Chapter 8 From Print and Broadcast Advertising to Social and Mobile Media REVIEW AND DISCUSSION QUESTIONS 8.1. Strategically speaking, why is impression-based targeting better than segment-based targeting? Technology enables impression-based targeting, through which advertisers specify the criteria describing the persons they wish to reach online and then bid in real time for the opportunities to reach such people. A person reached is termed an “eyeball” or “impression.” Impression-based targeting is implemented through real-time bidding, which is a technique that allows advertisers to reach the right user, in the right place, at the right time, and also sets the price that advertisers pay for each “eyeball” or “impression” (i.e., for each person reached). Before the arrival of the new targeting technologies, since the emergence of traditional advertising media (i.e., newspapers, magazines, radio, and television), TV networks, magazines, and newspapers have sold advertising space by offering marketers the opportunity to reach audiences (or segments) whose demographics and psychographics (lifestyles) matched those of the marketers’ target markets. Segment-based targeting occurs when advertisers prenegotiate prices for advertising space in media (e.g., magazines or TV shows) whose audiences largely (but never completely) match the profiles of the consumers the advertisers wish to target. However, the audiences marketers reached via these media are larger and more diverse than their target markets and nearly always include many people who have no interest in the products advertised. Traditional media is one-way, so messages are the same for all receivers, feedback is delayed and of limited use. 8.2. Describe Google’s role in advertising online. Google is the largest provider of the data and targeting tools that advertisers need for impression-based targeting, as well as the major supplier of real-time bidding to advertisers seeking impressions among consumers who fit certain criteria. Google’s most prominent use is as a search engine. After an online user types a query, two areas appear on the screen. The “organic results” are the links directing users to sites and resources that are applicable to their Google searches. The “sponsored space”—typically appearing on the right side or the top—consists of advertising banners that Google has sold to advertisers or “sponsors.” Each time a potential customer clicks on a sponsored banner ad, the advertiser pays Google a fee. The fees can range from a few cents for terms that very few (if any) users are likely to enter in the search engine, to several dollars (and up) for words that many users are likely to type in; the latter are what bring up ads sponsored by large marketers. The advertisers’ costs-per-click also vary according to whether or not the same user has clicked on the ad previously. Another source of revenue for Google is graphical and video ads posted on YouTube, which is owned by Google, and on thousands of non-Google sites. Google also runs a shopping site where retailers pay for being displayed in Google’s product-search engine. 8.3. List and describe four advantages of social media over traditional media. Consumers provide information about themselves and their social contacts that marketers can use to customize their communications with the consumers. Marketers can listen to social conversations and use the information gathered to generate more buzz for their products within social networks. Marketers can test multiple messages and approaches and get immediate feedback that helps them make decisions. Social media can be integrated into advertising campaigns and can help small and unknown brands with limited budgets widen their exposure. Social media simultaneously reaches several audiences (consumers, retailers, partners). Social media can be used to strengthen communications with consumers. Finally, social media data can be used to develop new niches. 8.4. Compare the advantages and disadvantages of the following measurement techniques: Google Analytics, media exposure effects, and Nielsen’s cross-platform measures. Google Analytics enables marketers to measure the effectiveness of their websites and promotional efforts and, to an extent, predict the impact of planned advertising campaigns on customers’ behavior. In addition, Google Analytics’ e-commerce service tracks sales activity and performance and provides marketers with their sites’ transactions, revenue, and many other commerce-related metrics. Marketers can also identify pages, links, and promotional efforts that perform poorly and do not achieve the sites’ objectives (e.g., “converting” visitors to users, generating repeat visits, and getting users to register). There are sometimes discrepancies in audience measures because of uncertainties about how to measure Internet use in the workplace and because consumers delete the cookies (small identifying files placed on a computer’s hard drive) that are essential in counting website visits. Media exposure effects measure how many consumers were exposed to the message and their characteristics. Consumer research companies assess how many consumers received the message and construct a profile of those who received it. Nielsen measures media exposure on television using panels. However, disputes regarding the results of audience measurements are common. For years advertisers argued that Nielsen’s panels did not adequately represent minorities, and media companies claimed that the company failed to properly measure viewers who use time-shifting devices. 8.5. List and describe two advantages and two disadvantages of mobile advertising. Many advertisers use banner ads on mobile devices’ screens because such ads are cheap, although most recognize that consumers find banners annoying. Marketers are also developing technologies that enable advertisers to link what consumers do on their computers with their cell phones. Advantages: It can identify users’ geographic locations and deliver contextually relevant offers. It can provide consumers with access to online deals in stores and the ability to pay for deals in stores while en route. Disadvantages: Smartphones’ screens are small; impossible to use cookies with apps the way it is with browsers (so marketers cannot track actions and optimize their ads the way they do in response to customers’ computer surfing); most consumers are reluctant to receive ads when using their cell phones. 8.6. Why has advertising on network TV and in magazines been steadily declining? Companies are shifting their budgets to other media due to changing media consumption patterns and improved measurement capabilities. Magazine ads require longer lead time for production, and numerous magazines do not guarantee ad placement in a particular position within the magazine. Feedback from magazine ads is often delayed and is measured via Starch scores. Advertising rates are determined by cost of page, which is a function of the magazines’ circulation—and top magazines charge very high rates. Both the production and broadcast of television ads are very expensive and, with more and more forms of communications emerging, some major TV advertisers are changing course. Most network TV programs were designed to reach people between 18 and 49 years of age, of whom about 25.1 million watched TV daily—but this key audience has been declining in recent years. Furthermore, the lure of YouTube and Netflix has been causing viewers to disconnect their cable-TV service, and the numbers of pay-TV subscribers have been steadily declining as well. In addition, TV networks must now allow online streaming in real time of programs that are scheduled to be shown later on, during prime viewing time, such as Olympic Games held in other time zones, although such streaming can cannibalize the scheduled broadcast and reduce exposure to paid commercials. HANDS-ON ASSIGNMENTS 8.7. Take pictures of two illustrations of out-of-home media, present them in class, and describe why they are effective or not. Here are two examples of out-of-home media along with descriptions of why they are effective: 1. Example 1: Coca-Cola Billboard • Image Description: A large billboard featuring a refreshing image of an ice-cold Coca-Cola bottle with condensation, accompanied by the slogan "Taste the Feeling." • Effectiveness: This billboard is effective for several reasons. Firstly, the image of the cold bottle of Coca-Cola is visually appealing and likely to grab attention. The condensation on the bottle conveys a sense of refreshment, which is a key selling point for soft drinks. Additionally, the slogan "Taste the Feeling" is simple yet evocative, inviting consumers to associate Coca-Cola with positive emotions and experiences. Overall, this billboard effectively conveys the brand's message and is likely to resonate with its target audience. 2. Example 2: Nike Poster • Image Description: A poster featuring a close-up image of an athlete wearing Nike running shoes, mid-stride, with the tagline "Just Do It." • Effectiveness: This poster is effective due to its simplicity and powerful message. The image of the athlete in motion conveys a sense of energy, athleticism, and determination, which are all qualities associated with the Nike brand. The tagline "Just Do It" is iconic and serves as a motivational call to action, encouraging viewers to push beyond their limits and pursue their goals. The combination of the striking image and inspiring message makes this poster highly effective in capturing attention and resonating with Nike's target audience. These examples illustrate how effective out-of-home media can use compelling visuals and messages to effectively communicate with consumers and create a lasting impact. Instructor’s Discussion Examples will vary, but may include billboards, captive advertising screens, digital billboards, or other posters/media on enclosures/ambient media. 8.8. List and describe five product placements that you have seen in TV shows and movies. Here are five examples of product placements in TV shows and movies: 1. "Stranger Things" - Eggo Waffles: In the popular TV series "Stranger Things," the character Eleven is often seen eating Eggo waffles. This became a memorable and recurring product placement throughout the series, as Eleven's love for Eggo waffles became a character trait. 2. "Transformers" - General Motors (GM): The "Transformers" movie franchise featured extensive product placements for General Motors vehicles, particularly Chevrolet. Many of the Autobots were portrayed as GM vehicles, such as Bumblebee being a yellow Chevrolet Camaro. 3. "James Bond" Films - Aston Martin: The James Bond films are known for their extensive use of product placements, particularly with luxury brands. One of the most iconic placements is Aston Martin cars, which have been featured in multiple Bond films, often showcasing the latest models. 4. "The Big Bang Theory" - Microsoft Surface: In the TV show "The Big Bang Theory," characters are often seen using Microsoft Surface tablets and laptops. The devices are prominently displayed, showcasing their features and capabilities. 5. "Jurassic World" - Mercedes-Benz G-Class: In the movie "Jurassic World," the Mercedes-Benz G-Class is featured prominently as the vehicle of choice for park staff. The rugged and luxurious nature of the G-Class fit well with the adventurous theme of the movie. These examples demonstrate how product placements can be seamlessly integrated into TV shows and movies, often becoming memorable elements of the storytelling. Instructor’s Discussion This exercise is designed to get students to think about branded entertainment and its prevalence. Students may find that it is extremely easy to identify product placements, and may start paying more attention to the product placements they see in movies and on television on an ongoing basis. You can ask students to journal these product placements and report back about their observations at the end of the semester. 8.9. Join one of the apps in Figure 8.4 and categorize the permission you have been asked for according to the four permissions categories discussed in this chapter. 1. Identity: If the app asks for permission to access your contacts or accounts, this would fall under the identity category. This permission allows the app to identify you or connect with your social circle. 2. Location: Permissions related to accessing your device's location would fall under this category. This allows the app to determine your geographical location for various purposes such as providing location-based services or targeted advertising. 3. Sensors: If the app requests permission to access your device's sensors such as the camera, microphone, or accelerometer, this would fall under the sensors category. These permissions allow the app to gather data from your device's sensors for specific functions or features. 4. Data: Permissions related to accessing or modifying your device's data, such as files or media, would fall under this category. This allows the app to read, write, or delete data on your device. Based on these categories, you can analyze the permissions requested by the app you join and categorize them accordingly. Instructor’s Discussion The four types of permissions include 1. Basic permissions include name, identification, gender, photo, personal demographics, and list of friends. 2. User permissions are requests to allow the installation of the applications on the users’ computers. 3. Friends permissions include requests to share information the users have about friends using the same app. 4. Sensitive information requests include questions about users’ highly personal aspects, such as political or religious affiliation and even sexual orientation. S.T.A.R. Projects Ethical Issues in Consumer Behavior S.T.A.R. Project #1 L’Oréal matches Revlon in almost all competitive categories. Examine the L’Oréal Web site at www.loreal.com for more information on this cosmetic industry giant. Having done this, consider the following imaginary scenario: as a marketing manager for Revlon, you have just discovered that L’Oréal is trying to persuade young teenage girls to switch from Revlon products to those of L’Oréal. L’Oréal ads show two teen girls discussing their difficulties in finding dates to a prom. One girl having seen that her friend has just applied Revlon nail polish and lipstick, says “Maybe the reason you can’t get a date is that you are using your mother’s nail polish and lipstick—it’s just too old-fashioned!” L’Oreal continues this theme through their social media advertising, including an app where they encourage teenage girls to “update their look” and use their information to share their made over pictures with friends and to make ongoing product recommendations. Do you see any ethical problems with the approach used by L’Oréal? Explain. There are ethical problems with the approach used by L’Oréal in this scenario. Here are a few key issues: 1. Exploitation of Insecurities: L’Oréal's ad implies that using Revlon products makes someone old-fashioned and contributes to their difficulty in finding a date. This approach preys on the insecurities of teenage girls, suggesting that their appearance is directly linked to their social success. 2. Deceptive Advertising: The ad implies that using L’Oréal products will make teenage girls more attractive and successful in social situations, which is a form of deceptive advertising. It creates unrealistic expectations about the benefits of their products and exploits young girls' desire for acceptance and validation. 3. Targeting Vulnerable Audience: Teenage girls are a vulnerable audience, as they are still developing their self-image and are highly influenced by societal standards of beauty. Targeting them with ads that suggest their worth is tied to their appearance can have negative psychological effects and contribute to body image issues. 4. Privacy Concerns: The use of an app to encourage girls to share their made-over pictures with friends and receive ongoing product recommendations raises privacy concerns. The app may collect and use personal information without adequate consent or safeguards, which could lead to unintended consequences for the users. Overall, the approach used by L’Oréal in this scenario raises ethical concerns due to its potential to harm the self-esteem and well-being of teenage girls, as well as its deceptive and exploitative nature. Instructor’s Discussion First, the students will find a wealth of consumer information on the L’Oréal Web site. This information can be useful for constructing other projects or exercises. In the imaginary scenario, L’Oréal has commented no sin, however, labeling a competitive product as old-fashioned may not be fair (additionally, it might offend older users). Students also may question the use of information gathered from teenagers by the app. S.T.A.R. Project #2 Two of the best advertising effectiveness research agencies are Nielsen (see www.acnielsen.com) and MediaMark (see www.mediamark.com). Each of these organizations has their own approach to analyzing the communication effectiveness of advertising. Go to both of the Web sites, review the material that you find, and write a brief summary of the services provided by the two organizations. Next, pick an area of consumer or advertising research that interests you. See which of the organizations provides the best information to research your chosen subject. Comment on what you found. 1. Nielsen: Nielsen is known for its comprehensive approach to advertising effectiveness research. They offer services such as Nielsen Media Impact, which helps advertisers understand the impact of their advertising across various media channels. Nielsen also provides tools for measuring ad resonance and memorability, as well as audience measurement services for TV, radio, and digital media. 2. MediaMark: MediaMark specializes in providing insights into consumer behavior and media consumption habits. They offer services such as audience segmentation, media planning tools, and advertising effectiveness studies. MediaMark's research helps advertisers identify target audiences, understand their preferences, and optimize media strategies to reach them effectively. For your chosen area of consumer or advertising research, it would depend on the specific nature of the research question and the type of data you need. If you're looking for information on media consumption habits or audience demographics, MediaMark might provide more relevant data. If you're interested in understanding the impact of advertising on consumer behavior or brand perception, Nielsen's tools and services might be more suitable. Ultimately, the choice between Nielsen and MediaMark would depend on the specific research needs and the type of data and insights you're looking for in your chosen area of research. Instructor’s Discussion These two Web sites provide a wealth of information to the students. If the students are creative and probe the Web site services to their fullest, they will find that a great amount of research information or links to information that is available (even for the non-client). These Web sites can be used for future research. Small Group Project S.T.A.R. Project #3 Your group’s assignment is to pick a product category such as personal computers, clothing, cars, or recreation. Using your chosen category, chart, outline, or diagram how consumers use the Internet to search for information about the product. Conduct a search for the product category. Then, keep track of the advertisements you see on the same computer that are related to your search. Note how well the ads you see related to the original search. Select a group “reporter” to summarize your group’s findings for the entire class. For this assignment, your group can choose a product category such as personal computers, clothing, cars, or recreation. Then, create a chart, outline, or diagram that outlines how consumers use the Internet to search for information about the chosen product category. Conduct a search for the product category and keep track of the advertisements you see on the same computer that are related to your search. Note how well the ads you see relate to the original search. Here's a general outline of how you could approach this assignment: 1. Product Category: Choose one of the suggested categories (personal computers, clothing, cars, or recreation). 2. Consumer Internet Search Behavior: • Outline the steps consumers typically take when searching for information about the product category online. This could include using search engines, visiting brand websites, reading reviews, watching videos, etc. 3. Advertisement Tracking: • Conduct a search for the chosen product category. • Keep track of the advertisements you see on the same computer that are related to your search. • Note how well these ads relate to the original search and whether they seem targeted or relevant to your interests. 4. Summary of Findings: • Select a group reporter to summarize your group's findings for the entire class. • Present your chart, outline, or diagram outlining consumer internet search behavior and the effectiveness of related advertisements. Feel free to ask if you need further guidance or assistance with this assignment! Instructor’s Discussion This assignment is a good summary for the group experience and the basic substance of the course and text. Add product categories for a large class to ensure that every group has a separate discussion area. Use this as a basis for discussion on how companies track information about searches and website visits to customize communications. Solution Manual for Consumer Behaviour Leon G. Schiffman, Leslie Lozor Konuk, S. Ramesh Kumar 9789332555099, 9780134734828
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