Chapter Summary:
In this chapter, we present the first of a two-part examination of advertising with a discussion of advertising basics. We begin by covering several fundamental issues in advertising including examining what advertising is and why it is important to the marketing organization. We also look at managing the advertising effort by comparing in-house management to that offered by advertising professionals, such as advertising agencies. Finally, we identify different types of advertising and address trends facing the advertising industry.
Key Issues:
- What is Advertising?
- Objectives of Advertising
- Managing Advertising Decisions
- Types of Advertising
- Trends in Advertising
Cited References:
- “Magna Advertising Forecasts – June 2020.” Magna – IPG Mediabrands. https://magnaglobal.com/life-after-covid-global-ad-market-to-recover-in-2021-after-steep-downturn-in-2020.
- For more on the background of this retailer see: John Wanamaker. Wikipedia. https://en.wikipedia.org/wiki/John_Wanamaker.
- There are many options for small businesses to create their own professional looking video ads for placement on websites and apps. For example, Facebook offers a platform that can take a single image and present it as a dynamic video ad. For more see: “Create a Video Ad.” Facebook. https://www.facebook.com/business/help/247179845697378.
- During the coronavirus pandemic leading advertisers struggled with their advertising decisions. A look at the issues these marketers faced and how they addressed these is described in this article: Suzanne Vranica. “Coronavirus Upended Advertising. Here’s How Brands from Progressive Insurance to Budweiser Responded.” The Wall Street Journal, October 3, 2020. https://www.wsj.com/articles/coronavirus-upended-advertising-madison-avenue-wasnt-ready-11601697645.
- For information on how Twitter’s advertising works see: Karin Olafson. “How to Advertise on Twitter: A 7-Step Guide to Using Twitter Ads.” Hootsuite, May 27, 2020. https://blog.hootsuite.com/twitter-ads.
- For insights on how augmented reality is used in marketing see: Aircards. https://www.aircards.co.
- For more on Nielsen’s mobile tracking services see: “Mobile Measurements.” Nielsen. https://www.nielsen.com/us/en/solutions/measurement/mobile.
- “Magna Advertising Forecasts – June 2020.” Magna – IPG Mediabrands.