Introduction to Advertising 2018

By Gloria Boone

 

2018 global advertising is predicted to grow $4.1 percent to reach $578 billion (Zenith, 2017)

"2017 advertising is predicted at $547 billion ( 4.4 percent), with digital’s share to reach 33 percent. ...The U.S. and China account for half of all net growth in the 2016 and 2017 (Group M, December 5, 2016)"

"Dentsu Aegis issued a revised and downgraded 2018 ad-spending growth forecast today, predicting growth of 3.6% to $589.5 billion worldwide. In its June 2017 spending report, the firm had forecast 4.3% growth for this year. The new report also pares back the forecast for U.S. spending growth -- now estimated at 3.2% to $216.9 billion, versus the 4% growth the company predicted in June. (Media Post, 2018)."

Ad Age Marketing 2016 FACT PACK : The United States had 33% of all worldwide advertising but only has 4.4% of the worldwide population.

US Digital ad spending to surpass TV ad spending in 2016

"Digital advertising sales surpassed linear TV ad sales in the U.S. for the first time in 2016, pulling in $70 billion compared with $67 billion for national and local TV, according to IPG Mediabrands' Magna."

"Mobile will overtake desktop to become the primary internet advertising medium in 2017, a year earlier than previously forecast. According to Zenith’s new Advertising Expenditure Forecasts, published today, advertisers across the world will spend US$99.3bn on mobile internet advertising in 2017, compared to US$97.4bn on desktop internet advertising."


 

Ad Age Marketing Fact Pack 2017, (based on 2016 data) reported:

key facts on the world of marketers, media and agencies (p.4)

1. BIGGEST U.S. ADVERTISER IN 2016

Procter & Gamble Co. is the biggest advertiser in the world and in the USA.

2. MOST-ADVERTISED U.S. BRAND

AT&T: $1.1 B in ad spending

3. MAJOR-MEDIA SPENDING IN 2017 (FORECAST)

US: 198 billion

 


 

See Global charts for find global trends in advertising: digiday.com and performics.com


 

What Makes an Ad Effective?

1. It is effective for the audience.

2. The consumers recall the brand.

3. People take action-BUY, CALL, VOTE, or CHANGE ATTITUDES

4. The client (the advertiser-the company or organization who pays for the ad) is satisfied with the results of the ad agency and media placement.


What is Advertising?

Traditional Definitions: Advertising is paid, nonpersonal communication by

an identified sponsor using mass media to persuade or influence an audience

Do we need a new definition for Internet Ads?


How does advertising fit into the traditional communication model?

Source-->Encode--> Message-->Decode-->Receiver


Is Advertising an art?

Advertising is the greatest art form of the twentieth century. Marshall McLuhan

 

The Image (1961)

The force of the advertising word and image dwarfs the power of other literature in the 20th century. Daniel J. Boorstin

the images--however planned, contrived, or & sorted(become) more vivid, more attractive, more impressive, and more persuasive than reality itself.

Advertising as pseudo-events are dramatic and repeatable.


Other views:

Advertising is salesmanship. Claude Hopkins

Promise, large promise, is the soul of an advertisement. (Samuel Johnson, 1709-1784)

Advertising is legalized lying. (H. G. Wells)


Advertising a    b 

People in the USA know McDonald's, but only a few know Maggi. What is Maggi?

Advertising creates BRANDS.

Advertising maintains BRANDS.

Advertising modifies BRANDS.

People know about brands because of advertising.

Brand Advertising

Top Brands

 

 

Top 10 Spenders (Ad Age, June, 2016)
Biggest U.S. advertisers in 2015. Amazon and Samsung moved into the top 10.
RankMarketer2015 U.S. ad spending2015 U.S. ad spending growth
1 Procter & Gamble Co. $4.3 billion -3.8%
2 AT&T $3.9 billion 0.2%
3 General Motors Co. $3.5 billion 8.6%
4 Comcast Corp. $3.4 billion 13.4%
5 Verizon Communications $2.7 billion 8.8%
6 Ford Motor Co. $2.7 billion 8.5%
7 American Express Co. $2.3 billion 0.9%
8 Fiat Chrysler Automobiles $2.2 billion 0.0%
9 Amazon $2.2 billion 22.8%
10 Samsung Electronics Co. $2.1 billion 0.9%

 

Advertising by Media Type Historic DATA

Ad spending by media

 

Political Advertising

"(Acciording to) media tracker Borrell Associates, the final tally of political campaign ad spending in the 2016 election cycle came in lower than anticipated -- at $9.8 billion. And, while broadcast TV retained its dominance, the mass media mainstay of political advertising took a big blow from more targetable and data-driven ad options such as cable TV and digital.

According to Borrell, broadcast TV spending fell nearly 20% this cycle compared with 2012, from $5.45 billion to $4.4 billion in 2016. Radio was also way down -- by 23% to $621 million. As other traditional media spending such as magazine and newspaper ads continued their gradual declines, media that often involves more refined targeting and data-driven buying decisions rose, and in a big way."

Public Service Ads (PSA’s)

Rosie the Riveter

Anti-smoking ads

Anti-drug ads

Preventing forest fires

Preventing AIDS

AD Council

The Ad Council has created many famous public service advertising campaigns. Originally formed in 1942 as The War Advertising Council, the Ad Council has helped increase seat belt usage, reduced pollution and sent minority students to college.

 

f

Direct Response Advertising

Promotes a response from the customer.

DRA uses catalogues, email, direct mail, 1-800 numbers, infomercials, telemarketers as ways of reaching the customer directly.

Use a clear call to action to buy now. Direct Mail statistics for 2017.


Retail or Local Advertising

The local car dealer, store, or service has ads in local newspapers, in the yellow pages or on spot TV or on spot radio.

"BIA/Kelsey forecasts local media advertising revenues will be $158.6 billion in 2018 (U.S. Local Media Forecast 2013-2018.)"

Yahoo & Google are now offering local ads tied to zip codes and maps. The Kelsey Group expects advertisers to spend $11.1 billion in 2011 on local ads, compared with $4.1 billion last year, a growth rate of 22.3 percent.


Business to Business (B2B)

A business advertisers to other companies in trade publications, business newspapers, and on Internet sites.

Some business buyers spend hours researching products to buy for their companies.

 


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"Never write an advertisement you wouldn’t want your own family to read."

"The most important decision is how to position your product."

"Big ideas are simple ideas"