Advertising and popular culture

Advertising and popular culture

Introduction

Every weeknight when I turn on the TV to watch CSI I mute the ads. I see SUV ads, Vonage ads, Pepsi and whatever other stuff they're trying to sell me.

When I check my email (I have a Gmail account), I usually have 1 or 2 new spam in my inbox, and about 120 new spams in my spambox. At the end of the month, my spambox auto-deletes all spam over a month old. I currently have over 4000 spams in there. I check any new spams as spam and then go about my business of answering emails/hatemail.

Then I read an interesting statistic: Advertising profits have slumped during the last three years in the United States. That doesn't mean that advertising companies are going bankrupt (although some of them might eventually), what it means is that companies that are advertising don't seem to be making as many sales.

For example, if the Widget Company spends $100 million on a new advertising campaign and usually makes about $500 million in profits, whats happened is that instead of making $500 M, they are only making $400 M instead.

Obviously people aren't selling Widgets, but the principle is the same. Companies seem to be going into an "advertising backslide", almost as if we were in a depression.

Except we're not in a depression. True, the US economy did SHRINK 0.5% during 2005, but that’s not a depression. It’s a minor bump on the economic radar.

These days you see advertising EVERYWHERE. We use Google Adsense in order to make sure the Lilith Gallery Network makes a profit and can afford to pay for its server/etc. Admittedly we also fall into this trap of using advertising in order to pay the bills, and we can admit to it without being hypocritical.

But what about the rest of the world? Advertising really is seemingly everywhere. Dentist offices often get free magazine subscriptions because the advertising in the magazine is a good way of selling products to consumers that might not see it otherwise. It also advertises the magazine itself simply by "being there".

During the whole history the aim of advertising is to inform and to convince, hasn’t changed. Advertisement which we know now is a modern phenomenon with its roots in deep past. One of the greatest events of the history of advertisement was the invention of demountable fonts by Johann Gutenberg in 1440. His invention gave life to the new carrier of advertisement: printed posters, leaflets and newspaper announcements.

Albert Lasker, the father of modern advertisement, told that advertisement is “a printed kind of trade”. But this definition was given before the invention of radio and TV.

Advertising is a transfer of information, usually paid and has the characteristic of persuasion, about production, service or ideas by famous advertiser with the help of different carriers.

Advertising occupies a major place in American society. Linked to the bedrock principles that shaped American nation - free speech, competition and individual choice - it has served the public since colonial times as a source of vital information about their open, market-based economy.

Advertising is a positive force in our free society. Protected by the First Amendment, it informs the public, promotes competition, fuels economic growth, creates jobs and fosters a wide array of media choices for consumers.

The First Amendment to the U.S. Constitution states: “Congress shall make no law…abridging the freedom of speech or of the press…” In a long series of cases, the U.S. Supreme Court has conclusively extended this protection to “commercial speech.” As a result, advertising of lawful products and services, conducted in a non-misleading way, is fully protected by the U.S. Constitution.

According to a landmark study conducted by the highly regarded consulting firm Global Insights under the direction of a Nobel Laureate in Economics, advertising is a remarkably powerful economic force. Nationally, it generates over $5 trillion in economic activity, or approximately 20 percent of U.S. total economic activity. Sales of products and services stimulated by advertising support 21 million jobs, or 15 percent of the total jobs in the country. In addition, another Nobel Laureate in economics, George Stigler, also has noted that advertising is a critical force in fostering economic efficiency and competition throughout the US economy.

Advertising enables consumers to enjoy a vast array of media choices. Commercial television and radio are available to the public at no cost, thanks to advertising. In addition, advertising revenues provide substantial support for most print publications, large portions of the Internet and cable, giving people access to immense information and entertainment content at little cost. This support helps democratize access to information. The public, wherever they are located geographically and regardless of their income level, have more information available to them than at any other time in history.

Advertising informs consumers about product choices available in the marketplace. Increasingly, it also educates them about issues that affect their lives. Recognizing the power of advertising to educate, the industry annually voluntarily devotes multi-billions of dollars worth of creative and media resources to high-visibility public service campaigns.

Vast, affordable media options enrich our society and underpin a core American value: the democratization of knowledge and information. Advertising plays a critical role in fostering this abundance of information, as it provides the financial foundation for the immense number of media and Web services available to U.S. consumers.

Commercial broadcasting, both radio and television, is supported solely by revenues from the sale of advertising time and space. Other types of media, including the Internet, newspapers, magazines and large segments of cable television rely heavily on advertising for a major portion of their revenues. Indeed, without advertising dollars, many of today’s media outlets would not exist, and the cost of those that survived would be substantially higher for the consumer.

Advertising revenue has helped lead to a tremendous proliferation of media choices. For example, television viewers in the early 1950’s and 60’s could watch only three broadcast networks. Today, viewers can choose from multiple broadcast networks, hundreds of cable channels and direct broadcast satellite programming.

The advertising-supported business model has also fueled the explosive growth of the Internet, creating a low barrier-to entry for an immense number of entrepreneurial online businesses. According to research firm comScore, more than 200 million Americans age 15 or older use search engines each month. These consumers are going to the Internet to access - at no cost - all types of content: from news and health, to sports and entertainment, to job listings and travel recommendations. The most popular Internet search engines, news outlets, entertainment portals, photo and video sharing services and social networking sites all give consumers free access to vast content and online experiences thanks to their advertising revenues.

The online media has developed at an extraordinary pace. It took 38 years for radio to reach 50 million Americans; network television took 13 years and cable television took 10 years. It took only about three years for the Internet to reach 50 million users in the U.S.

According to the Interactive Advertising Bureau (IAB), there was $23.4 billion spent on advertising and paid search on the Internet in 2008. To put this in perspective, the Internet today is a bigger advertising medium than radio, outdoor advertising and about the same as consumer magazines. (www.iab.net).

However, policymakers need to refrain from imposing undue restrictions that would limit the effectiveness of interactive advertising, thereby diminishing the flow of ad dollars into this promising new media channel.

The economic health of most of American media, including the online marketplace, rests primarily on the strong financial foundation provided by advertising.

You see that modern economy, especially advertising, as a part of modern economy not only in the USA, is much connected with pop culture: TV, Internet, literature, art and etc. This phenomenon is very interesting. The problem of advertising is very important for economics because you need ads for promoting your production, especially if you only start your own business. Everybody knows that ad is connected with the culture: TV, magazines, newspapers, radio, even films an so on.

So in my work I’ll try to study the problem of affecting advertising on pop culture in America. At first we’ll learn the definitions of advertisement and pop culture.

Advertising

Advertising is a form of communication intended to persuade its viewers, readers or listeners to take some action. It usually includes the name of a product or service and how that product or service could benefit the consumer, to persuade potential customers to purchase or to consume that particular brand. Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries.

Commercial advertisers often seek to generate increased consumption of their products or services through branding, which involves the repetition of an image or product name in an effort to associate related qualities with the brand in the minds of consumers. Different types of media can be used to deliver these messages, including traditional media such as newspapers, magazines, television, radio, outdoor or direct mail. Advertising may be placed by an advertising agency on behalf of a company or other organization.

Organizations that spend money on advertising promoting items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Nonprofit organizations may rely on free modes of persuasion, such as a public service announcement.

Money spent on advertising has declined in recent years. In 2007, spending on advertising was estimated at more than $150 billion in the United States and $385 billion worldwide, and the latter to exceed $450 billion by 2010.

History

Egyptians used papyrus to make sales messages and wall posters. Commercial messages and political campaign displays have been found in the ruins of Pompeii and ancient Arabia. Lost and found advertising on papyrus was common in Ancient Greece and Ancient Rome. Wall or rock painting for commercial advertising is another manifestation of an ancient advertising form, which is present to this day in many parts of Asia, Africa, and South America. The tradition of wall painting can be traced back to Indian rock art paintings that date back to 4000 BC. History tells us that Out-of-home advertising and billboards are the oldest forms of advertising.

As the towns and cities of the Middle Ages began to grow, and the general populace was unable to read, signs that today would say cobbler, miller, tailor or blacksmith would use an image associated with their trade such as a boot, a suit, a hat, a clock, a diamond, a horse shoe, a candle or even a bag of flour. Fruits and vegetables were sold in the city square from the backs of carts and wagons and their proprietors used street callers (town criers) to announce their whereabouts for the convenience of the customers.

As education became an apparent need and reading, as well as printing, developed advertising expanded to include handbills. In the 17th century advertisements started to appear in weekly newspapers in England. These early print advertisements were used mainly to promote books and newspapers, which became increasingly affordable with advances in the printing press; and medicines, which were increasingly sought after as disease ravaged Europe. However, false advertising and so-called "quack" advertisements became a problem, which ushered in the regulation of advertising content.

As the economy expanded during the 19th century, advertising grew alongside. In the United States, the success of this advertising format eventually led to the growth of mail-order advertising.

In June 1836, French newspaper La Presse was the first to include paid advertising in its pages, allowing it to lower its price, extend its readership and increase its profitability and the formula was soon copied by all titles. Around 1840, Volney Palmer established a predecessor to advertising agencies in Boston.Around the same time, in France, Charles-Louis Havas extended the services of his news agency, Havas to include advertisement brokerage, making it the first French group to organize. At first, agencies were brokers for advertisement space in newspapers. N. W. Ayer & Son was the first full-service agency to assume responsibility for advertising content. N.W. Ayer opened in 1869, and was located in Philadelphia.5

At the turn of the century, there were few career choices for women in business; however, advertising was one of the few. Since women were responsible for most of the purchasing done in their household, advertisers and agencies recognized the value of women's insight during the creative process. In fact, the first American advertising to use a sexual sell was created by a woman - for a soap product. Although tame by today's standards, the advertisement featured a couple with the message "The skin you love to touch".

In the early 1920s, the first radio stations were established by radio equipment manufacturers and retailers who offered programs in order to sell more radios to consumers. As time passed, many non-profit organizations followed suit in setting up their own radio stations, and included: schools, clubs and civic groups. When the practice of sponsoring programs was popularized, each individual radio program was usually sponsored by a single business in exchange for a brief mention of the business' name at the beginning and end of the sponsored shows. However, radio station owners soon realized they could earn more money by selling sponsorship rights in small time allocations to multiple businesses throughout their radio station's broadcasts, rather than selling the sponsorship rights to single businesses per show.

This practice was carried over to television in the late 1940s and early 1950s. A fierce battle was fought between those seeking to commercialize the radio and people who argued that the radio spectrum should be considered a part of the commons - to be used only non-commercially and for the public good. The United Kingdom pursued a public funding model for the BBC, originally a private company, the British Broadcasting Company, but incorporated as a public body by Royal Charter in 1927. In Canada, advocates like Graham Spry were likewise able to persuade the federal government to adopt a public funding model, creating the Canadian Broadcasting Corporation. However, in the United States, the capitalist model prevailed with the passage of the Communications Act of 1934 which created the Federal Communications Commission.7 To placate the socialists, the U.S. Congress did require commercial broadcasters to operate in the "public interest, convenience, and necessity". Public broadcasting now exists in the United States due to the 1967 Public Broadcasting Act which led to the Public Broadcasting Service and National Public Radio.

In the early 1950s, the DuMont Television Network began the modern trend of selling advertisement time to multiple sponsors. Previously, DuMont had trouble finding sponsors for many of their programs and compensated by selling smaller blocks of advertising time to several businesses. This eventually became the standard for the commercial television industry in the United States. However, it was still a common practice to have single sponsor shows, such as The United States Steel Hour. In some instances the sponsors exercised great control over the content of the show - up to and including having one's advertising agency actually writing the show. The single sponsor model is much less prevalent now, a notable exception being the Hallmark Hall of Fame.

The 1960s saw advertising transform into a modern approach in which creativity was allowed to shine, producing unexpected messages that made advertisements more tempting to consumers' eyes. The Volkswagen ad campaign-featuring such headlines as "Think Small" and "Lemon" (which were used to describe the appearance of the car)-ushered in the era of modern advertising by promoting a "position" or "unique selling proposition" designed to associate each brand with a specific idea in the reader or viewer's mind. This period of American advertising is called the Creative Revolution and its archetype was William Bernbach who helped create the revolutionary Volkswagen ads among others. Some of the most creative and long-standing American advertising dates to this period.

The late 1980s and early 1990s saw the introduction of cable television and particularly MTV. Pioneering the concept of the music video, MTV ushered in a new type of advertising: the consumer tunes in for the advertising message, rather than it being a by-product or afterthought. As cable and satellite television became increasingly prevalent, specialty channels emerged, including channels entirely devoted to advertising, such as QVC, Home Shopping Network, and ShopTV Canada.

Marketing through the Internet opened new frontiers for advertisers and contributed to the "dot-com" boom of the 1990s. Entire corporations operated solely on advertising revenue, offering everything from coupons to free Internet access. At the turn of the 21st century, a number of websites including the search engine Google, started a change in online advertising by emphasizing contextually relevant, unobtrusive ads intended to help, rather than inundate, users. This has led to a plethora of similar efforts and an increasing trend of interactive advertising.

The share of advertising spending relative to GDP has changed little across large changes in media. For example, in the U.S. in 1925, the main advertising media were newspapers, magazines, signs on streetcars, and outdoor posters. Advertising spending as a share of GDP was about 2.9 percent. By 1998, television and radio had become major advertising media. Nonetheless, advertising spending as a share of GDP was slightly lower-about 2.4 percent.

A recent advertising innovation is "guerrilla marketing", which involve unusual approaches such as staged encounters in public places, giveaways of products such as cars that are covered with brand messages, and interactive advertising where the viewer can respond to become part of the advertising message. Guerrilla advertising is becoming increasing more popular with a lot of companies. This type of advertising is unpredictable and innovative, which causes consumers to buy the product or idea. This reflects an increasing trend of interactive and "embedded" ads, such as via product placement, having consumers vote through text messages, and various innovations utilizing social network services such as MySpace.

Public service advertising

The same advertising techniques used to promote commercial goods and services can be used to inform, educate and motivate the public about non-commercial issues, such as HIV/AIDS, political ideology, energy conservation and deforestation.

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.

Public service advertising, non-commercial advertising, public interest advertising, cause marketing, and social marketing are different terms for (or aspects of) the use of sophisticated advertising and marketing communications techniques (generally associated with commercial enterprise) on behalf of non-commercial, public interest issues and initiatives.

In the United States, the granting of television and radio licenses by the FCC is contingent upon the station broadcasting a certain amount of public service advertising. To meet these requirements, many broadcast stations in America air the bulk of their required public service announcements during the late night or early morning when the smallest percentage of viewers are watching, leaving more day and prime time commercial slots available for high-paying advertisers.

Public service advertising reached its height during World Wars I and II under the direction of several governments.

Types of advertising

Virtually any medium can be used for advertising. Commercial advertising media can include wall paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and television adverts, web banners, mobile telephone screens, shopping carts, web popups, skywriting, bus stop benches, human billboards, magazines, newspapers, town criers, sides of buses, banners attached to or sides of airplanes ("logojets"), in-flight advertisements on seatback tray tables or overhead storage bins, taxicab doors, roof mounts and passenger screens, musical stage shows, subway platforms and trains, elastic bands on disposable diapers, doors of bathroom stalls, stickers on apples in supermarkets, shopping cart handles (grabertising), the opening section of streaming audio and video, posters, and the backs of event tickets and supermarket receipts. Any place an "identified" sponsor pays to deliver their message through a medium is advertising.

Television

The TV commercial is generally considered the most effective mass-market advertising format, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events. The annual Super Bowl football game in the United States is known as the most prominent advertising event on television. The average cost of a single thirty-second TV spot during this game has reached US$3 million (as of 2009).

The majority of television commercials feature a song or jingle that listeners soon relate to the product.

Virtual advertisements may be inserted into regular television programming through computer graphics. It is typically inserted into otherwise blank backdrops or used to replace local billboards that are not relevant to the remote broadcast audience. More controversially, virtual billboards may be inserted into the background where none exist in real-life. Virtual product placement is also possible.

Infomercials

An infomercial is a long-format television commercial, typically five minutes or longer. The word "infomercial" is a portmanteau of the words "information" & "commercial". The main objective in an infomercial is to create an impulse purchase, so that the consumer sees the presentation and then immediately buys the product through the advertised toll-free telephone number or website. Infomercials describe, display, and often demonstrate products and their features, and commonly have testimonials from consumers and industry professionals.

Radio advertising

Radio advertising is a form of advertising via the medium of radio.

Radio advertisements are broadcasted as radio waves to the air from a transmitter to an antenna and a thus to a receiving device. Airtime is purchased from a station or network in exchange for airing the commercials. While radio has the obvious limitation of being restricted to sound, proponents of radio advertising often cite this as an advantage.

Press advertising

Press advertising describes advertising in a printed medium such as a newspaper, magazine, or trade journal. This encompasses everything from media with a very broad readership base, such as a major national newspaper or magazine, to more narrowly targeted media such as local newspapers and trade journals on very specialized topics. A form of press advertising is classified advertising, which allows private individuals or companies to purchase a small, narrowly targeted ad for a low fee advertising a product or service.

Online advertising

Online advertising is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers. Examples of online advertising include contextual ads that appear on search engine results pages, banner ads, in text ads, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including e-mail spam.

Billboard advertising

Billboards are large structures located in public places which display advertisements to passing pedestrians and motorists. Most often, they are located on main roads with a large amount of passing motor and pedestrian traffic; however, they can be placed in any location with large amounts of viewers, such as on mass transit vehicles and in stations, in shopping malls or office buildings, and in stadiums.

Mobile billboard advertising

Mobile billboards are generally vehicle mounted billboards or digital screens. These can be on dedicated vehicles built solely for carrying advertisements along routes preselected by clients, they can also be specially-equipped cargo trucks or, in some cases, large banners strewn from planes. The billboards are often lighted; some being backlit, and others employing spotlights. Some billboard displays are static, while others change; for example, continuously or periodically rotating among a set of advertisements.

Mobile displays are used for various situations in metropolitan areas throughout the world, including:

·        Target advertising

·        One-day, and long-term campaigns

·        Conventions

·        Sporting events

·        Store openings and similar promotional events

·        Big advertisements from smaller companies

·        Others

In-store advertising

In-store advertising is any advertisement placed in a retail store. It includes placement of a product in visible locations in a store, such as at eye level, at the ends of aisles and near checkout counters, eye-catching displays promoting a specific product, and advertisements in such places as shopping carts and in-store video displays.

Covert advertising

Covert advertising, also known as guerrilla advertising, is when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand, as in the movie Minority Report, where Tom Cruise's character John Anderton owns a phone with the Nokia logo clearly written in the top corner, or his watch engraved with the Bulgari logo. Another example of advertising in film is in I, Robot, where main character played by Will Smith mentions his Converse shoes several times, calling them "classics," because the film is set far in the future. I, Robot and Spaceballs also showcase futuristic cars with the Audi and Mercedes-Benz logos clearly displayed on the front of the vehicles. Cadillac chose to advertise in the movie The Matrix Reloaded, which as a result contained many scenes in which Cadillac cars were used. Similarly, product placement for Omega Watches, Ford, VAIO, BMW and Aston Martin cars are featured in recent James Bond films, most notably Casino Royale. In "Fantastic Four: Rise of the Silver Surfer", the main transport vehicle shows a large Dodge logo on the front. Blade Runner includes some of the most obvious product placement; the whole film stops to show a Coca-Cola billboard.

Celebrities

This type of advertising focuses upon using celebrity power, fame, money, popularity to gain recognition for their products and promote specific stores or products. Advertisers often advertise their products, for example, when celebrities share their favorite products or wear clothes by specific brands or designers. Celebrities are often involved in advertising campaigns such as television or print adverts to advertise specific or general products.

The use of celebrities to endorse a brand can have its downsides, however. One mistake by a celebrity can be detrimental to the public relations of a brand. For example, following his performance of eight gold medals at the 2008 Olympic Games in Beijing, China, swimmer Michael Phelps' contract with Kellogg's was terminated, as Kellogg's did not want to associate with him after he was photographed smoking marijuana.

Media and advertising approaches

Increasingly, other media are overtaking many of the "traditional" media such as television, radio and newspaper because of a shift toward consumer's usage of the Internet for news and music as well as devices like digital video recorders (DVR's) 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.

Digital signage is poised to become a major mass media because of its ability to reach larger audiences for less money. Digital signage also offer the unique ability to see the target audience where they are reached by the medium. Technology advances has also made it possible to control the message on digital signage with much precision, enabling the messages to be relevant to the target audience at any given time and location which in turn, gets more response from the advertising. Digital signage is being successfully employed in supermarkets. Another successful use of digital signage is in hospitality locations such as restaurants and malls.

E-mail advertising is another recent phenomenon. Unsolicited bulk E-mail advertising is known as "e-mail spam". Spam has been a problem for email users for many years. But more efficient filters are now available making it relatively easy to control what email you get.

Some companies have proposed placing messages or corporate logos on the side of booster rockets and the International Space Station. Controversy exists on the effectiveness of subliminal advertising, and the pervasiveness of mass messages.

Unpaid advertising (also called "publicity advertising"),