Advertising and the Consumer

Advertising and the Consumer

Watch the video on the next slide as an introduction to today's topic.

Multiple Choice

True or False: Successful advertising affects consumer spending decisions by reaching the subconscious levels of the brain.

• True

• False

What is an advertisement

An advertisement is a paid public message communicated through various media that promotes the sale of goods and services.


Various media such as radio, tv, magazines, newspapers, direct mail, the internet, and billboards all contain advertisements

There are six types of advertising

• Attention Geter Ads

• Bandwagon Ads

• Sex-Appeal Ads

• Factual ads

• Comparison Ads

• Testimonial ads

These provide useful consumer information. They describe a product's features, benefits and cost.

Factual Ads

These ads make comparisons with competing products. They often spotlight new or improved features.

Comparison Ads

​These use celebrities, sports professionals or experts to endorse products.

Testimonial Ads

These ads are designed to be entertaining.

Attention Getter Ads

These try to be persuasive. They imply that many people use and enjoy the product and you should, too.

Bandwagon Ads

These ads make consumers feel they will be more attractive and popular if they use the product.

Sex-Appeal Ads

Categorize

Options (8)

Organize these advertisements into the right categories

Comparison ad

Bandwagon Ad

Testimonial Ad

Factual Ad

Ads, the internet, and clicks

The internet has become a place where advertising is constant. You likely see advertisements every time you are online whether it is in a youtube video, in the margins of an article, or from an influencer on social media.

Sometimes whole articles will be advertisements without being obvious. This seems like it is just about the Simpsons but it is actually advertising a show by the venu.

Online articles will often have clickable advertisements throughout the article. They may also have clickbait: an image or headline that tries to get you to click on it for advertising pupopses.

The advertiser pays every time someone sees the ad (i.e., views the page with the ad).

Impressions

The advertiser pays every time someone clicks the ad.

Clicks

How do publishers set the price for ad space?

As a consumer, you have the responsibility of evaluating advertisements.

Ask yourself these questions:

• Can you determine the purpose of the ad?

• Is it designed to inform or persuade you?

• Is the information useful to you?

• Does it tell you what you want to know about the product?

Some types of advertising are misleading.

Bait and Switch is one deceptive advertising method used to lure shoppers who are looking for bargains. The advertiser offers a low-priced item as bait to get shoppers in the store. Once shoppers are there, the advertiser tries to switch them to a more expensive item.

The Federal Communication Commission regulates ads aired on TV and radio

FCC

The Federal Trade Commission is responsible for preventing false advertising and deceptive advertising practices.

FTC

Who can help?

Open Ended

How does advertising influence consumer spending?