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Impact Of Internet Advertising On Television Advertising

3400 words (14 pages) Essay in Media

27/04/17 Media Reference this

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Various techniques and methods have been used by advertisers to convey the message their product is meant for and to create a brand image. This paper basically deals with the evolution of advertising, the typesof advertising and concentrating on the two most important types i.e. television and internet advertising.

A comparison has been done of the two major types of advertising and the impact of internet advertising on television advertising is shown.

EVOLUTION OF ADVERTISING:

Earlier the capitalists ruled the market and early advertising was done by simple announcement of goods or services available in the traditional placard style. The government stepped in to counterweight the monopoly created by capitalism, but nature despises a vacuum and eventually the competing force came along. Once they realised that they were dependent on a single economy, the adversarial entities also got into the advertising game in order to attract business by this means rather than debasing the market, consumers and each other.

The mass production of posters and circulars was initiated after the invention of Gutenberg’s printing press in 1450.

The first advertisment was a handbill, printed in Englishand introduced in 1472. The main purpose of this handbill was to propagate about the sale of a prayer book.This followed by the first newspaper ad, offering a prize money for finding 12 stolen horses, 200 years later.Classified ads started appearing frequently in England’s newsletter by the 17th century.These ads just consisted of the description of the product and their price whereas color and illustrations were introduced in the late 19th century.

The commision system i.e. giving a discount of 25% on the ad space in newspapers, was introduced by the first advertising agency which was set up in 1841 by Volney Palmer in Boston. The concept of space selling initiated from here. The first full-service advertising agency was N.W.Ayer & Son, established in 1869.

Pears Soap launched one of the initial highly successful advertising campaigns. Thomas Barratt, Father of modern advertising, introduced a series of advertisements that featured children, nature and beautiful women, in order to promote the company’s product.

The influential inventions that have helped to shape media and in turn advertising are:

Printing press:

Broadcast of information done in the form of words through different newspapers and magazines.

Radio:

With the invention of radio, for the first time, advertising was heard and not just seen.

The sales of products advertised on radio increased since every home in America was in a possession of a radio.

The advertisers started promoting their products with the advent of jingles.

Television:

The invention changed everything. Invented in 1920s, television became popular in 1950s after the decrease in price.

With this invention print and radio had to take a backseat as for the first time a commercial message was broadcasted with sight, sound as well as motion.

Internet:

The invention of internet technology has made the jobs of the advertisers quite easier and more effective as it is a very powerful and fast growing communication medium that provides the consumer with easy and quick access to information and knowledge.

WHAT IS ADVERTISING?

Advertising can be explained as the promotion of ideas, goods or services which results in the promotion of companies. The demand of the product can be increased by promoting about the product through advertising.

Some find advertising to be an unnecessary assault on their senses-typified by either a billboard distorting a beautiful landscape or a loud-mouthed boor hard selling something they don’t need. Others find it an unnecessary economic burden-the one that inflates the price of everything that is being bought.

But advertising actually tends to take many forms apart from the various definitions given to it. It includes communication that evidently attempts to facilitate a transaction, reaction or action.

Social interactions do not necessarily have the variant of advertising in it but industrial democratic societies revolve around it. Word of mouth is not an appropriate way to sell mass produced products-they must be delivered to distant consumers who have knowledge about them. Similarly an industrialized democratic society cannot operate/survive without competition or the ability of varied competitors to offer alternatives. Mass production, then, is nothing but freedom of speech, long distance.

Advertising can be seen as a promoting strategy for a company’s products in order to drive sales and services but also to create a brand identity and to communicate changes to the new product/service to the customers.

Advertising has become an integral part of the corporate world and hence companies invest a considerable amount of revenue on it as their advertising budget.

The various reasons for advertising are:

There are various reasons and media which can be used for advertising. On this basis there are several branches of advertising.

Print Advertising – Newspapers, Brochures ,Magazines, Fliers

It is one of the most popular and common means of advertising. The advertising space is sold according to the position of the advertisement, the area occupied by the advertisement and the readership of the publications.

Print media also offers promotional brochures and fliers for advertising purposes.

Example:

Outdoor Advertising – Billboards, Tradeshows and Events, Kiosks.

It also a very popular medium for advertising attracting the outdoor customers through the use of billboards, kiosks and various events and tradeshows organized by the company.

Example:

Broadcast advertising -Radio, Television and the Internet

Television, radio and the internet make this medium of advertising very popular amongst the various types of customers.

The popularity of television advertisements was seen to grow right after the moment they were introduced. The total cost depends on time of broadcast, the span of the advertisement and the popularity of the television channel on which it is to be broadcasted.

Example:

Vodafone Essar initiated the Zoozoo campaign and won three awards including two gold and one silver at the AME awards ceremony held in Shanghai.

The radio has been decreasing in popularity ever since television and internet advertising have been introduced, but still certain small-scale advertisers prefer them.

Covert Advertising – Advertising in Movies

This is a special type of advertising in which a brand or product is integrated in some entertainment channels like television shows, movies or sports.

There is no commercial specifying about the product or brand in the entertainment but it is evidently or subtly showcased in the entertainment show.

Examples of covert advertising are:

The American Idol judges: Paula, Randy and Simon all sitting at their large desk and drinking out of a large cup that says Coca-Cola.

BMW, Ford and Ashton Martin cars were featured in the recent James Bond movie Casino Royale.

Surrogate Advertising – Advertising Indirectly

It is prominently used in scenarios where advertising a particular product has been banned by the law.

Products like alcohol and cigarettes are prohibited any kind of advertisement in several countries due to the injurious effect of these products on the health of people. These products have to innovatively come up with many other products that might have the same brand name and which will indirectly remind people of the cigarettes or alcohol of the same brand.

Example:

Kingfisher and Fosters are beer brands that use surrogate advertising to advertise their products.

Public Service Advertising – Advertising for Social Causes

It is a technique that uses advertising to convey and promote social messages and issues like global warming, AIDS, poverty, illiteracy, energy conservation, etc.

David Oglivy, one of the founders of marketing and advertising concepts, encouraged the use of advertising for a social cause.

He once quoted:

“Advertising justifies its existence when used in the public interest – it is much too powerful a tool to use solely for commercial purposes.”

Example:

Celebrity Advertising:

The modern day consumer is gradually getting immune to the claims made in various advertisements but there is still a section of advertisers that depend on the celebrities and the popularity that they bring along with them.

Celebrity advertising involves signing up celebrities for various ad campaigns which includes television ads and print ads.

Example:

TELEVISION ADVERTISING

HISTORY:

Broadcasting developed with companies selling radios but gradually the companies realised that many households listened to radios for a significant amount of time everyday.

These companies started a way to explore this medium as a way to convey their message across to the masses.

Radio broadcasting began with radio program broadcast by station WEAF in the New York City on August 28, 1922. It was a 10 minute advertisement for the suburban apartment housing.

By the late 20’s radio advertising had advanced dramatically and was dominating the advertising world. The utilised the creative component to sell one product or another. This paved way for genesis of television advertising that was predicted to begin in a few more decades.

It took United States a long time to recover from the Depression and the World War II which resulted in the gradual hold of the full time telecating until 1948.

As television was totally a new phenomenon i.e. the one offering sound and moving pictures, the advertising sector moved very vigilantly into this domain as they were not sure what method would work best to promote their rpoducts on television to their customers.

After doing extensive research through study and surveys, the advertising agencies concluded that the most effective way, at that moment, to reach their consumers was by creating shows that featured a single product or a line of products from a single company.

This concept gave rise to television shows of the 1950’s like Colgate Comedy Hour, Kraft Television Theater and Coke time.

As the television gained popularity with more and more people watching it, the television networks raised the cost of doing business and this led to the increase of the cost incurred for telecasting a product on television forcing a massive change between the relationship of advertising agencies, the sponsors/clients and television networks.

Sylvester “Pat” Weaver, NBC executive, introduced the “magazine concept” according to which the sponsors would purchase blocks of time in a show instead of sponsoring an entire show.

This idea was resisted by Masison Avenue but after experimentation it was seen that this was an effective method in case of various packaged-goods companies manufacturing an abundance of brand names like Procter and Gamble with products like Jif (peanut butter), Tide (detergent) and Crest (toothpaste).

The magazine concept dominated the television advertising by 1960 and from thereon. In order to reach maximum number of consumers, sponsors spread their messages across the schedule of various television shows.

The evolution of the magazine concept marked the birth of most modern television advertising.

CATEGORIES OF TELEVISION ADVERTISING:

PROS AND CONS OF TELEVISION ADVERTISING:

PROS:

CONS:

A lot of people can be reached on an international, national as well as regional level in a short period of time.

Viewers may not view the commercial if it is not interesting.

Different segments of people can be targeted with ease through one medium at the same time.

The exposure is limited due to a specified amout of airtime and ad clutter and amount of information communicated is less.

Helps to convey the message across with the help of sight, sound and motion and reach different targeted audiences easily.

In order for the consumer to retain the advertisement and act, the exposure should not be restricted to a few numbers. The advertisement needs to reach the viewer minimum 5-7 times or else it will result in nothing but a waste of money.

People are not loyal to one channel. Availability of various channels due to cable leads to various choices and so it becomes difficult for an advertiser to know the exact viewership for a particular program in order to reach maximum number of people.

It is not necessary that a viewer may indulge in watching commercials during a break. Infact he may end up doing lot of other things like going to the bathroom, getting a snack or having a conversation with someone

The relative cost of commercials is higher since it is dominant in the area of influence and the cost depends on creativity, airtime and production.

INTERNET ADVERTISING:

With the advancement and development in technology came the internet, which is considered to be the most efficient channel for communication.

Internet was not considered as a serious option for advertising as the websites were expensive and was mainly funded by government and various academic institutions.

But nowadays internet advertising has become one the most popular medium and the websites that did not support this did not survive.

Internet advertising followed the commencement of the World Wide Web. The World Wide Web was introduced in 1991 by CERN located in Switzerland. It acted as an easily accessible medium for various companies to market their products.

Online advertising experienced a rapid boom and by 2001, top companies like Yahoo!, Microsoft, American Online and Amazon managed to attain a viewership of around 125-442 million viewers.

Originally advertisers had to pay to advertise on the internet, mostly in the manner of a banner at the top of a webpage.But nowadays they have to pay depending on the number of clicks their ad receives.

The initial web ads were banners which were nothing but horizontal adverts located across the top of the webpage. But with the rapid evolution of the internet, the concept of banners also progressed. Now the information of the advertiser could be obtained just by scrolling the mouse over the banner. Some banners even contain short videos that show the product in action.

The advertisers and webmasters found new ways of placing the ads on the internet apart from banners. The ads could now be included within the content of the page, vertical banners and small buttons. Vertical banners became very famous with the advertisers as the viewer can see the ad while scrolling down a long page.

Earlier all these advertisements were encoded by the webmaster and then added to the webpage but nowadays there are third party organisations who do the job of putting the ads into the webpage.

Internet advertising has become a necessity for all kinds of organizations, big or small, and it is a rare situation to not find a marketing department of a large firm that does not include an e-Advertising group.

Although it is the most feasible way to advertise, still internet advertising accounts for just 2% of all the advertising spending in the economy today.This is mostly because of ths fact that internet advertisements are much cheaper than the television, radio or print advertisements.

TYPES OF INTERNET ADVERTISING:

BANNER ADS:

Their main purpose is to do branding so that the consumer can recall it later and the other one is to ensure direct sales by either just clicking on the banner or calling the number given in the banner or just visiting the sales location mentioned.

Example:

UNICAST ADS:

These type of ads pop-up and demonstrate something similar to a miniature television commercial. If the consumer is interested in the ad and wants to learn more about the product, then he can do so by clicking on the ad.

Example:

SIDEBAR ADS:

These are the ads that are placed vertically on the computer screen and are generally known as “skyscraper ads”.

They are larger than the banner ads and are more effective then them since they cannot be scrolled off the screen and so the time for which the viewer is on a particular page; he has to bear the sidebar ad.

Example:

BLOGGING:

Blog is a type of website that used to maintain various comment entries, description of events or products and different materials like videos and graphics.

Example:

POP-UP ADS:

These are ads that pop-up in another window and are more revenue generating then the banner ads.

Example:

SEARCH ENGINE SUBMISSION:

This is done by submitting your site to different search engines and works better with smaller search engines.

SEARCH ENGINE OPTIMIZATION:

This strategy works by getting your website ranked amongst the top websites which makes it a point that someone is likely to visit your website.

TEXT LINKS:

These are links which the viewer can click to visit another site. Owners of two websites can agree to “swap links” meaning that both of them install a link on the other owner’s site.

FLOATING ADS:

These ads pop-up on the screen and then drift anywhere within a timespan of 5-30 seconds.

Example:

IMPACT OF INTERNET ADVERTISING ON TELEVISION ADVERTISING:

The advertising industry has been dominated by the television industry for all these years until recently with the advent of internet which resulted in a social boom as the social networks provided viewers with online movies and video.

A huge amount of time is spent by the viewers on the internet then watching television. Internet helps to satisfy particular interests of people more completely which television fails to do.

The internet provides the viewers with more and a better choice which gives them immediate satisfaction by helping them concentrate on the subject they are looking for at that moment. The monopoly of television over its viewers is no longer prevalent and is gradually decreasing.

The use of DVR’s has also led viewers to switch from television to internet as the DVR owners are now skipping all the television commercials.

Television ads are found to be long, troublesome and easily avoidable whereas there are certain types of internet advertising which cannot be avoided and it must be watched since it is brief and interesting.

The marketers are now accomodating as much as 20% of their advertising budget to internet advertising as internet advertising is more interesting and affects the brand image in a completely different manner as compared to television advertising.

Also, different viewers can view different advertisements on the same webpage while browsing through the internet whereas this option is not available with television advertising.

Advertisers have realised that internet works as a direct communication medium with their customers and that providing them with useful information about their products, helps them build a customer database for their future use.

The major characteristics of internet advertising that distinguishes it from television advertising are:

CONCLUSION:

In order to reap the benefits of information technology, Internet works as a stepping-stone. The future of internet advertising is very bright and advertisers should refocus their ideologies about advertising in relation to the use of internet and the policy pertaining to privatizing the internet service.

The popularity of the internet can be seen by the usage in different regions depicted in the graph below:

As it has been shown above that internet is gradually taking over the advertising market and destroying the monopoly of television advertising, we can easily say that internet advertising can turn out to be the new leader of advertising and entertainment in future.

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