Lecture Advertising and promotion (2/e) – Chapter 1: Where marketing communication began

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

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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

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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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