Chapter 1
Where marketing communication
began: the development of
advertising in Australia and New
Zealand
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Learning objectives
1. To define advertising—looking at its importance
and its function.
2. To trace the history of advertising in Australia and
New Zealand.
3. To explore the changing advertising environment.
4. To introduce marketing communication concepts
—such as consumer empowerment and
engagement, the push–pull marketplace and
interactive advertising, digital and social media—
that will be fundamental to the rest of the book.
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Importance
Structure &
function
Definition
Future of
advertising
History
Advertising
News
channels
Empowered
Consumers
Changes in
ad agencies
Social media
Interactive
advertising
Engagement
Digital media
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What is advertising?
Traditional
Traditional definition
definition
Advertising
paid
form
of
non-personal
non-personal
communication
communication
communication
about
about
about
Advertising isis any
any paid
paid
paidform
form
formof
of
ofnon-personal
non-personal
non-personal
non-personal
communication
communication
communication
about
about
about
an
an organisation,
organisation, product,
product, service
service or
or idea
idea by
by an
an identified
identified sponsor.
sponsor.
Paid:
Paid: The
The space
space or
or time
time for
for
an
an advertising
advertising message
message must
must
be
be purchased.
purchased.
Non-personal:
Non-personal: Involves
Involves mass
mass
media
media (e.g.
(e.g. TV,
TV, radio,
radio,
newspapers,
newspapers, magazines)
magazines) in
in oneoneway
way communications.
communications.
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The best job in the world
The best job in the world campaign, but how much
advertising did it use?
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A new definition of advertising
Traditional
Traditional definition
definition
Advertising
Advertising isis any
any paid
paid form
form of
of non-personal
non-personal
communication
communication about
about an
an organisation,
organisation, product,
product,
service
service or
or idea
idea by
by an
an identified
identified sponsor.
sponsor.
New,
New, improved
improved definition
definition
Advertising
Advertising isis aa paid,
paid, mediated
mediated form
form of
of communication
communication
from
from an
an identifiable
identifiable source,
source, designed
designed to
to persuade
persuade the
the
receiver
receiver to
to take
take some
some action,
action, now
now or
or in
in the
the future.
future.
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Importance of advertising
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Importance of advertising
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Advertising has many functions
Communicate
Communicate && interact
interact
The
The nature
nature and
and
purpose
purpose of
of
advertising
advertising differs
differs
from
from one
one industry
industry
to
to another
another and
and
across
across situations.
situations.
Engage
Engage && involve
involve
Brand
Brand awareness
awareness
Brand
Brand equity
equity
Brand
Brand image
image
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Brand awareness
Building brand awareness is especially important for
new products.
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Brand image
Even established brands need to build and maintain
brand image.
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History of advertising
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Function and structure
Client
Client options
options
In-house
In-house
advertising
advertising
Advertising
Advertising
agency
agency
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Types of agencies
Full
Full service
service
Types
Types of
of agencies
agencies
Creative
Creative boutiques
boutiques
Media
Media buying
buying services
services
Other
Other
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Full-service agencies
Planning
Planning
advertising
advertising
Creating
Creating
advertising
advertising
Research
Research
Full
Full range
range of
of
marketing,
marketing,
communication
communication
and
and promotion
promotion
services
services
Producing
Producing
advertising
advertising
General
General
communications
communications
Sales
Sales promotion
promotion
Direct
Direct marketing
marketing
Interactive
Interactive
Package
Package design
design
Public
Public relations
relations
Publicity
Publicity
Selecting
Selecting media
media
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Ad agencies have skilled
specialists
Artists
Artists
Copywriters
Copywriters
Researchers
Researchers
Photographers
Photographers
Media
Media analysts
analysts
Other
Other skills
skills
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Great Australian ads
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Importance
Structure &
function
Definition
Future of
advertising
History
Advertising
News
channels
Empowered
consumers
Changes in
ad agencies
Social media
Interactive
advertising
Engagement
Digital media
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Advertising timeline (Australia)
1800
First ad
(poster)
1821
First
magazine
1803
First
newspaper
ad
1911
Media
commissions
introduced
1912
First industry
association
(Melbourne)
1901
First advertising
service agency
(Sydney)
1946
National industry
association
(AANA)
1923
Commercial
radio
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1956
Commercial
TV
13-19
1-19
Advertising timeline (NZ)
1901
Newspaper
Publishers
Association
1906
First
advertising
agency
1821
First
magazine
1931
1927
11 accredited
Advertisers
agencies in
Association of operation
NZ
1923
Broadcasting
regulations
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1960
1st television
broadcast
1989
Te Mangai
Paho
(Maori
Broadcasting)
established
13-20
1-20
History of advertising
Early
Early newspaper
newspaper
advertisements
advertisements
were
were confined
confined to
to
printed
printed text
text only.
only.
Illustrations
Illustrations were
were
rare
rare until
until the
the
1860s.
1860s.
Source: Walter Powell Advertisement for Paragon Kitchens, 1862 State Library of Victoria, Pictures Collection
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Advertising today—Australia
Media
Media expenditure:
expenditure: $12.6
$12.6 billion
billion
Advertising
Advertising agencies:
agencies: 1000+
1000+
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Advertising today—Australia (cont.)
Radio
Radio licences
licences
374
374 commercial
commercial
358
358 community
community
Television
Television (FTA)
(FTA)
54
54 commercial
commercial
83
83 community
community
Subscription
Subscription TV
TV
2588
2588
Metro
Metro and
and regional
regional daily
daily
newspapers:
newspapers: 50+
50+
Consumer
Consumer magazines
magazines
140
140 (audited)
(audited)
Cinema
Cinema screens:
screens: 1994
1994
Population: 21 million
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Advertising today—NZ
Media
Media expenditure:
expenditure:
$2045
$2045 million
million
Advertising
Advertising agencies:
agencies: 200+
200+
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Advertising today—NZ (cont.)
300
300 radio
radio stations
stations
150
150 newspapers
newspapers
87
87 TV
TV channels
channels
6000
6000 magazines
magazines
455
455 cinema
cinema screens
screens
Population: 4.18 million
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