The Importance of Advertising Industry - Example

Abstract After a considerable improvement in technology, unlimited desire of people and world conditions gave new shape to the business world. Due to this a new order and new conditions have been rising in the business world such as competition between companies, companies using every possible tool or method against their rival. Advertising is one of their most important tools to use against their competitors. This high demand of advertising the increased price of the advertisements; nowadays a lot of companies are investing a huge amount of money into advertising .The aim of this paper is to focus on the importance of advertising industry, show the improvement process of advertising industry and does is it really worth to investing in advertisement industry. [ Writer’s Name] [ Professor’s Name] [ Course Title] [Date] Advertising Industry 1. Background Advertising began in the Christian era. Outdoor signs were used for adverting. Attractive advertisements were painted on walls. However advertising became more innovative and in 1440’s an invention of a movable-type of advertising which was a printing press was introduced. In the 16th century a few companies used trademarks which were either of single or double dimensions (Tungate p 24). When advertising become a well known trend in the business world it was extremely costly to advertise nationwide for countries which were underdeveloped at that time apart from this there was little means of transport. In that time period even communication was extremely limited. Finally particular of kind of manufactures came up with the notion of bypass wholesalers, vendors and making use of catalogs. Advertising was getting more and more innovative and thus in 1870 Mail orders and pamphlets were introduced as an important method of advertising (Dahl p12). By the end of the nineteenth century the majority of companies started to give their goods brand names. This brand name became the identification of the goods being marketed (Tungate p30). For along a time customers knew nothing regarding brand names . In the 1880's a few brands came out and they were Ivory, Pears, Sapolio, Colgate, Kirks American Family and Packer's. Not long after brands such as Royal baking powder, Quaker oats, Bakers chocolate, Hire's root beer, Regal shoes and Waterman's pens were nationally advertised. In the early 1900's the advertising world began to become aware of such brand names like Bon Ami, Wrigley and Coca-Cola. Following World War 1, the advertising industry developed into fast moving industry. Media and sources of transportation were less costly. The discovery of electricity, gave the advertising industry a new method i.e. illuminated outdoor poster; photoengraving and other modern printing discoveries aided the companies in advertising their products. In the 1920's the radio was invented, this further gave the industry a push towards innovation as from that time on products were marketed by voice, that is through the radio (Belch etal p10) After the World War 2 the first advertising organization meant for public interest came into being, it was called. Advertising Council'. The organization still continued after the war was over as 'The Advertising Council' this was used to function for the public’s interest (Earle p34). The most important invention or the advertising industry in that above mentioned era was the invention of Television. Television made the entire industry utilize better methods of marketing as now they could use two important things visual and voice , since then it has been all down hill for the industry. As new inventions like graphic and the computer had improve the quality of both voice and picture in the advertisements. All in all advertising has advanced a lot in the past. . 2. Structure of Advertising Industry It can be said that, ever since the 1980s, the majority of advertising agencies in the industry have all adopted a common structure. While in the past, every adversity agency provided multiple services to their clients, the speedy development of the media industry - particularly the invention of cable and digital channels - helped a lot of large agencies to improve their in-house departments and make them separate agencies with their own identity. As individual agencies with multiple services have become rare so has their ownership. The industry basically comprises of three important components: 1. The advertisers : they pay for the advertising 2. Agencies: they design the marketing campaign and select the entire presentation and kind of media for the product 3. media owners: own the agencies which communicate the commercials and advertisements to the audience Substantial change in the industry has resulted in a huge number of mergers and acquisitions, as well as the group in the market. This is a small group of major holding companies, all of which are owned or controlled via a lot of different agencies. There are still independent owner-operated agencies out there, but in far fewer numbers than ever before, and most are small by comparison with the group-owned brands. 3. Kinds of advertising 3.1 Television Television has always been a famous in electronic media. Thus it has even become a well liked method of the advertising industry (Berman p19). Companies get a chance to market their product both nationally as well as internationally. Apart from this the more the combination of both visual and voice makes it easier to catch the attention of consumers. The more attractive the advertisement, more viewers watch it. 3.1.1. Infomercials Infomercials are something which makes television worthwhile for the advertising industry. These are long advertisements of about 5 to 6 minutes. a few mimic talk shows and attempt to downplay the reality that the program is really a commercial. Nevertheless the majority of them do not have any particular format but craft special elements to produce what they expect is a convincing story regarding the product on hand. 3.2 Radio Advertising Advertisers have a lot of good choices regarding the kind and length of radio commercial they want to air. As the radio industry is undergoing developments and improved production technologies, the method of commercial production has improved, and commercial advertisements have two important kinds of radio commercials i.e. is “live reads” and produced spots 3.3. Press Advertising Press advertising is considered as a printed medium. Examples of press advertising are newspaper, magazine, or trade journal. This consists of broad range of media with an extremely broad distribution base, like important national newspapers or magazine. A well known kind of press advertising is also classified advertising, which lets private individuals or firms to buy a small, and précis advertisement for a low cost (Lee & Johnson p43 ).. 3.4. Online Advertising This kind of advertising is utilizes the internet and websites to attract customers. These are usually presented as banner on famous websites. 3. 5. Billboard Advertising Billboard advertisements are advertisements printed on huge billboards. Billboards are big and heavy metal structures which are displayed on places which can be viewed by the public (Arens etal p19). They are usually placed on traffic signals, in shopping center, on top of high buildings act. 3.5.1. Mobile Billboard Advertising Mobile billboards are usually vehicle which have billboards or digital screens placed on their bonnets or roofs. This kind of advertising is done on special vehicles built particularly for hauling advertisements on a course which is selected before hand by the company. Even planes which carry such banners come under this category. 3.6. In store Advertising This kind of advertisements consisted of advertisements placed in retail stores. These are usually attractive advertisements usually printed on the shopping acre of place at the near entrance and near the checkout counters. 3.7. Covert Advertising This type of advertising consists of a certain product or brand being used in the entrainment industry. For example a particular character in a movie may use a particular brand (Belch p25). 3.8. Celebrities When advertisers use celebrities to promote a certain product or store is known as celebrity adverting. Like Nike uses Jordon for their advertisements. 4.Regulation The advertising industry ‘s regulations are based on a concept of self-regulation. The three major elements of the industry i.e., the advertisers , the adverting complies and all fields of media concur on a set of laws for advertising standards which they have to follow. The main purpose of codes like these is to make sure every kind advertising is 'legal, honest, direct and open. of course, a lot of advertisers consider the governmental regulation and at times even their own set self-regulation system as a system which takes away their right for the freedom of speech. thus, they use a lot of different linguistic devices to find a way around the regulations. However, commercials regarding controversial products are not self regulated, mostly they regulated by a set of laws set by the government. 5. Future of Advertising Interactive media is a future trend in advertising that many companies will have to be mindful of when entering an advertising campaign. Interactive media is a form of collaborative media permits the active participation by means of the person that is the recipient. Interactive media has the ability to offer different advertising options and will very useful for companies that are trying to get its brand out in the marketplace. Interactive advertising is the paid and unpaid presentation and promotion of products and services. Many companies are now using outlets such as Facebook, Mysace, and Twitter to give these presentations of products and services to the audience of these sites. For companies branding its products and services on these types of sites must understand the target market that is on this type of site. Knowing who, what, when, where, and how this target market is viewing products and services that he or she many buy is important to the future success of these companies (Tellis p53). “Companies recognize social media's potential as a powerful tool for internal communications and thus move forward yet fail to get the anticipated employee-participation levels (Business Week p1).” Launching this form of advertising involves showy marketing and therefore can be a risk for companies that this form of advertising may not work. That is why understanding who the target market is important to all future trends. Future trends in the world of advertising will also include globalization. Globalization is the process that local, regional, and national business will have to become apart of when integrating on a global scale. Globalization effects trade, investments, and capital flow which will therefore have an effect on future trends in advertising (Woodside p6). Companies will have to view closely how the global market is fairing and then decide what moves to make to keep up with the global market. Understanding what works in these different markets will help companies to be success. it is becoming easy to become connected with those in other countries due to online media. This online media can help companies to understand globalization is affecting others in different countries and what effects it has in these markets (Lee & Johnson p57). Companies have to pay close attention to how advertising is conducted on an international level. Companies such as Burger King have had problems with its global advertising campaign which led many to protect Burger King. “Burger King’s recent European campaign for the Texican Whopper featured a lanky American cowboy, a short, round Mexican draped in a cape resembling Mexico's flag and the tag line "the taste of Texas with a little spicy Mexican." The uproar was immediate (Woodside p15). The last future trend that companies will have to look for will be innovation and how this effects advertising in the future. Innovation is the production of something new which can be a new ideal, method, and device. Companies will have to look to the new ideals in advertising and how these innovative new forms of advertising are being used to promote products and services. Online media outlets are the advertising craze and have proved to be successful, but where will this lead to in the next five to ten years in advertising. The marketplace and customer needs are continuously changing therefore the advertising will have to change in order to reach these consumers. Innovation is always happening in the marketplace and will need the fitting advertising for these products and service (Earle p40). Companies such as AT&T have linked up with Apple Inc. in advertising the Iphone. This is some what innovative because AT&T is the only company that has the exclusive rights to advertise this product. Companies will need to look for different ways so that it can earn a name in the market. These future trends may have a far-reaching effect on advertising and the marketing mix. The interactive media trend will affect the marketing mix because this form of advertising is always changing. Finding a place and ways to promote this through interactive active will continue to develop over time (Phillips etal p12). 5.1 Global Advertising Global advertising usually consists of transnational organizations that create messages or program for distribution internationally. For global advertising there are four, extremely , important business objectives that have to be balanced while developing international advertising: the first is building a brand whilst speaking with a single voice, increasing the economies of scale in the creativity , increasing the local efficiency of advertisements , and increasing the firm ’s pace of completion The advertising provide a sense of global bonding, turning people into “global villagers,” or world citizens (Robertson p23) In recent decades, technological advancements in cable, satellite, digital media, and the Internet have strengthened the role of the media, particularly the global advertising in the globalization process (Sreberny p14). According to Hjarvard (2003) modern advertising can send messages around the globe, breaking the boundaries of time and place. The global real-time communication system intensifies social interaction over long distances and cultivates the global consciousness of young people. 5.2 Advertising trends 5.2.1 Rises in New Media Due to the internet the advertising industry found a new ray of hope. Some of the methods are given below: Flash Banner Popunder advergaming, email advertisements (Lee & Johnson p52). 5.2.2 Niche Marketing This is another important trend of advertising; it consists of target advertising (Arens etal p22). kinds of Niche Marketing consists of blogs and social networking sites, this helps advertisers in finding out exactly which kind of viewers they will have and thus they make their advertisements accordingly. 5.2.3 Crowd sourcing The notion of crowdsourcing gave rise to user-generated advertisements. These are advertisements which are designed by consumers themselves and not by some advertising agency (Tellis p40); usually this kind of advertisement is a result of the competitions which companies hold regarding their brands. 6. Strong investment Advertising has turned into an extremely profitable business on which a lot of depend. In the year 2006 a total of approximately 391 billion dollars were spent all around the round. Ina lot of countries this industry helps them increasing their gross national income; hence, advertising and development are correlated. Multinational corporations and their advertising agencies treat the entire world as a homogeneous market. In consequence, multinational corporations have large local market shares for various consumer goods in developing countries. The global consumer society provides an opportunity for people to experience a pluralistic world characterized by different forms of music, films, cuisine, sports, and fashion (Frith p24). 7. Conclusion Advertising is an extremely fast developing industry. Its development has affected the gross income of lot countries. It would be wise for underdeveloped countries also to invest in this industry as it will help them to sell and market their products internationally. From the 1400’s till today advertising has changed the perspective of consumers all around the world. There are many kinds of advertisements, and thus now companies have a lot of choices. Their selection of the right kind of advertisement may affect their sale of their product. Due to the pace of its development. The future of advertising seems quite bright To conclude it can be said that the advertising industry is a blessing for a lot of companies and helps in raising the income of organizations as well as the country which invests in it. Work cited Arens F. William, Weigold F Michael and, Arens Christian; Contemporary Advertising mcgraw-hill 2007 pp19 -25 Belch E George, Belch Eugene George and Belch A. Michael ;Advertising And Promotion: An Integrated Marketing Communications Perspective McGraw-Hill/Irwin 2007 p10-p30 Berman Margo; Street-Smart Advertising: How to Win the Battle of the Buzz Rowman & Littlefield Publishers, Inc.2006 p19 Business week ; Keeping Momentum in Social Media 2009 p1 retrieved from http://www.businessweek.com/managing/content/may2009/ca20090512_213686.htm on May 27, 2010 Dahl Gray; Advertising for dummies, For Dummies 2007 p12 Earle Richard ; The Art of Cause Marketing: How to Use Advertising to Change Personal Behavior and Public Policy McGraw-Hill; 1 edition 2002 pp30-40 Frith, K. T., & Mueller, B;. Advertising and societies: Global issues. London & New York: Lang 2003 p24 Hjarvard, S. (Ed.). (2003). Media in a globalized society. Copenhagen: Museum Tusculanum Press. Lee Monle and Jhonson Carla ; Principles Of Advertising: A Global Perspective Routledge 2005 pp40-58 Phillips Michael, Rasberry Salli and Diana Fitzpatrick ; Marketing Without Advertising NOLO 2005 p12 Robertson, R., ed. , & White, K. E. (Eds.). . Globalization: Critical concepts in sociology. London: Routledge 2003 p23 Sreberny, M., ed. , Winseck, D., ed. , McKenna, J., ed. Media in global context: A reader. London: Arnold 2005 p14 Tellis J.Gerard ; Effective Advertising: Understanding When, How, And Why Advertising Works Sage Publications, 2003 pp40-57 Tungate Mark (2007); Adland: A Global History of Advertising, Kogan publisher’s pp20-30 Woodside E. Arch ; Measuring the Effectiveness of Image and Linkage Advertising: The Nitty-Gritty of Maxi-Marketing Quorum Books 1996 pp4-17 Read More