specific 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, provide 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. Among others, Comcast Spotlight is one such advertiser employing this method in their video on demand menus. These advertisements are targeted to a specific group and can be viewed by anyone wishing to find out more about a particular business or practice at any time, right from their home. This causes the viewer to become proactive and actually choose what advertisements they want to view.[19] In freelance advertising, companies hold public competitions to create ads for their product, the best one of which is chosen for widespread distribution with a prize given to the winner(s). During the 2007 Super Bowl, Pepsico held such a contest for the creation of a 30-second television ad for the Doritos brand of chips, offering a cash prize to the winner. Chevrolet held a similar competition for their Tahoe line of SUVs. This type of advertising, however, is still in its infancy. It may ultimately decrease the importance of advertising agencies by creating a niche for independent freelancers.[citation needed] Embedded advertising or in-film ad placements are happening on a larger scale now than ever before. Films like Krrish had over a dozen placements including Lay’s, Bournvita, Samsung, Faber Castell and Hero Honda. SOURCE: http://en.wikipedia.org/wiki/Advertisement Promotion – Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements - advertising, public relations, word of mouth and point of sale. A certain amount of crossover occurs when promotion uses the four principle elements together, which is common in film promotion. Advertising covers any communication that is paid for, from television and cinema commercials, radio and Internet adverts through print media and billboards. One of the most notable means of promotion today is the Promotional Product, as in useful items distributed to targeted audiences with no obligation attached. This category has grown each year for the past decade while most other forms have suffered. It is the only form of advertising that targets all five senses and has the recipient thanking the giver. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations
SOURCE:http://en.wikipedia.org/wiki/Marketing_mix
Interactive Advertising and Children: Issues and Implications
“ It is important to recognize that young children are being manipulated rather effectively by television ads that are not interactive and not tailored to the individual child. As there is more tailoring and as there is more interactive capability, advertising is going to be more powerful than ever before. I think that’s what underscores the need for more regulatory intervention.” -Dale Kunkel, Ph.D., Professor of Communication, University of Arizona
Interactive technology has the potential to revolutionize how children watch television. With a simple click of the remote control, children will go from passive viewers to active participants, having the potential to explore subjects in detail, ask experts questions and play games. Yet interactive technology also opens the door to intrusive advertising practices, similar to those currently used on the Internet. As television transitions from analog to digital, questions arise regarding how interactive advertising will be used to market to children and how young viewers will be affected. This brief explores these questions and offers recommendations to protect children in a new age of interactive advertising.
Children: The Perfect Targets
Children are already a major target audience for advertisers. American companies currently spend $15 billion a year on marketing and advertising to children under the age of 12—twice the amount they spent just 10 years ago.1 Each year, the average child sees about 40,000 ads on television alone2 and collectively influences $500 billion in spending annually on fast food, junk food, toys and other advertised products.3 Due to their susceptibility to persuasion and the amount of media they consume, children are the perfect targets for television advertisers. Children under the age of eight do not recognize the persuasive intent of ads and tend to accept them as accurate and unbiased.4 In fact, 30-second commercials have been found to influence brand preferences in children as young as two years old.5 In addition, very young children are not able to distinguish between programming and advertising and do not understand that the purpose of a commercial is to sell a product.6 This is one reason advertising campaigns that use children’s television and movie characters are so popular and successful.
Children of all ages are also heavy media consumers. According to research by the Kaiser family foundation, children under the age of six spend close to two hours a day watching television, using computers and playing video games.7 Children ages eight and older spend nearly six and a half hours a day (6:21) consuming media, including television and the Internet.8 In fact, during one quarter of this time (26%), they are media multi-tasking, or using more than one medium at the same time. When all of their media use is added separately, it averages 8 1/2 hours per day.9A closer look at this media multi-tasking shows that one in four youth (28%) “often” or “sometimes”go on line while watching TV to do something related to the show they are watching. This trend will likely continue as 60 percent of kids with home computers say their television and computers arelocated in places where they can use both simultaneously.10 Young people’s ability to multi-task with the media, as well as their interest in television related Web sites, makes them a very attractive audience for interactive advertisers.
The Cost of Advertising to Children
There are several negative effects from children's exposure to television advertisements. One problem is the strain such advertising places on parent child relationships. In a Harris Interactive poll of professional sin the youth marketing industry, nearly three-quarters of respondents agreed that “most companies put pressure on children to pester their parents to buy things.”11 The “nag factor” as this is sometimes known, often results in parent-child conflict.12 When a parent denies a purchase request, the child becomes argumentative, angry and disappointed, resulting in significant stress placed on the parent-child relationship.13Exposure to advertising also increases children's awareness and consumption of the products that are being advertised. Aside from encouraging even the youngest of children to become insatiable consumers, research has shown that exposure to ads for certain products, such as alcohol,tobacco, and violent video games and movies maybe harmful to children’s health by stimulating positive attitudes towards and greater consumption of such products.14Given the fact that the majority of TV ads targeted to kids are for candy, cereal, soda and fast food,is not surprising that a growing body of research links television advertising to children’s poor nutritional choices and the growing rate of childhood obesity.16 Several studies have found that the more time children spend watching TV, the more likely they are to ask for specific products from the grocery store and that up to three-quarters of the items they request are products they have seen advertise don television.17 Other studies have found that as children’s television viewing increases, so too does their daily caloric intake and their consumption of fast food and soft drinks; yet the amount of fruits and vegetables they consume decreases.18These research findings are of particular concern given the growing childhood obesity epidemic. Sixteen percent of American children are overweight or obese, a 300% increase in the 30 years.19The U.S. Surgeon General has identified overweight and obesity as “the fastest growing cause of disease and death in America.”20In addition to the social stigma and psychological effects that overweight children often suffer, they're also significantly more likely than their peers to become afflicted with serious health problems such as asthma, diabetes, high blood pressure and sleep apnea. In fact, for the first time in modern history, the life expectancy of younger generations may actually decrease by as much as five years as a result of obesity.22Most of the research on children and advertising has focused on television. How will children be affected when they no longer passively watch commercial for 30 seconds but actively engage with a product Web site for undefined periods of time? Interactive media has the potential to expose children to far more advertising than previously imagined, as well as more targeted ways of selling products to them.
The Power of Interactivity: Marketing Methods and Strategies
One way to understand potential interactive advertising strategies is to examine current Internet practices, which range in both subtlety and scope. The following is a brief summary of the different methods already employed on the Internet that may soon become common practice in digital television,as discussed by Dr. Kathryn Montgomery in her article, “Digital Kids: The New On-Line Children’s Consumer Culture:”
Branded Environments” One strategy found on the Internet is the creation of Web sites where the content features a commercial product or brand. By creating Web sites specifically for kids, companies can appeal to children early to foster brand loyalty. A key component of branded environments is the use of“advergames,” or Internet games that feature specific products. Advergames are very popular with children and, as such, are highly appealing to advertisers. One example of advergames, Kraft Foods’TooMunchFun.com, features the “Kool-Aid MadScientists’ Mix it Up!” game where visitors must create a clean path for Kool-Aid powder toflow safely through tubes to a beaker. OnNabiscoWorld.com, children can be guests at the“Chips Ahoy! Cookie Guys’ Housewarming Party,”where visitors are led into different rooms of chocolate chip cookie characters. Some adver games permit advertisers to monitor players without their knowledge, providing advertisers information about the choices players make while playing and the length of time they are online. Creators of adver games say that the typical player spends a half-hour on a game site, often replaying the game and increasing the amount of time they are exposed to the advertised products.24Advergaming Web sites also encourage children to buy the advertised products in order to receive special privileges. For example, on Postopia.com, a Web site for Post Cereal products, visitors are encouraged to purchase specially marked boxes of cereal in order to obtain a special code. This code can then be used on the Web site to earn “postokens,”which can be cashed out to reach secret levels, learn secret game tips and earn bonus lives on games featured on the Web site.
“One to One” The strategy of “one to one,” also known as “relational marketing,” creates a unique relationship between the company and the individual by personalizing marketing and sales pitches based on specific preferences and behaviors. Companies can monitor and maintain profiles of individual customer sand create long-term relationships for more effective marketing in the future. A report by the center for Digital Democracy finds that advertisers can use interactive advertising to target individual viewers with personalized ads, which may increase the likelihood of impulse purchases. Advertiser swill be able to target children based on gender, age,household income, and/or race by tracking the history of their individual television viewing habits.25
“T-Commerce” New interactive methods may soon be employed to promote “t-commerce,” the ability to purchase merchandise through television using a remote control. Soon, viewers will be able to click on specific products featured on a show and link to a site where the merchandise can be purchased. This new technology will also allow advertisers to track and store users’ personal data for marketing purposes. Product placement, the seamless integration of programming and products, will become used increasingly as an advertising technique,resulting in the continued blurring of content and advertising.
Emerging Examples of Interactive Advertising
While interactive advertising on television is still in its infancy in the United States, it is more widely practiced abroad. The first interactive ad in the united Kingdom debuted in 2001. The ad, for Unilever’s Chicken Tonight’s Stir It Up instant soup,allowed consumers to use their remote control to visit the company’s “Creative Kitchen” Web site,apply for cash-back vouchers and order the soup online.26 Since then, many companies including Adidas and General Motors have decided to explore how to use interactive advertising to boost interest and sales of their products. One company, OpenTV, produces interactive content and provides technology to help companies develop interactive advertisements for digital cable and satellite systems. Open TV has created ads for companies in the United Kingdom, Italy and South Africa. In October 2001, Open TV launched an interactive component for the QVC shopping channel Anthe United Kingdom. Now more than 10 percent of QVC’s total orders come in through the ‘buy button’ on the cable system Sky Digital, twice as many as come in through the Internet.27 Open TV also created an interactive ad for Domino’s Pizza that allows viewers to place orders using their remote controls. Consumers can now place pizza orders through their remote controls in the United States. TimeWarner's Oceanic Cable in Oahu, Hawaii has established television commerce or t-commerce model in which viewers in select neighborhoods can order from Pizza Hut directly from their television. Not only does this service offer convenience to the consumer, but according to Oceanic Marketing Director Allan Akamine, “People ordering pizza over cable tend to spend more than those using the phone.”28Another emerging form of interactive advertising isShort Message Service, or SMS. In the United States, Frito-Lay, Maybelline and Timex send text messages to cell phone users to advertise their products. Broadcasters in the United Kingdom uses ms to reach viewers by cell phone to promote television programs, and major fast-food chains such as Kentucky Fried Chicken (KFC) are experimenting with a combination of SMS and interactive television to reach younger viewers. During a program targeted to children between 4 and 11 years of age,a presenter prompts viewers to click on a specially branded area that features the KFC company logo,offers games, and provides information about the menu and restaurant locations.29Though these technologies are not yet common in the United States, digital advertisers believe the transition from the Web to television should go smoothly, given children’s familiarity with computers. As one digital advertising executive remarks,“Children will have already been communicating with the brand through the Web, which should make it easier to build a dialogue through iTV.”30
Recommendations for Creating a Healthy DTV Environment for Children
Now is the time, while interactive advertising is stilling its infancy, to create industry guidelines and regulations that will protect children from the potentially harmful effects of interactive advertising. Without consideration of the child audience, digital television could evolve into an environment in which marketers target children individually based on personal demographic information, where children's viewing habits are monitored for marketing purposes and where children’s programs are replete with product placements to increase their exposure to brands and products. Because young children do not understand the persuasive intent of ads and have difficulty distinguishing advertising from program content, it is essential that they are protected. Congress has already acknowledged the need to protect children from advertising and marketing. While Congress has passed legislation, such as the children's Television Act and the Children’s on line Privacy Protection Act, to help curb the amount of advertising that targets children as well as the collection of their personal information, these rules must be updated for the digital age. The following are recommendations supported by the children's media Policy Coalition31 to help ensure a healthy digital media environment for children:
1. The Federal Communications Commission should prohibit links from children’s programming to all forms of commercial content. 2. The Federal Communications Commission should adapt existing children’s television rules and polices for the digital age to ensure clear separation of programming and advertising content. 3. The Children’s Online Privacy and Protection Act should be applied to digital television to prevent the collection of children’s personal information and the tracking of viewing habits of children under the age of 13.
“ Advertising of unhealthy food products to young children contributes to poor nutritional habits that may last a lifetime and be a variable in the current epidemic of obesity among kids.” –Brian Wilcox, Ph.D., chair of the American Psychological Association Task Force on Advertising and Children
SOURCE: http://www.childrennow.org/assets/pdf/issues_media_iadbrief_2005.pdf
Advertising, in its non-commercial guise, is a powerful educational tool capable of reaching and motivating large audiences. "Advertising justifies its existence when used in the public interest - it is much too powerful a tool to use solely for commercial purposes." - Attributed to Howard Gossage by David Ogilvy
Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service. Many advertisements are designed to generate increased consumption of those products and services through the creation and reinforcement of "brand image" and "brand loyalty". For these purposes, advertisements sometimes embed their persuasive message with factual information. Every major medium is used to deliver these messages, including television, radio, cinema, magazines, newspapers, video games, the Internet and billboards. Advertising is often placed by an advertising agency on behalf of a company or other organization. Advertisements are seen on the seats of shopping carts, on the walls of an airport walkway, on the sides of buses, and are heard in telephone hold messages and in-store public address systems. Advertisements are often placed anywhere an audience can easily or frequently access visual, audio and printed information. Organizations that frequently spend large sums of money on advertising that sells what is not, strictly speaking, a product or service include political parties, interest groups, religious organizations, and military recruiters. Non-profit organizations are not typical advertising clients, and may rely on free modes of persuasion, such as public service announcements. Advertising spending has increased dramatically in recent years. In 2006, spending on advertising has been estimated at $155 billion in the United States[1] and $385 billion worldwide[2], and the latter to exceed $500 billion by 2010. While advertising can be seen as necessary for economic growth, it is not without social costs. Unsolicited Commercial Email and other forms of spam have become so prevalent as to have become a major nuisance to users of these services, as well as being a financial burden on internet service providers.[3] Advertising is increasingly invading public spaces, such as schools, which some critics argue is a form of child exploitation. Newer media and advertising approachesIncreasingly, other media are overtaking television because of 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 "spam". Some companies have proposed to place messages or corporate logos on the side of booster rockets and the International Space Station. Controversy exists on the effectiveness of subliminal advertising (see mind control), and the pervasiveness of mass messages (see propaganda). 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 (in the United States, "Xerox" = "photocopier", "Kleenex" = tissue, "Vaseline" = petroleum jelly, "Hoover" = vacuum cleaner, and "Band-Aid" = adhesive bandage) — these are the pinnacles of any advertising campaign. However, some companies oppose the use of their brand name to label an object. Equating a brand with a common noun also risks turning that brand into a genericized trademark - turning it into a generic term which means that its legal protection as a trademark is lost. As the mobile phone became a new mass media in 1998 when the first paid downloadable content appeared on mobile phones in Finland, it was only a matter of time until mobile advertising followed, also first launched in Finland in 2000. By 2007 the value of mobile advertising had reached 2.2 billion dollars and providers such as Admob delivered billions of mobile ads. One type of mobile ad is based on SMS (Short Message Service) text messages. SMS has become the largest data application on the planet with over 2.4 billion active users. The addition of a text-back number is gaining prevalence as a www address of yesterday. Used as part of your companies 'how to contact us' these can be very effective. These can be a (rented) keyword on a short-code or your own system on a standard number (like Mojio Messenger). The benefit of SMS text messages is people can respond where they are, right now, stuck in traffic, sitting on the metro. The use of SMS text messages can also be a great way to get a viral (word-of-mouth) campaign off the ground to build your own database of prospects see Viral marketing. Interstitial advertisement is a form of advertisement which takes place while a page loads. More advanced mobile ads include banner ads, coupons, MMS picture and video messages, advergames and various engagement marketing campaigns. A particular feature driving mobile ads is the 2D Barcode, which replaces the need to do any typing of web addresses, and uses the camera feature of modern phones to gain immediate access to web content. 83 percent of Japanese mobile phone users already are active users of 2D barcodes. A new form of advertising that is growing rapidly is Social network advertising. It is Online Advertising with a focus on social networking sites. This is a relatively immature market, but it has shown a lot of promise as advertisers are able to take advantage of the demographic information the user has provided to the social networking site. From time to time, The CW airs short programming breaks called "Content Wraps," to advertise one company's product during an entire commercial break. The CW pioneered "content wraps" and some products featured were Herbal Essences, Crest, Guitar Hero 2, Cover Girl, and recently Toyota. Measuring the impact of mass advertisingThe most common method for measuring the impact of mass media advertising is the use of the rating point (rp) or the more accurate target rating point (trp). These two measures refer to the percentage of the universe of the existing base of audience members that can be reached by the use of each media outlet in a particular moment in time. The difference between the two is that the rating point refers to the percentage to the entire universe while the target rating point refers to the percentage of a particular segment or target. This becomes very useful when focusing advertising efforts on a particular group of people. One of the reasons advertising is successful is because it can target a particular audience to build awareness of what the advertiser has to offer Negative effects of advertisingAn effect is the control and vetoing of free information by the advertisers. Any negative information on a company or its products or operations often results in pressures from the company to withdraw such information lines, threatening to cut their ads. This behavior makes the editors of the media self-censor content that might upset their ad payers. The bigger the companies are, the bigger their relation becomes, maximizing control over a single piece of information. Advertisers may try to minimize information about or from consumer groups, consumer-controlled purchasing initiatives (as joint purchase systems), or consumer-controlled quality information systems. Another indirect effect of advertising is to modify the nature of the communication media where it is shown. Media that get most of their revenues from publicity try to make their medium a good place for communicating ads before anything else. The clearest example is television, where broadcasters try to make the public stay for a long time in a mental state that encourages spectators not to switch the channel during advertisements. Programs that are low in mental stimulus, require light concentration and are varied are best for long sitting times. These also make for much easier emotional transition to ads, which are occasionally more entertaining than the regular shows. A simple way to understand objectives in television programming is to compare the content of programs paid for and chosen by the viewer with those on channels that get their income mainly from advertisements. In several books, articles and videos, communication professor Sut Jhally has argued that pervasive commercial advertising, by constantly reinforcing a bogus association between consumption and happiness and by focusing on individual immediate needs, leads to a squandering of resources and stands in the way of a discussion of fundamental societal and long-term needs. Regulation- In the US many communities believe that many forms of outdoor advertising blight the public realm[16]. As long ago as the 1960s in the US there were attempts to ban billboard advertising in the open countryside[17]. Cities such as São Paulo have introduced an outright ban[18] with the UK capital also having specific legislation to control unlawful displays.
There have been increasing efforts to protect the public interest by regulating the content and the influence of advertising. Some examples are: the ban on television tobacco advertising imposed in many countries, and the total ban of 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 had found that Sweden was obliged to accept foreign programming, including those from neighboring countries or via satellite. In Europe and elsewhere, there is a vigorous debate on whether (or how much) advertising to children should be regulated. This debate was exacerbated by a report released by the Kaiser Family Foundation in February 2004 which suggested that food advertising targeting children was an important factor in the epidemic of childhood obesity in the United States of America. In many countries - namely New Zealand, South Africa, Canada, and many European countries - the advertising industry operates a system of self-regulation. Advertisers, advertising agencies and the media agree on a code of advertising standards that they attempt to uphold. The general aim of such codes is to ensure that any advertising is 'legal, decent, honest and truthful'. Some self-regulatory organizations are funded by the industry, but remain independent, with the intent of upholding the standards or codes (like the Advertising Standards Authority in the UK). In the UK most forms of outdoor advertising such as the display of billboards is regulated by the UK Town and County Planning system. Currently the display of an advertisement without consent from the Planning Authority is a criminal offense liable to a fine of £2500 per offence. All of the major outdoor billboard companies in the UK have convictions of this nature. 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 (e.g. printing English words in bold and French translations in fine print to deal with the Article 12 of the 1994 Toubon Law limiting the use of English in French advertising); see Bhatia and Ritchie 2006:542. The advertisement 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 most countries to display warnings cautioning consumers about the health hazards of their products. Linguistic variation is often used by advertisers as a creative device to reduce the impact of such requirements. FutureGlobal advertisingAdvertising 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. (Global marketing Management, 2004, pg 13-18) 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 that contributes to its success is how economies of scale are maximised. 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. (Young, p.131) TrendsWith the dawn of the Internet came many new advertising opportunities. Popup, Flash, banner, advergaming, and email advertisements (the last often being a form of spam) are now commonplace. The ability to record shows on DVRs (such as TiVo) allow users to record the programs for later viewing, enabling them to fast forward through commercials. Additionally, as more seasons of pre-recorded “Boxed Sets” are offered for sale of Television show series; fewer people watch the shows on TV. However, the fact that these sets are sold, means the company will receive additional profits from the sales of these sets. To counter this effect, many advertisers have opted for product placement on TV shows like Survivor. Particularly since the rise of "entertaining" advertising, some people may like an advertisement enough to wish to watch it later or show a friend. In general, the advertising community has not yet made this easy, although some have used the Internet to widely distribute their ads to anyone willing to see or hear them. Another significant trend regarding 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 specific 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, provide 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. Among others, Comcast Spotlight is one such advertiser employing this method in their video on demand menus. These advertisements are targeted to a specific group and can be viewed by anyone wishing to find out more about a particular business or practice at any time, right from their home. This causes the viewer to become proactive and actually choose what advertisements they want to view.[19] In freelance advertising, companies hold public competitions to create ads for their product, the best one of which is chosen for widespread distribution with a prize given to the winner(s). During the 2007 Super Bowl, Pepsico held such a contest for the creation of a 30-second television ad for the Doritos brand of chips, offering a cash prize to the winner. Chevrolet held a similar competition for their Tahoe line of SUVs. This type of advertising, however, is still in its infancy. It may ultimately decrease the importance of advertising agencies by creating a niche for independent freelancers.[citation needed] Embedded advertising or in-film ad placements are happening on a larger scale now than ever before. Films like Krrish had over a dozen placements including Lay’s, Bournvita, Samsung, Faber Castell and Hero Honda. SOURCE: http://en.wikipedia.org/wiki/Advertisement Promotion – Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements - advertising, public relations, word of mouth and point of sale. A certain amount of crossover occurs when promotion uses the four principle elements together, which is common in film promotion. Advertising covers any communication that is paid for, from television and cinema commercials, radio and Internet adverts through print media and billboards. One of the most notable means of promotion today is the Promotional Product, as in useful items distributed to targeted audiences with no obligation attached. This category has grown each year for the past decade while most other forms have suffered. It is the only form of advertising that targets all five senses and has the recipient thanking the giver. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations
SOURCE:http://en.wikipedia.org/wiki/Marketing_mix
Interactive Advertising and Children: Issues and Implications
“ It is important to recognize that young children are being manipulated rather effectively by television ads that are not interactive and not tailored to the individual child. As there is more tailoring and as there is more interactive capability, advertising is going to be more powerful than ever before. I think that’s what underscores the need for more regulatory intervention.” -Dale Kunkel, Ph.D., Professor of Communication, University of Arizona
Interactive technology has the potential to revolutionize how children watch television. With a simple click of the remote control, children will go from passive viewers to active participants, having the potential to explore subjects in detail, ask experts questions and play games. Yet interactive technology also opens the door to intrusive advertising practices, similar to those currently used on the Internet. As television transitions from analog to digital, questions arise regarding how interactive advertising will be used to market to children and how young viewers will be affected. This brief explores these questions and offers recommendations to protect children in a new age of interactive advertising.
Children: The Perfect Targets
Children are already a major target audience for advertisers. American companies currently spend $15 billion a year on marketing and advertising to children under the age of 12—twice the amount they spent just 10 years ago.1 Each year, the average child sees about 40,000 ads on television alone2 and collectively influences $500 billion in spending annually on fast food, junk food, toys and other advertised products.3 Due to their susceptibility to persuasion and the amount of media they consume, children are the perfect targets for television advertisers. Children under the age of eight do not recognize the persuasive intent of ads and tend to accept them as accurate and unbiased.4 In fact, 30-second commercials have been found to influence brand preferences in children as young as two years old.5 In addition, very young children are not able to distinguish between programming and advertising and do not understand that the purpose of a commercial is to sell a product.6 This is one reason advertising campaigns that use children’s television and movie characters are so popular and successful.
Children of all ages are also heavy media consumers. According to research by the Kaiser family foundation, children under the age of six spend close to two hours a day watching television, using computers and playing video games.7 Children ages eight and older spend nearly six and a half hours a day (6:21) consuming media, including television and the Internet.8 In fact, during one quarter of this time (26%), they are media multi-tasking, or using more than one medium at the same time. When all of their media use is added separately, it averages 8 1/2 hours per day.9A closer look at this media multi-tasking shows that one in four youth (28%) “often” or “sometimes”go on line while watching TV to do something related to the show they are watching. This trend will likely continue as 60 percent of kids with home computers say their television and computers arelocated in places where they can use both simultaneously.10 Young people’s ability to multi-task with the media, as well as their interest in television related Web sites, makes them a very attractive audience for interactive advertisers.
The Cost of Advertising to Children
There are several negative effects from children's exposure to television advertisements. One problem is the strain such advertising places on parent child relationships. In a Harris Interactive poll of professional sin the youth marketing industry, nearly three-quarters of respondents agreed that “most companies put pressure on children to pester their parents to buy things.”11 The “nag factor” as this is sometimes known, often results in parent-child conflict.12 When a parent denies a purchase request, the child becomes argumentative, angry and disappointed, resulting in significant stress placed on the parent-child relationship.13Exposure to advertising also increases children's awareness and consumption of the products that are being advertised. Aside from encouraging even the youngest of children to become insatiable consumers, research has shown that exposure to ads for certain products, such as alcohol,tobacco, and violent video games and movies maybe harmful to children’s health by stimulating positive attitudes towards and greater consumption of such products.14Given the fact that the majority of TV ads targeted to kids are for candy, cereal, soda and fast food,is not surprising that a growing body of research links television advertising to children’s poor nutritional choices and the growing rate of childhood obesity.16 Several studies have found that the more time children spend watching TV, the more likely they are to ask for specific products from the grocery store and that up to three-quarters of the items they request are products they have seen advertise don television.17 Other studies have found that as children’s television viewing increases, so too does their daily caloric intake and their consumption of fast food and soft drinks; yet the amount of fruits and vegetables they consume decreases.18These research findings are of particular concern given the growing childhood obesity epidemic. Sixteen percent of American children are overweight or obese, a 300% increase in the 30 years.19The U.S. Surgeon General has identified overweight and obesity as “the fastest growing cause of disease and death in America.”20In addition to the social stigma and psychological effects that overweight children often suffer, they're also significantly more likely than their peers to become afflicted with serious health problems such as asthma, diabetes, high blood pressure and sleep apnea. In fact, for the first time in modern history, the life expectancy of younger generations may actually decrease by as much as five years as a result of obesity.22Most of the research on children and advertising has focused on television. How will children be affected when they no longer passively watch commercial for 30 seconds but actively engage with a product Web site for undefined periods of time? Interactive media has the potential to expose children to far more advertising than previously imagined, as well as more targeted ways of selling products to them.
The Power of Interactivity: Marketing Methods and Strategies
One way to understand potential interactive advertising strategies is to examine current Internet practices, which range in both subtlety and scope. The following is a brief summary of the different methods already employed on the Internet that may soon become common practice in digital television,as discussed by Dr. Kathryn Montgomery in her article, “Digital Kids: The New On-Line Children’s Consumer Culture:”
Branded Environments” One strategy found on the Internet is the creation of Web sites where the content features a commercial product or brand. By creating Web sites specifically for kids, companies can appeal to children early to foster brand loyalty. A key component of branded environments is the use of“advergames,” or Internet games that feature specific products. Advergames are very popular with children and, as such, are highly appealing to advertisers. One example of advergames, Kraft Foods’TooMunchFun.com, features the “Kool-Aid MadScientists’ Mix it Up!” game where visitors must create a clean path for Kool-Aid powder toflow safely through tubes to a beaker. OnNabiscoWorld.com, children can be guests at the“Chips Ahoy! Cookie Guys’ Housewarming Party,”where visitors are led into different rooms of chocolate chip cookie characters. Some adver games permit advertisers to monitor players without their knowledge, providing advertisers information about the choices players make while playing and the length of time they are online. Creators of adver games say that the typical player spends a half-hour on a game site, often replaying the game and increasing the amount of time they are exposed to the advertised products.24Advergaming Web sites also encourage children to buy the advertised products in order to receive special privileges. For example, on Postopia.com, a Web site for Post Cereal products, visitors are encouraged to purchase specially marked boxes of cereal in order to obtain a special code. This code can then be used on the Web site to earn “postokens,”which can be cashed out to reach secret levels, learn secret game tips and earn bonus lives on games featured on the Web site.
“One to One” The strategy of “one to one,” also known as “relational marketing,” creates a unique relationship between the company and the individual by personalizing marketing and sales pitches based on specific preferences and behaviors. Companies can monitor and maintain profiles of individual customer sand create long-term relationships for more effective marketing in the future. A report by the center for Digital Democracy finds that advertisers can use interactive advertising to target individual viewers with personalized ads, which may increase the likelihood of impulse purchases. Advertiser swill be able to target children based on gender, age,household income, and/or race by tracking the history of their individual television viewing habits.25
“T-Commerce” New interactive methods may soon be employed to promote “t-commerce,” the ability to purchase merchandise through television using a remote control. Soon, viewers will be able to click on specific products featured on a show and link to a site where the merchandise can be purchased. This new technology will also allow advertisers to track and store users’ personal data for marketing purposes. Product placement, the seamless integration of programming and products, will become used increasingly as an advertising technique,resulting in the continued blurring of content and advertising.
Emerging Examples of Interactive Advertising
While interactive advertising on television is still in its infancy in the United States, it is more widely practiced abroad. The first interactive ad in the united Kingdom debuted in 2001. The ad, for Unilever’s Chicken Tonight’s Stir It Up instant soup,allowed consumers to use their remote control to visit the company’s “Creative Kitchen” Web site,apply for cash-back vouchers and order the soup online.26 Since then, many companies including Adidas and General Motors have decided to explore how to use interactive advertising to boost interest and sales of their products. One company, OpenTV, produces interactive content and provides technology to help companies develop interactive advertisements for digital cable and satellite systems. Open TV has created ads for companies in the United Kingdom, Italy and South Africa. In October 2001, Open TV launched an interactive component for the QVC shopping channel Anthe United Kingdom. Now more than 10 percent of QVC’s total orders come in through the ‘buy button’ on the cable system Sky Digital, twice as many as come in through the Internet.27 Open TV also created an interactive ad for Domino’s Pizza that allows viewers to place orders using their remote controls. Consumers can now place pizza orders through their remote controls in the United States. TimeWarner's Oceanic Cable in Oahu, Hawaii has established television commerce or t-commerce model in which viewers in select neighborhoods can order from Pizza Hut directly from their television. Not only does this service offer convenience to the consumer, but according to Oceanic Marketing Director Allan Akamine, “People ordering pizza over cable tend to spend more than those using the phone.”28Another emerging form of interactive advertising isShort Message Service, or SMS. In the United States, Frito-Lay, Maybelline and Timex send text messages to cell phone users to advertise their products. Broadcasters in the United Kingdom uses ms to reach viewers by cell phone to promote television programs, and major fast-food chains such as Kentucky Fried Chicken (KFC) are experimenting with a combination of SMS and interactive television to reach younger viewers. During a program targeted to children between 4 and 11 years of age,a presenter prompts viewers to click on a specially branded area that features the KFC company logo,offers games, and provides information about the menu and restaurant locations.29Though these technologies are not yet common in the United States, digital advertisers believe the transition from the Web to television should go smoothly, given children’s familiarity with computers. As one digital advertising executive remarks,“Children will have already been communicating with the brand through the Web, which should make it easier to build a dialogue through iTV.”30
Recommendations for Creating a Healthy DTV Environment for Children
Now is the time, while interactive advertising is stilling its infancy, to create industry guidelines and regulations that will protect children from the potentially harmful effects of interactive advertising. Without consideration of the child audience, digital television could evolve into an environment in which marketers target children individually based on personal demographic information, where children's viewing habits are monitored for marketing purposes and where children’s programs are replete with product placements to increase their exposure to brands and products. Because young children do not understand the persuasive intent of ads and have difficulty distinguishing advertising from program content, it is essential that they are protected. Congress has already acknowledged the need to protect children from advertising and marketing. While Congress has passed legislation, such as the children's Television Act and the Children’s on line Privacy Protection Act, to help curb the amount of advertising that targets children as well as the collection of their personal information, these rules must be updated for the digital age. The following are recommendations supported by the children's media Policy Coalition31 to help ensure a healthy digital media environment for children:
1. The Federal Communications Commission should prohibit links from children’s programming to all forms of commercial content. 2. The Federal Communications Commission should adapt existing children’s television rules and polices for the digital age to ensure clear separation of programming and advertising content. 3. The Children’s Online Privacy and Protection Act should be applied to digital television to prevent the collection of children’s personal information and the tracking of viewing habits of children under the age of 13.
“ Advertising of unhealthy food products to young children contributes to poor nutritional habits that may last a lifetime and be a variable in the current epidemic of obesity among kids.” –Brian Wilcox, Ph.D., chair of the American Psychological Association Task Force on Advertising and Children
SOURCE: http://www.childrennow.org/assets/pdf/issues_media_iadbrief_2005.pdf
Advertising is the principal reason why the business man has come to inherit the earth." - - James Randolph Adams, quoted in John P. Bradley, Leo F. Daniels & Thomas C. Jones, The International Dictionary of Thoughts, 1969, Chicago, IL: J. G. Ferguson Publishing Co., p. 12.
"Advertising is of the very essence of democracy. An election goes on every minute of the business day across the counters of hundreds of thousands of stores and shops where the customers state their preferences and determine which manufacturer and which product shall be the leader today, and which shall lead tomorrow." - - Bruce Barton (1955), chairman of BBDO, quoted in James B. Simpson, Contemporary Quotations, 1964, Binghamton, NY: Vail-Ballou Press, p. 82.
"Advertising is the ability to sense, interpret . . . to put the very heart throbs of a business into type, paper and ink." - - Leo Burnett, quoted by Joan Kufrin, Leo Burnett: Star Reacher(1995), Chicago, IL: Leo Burnett Company, Inc., p. 54.
"Advertising is what you do when you can't go see somebody. That's all it is." - - Fairfax Cone (1963), ad agency partner, quoted in James B. Simpson, Contemporary Quotations, 1964, Binghamton, NY: Vail-Ballou Press, p. 84.
"Advertising is the life of trade." - - Calvin Coolidge, quoted in John P. Bradley, Leo F. Daniels & Thomas C. Jones, The International Dictionary of Thoughts, 1969, Chicago, IL: J. G. Ferguson Publishing Co., p. 13.
"Advertising - a judicious mixture of flattery and threats." - - Northrop Frye, quoted in Robert I. Fitzhenry, The Fitzhenry & Whiteside Book of Quotations, 1993, Canada: Fitzhenry & Whiteside Limited, p. 18.
is to make the worse appear the better." - - George Santayana
Trade and commerce are core elements in the development of the American cultural experience, and advertising has played an important role in that process. Because advertising carries out the communication role for business, it has often received both criticism and praise disproportionate to its contributions. Nevertheless, it is clear that advertising is part of the cultural and economic fabric of society. It grows in concert with a dynamic and advanced economy. Consequently,the history of advertising in the United States can only be studied within the context of the nation’s political,economic, and cultural environment. This chapter traces the relationship between advertising and the circumstances that made it possible, including the development of mass media,a rising middle class, effective transportation, and the growth of mass production in this country. (http://www.prenhall.com/behindthebook/0132308290/pdf/Lane_Feature3_Broad_array.pdf)
III. APPLICABILITY AND COVERAGE This standards manual shall serve as the basic guidebook for trade practices and the conduct of business in Philippine advertising. All the provisions contained herein shall apply to the Philippine advertising industry, which includes advertisers, advertising services firms or suppliers/ Researchers collectively known as practitioners. Advertising practitioners are bound to uphold this manual and all its provisions, in keeping with the all pervasive principle of self-regulation and the existing memorandum-agreements between and among sectoral groups engaged in advertising.
V. STRUCTURAL PROVISIONS Functions of the TPCC As provided for in the By-Laws of the AdBoard, the TPCC is tasked with the formulation, interpretation and implementation of inter-sectoral and inter-association agreements not directly related to the regulation of advertising content. The TPCC is likewise tasked to recommend for Board approval new and/ or amendatory rules related to trade practices and conduct consistent with the purposes of the AdBoard. Finally, it is tasked to resolve issues and disputes arising from infractions or violations of agreements and regulations, and to impose the sanctions as may be prescribed thereon, subject to the principle of “primary jurisdiction” as enunciated in this Manual’s preamble. The TPCC is accountable to the AdBoard Board for the performance of these functions.
The declaration of Martial Law on September 21, 1972 brought about, among other things, the formation of a “Mass Media Council” under the joint supervision of the Department of Public Information and the Department of National Defense. All media activities then were under the charge of the Office of Civil Relations, Armed Forces of the Philippines. In January 1973, the Mass Media Council met with the heads of all communications associations in the Philippines to develop new rules and regulations for the conduct of media and advertising agencies, which were at that time loosely classified as “mass media.” Presiding at this meeting, as well as the body’s subsequent sessions, was the Director of the “Bureau of Standards for Mass Media”, an office of the DPI. Out of these meetings between government and the private sector came the formation of a “Council for Advertising, Public Relations, Research and Sales Promotions” headed by Francisco R. Floro (of Floro Enterprises); and a sub-committee chaired by Lyle K. Little (then with J. Walter Thompson Phils.), specifically tasked to forge a Code of Ethics and Rules of Regulations for all engaged in advertising and sales promotions. The sub-committee consisted of representatives from the Association of Philippines Advertising Agencies (APAA), Lapian ng mga Adbertaysing Praktisyoners na Pilipino sa Ikauunlad ng Sambayanan (LAPIS) [note: These two advertising agency associations merged as 4A’s-P in July 1977, i.e. the Association of Accredited Advertising Agencies – Philippines], Cinema Advertising Association of the Philippines (CAAP), Kapisanan ng mga Brodkaster ng Pilipinas (KBP), Outdoor Advertising Association of the Philippines (OAAP), Philippine Association of National Advertisers (PANA), Print Media Organization (PRIMO), the Office of Civil Relations, Institute of Mass Communications, and the consumers. Working out the Code tool all of 15 months, culminating in March 1974 when it was approved and ratified by all the participating organizations. Meanwhile, the advertising practitioners, through their respective sectoral associations, had seen their way clear to the establishment of a unified organization that could serve as the overseer for the implementation of the industry’s code of ethics, in line with the principle of self-regulation they had earlier acknowledged as the ideal operating guide rule. Therefore, it was that after some three years of formative studies and frame setting, the Philippine Board of Advertising (PBA) was established in May 1974.
ADVOCATES:
The Subliminal Advertising Myth
Wilson Bryan Key promotes the notion that, to seduce consumers, advertisers intentionally create ads with sexual messages hidden in the illustrations just below the limen—or the threshold of perception. He calls this subliminal advertising. His premise is that by embedding dirty words in the ice cubes in a liquor ad, for instance, advertisers can somehow make us want to buy the product. Over the years, many academic studies have completely debunked this theory. In fact, to date, no study has proved that such embedding exists or that it would have any effect if it did exist. Unfortunately, by promulgating this fiction, Key has been able to sell many thousands of books; worse, he has propagated a generation of consumers who believe in the poppycock of subliminal advertising.(http://www.aef.com/pdf/arens_ch03.pdf)
In summary, we can conclude that while advertising may legitimately be criticized for offering less -than complete information and, in some instances, for creating unwanted externalities, it should also be applauded when it contributes to the validity of the principles of free enterprise economics. In most cases, by being a rich information source (albeit not complete), advertising contributes to the existence of many buyers and sellers and, therefore, to the self-interest of both consumers and marketers.
Social Responsibility and Advertising Ethics
When advertising violates one of the basic economic assumptions we’ve described, some corrective action is needed. As we’ll discuss in the next section, numerous laws determine what advertisers can and cannot do, but they also allow a significant amount of leeway. That’s where ethics and social responsibility come into play. An advertiser can act unethically or irresponsibly without breaking any laws. Beer and tobacco companies could sponsor rock concerts for college students, and a shoe company could market a basketball sneaker to urban youth as the “Run ‘N Gun” brand. As Ivan Preston says, ethics begin where the law ends. Ethical advertising means doing what the advertiser and the advertiser’s peers believe is morally right in a given situation. Social responsibility means doing what society views as best for the welfare of people in general or for a specific community of people. Together, ethics and social responsibility can be seen as the moral obligation of advertisers not to violate our basic economic assumptions, even when there is no legal obligation.
How Government Regulates Advertising
One of the characteristics of the American political scene is our tripartite system of checks and balances. Thereare many laws that govern what advertisers can and cannot do. These laws are passed by legislatures, enforced bythe executive branch, and interpreted by the judiciary. This system is repeated at the state and local levels.On the national level, the president, cabinet departments, and various federal commissions are responsible for executing the laws passed by Congress. On the state level, the governor, attorney general, and state departmentsadminister state laws. Locally, mayors, city managers, city attorneys, and police chiefs enforce the laws passed by city councils. Similarly, local laws are interpreted by municipal courts, while the superior courts and state supreme courts interpret state laws. Federal laws are interpreted by federal district courts and the U.S. Supreme Court. Every day, advertisers from the local copy shop to international soft-drink marketers have to deal with the actions and decisions of all these branches of government. We’ll discuss shortly some of the most important issues that concern U.S. Regulators.
Government Restraints on International Advertisers
Now that advertising has become global, many campaigns use similar themes and even the same ads across frontiers. But foreign governments often regulate advertising considerably more than either the United States or Canada. And while Europe has moved toward uniformity in marketing activities, the laws governing advertising remain largely national. So advertisers need to keep up with the changing legal environments of the countries in which they advertise.
Foreign governments are frequently more authoritarian, and many do not have a system of checks and balances like ours. Some governments not only regulate what ads say, show, or do; they often impose severe restrictions or outright bans on advertising specific products. The Swedes ban advertising to children on television. The Greeks ban toy advertising before 10:00 P.M. Throughout Europe, broadcast advertising for tobacco products is prohibited, and liquor ads are sharply restricted, especially in France. In fact, the European Union enacted legislation in 1998 that would gradually have phased out all forms of tobacco advertising and sponsorships by the year 2006. But the highest court on the Continent, the European Court of Justice, struck down the ban in October 2000 declaring it unlawful. Notwithstanding, the British still enacted legislation in 2002 that outlawed all consumer advertising for tobacco products. And late in 2002, the 15- nation European Union passed a bill that would outlaw all tobacco ads in newspapers and magazines, on the Internet, and at international sporting events beginning in 2005.
Many countries prohibit puffery superlatives. In Germany, for example, advertisers may use only scientifically provable superlatives. McCann-Erickson once had to retranslate the old Coca-Cola slogan, “Refreshes you best,” because it implied a leadership position that was unprovable. The agency substituted “Refreshes you right” in Germany (in Austria, however, which typically follows Germany’s lead in advertising law, the original line would be permissible).
Many European countries also ban coupons, premiums, free tie-in offers, and the like. Companies may advertise price cuts only during “official sales periods,” and advertisers often need government approval before publishing a sale ad. Across Europe, advertising on television must be clearly recognizable and kept separate from other programming. Paid product placements in programs, therefore, are typically prohibited. In Singapore, the state-owned broadcasting company yanked a Qantas Airline spot after the Ministry of Information and the Arts criticized the ad’s “harmful values.” The spot had used the line “last of the big spenders,” which the ministry felt encouraged reckless spending by consumers. Costa Rica has more than 250 laws regulating advertising. Recently, government officials agreed to consider man industry proposal that would overturn the particularly onerous law mandating preclearance of all advertising. Regulators are cracking down in China as well. A new comprehensive advertising law targets false, “unscientific, and superstitious” claims and requires preclearance of all advertising in all media. However, China now allows Taiwanese advertising on mainland billboards—after preclearance, of course. In international advertising, the only solution to this morass of potential legal problems is to retain a good local lawyer who specializes in advertising law.
Consumer Privacy
The second major regulatory issue facing advertisers is privacy. Today, most advertisers know it’s illegal to use a person’s likeness in an ad without the individual’s permission. And since 1987, even using a celebrity lookalike (or soundalike) can violate that person’s rights. The courts have also ruled that people’s privacy rights continue even after their death. Now, with the increased use of fax machines, cell phones, and the Internet, all of which can be used for advertising directly to prospects, the issue of privacy rights is again in the news. This time it’s over people’s right to protect their personal information. As we shall see in Chapter 17, privacy is an ethical issue as well as a legal one. It’s also a practical issue: Prospective customers who find advertising faxes, telemarketing calls, and e-mails annoying and intrusive aren’t likely to buy the offending company’s products. Internet users worry about people they don’t know, and even businesses they do know, getting personal information about them. And their concern is not without reason. Many websites create profiles of their visitors to get data such as e-mail addresses, clothing sizes, or favorite books. Some sites also track users’ surfing habits, usually without their knowledge, to better target ads for products.
To create these user profiles, websites use tiny software programs, called cookies, that keep a log of where people click, allowing sites to track customers’ Web-surfing habits. The cookies are placed on people’s computers when they first visit a site or use some feature like a personalized news service or a shopping cart. Internet companies argue that such tracking is not personal; it’s typically performed anonymously and helps them customize sites and content to match users’ interests. However, DoubleClick, a leading provider of marketing tools for Web advertisers, direct marketers, and Web publishers, recently acquired Abacus Direct, a direct-mail company with an extensive offline database of retail and catalog purchasers. This potentially enables DoubleClick to combine online profiles with offline names, addresses, demographic information, and purchasing data. For more on this story, see the Ethical Issue in Chapter 17, “Profiling: Would You Take Cookies from a Stranger?”
A survey conducted in 2000 revealed that only 27 percent of Internet users accept the industry’s claim that helps and hurts. A large majority of those surveyed, 87 percent, believe sites should ask permission before collecting personal information.
Fortunately, consumers are not completely helpless. They can disable the cookies on their computers. But this may limit their Internet access, because some websites actually require that cookies be implanted. Internet surfers also have the option to “opt-in.” This feature allows users to set the terms for which they give personal information. Also available is the “opt-out” feature, which allows sites to continuously gather information about visitors unless they specifically inform the site not to by clicking on a button.
Responding to the rising concern of many consumers, the Federal Trade Commission together with the Network Advertising Initiative (an organization comprised of leading Internet advertising networks including AdKnowledge, 24/7, Ad Force, and DoubleClick) has created a framework for self-regulation of online profiling. The guidelines are referred to as the “Fair Information Practice Principles” and consist of five core elements:
* Notice, which requires that the website clearly post their privacy policy. * Choice, which relates to consumers’ level of control over being profiled and how their information is used. * Access, the ability for consumers to access information collected about them and make amendments to it. * Security, which requires that network advertisers make reasonable efforts to protect the data they collect, from loss, misuse, or improper access. * Enforcement, a requirement that all industry members subject themselves to monitoring by an independent third party in order to assure compliance with the Fair Information Practice Principles. Naturally the dot-com companies would prefer to avoid government intervention and the layers of laws and regulations that would bring. So it’s in everybody’s interest for self-regulation to work. Time will tell.
The Ethical and Legal Aspects of Advertising in Perspective
Unquestionably, advertising offers considerable benefits to marketers and consumers alike. However, there’s also no disputing that advertising has been and still is too often misused. As Adweek editor Andrew Jaffe says, the industry should do all it can to “raise its standards and try to drive out that which is misleading, untruthful, or downright tasteless and irresponsible.” Otherwise, he warns, the pressure to regulate even more will become overwhelming. Advertising apologists point out that of all the advertising reviewed by the Federal Trade Commission in a typical year, 97 percent is found to be satisfactory. In the end, advertisers and consumers need to work together to ensure that advertising is used intelligently, ethically, and responsibly for the benefit of all.
Chapter Summary
As one of the most visible activities of business, advertising is both lauded and criticized for the role it plays in selling products and influencing society. Some controversy surrounds advertising’s role in the economy. To debate advertising’s economic effects, we employ the four basic assumptions of free-enterprise economics: self interest, any buyers and sellers, complete information, and absence of externalities. he economic impact of advertising can be likened to the opening shot in billiards—a chain reaction that effects the company as well as its competitors, customers, and the business community. On a broader scale, advertising is often considered the trigger on a country’s mass-distribution system, enabling manufacturers to produce the products people want in high volume, at low prices, with standardized quality. People may argue, hough, about how advertising adds value to products, affects prices, encourages or discourages competition, romotes consumer demand, narrows or widens consumer choice, and affects business cycles Although controversy surrounds some of these economic issues, few dispute the abundance principle: In an economy that produces more goods and services than can be consumed, advertising gives consumers more complete information about the choices available to them, encourages more sellers to compete more effectively, nd thereby serves the self-interest of both consumers and marketers. Social criticisms of advertising may be short-term manipulative arguments or long-term macro arguments. while the economic aspect of advertising focuses on the free-enterprise principles of self-interest and many buyers and sellers, the social aspect typically involves the concepts of complete information and externalities. critics say advertising is deceptive; it manipulates people into buying unneeded products, it makes our society oo materialistic, and there’s just too much of it. Further, they say, advertising perpetuates stereotypes, and all too requently, it is offensive and in bad taste.
Proponents admit that advertising is sometimes misused. However, they point out that despite its problems, advertising offers many social benefits. It encourages the development of new products and speeds their acceptance. It fosters employment, gives consumers and businesses a wider variety of product choices, and helps keep prices down by encouraging mass production. It stimulates healthy competition among companies and raises he overall standard of living. Moreover, sophisticated marketers know the best way to sell their products is to appeal to genuine consumer needs and be honest in their advertising claims. n short, while advertising can be criticized for giving less than complete information and for creating some unwanted externalities, it also contributes to the free enterprise system by encouraging many buyers and sellers to articipate in the process, thereby serving the self-interest of all.
Under growing pressure from consumers, special-interest groups, and government regulation, advertisers developed higher standards of ethical conduct and social responsibility. Advertisers confront three levels of ethical consideration: the primary rules of ethical behavior in society, their personal value system, and their personal philosophy of singular ethical concepts. he federal and state courts are involved in several advertising issues, including First Amendment protection f commercial speech, and infringements on the right to privacy. Advertising is regulated by federal, state, and local government agencies, business-monitoring organizations, the media, consumer groups, and the advertising industry itself. All of these groups encourage advertisers to give more complete information to consumers and eliminate any externalities in the process.
The Federal Trade Commission, the major federal regulator of advertising in the United States, is responsible or protecting consumers and competitors from deceptive and unfair business practices. If the FTC finds an ad deceptive or unfair, it may issue a cease-and-desist order or require corrective advertising. he Food and Drug Administration (FDA) monitors advertising for food and drugs and regulates product abels and packaging. The Federal Communications Commission (FCC) has jurisdiction over the radio and TV industries, although deregulation severely limited its control over advertising in these media. The Patent and trademark Office governs ownership of U.S. trademarks, trade names, house marks, and similar distinctive features of companies and brands. The Library of Congress registers and protects copyrighted materials. tate and local governments also enact consumer protection laws that regulate advertising.
Non government regulators include the Council of Better Business Bureaus and its National Advertising division. The NAD, the most effective U.S. non government regulatory body, investigates complaints from consumers, brand competitors, or local Better Business Bureaus and suggests corrective measures. Advertisers hat refuse to comply are referred to the National Advertising Review Board (NARB), which may uphold, modify, r reverse the NAD’s findings. other sources of regulation include the codes and policies of the print media and broadcast media. Consumer organizations and advocates also control advertising by investigating and filing complaints against advertisers and y providing information to consumers. Finally, advertisers and agencies regulate themselves.
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In Romantic Princess, Calvin is a happy-go-lucky flirt who never had a serious relationship while Chun is cast as the responsible type. Hence, Calvin quickly set the record straight about his personality off cam. “I have to say that I’m not a playboy in real life. I’m outgoing in real life but I’m not a playboy. I don’t fool around between girls. And when I found my true love I will be really serious,” he stressed. Chun on the other hand revealed that he shared lots of similarities with his character in the story. “In the drama, Jin worked very hard for his career and he's willing to leave his family and go on his own. And this kind of direction is what I’m doing right now.” 