The Changing Role of Advertising in the Mass Media - Essay Example

The Changing Role of Advertising in the Mass Media Although it has only been commercially available for slightly over twodecades, the speed with which internet has taken over and superseded old media is incredible. It has been undergoing rapid and exponential growth phases ever since its introduction; gradually, the internet become a platform for music, information, film and other forms of entertainment and consequently advertisers have turned to it to promote their products. The pace of modern life has increased considerably and people tend to spend less time sitting down with more time being occupied while standing or moving about from place or task to task. However, whenever one gets a chance to relax, more so the younger generation, it is usually in front of a computer or with their phone or tablet (Kakihara & Sørensen, 2002). People are spending a great deal of time, consuming online content and updating their social media feeds in twitter and Facebook and as a result, TV and newspapers in their traditional sense are gradually being marginalized. With the emergence of new technologies every other day, the trend of online viewing is growing exponentially as people try to seek out what is most effect and convenient. Today, the internet is improving in its scope and capacity with 4G and LTE networks being the hallmarks of high-speed internet and even these are still being developed to become more efficient (Dahlman & Skold, 2011). The quality of web content is gradually eclipsing TV especially considering that the internet does not force one to conform to a specific type of content. John Naughton, a writer for the Guardian differentiated TV and internet by categorizing them as push and pull media (Naughton, 2005).According to him, TV is push media because a group of producers and directors selects content and relayed to the audience (Gobe, 2010). However, the internet is pull media since one ultimately gets to choose what they want to see, he claims that when one finds themselves not feeling compelled to conform to online content choice, they are likely not using the internet correctly. In the developed world, people who have had cable TV for most of their lives are today claiming they do not need cable as much as they need high-speed broadband internet. Furthermore, a study by IBM exhibited that the dependency rate of TV as the primary media providers is falling, as the internet gains popularity (Berman et al., 2009). The scope and influence of mass free to air television, broadcasting has been on a gradual decline. In the past people would all watch the same shows at the same time; however, audiences have become more fragmented because of narrow casting through cable and satellite services (Keane, 2014). With the arrival of internet protocol television, traditional TV suffered another serious blow. Online videos services such as Hulu, You tube Netflix amazon and iTunes are becoming popular in various countries threatening TV with redundancy. On Netflix which in 2014 surpassed YouTube as the most visited online video site (Seitz, 2014); for instance, Americans can watch anything they want or 10 dollars a month, which is considerably less than the cost of cable TV (Noam, 2014). Then there is Hulu sponsored jointly by fox and NBC and offers nearly every show on both with some other channels (Artero, 2010). It allows the viewers to watch the shows a day after they are premiered and its commercial breaks are shorter (Rayport, 2009). Consequently, the young generation has shown a notable reluctance to buy televisions instead preferring to access content through computer monitors (Burgess & Green, 2013). With time, technology has transformed all forms of marketing which has put social media at the centre of the quest to reach most audiences with targeted content. Brands continue to work at identifying the most suitable marketing mix that will take advantage of all available media. Various brands are also working towards coming up with better ways to leverage analytical tools put at their disposal by technology so they can make more informed and ultimately profitable marketing decisions. The advances in TV and internet technology are creating room for much more cost effective advertising and marketing strategies (Joo et al., 2013). In the near future, all the media will be expected to gradually integrate through multiple channels, which will make it significantly easier for marketing executives to determine the effectiveness of various marketing campaigns. Is television dead of dying? Well, popular perception has it that TV is on its last throes and that newspaper companies are shutting down due to lack of profitability as people resort to the internet for all the services that were traditionally available on TV. However, one is forced to ask, how accurate really is this assumption; the truth is, not particularly. While it is true that the internet is the fastest growing information media, TV and newsprint are still at the top only that they are not growing as fast as the former. Largely, the disparity in growth rates is a result of the preference of advertises for online media rather than traditional media. This is simply because advertisers follow viewers and want to keep a step ahead of them of the can strategically plant adverts in every nook and cranny viewers may explore. Therefore, the growth of internet based media is being spurred by the fact that there investors willing to put money in online advertising, this can also be seen as a motivation for decline in TV based advertising. Although there have been distinct changes over the years, the concept of TV adverts is basically the same as it was in the early 20 century when opera shows were squeezed between soap adverts giving rise to the popular soap opera genre (O’Donnell, 2000). Today, it is much less the same expect that the TV shows last longer and adverts less although they cost considerably more. The objective of TV or newspaper ads is to increase sales, educate the public or give service announcement and company publicity. The success of an advert depends on the timing since the more times an advert is aired the more likely it is to be seen hence increasing its persuasiveness. In addition the timing of a commercial is also critical since, for example if one is offering tutoring services, the best time to place their ads is early morning when people are likely to be preparing their children for school. Prime time is however considered the best time for placing any adverts given that most people are likely to be watching. The success of TV adverts is tied to the demographics of the viewers and consequently these are often factored in when slotting adverts within programs. For example when someone wants to market beauty products, they will most likely have the adverts during soap operas many of which are themed around the lives of attractive people and target women (Georgiou, 2012). In the same way, adverting masculine products such as shaving cream is normally done during sporting shows. The success of adverting is generally determined by the increase in revenues of a product after an advertising campaign has been mounted. Depending on how successful it has been, the firm determines whether to continue with it or perhaps change the timing. According to many people, online ads are simply designed to pop up on browsers or one simply opens a page and fined them attached therein based on the agreement between the page owners and the marketing firm. However, the process of using online adverts is far more complicated than that, in reality they are built on an intricate interconnection of technology that embodies the huge extent to which it has developed in the past two decades. The first step is gathering personal data on the browser’s user and their various tastes and preferences. When one visits a website, the browser provides a comprehensive profile on them based on their browsing history location and previous interest (Kliger et al, 2006). In case they are using a browser such as Google chrome, they are likely to provide an even more detailed and accurate profile. From this, the website one visits “knows” which adverts it should show. This information is then used to submit a request based on the assumption of what would appeal most to the user (Newman, 2014). For example, before one accessed their Facebook, they looked at a pair of pants on Alibaba and on a different tab; they are reading a fashion magazine. Based on this, ads with similar or relevant content will appear, for example there may be ads from Zappos or Marks & and Spencer for shoes or clothing and generally fashion related products. The network publishing the advert handles all these; it counterchecks the user’s browsing habits against current ads and serves up the most suitable. Surprisingly, this takes a fraction of a second and to the user it appears seamless and natural. In case the request does not fit the user profile, it is sent to an exchange that is operated by an online company such as amazon or Facebook. This is on the assumption that they may have data on the user and it is used to bolster the profile so the user can be provided with ads that are more relevant. However, before the ad is served up, it has to go through an auction block as various firms selling products relevant to the users profile have to bid for their attention. It is sold to the highest bidder and this ultimately determines which ads different people will see on their browser. This technology has been found to be key by advertising companies because it allows them to reach millions of customers global at a low price. In addition, it creates room for specific advertising targeting particular customer and gauging their interest on the spot to determine their likelihood of buying. Because of this, companies have resorted to creating web pages and blogs that are friendly to adverts to increase revenues. Online newspapers have been designed in and interactive way such that adverts can be instantly added to various sections of the paper and these can be paid for by the hour based on demand (The Economist, 2014). Other media such as YouTube, which need to generate revenue through adverts, have configured their video offering such that the first part of a video is an advert 5 seconds of which the viewer must watch (Kim, 2012). The realization that interactive online ads can bring significant revenues to media organisations both modern and tradition motivated many of them to ensure their online space can handle maximum adverts without distracting or annoying the user. The success of a website is based on the conversion rate of the number of click that result from an advert; when a user views an advert the intention of the marketing company is for them to click on it and visit the company website. Using records of consumer activity, the company can tell if the promotional methods or material are effective or need to improve. Website owners are constantly on the lookout for tools that improve the setting of websites to create the most visible yet comfortable banner ads with the hope of attracting lucrative contracts from advertisers (Vascellaro, 2009). Today, online companies even those providing free services require that one register and create an account with them. The creation of these accounts requires them to provide some personal details, which the company uses to keep track of their possible needs and strategically place their adverts to entice them. Despite the claim that online marketing might eclipse traditional media such as TV ads, the latter is however adapting to the new trends as shall be explained later on by becoming more interactive allowing marketers to gather user data. The other of the emerging trends impacting on advertising techniques in marketing today is guerrilla marketing; it is a low cost and method that includes among other things, graffiti and sticker bombing (Ay & Nardali, 2010). As its name suggest, it leverages on the element of surprise and marketers do the unexpected to ensure they attract maximum attention by shocking potential so much that they will end up noticing and remembering products for as long as possible. When this method was first used, in the 80’s it was by small companies that recognized their inferiority in competing for mainstream media with market behemoths (Stasch, 1999). Therefore, they went of the technique that could generate maximum attention but at a small price. With the advent of online advertisement, these techniques become more sophisticated and even the big companies applied them in their marketing endeavours. Social media particularly impacted on guerrilla marketing, since advertises now have a wider scope not to mention the probability of an ad going viral (Castronovo & Huang, 2012). This came in hardy given that technology allows people to sometimes ignore ads or fast forward past them in digital media. However, the unconventional nature of guerrilla ads makes them just as attractive as the regular programming, in some cases, instead of creating a traditional ad they turn a setting into an ad. One of the most successful ads was the coke zero ads where people using vending machines would be offered a chance to win tickets to the James bond Sky fall premier. When one agreed they would have 70 seconds to get to a specific platform where and along the way there were several distractors designed to make the journey challenging . The whole experience was then recorded and used as an advert, which went viral due to its creative and highly entertaining content. Guerrilla advertising tactics have forced traditional media to invest in high quality adverts that consumers can enjoy for their own sake rather than just because they are being aired. Some adverts are also created purely for online marketing rather than TV, many of these are images that can be published on online papers but mostly shared through company websites and social media pages. Online and guerrilla marketing are rapidly using the internet and it is because of them that its scope as an adverting media is growing so fast. Marketers no longer have to rely on traditional media, all one needs is to record a video and post it on a YouTube channel, and they will have the potential to reach just as many customers if not more than a conventional TV ad. Given the trend where online marketing has been tailored to fit with the demands of every customer people have predicted that it is just a matter of time before advertises abandon the media and focus on the more predictable and affordable online platform. This would be true if the two platforms were purely in competition but as matters stand, TV is gradually adapting using new technological innovations. However, instead of growing in a contrary direction, TV is complementing internet advertising (Chmielewski, 2011). According to a report by Adap.tv, for the first time in history, online and TV advertising are beginning to merge with over 62% of UK adverting agencies having been found to have purchased digital video inventories while 23% wanted to extend their latitude in relation to TV viewers (Parish, 2014). The development of the Smart TV was motivated by two major factors apart from the apparent propensity of humanity to invent new things as long as it can be done. The first was to give viewers more control over their programing choice and to allow the TV to collect data on their viewing habits to enable they target them with adverts that are more precise. The TVs, which can also browse the internet, gather data from ones stations choice, the adverts they skip or watch and the data in external drives such as flash disks and memory cards. As a result, TVs are offering TV companies the same opportunity browsers give online marketing companies. The TV firms then sell this data to advertisers and as a result, they target clients with adverts based on observed viewing habits. This idea has however not been well received by all viewers and some people have complained that this is a breach of their privacy. In 2012, Jason Huntly who works as an IT expert realized that his smart TV was tracking his family viewing habits unbeknownst to him and it even knew the names of his children, which it had pulled from a family video they had watched from a USB drive. After he made a company to the company, he was told that this was allowed in the terms of service and the moment he agreed to them he was waiving all his rights to privacy in as much as it involved the TV not “spying on him”( HullDaily, 2013). This has been criticized and compared to the prophetic writings of Orwell in which he described a TV as the “big brother” always following up and spying on people even in the privacy of their own homes (Lloyd, 2014). Experts investigating this found that smart TVs made since 2013, routinely collected user data although LG had temporarily stopped because of complains. Despite the ethical challenge, most customers still allow the TVs to track their usage since by accepting the terms or usage they allow it. While they also have the option of not doing so, this severely limits the extent to which they can enjoy the features in the TV. This is however good news for the broadcaster and advertisers behind this developments (HullDaily, 2013). Firstly, advertisers can quickly gauge which are the best programs and channels to advise on since they will know the most watched ones from the data they get from TV manufactures. In addition, they will have information on the reaction of viewers to certain ads and improve them accordingly. With possibility of personalized information, adverting companies can save by eliminating channels and programs that did not receive sufficient viewing to justify the expenses. In most cases, advertisers need to know that the benefits they are getting from ROI are the best. This has been in most cases the reason why digital advertising has tended to be guided by response. With digital TV, the same is now possible for TV content and wastage can be minimized making campaigns to be more efficient. The interdependence between the two media is highlighted by the contemporary rise of mergers between companies that operate online and TV markets. It is predicted that in the next three years or so, online and TV companies will continue to merge. A study by Videology found that when programing and advertising are united under the same wing one-dimensional TV was ranked as the least important. However under the assumption that it has been integrated with online media. 62% people classified it as being very important (Haggerty, 2014). The ability of publishers to work with TV produces to customize personalized advertising opportunities was deemed critical for the future of video buying was rated at 75%. On the other hand, the capacity for buying audiences from different types of screens and views was ranked at 71% (Haggerty, 2014). Over half of the respondents from each side agreed that video advertising throughout all platforms would become more programmatic and 60% Media Company representatives quizzed said technology would be a key determinant. According to Rhys McLachlan who is the head of TV practice at Videology, it is likely that people with a stake in the adverting sector be it TV producers or managers of online channels and networks will be forced to acknowledge and adapt to the changes in the landscape (Haggerty, 2014). He however reassures stakeholders that as long as they position themselves strategically, they all stand to gain from the new ecosystem. This is logical given that it will involve bringing a previously unprecedented number of people in contact with content both online, TV, and exposing each platform to potential clients from the other. The expectations of advertisers according to the survey indicate that they will be investing more in cross platform marketing given that over 75% of them claim they expect consumers to increase the amount of time spent watching TV with an internet connection. Print or written news has also played a major role in the changing face of the advertisement industry (Isenmann & Lenz, 2001). Before the advent of the internet, newspapers were probably only second in flexibility and scope to TV and radio; however, like the other platforms they have been greatly influenced by technological changes. Advertisers, finding themselves torn between adverting online or on newspapers today have increasingly opted for the former since it has by far a bigger scope not to mention being cheaper (Perera, 2013). In addition, Guerrilla advertising tactics, which are becoming a mainstay for many advertisers are in the form of videos or other graphical content, which cannot be rendered on newsprint. Explicably, newspaper companies have moved to online editions with nearly every paper the developed world having and online versions that show either the whole paper or at least most of the content. This enables the papers to get more advertising clients since it has a wiser readership and is highly flexible. Ads can be placed as banners or active animations and even videos strategically placed such that customers can be attracted to them even as they read the news. In addition, online publications also provide newspapers with an avenue on which they can display alternative content such as video or audio recordings to back up their stories (Gosling, 2014). As is the case with TV vs. online video, one of the main reasons why advertisers would opt of digital papers is the element of accountably and versatility. Hypothetically, if one pays 2000 pounds for an advert to run on a paper for a month, they will hope that the paper’s audience which is quite limited will see the ad and be impressed enough to find out more about the product. However, the tableau that online media presents is far much more comprehensive and practical. One can buy a subscription of the same for their ad for a whole month on an online paper but their options are much less limited. While on the print paper they can only place a certain amount of content, online they can virtually put everything about the product; in fact, the customer can even but it on the spot (Gomez, 2008l). All they need is a banner with a catchy image or text, which will lead the client to the company’s page. In addition, using ads on websites such as Facebook and twitter buttons, the advertisers can deduce the reaction of readers based on the number of like and clicks made on their product (Nielsen, 2012). Consequently, one is able to keep track of how their product is performing and how many customers have visited the page from the papers site. This way, they can determine the best media on which to advertise and minimize on wastage. They can also work with advertising companies that allow them to bid and “buy” attention from various clients based on their past preferences and personal profiles. Like any other information media, newspapers gravitate towards the money and the audiences and in the contemporary setting both of these appear to be predominantly located on the digital front. As a result, newspapers are paying more attention to the online platform and some have even abandoned the print versions to concentrate on the new media. While it may not happen overnight, it is clear that print newspapers are gradually being phased away by online editions. In conclusion, it is clear that technology has been largely successful in transforming virtually all forms of marketing this has put social media at the centre of the quest to reach most audiences with targeted content. Brands continue to work at identifying the most suitable marketing mix that will take advantage of all available media. Others are also working towards coming up with better ways to leverage analytical tools put at their disposal by technology so they can make more informed and ultimately profitable marketing decisions. The advances in TV and internet technology are creating room for much more cost effective advertising and marketing strategies. In the near future, all the media will be expected to gradually integrate through multiple channels, which will make it significantly easier for marketing executives to determine the effectiveness of various marketing campaigns. In conclusion, it is evident that technology has proven to be a key point of reference for many advertisers who have come capitalize on its capability to reach wide audiences quickly cheaply and efficiently. As a result, various media such as TV and newspapers have been forced to adjust and adapt to the new environment to maximize on advertiser revenue which power the industry through advertising revenues. In the face of radical and disruptive marketing ideas and techniques such as guerrilla, social media and profile based online campaigns; adverts today play a pivotal role in the development of media technology. Retrospectively, creators and designers would come up with various products and then try to factor in the advertising needs. However, with the growth of both offline and online mass media, adverts have become a more powerful force as each courts the maximum revenue from them. Consequently, many of the changes and developments introduced have been designed to anticipate advertising, briefly, media companies no longer have the upper hand and they have to style their products and base it on the platform that is most conducive to adverts. References Artero, J. P. 2010 . Online video business models: YouTube vs. Hulu. Palabra Clave, Vol 13 1 . Ay, C., Aytekin, P., & Nardali, S. 2010 . Guerrilla marketing communication tools and ethical problems in guerilla advertising. American Journal of Economics and Business Administration, Vol 2 3 , 280. Berman, S. J., et al. 2009 . The end of advertising as we know it. In Television Goes Digital  pp. 29-55 . Vol 1 Burgess, J., & Green, J. 2013. YouTube: Online video and participatory culture. New Jersey: John Wiley & Sons. Castronovo, C., & Huang, L. 2012 . Social media in an alternative marketing communication model. Journal of Marketing Development and Competitiveness, Vol 6 ;1 , 117-134. Chmielewski, D. 2011. Pay TV industry moves to adapt to Internet age. LA Times. [online] Available from http://articles.latimes.com/2011/jan/06/business/la-fi-ct-ces-cable-tv-20110106 Dahlman, E., Parkvall, S., & Skold, J. 2011 . 4G: LTE/LTE-advanced for mobile broadband. Massachusetts: Academic Press. Georgiou, M. 2012 . Watching soap opera in the diaspora: cultural proximity or critical proximity?. Ethnic and racial studies, Vol. 35 5 , 868-887. The Economist. 2014.  Getting to know you. The Economist, [online] Available from http://www.economist.com/news/special-report/21615871-everything-people-do-online-avidly-followed-advertisers-and-third-party Gobe, M. 2010 . Emotional branding: The New Paradigm for Connecting Brands to People. New York. Allworth Press. Gomez, J., 2008. Print Is Dead, Books in Our Digital Age: Book review. Visible Language, Vol 42 2 , pp. 198. Gosling, E., 2014. "Print is dead" - a look inside The New British magazines digital future. Design Week Online ,[online] .Available from http://www.designweek.co.uk/industry-voice/print-is-dead-a-look-inside-the-new-british-magazines-digital-future/3039180.article Haggerty , A. 2014. TV and online video buying groups will likely merge in next three years, say two-thirds of agencies. The Drum. ,[online] .Available from http://www.thedrum.com/news/2014/11/04/tv-and-online-video-buying-groups-will-likely-merge-next-three-years-say-two-thirds Holzapfel, F. 2006 . Guerilla Marketing. Online, Mobile & Cross-Media. Köln. URL: www. guerillamarketing. com. Abrufdatum, Vol 10, 2009. HullDaily 2013 LG smart TVs spying on viewers, Hull blogger Jason Huntley claims . Hulldaily.com [online] .Available from http://www.hulldailymail.co.uk/LG-smart-TVs-spying-viewers-Hull-blogger-Jason/story-20113434-detail/story.html Isenmann, R., & Lenz, C. 2001 . Customized corporate environmental reporting by internet‐based push and pull technologies. Eco‐Management and Auditing, Vol. 8; 2 , 100-110. Joo, M.,et al. 2013 . Television advertising and online search. Management Science, Forthcoming Vol  60 1 , 56-73. Kakihara, M., & Sørensen, C. 2002, January . Mobility. In 2013 46th Hawaii International Conference on System Sciences  Vol. 5, pp. 131-131 . IEEE Computer Society. Keane, P. 2013. What the Modern Internet Means for Advertisers. Adage.com [online] .Available from http://adage.com/article/digitalnext/internet-advertisers-adapt/244120/ Kim, J. 2012 . The institutionalization of YouTube: From user-generated content to professionally generated content. Media, Culture & Society, Vol 34 1 , 53-67. Kliger, S. A., Middleton III, T. M., & White, G. T. 2006 . U.S. Patent No. 7,028,072. Washington, DC: U.S. Patent and Trademark Office. Lloyd, R., 2014, May 13. TELEVISION REVIEW; TELEVISION CRITIC; The Program that was watching you; United States of Secrets casts light on domestic spying by the government. Los Angeles Times. ISSN 04583035. Naughton, J. 2005. When push comes to pull, can the ITV dowager make new friends? The Guardian. [online] .Available from http://www.theguardian.com/business/2005/dec/11/observerbusiness.itvbusiness Newman, N., 2014. Search, Antitrust, and the Economics of the Control of User Data. Yale Journal on Regulation, Vol. 30 No. 3 Nielsen, R. K. 2012 . How newspapers began to blog: Recognizing the role of technologists in old media organizations’ development of new media technologies. Information, Communication & Society, Vol. 15 6 , 959-978. Noam, E. 2014 . Media Entertainment as a Development Strategy. In O’neill, J. et al Broadband as a Video Platform  The Economics of Information, Communication, and Entertainment pp. 11-13 . New York: Springer International Publishing. O’Donnell, H. 2000 . European Soap Operas and their Adverts. In Cannon, J. Advertising and Identity in Europe: The I of the Beholder, Bristol ; Portland : Intellect, cop.. Parish, W. 2014. 5 Signs TV and online ads are set to merge. Marketing Dive. [Online] Available from http://www.marketingdive.com/news/5-signs-tv-and-online-ads-are-set-to-merge/237964/ Perera, C., 2013. Print is not dead yet. Organisation for Economic Cooperation and Development. The OECD Observer,  297 , pp. 52. Rayport, J.F., 2009. Cable TV vs. Cable Broadband. Business Week Online . [Online] Available from http://www.businessweek.com/technology/content/jun2009/tc2009063_847908.htm Seitz, P., 2014, Mar 10. Netflix surpasses YouTube as leading online video site. Investors Business Daily. [online] Available from http://news.investors.com/technology-click/031014-692664-nflx-passes-goog-youtube-as-online-video-service.htm?ntt=YouTube&p=2 . Stasch, S. F. 1999 . Guerilla marketing in new venture marketing strategies. Research at the Marketing/Entrepreneurship Interface, Vol 12, 57-67. Vascellaro, J.E., 2009. Google to Tie Ads to Surfers Habits. Wall Street Journal. [online] Available from http://online.wsj.com/articles/SB123675503793992831 Read More