Tuesday 23rd of April 2024

advertising...

advertising equality

There are changing dynamics in advertising... Here on yourdemocracy.net.au we are well aware of the shifts in the proportion of the dollars available to advertise on various platforms. Having worked in advertising, Gus keeps a look-out for what is happening on the horizon because in some ways advertising and news have replaced some of the daily prayers (which never worked — while advertising does).  

 

Suddenly, like a heat-wave exasperated by global warming, new advertising platforms are fast emerging in step with the new technologies and Apps derivatives. Yes, Google has swallowed a lot of the limited cash allocation for advertising products. No time to waste to buy something new.


Advertising is relatively costly and one needs to recoup the cost by including it in the price of the product advertised. 


But some company will work at a loss on such product, because of :

a) maintaining brand awareness across their range of product

b) a way to maintain shelf space in retail outlet for the range of product

c) as a way to flood the market and to eliminate (or at least reduce) competition

d) because it will generate repeat business in a near distant future.

e) it will entice buyers to change brand (one of the most tricky thing to do).

f) since all companies do this, this can be "cut-throat" business. 

g) because of this, advertising needs to be strategised.


Considering the Aussie economy is not doing so well, companies are not readily prepared to loose cash on advertising wars in which the consumer ends up with cheaper product on the short term, but in the long run the consumer will have to pay more. Meanwhile when an insurance company advertises, others will soon follow to defend their clientele from poaching. No love lost, unless like some banks they collude.


Advertising is generally done in conjunction with PR. Public Relation with Press Release ("news") as well as "advertorial" where a favourable review is written as an "objective" piece. The concept of advertising is first to let you know that something exists but most importantly YOU NEED TO BUY IT.


The idea of advertising on several platforms at once can have benefits but it's more costly and "uncontrollable" in knowing where the sales are coming from, despite a few tricks — such as giving a discount for mentioning the source of where the product was seen or heard of.


For example, advertisers who place an advert in the three major commercial TV stations and their affiliates are guided as to the result of the advertising by the Ratings and the amount of product sold. See Media Watch re Channel Seven troubles with a show about Restaurants...  

 

The advertising dollars are actually distributed by advertising agencies according to ratings. Thus a low rating show will get less cash for the TV station, for advertising the same corn-flakes, than a high rating show. This is why there are ruthless competitions between commercial channels for ratings as well as competing companies on the market. Plus, there is cable TV and online delivery system like Netflix. ALL OF THEM of course hate the ABC — the Australian public (governmental) network of information, which presently is also under the Big Turdy gun from the Turdy government. . 


But the commercial and cable channels tolerate SBS, because SBS gets advertising dollars the size of the smell of an oil rag, except perhaps from Renault, and does not really compete with the crass entertainment programme on the commercial channels (and some at the ABC) — except when Top Gear was on SBS in its early days. 

But the new "entertainment and communication" platforms, especially those that deliver content to mobile phones are increasingly becoming more important. Even if you quickly delete an advertisement from your phone, YOU WOULD HAVE SEEN IT. 

And of course, with your very secret life being an open book to online and phone advertisers, the message you get is not the same as your 54 year-old father. His phone will receive advertising about Holiday Cruises, cheaper insurance for the "oldies" WHILE  you would get adverts for the latest fast car to make you dream of wind in your thinning hair, the irresistible perfume or some new addictive games that will stop you from sleeping at night. 

And the adverts are very sophisticated. They know your browser history, they know your credit rating, they know what you spend your loose cash on, they know your likes and dislikes, because you've pressed those little dinkuses.


There is an attempt by advertiser to target their audience on TV as well. So they will pick the right show for the blokes, for the sheilas and for the kiddies to entice them to buy something. No need to advertise lingerie on a show where the males are rebuilding a car, fixing a tap or are constructing a beer-brewing shed... Sure it might arise a bit more than their attention for 30 seconds seeing half-naked sheilas BUT THEY WON'T BUY. THE PURPOSE OF ADVERTISING IS TO OPEN YOUR WALLET. Advertising is designed to entice buyers to buy their products instead of that from the competition. Selling lingerie on "Maaate" would be a waste of cash.


But in these uncertain times — when an idiotic Turdy (a grocer's apprentice in nappies, a nasty Bart Simpson without the soft redeeming features) is leading Australian to ruins, the Aussie dollar is plummeting like a bird made of two pounds of lead — the disposable income has narrowed somewhat, though people are still spending on credit (more pain down the road). The advertising industry is in trouble when it is in need to advertise itself.


Direct marketing is also in a different boat... In the olden days, your letterbox got full of Reader's Digest literature. Now it's the local restaurants and Pizza networks, plus the passing plumber. Beyond your street letterbox, your email will receive news of promotions from places you already bought something: a car, a lollipop, a train trip in Europe or given cash to a charitable organisation...


Your email is also on a complex mailing list for some products. And of course your telephone, even if it's on the Do-Not-Call register or a silent unlisted number. 

Remember, ten years ago? You filled a COMPETITION where the winner would get a trip around the world? So you gave all the details of your life, including the address of your backyard dunny, just in case you won the bloody thing... He he... Now they call you every second day to buy something. Sorry, they don't sell anything... yet... You sometimes have to answer "questions" for a survey with another prize like a wallet at the end of a fishing line that you can never catch. In those surveys one of the questions will mention the product they are making the survey for... Nifty.


So advertising is getting cleverer and works its butt off for you to spend cash... At most time, the greater proportion of advertisers live in the same bed as newspapers, eat in television troughs and support right-wing governments. Now you know the tricks...

Well, not all the tricks, there are a lot more.  


See for example Channel Ten. Its CEO is an advertising guru, Russell Howcroft, and he wants to maximise the power of this channel by you advertising on this channel exclusively with tailor-made adverts (not a new strategy mind you). He advertises this advertising format on Channel Ten of course. And he will tell you that TV advertising works better than any other media. Now the print media will respond using association with say the gay marriage issue (see image at top). These formats with appeal to your heart may entice you go with the fairness of social advancement, but this won't work on hearts of stone — such as that of Turdy who could bleed far less than a lump of coal.


This Advertising 101 Lesson was brought to you by Gus Leonisky Inc which has been selling cartoons for the modest price of $0.00 since 2005 on this platform. 


Happy consuming...

 

Gus Leonisky


 

ad revenues...

It's the Ad Revenue, Stupid

Public service broadcasting has been around for nearly a hundred years. The real threat to newspaper journalism has clearly taken place in the last two decades. The fall of circulation is one thing, but since the cover price only covered the costs of production, the real problem is a massive fall in advertising revenue.

As I explained three years ago on the Daily Beast$40bn in advertising revenue has left publishing.

Where has it gone? 

A quick look at Google's $40bn a year profit, mainly from ad revenues, should be a good clue. 

The fact is that with the rise of the internet and online, people are disbundling their news. This is taking place in virtually every advanced economy, with or without a public sector broadcaster. 

Local newspapers have lost their small classifieds ad revenues to sites like eBay, Craig's List and Gumtree

Meanwhile, global advertisers are much more likely to use Google or Facebook to target their customers directly than go through declining printed papers, or even news sites, where the metrics of click through and traffic are either minimal or manipulated, and where ad-blocker software can easily bypass all the advertising.

With even the Financial Times selling itself to Nikkei because it has reached an 'inflection point' with its once heralded paywall, the truth is most newspapers have failed to solve the problem of making money in the internet age. 

So the sad and ultimately destructive thing about the newspaper campaign against the BBC is that it will do nothing to help the Telegraph, Times, Mirror, Sun or Mail make money to pay journalists. It will reduce the amount of domestic coverage, and the only beneficiary will be Pay-TV. 

In short, Fleet Street has effectively been forced into a desperate coalition with the Murdoch family.

And just as with the Coalition between Conservative and Liberal Democrats, the remaining newspaper groups are in danger of being eventually be consumed by their bigger competitor.


read more: https://independentaustralia.net/business/business-display/how-rupert-murdoch-used-the-tories-to-stitch-up-the-bbc,8045