ch01 Where marketing communication began.ppt

Highlight the development of advertising in australia and new zeland

1. 1-1
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Chapter 1
Where marketing communication
began: the development of
advertising in Australia and New
Zealand

2. 1-2
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Learning objectives
1.To define advertising—looking at its importance
and its function.
2.To trace the history of advertising in Australia and
New Zealand.
3.To explore the changing advertising environment.
4.To introduce marketing communication
concepts—such as consumer empowerment and
engagement, the push–pull marketplace and
interactive advertising, digital and social media—
that will be fundamental to the rest of the book.

3. 1-3
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Future of
advertising
News
channels
Definition
History
Empowered
Consumers
Changes in
ad agencies
Importance
Structure &
function
Social media
Interactive
advertising
Digital media
Advertising
Engagement

4. 1-4
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
What is advertising?
Traditional definition
Advertising is any paidform of non-personal communication about
an organisation, product, service or idea by an identified sponsor.
Traditional definition
Advertising is any paid form of non-personal communication about
an organisation, product, service or idea by an identified sponsor.
Paid:The space or time for
an advertising message must
be purchased.
Non-personal: Involves mass
media (e.g. TV, radio,
newspapers, magazines) in one-
way communications.
Traditional definition
Advertising is any paid form of non-personalcommunication about
an organisation, product, service or idea by an identified sponsor.

5. 1-5
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PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
The best job in the world
The best job in the world campaign, but how much
advertising did it use?

6. 1-6
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PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
A new definition of advertising
New, improved definition
Advertising is a paid, mediated form of communication
from an identifiable source, designed to persuade the
receiver to take some action, now or in the future.
Traditional definition
Advertising is any paid form of non-personal
communication about an orgnisation, product,
service or idea by an identified sponsor.

7. 1-7
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Importance of advertising

8. 1-8
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Importance of advertising

9. 1-9
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PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Advertising has many functions
The nature and
purpose of
advertising differs
from one industry
to another and
across situations.
Engage & involve
Brand awareness
Brand equity
Brand image
Communicate & interact

10. 1-10
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PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Brand awareness
Building brand awareness is especially important for
new products.

11. 1-11
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PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Brand image
Even established brands need to build and maintain
brand image.

12. 1-12
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
History of advertising

13. 1-13
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Function and structure
Advertising
agency
Client options
In-house
advertising

14. 1-14
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PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Types of agencies
Types of agencies
Full service
Creative boutiques
Media buying services
Other

15. 1-15
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Creating
advertising
Planning
advertising
Producing
advertising
Research
Selecting media
Full-service agencies
Full range of
marketing,
communication
and promotion
services
General
communications
Sales promotion
Direct marketing
Interactive
Package design
Public relations
Publicity

16. 1-16
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PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Artists
Ad agencies have skilled
specialists
Copywriters Researchers
Photographers Media analysts Other skills

17. 1-17
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PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Great Australian ads

18. 1-18
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
1-18
Future of
advertising
News
channels
Definition
History
Empowered
consumers
Changes in
ad agencies
Importance
Structure &
function
Social media
Interactive
advertising
Digital media
Engagement
Advertising

19. 1-19
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Advertising timeline (Australia)
1800
First ad
(poster)
1803
First
newspaper
ad
1901
First advertising
service agency
(Sydney)
1946
National industry
association
(AANA)
1821
First
magazine
13-19
1911
Media
commissions
introduced
1912
First industry
association
(Melbourne)
1923
Commercial
radio
1956
Commercial
TV

20. 1-20
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Advertising timeline (NZ)
1901
Newspaper
Publishers
Association
1906
First
advertising
agency
1923
Broadcasting
regulations
1960
1
st
television
broadcast
1821
First
magazine
13-20
1927
Advertisers
Association of
NZ
1931
11 accredited
agencies in
operation
1989
Te Mangai
Paho
(Maori
Broadcasting)
established

21. 1-21
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
History of advertising
Early newspaper
advertisements
were confined to
printed text only.
Illustrations were
rare until the
1860s.
Source:Walter Powell Advertisement for Paragon Kitchens, 1862 State Library of Victoria, Pictures Collection

22. 1-22
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Advertising today—Australia
Advertising agencies:1000+
Media expenditure:$12.6 billion

23. 1-23
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Advertising today—Australia (cont.)
Radio licences
374 commercial
358 community
Television (FTA)
54commercial
83community
Subscription TV
2588
Metro and regional daily
newspapers:50+
Consumer magazines
140 (audited)
Cinema screens:1994
Population: 21 million

24. 1-24
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Advertising today—NZ
Advertising agencies: 200+
Media expenditure:
$2045 million

25. 1-25
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Advertising today—NZ (cont.)
6000 magazines
455 cinema screens
300 radio stations
87 TV channels
150 newspapers
Population: 4.18 million

26. 1-26
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PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Breakdown of advertising
expenditure (Australia)

27. 1-27
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Media expenditure in New
Zealand: 2007
Media Platform 2008
($million)
2009
($million)
Newspapers 760 623
Television 647 570
Radio 268 236
Magazines 249 217
Outdoor 74 68
Cinema 9 6
Addressed mail 56 58
Unaddressed mail 64 65
Interactive 193 214
Source: New Zealand Advertising Standards Board

28. 1-28
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
1-28
Future of
Advertising
News
Channels
Definition
History
Empowered
Consumers
Changes in
Ad Agencies
Importance
Structure &
Function
Social Media
Interactive
Advertising
Digital Media
Engagement
Advertising

29. 1-29
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
The changing advertising
landscape
Consumer empowerment
Push-pull marketplace
Digital media and interactive advertising
Social media
New rules of engagement

30. 1-30
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Consumer empowerment and
the push-pull marketplace
•Insert figure 1.7
•Push pull marketplace

31. 1-31
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Digital media and interactive
advertising

32. 1-32
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Interactive advertising

33. 1-33
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
•Interactiveadvertisingisaformofmedia-basedmarketing
thatbusinessesandproductmanufacturersuseto
promoteproducts,servicesandotherannouncementsand
information.Abusinessestargetsconsumersfromthe
websitestheyvisitaswellasonsmartphonesandother
hand-heldmediadevices.Companiesuseinteractive
advertisingtobuildbrandrecognitionandconnectwith
consumerswheretheyspendthemosttimeresearching
productsandservices.

34. 1-34
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PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Pop-Ups
•Manybusinessesandproductmanufacturersutilize
pop-upsasaformofinteractiveadvertising.Pop-up
advertisementsarenewbrowserwindowsthat
appearonthecomputerscreenwithadvertisement-
richcontent.Businessesutilizepop-up
advertisementstomakeannouncements,sell
products,offerdiscountedservicesorget
consumerstovisitanewwebsite.

35. 1-35
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Videos
•Videoadsareformsofinteractivemediaadvertisements
thatdisplayshortadvertisementmessagestoconsumers
whovisitvariouswebsites.Videosmayappear
automaticallywhenaconsumervisitsaparticularsite,or
consumersmayhavetheoptiontoviewvideosattheir
disposal.Manyproductmanufacturersutilizevideo
advertisementstobuildbrandrecognitionoftheproducts
consumersuseeveryday,suchascleaningorfood
products.Departmentstoreandhomeimprovementstore
chainsalsoutilizevideoadstobuildbrandrecognition.

36. 1-36
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Displays
•Displayadsusevisuallystimulatinggraphicstoget
theattentionofwebsitevisitors.Display
advertisementscanappearanywhereonaweb
pageandvaryinsize,shapeandcontent.These
adshavethesameconceptastraditionalpicture
advertisementsintheyellowpages.Theydrawthe
visitor'sattentiontotheadwithcolors,picturesand
relevantcontent.Effectivedisplaysentice
consumerstoclickontheadtoobtainadditional
informationabouttheproductorservice
advertised.
•

37. 1-37
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Social media
Social media defined:
Social media has been defined as ‘a group of
internet-based applications that build on the
ideological and technological foundations of
Web 2.0, and that allow the creation and
exchange of user-generated content.
David Schumann, Andy Artis & Rachel Rivera, ‘The future
of interactive advertising through an IMC lens’, Journal of
Interactive Advertising, vol. 1, no. 2,. 2001

38. 1-38
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Social Media
•AneffectiveinteractiveadvertisingmethodisInternet
marketingviasocialmediaandnetworkingwebsites.
Socialmediamarketinginvolvesadvertisingtoconsumers
throughoutletssuchassocialnetworkingwebsites,online
communitiesandblogoperations.Advertisingthrough
socialmediaoutletsprovidesadirectmarketingapproach
becauseittargetsanaudiencebasedonitsinterests.For
example,ahealthcompanymaytargetanonlinegroupof
fitnessenthusiastsbymarketingsupplementproductson
websitesdedicatedtohealthandwell-being.

39. 1-39
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Social media
Key opportunity:How to engage consumers by
inviting them to create content around a product?
Consumers are
consumers of content
Consumers are
producers of content
Brands are owned
by companies
Brands are a shared
creation
Marketers define brand
meanings and values
Consumers define brand
meanings and values
Traditional view Contemporary view

40. 1-40
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PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Social media

41. 1-41
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New rules of engagement

42. 1-42
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PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
1-42
Future of
Advertising
News
Channels
Definition
History
Empowered
Consumers
Changes in
Ad Agencies
Importance
Structure &
Function
Social Media
Interactive
Advertising
Digital Media
Engagement
Advertising

43. 1-43
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
The future of advertising
Harsh economic environment leading to advertising
budget cuts
Mass media advertising is dying
Rise of new communications technologies
Fragmentation of media and markets
Search for big ‘consumer insight’
From great executions to strong strategy

44. 1-44
Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2ebyBelch, Belch, Kerr & Powell
Summary and conclusions
Advertising in Australia and New Zealand has a long
heritage with its roots dating back to the 1800s.
Advertising has evolved from a push by marketers to
reach audiences to a more complex and interactive
approach.
Consumer empowerment has led to an emphasis on
shared dialog rather than pushed messages.
Definitions of advertising have changed to accommodate
new technologies and interactivity.
The advertising industry has also adapted to current
changes.
Advertising continues to be the best way to reach large
audiences.