The Psychology of Advertising
Chapter 1: Setting the stage
Advertising – any form of paid communication by an identified sponsor aimed to inform and/or persuade
target audiences about an organization, product, service or idea.
The origins of modern day advertising
Without advertising, we would not be aware that certain products or services exist, and consumption would
be wane. This would directly slow down the production. Thus, whereas advertising cannot be said to create
consumer needs, it is capable of channelling those needs by reshaping them into wants for specific products
and services that manufacturers can supply and that promise to satisfy those needs.
Brand – the label with which to designate an individual product and differentiate it from competitors.
Brands are of growing importance to costumers.
Advertising practitioners were quick to assign unique labels to products and associate them with unique
advantages not shared by competitors. This resulted in the Unique Selling Proposition (USP) – a summary
statement used to meaningfully differentiate the brand from the competition.
Newspapers and magazines are among the main advertising media, especially since their development in
the eighteenth and nineteenth century accelerated. Interestingly, despite the use of television and internet,
newspapers continue to be a popular advertising medium. The internet appears to be a complementary
rather than a substitute medium. It coexists next to more traditional mass media, rather than eliminate
them.
Advertising has grown to be a flourishing business with spending loads of money on advertising.
Informational or argument-based appeal – a more hard-sell approach in which ads inform consumers
about what is for sale, at what price and where one could buy it.
Emotional or affect-based appeal – a more soft-sell approach, aiming to influence the consumer’s feelings
and emotions rather than his thoughts.
Both appeals have coexisted through the ages.
The functions of advertising
Sponsorship – Also a variant of advertising, most sports depend largely on commercial sponsorship.
If there were no advertisements, our knowledge about ‘what’s out there’ would be impaired. Advertising
does have its place in society, at an aggregate as well at an individual level.
Advertising serves several functions. First, advertising facilitates competition among firms. Due to
advertising they can communicate with consumers, fast and efficiently. Thereby, it plays a role in the
competition between firms for consumer attention, consumer preferences, consumer choice and
consumer financial resources. Second, advertising is the prime, with which companies have to inform
consumers about new and existing products. Third, advertising is a key source of funding for major mass
media. Fourth, advertising market produces loads of jobs.
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Chapter 1: Setting the stage
Advertising – any form of paid communication by an identified sponsor aimed to inform and/or persuade
target audiences about an organization, product, service or idea.
The origins of modern day advertising
Without advertising, we would not be aware that certain products or services exist, and consumption would
be wane. This would directly slow down the production. Thus, whereas advertising cannot be said to create
consumer needs, it is capable of channelling those needs by reshaping them into wants for specific products
and services that manufacturers can supply and that promise to satisfy those needs.
Brand – the label with which to designate an individual product and differentiate it from competitors.
Brands are of growing importance to costumers.
Advertising practitioners were quick to assign unique labels to products and associate them with unique
advantages not shared by competitors. This resulted in the Unique Selling Proposition (USP) – a summary
statement used to meaningfully differentiate the brand from the competition.
Newspapers and magazines are among the main advertising media, especially since their development in
the eighteenth and nineteenth century accelerated. Interestingly, despite the use of television and internet,
newspapers continue to be a popular advertising medium. The internet appears to be a complementary
rather than a substitute medium. It coexists next to more traditional mass media, rather than eliminate
them.
Advertising has grown to be a flourishing business with spending loads of money on advertising.
Informational or argument-based appeal – a more hard-sell approach in which ads inform consumers
about what is for sale, at what price and where one could buy it.
Emotional or affect-based appeal – a more soft-sell approach, aiming to influence the consumer’s feelings
and emotions rather than his thoughts.
Both appeals have coexisted through the ages.
The functions of advertising
Sponsorship – Also a variant of advertising, most sports depend largely on commercial sponsorship.
If there were no advertisements, our knowledge about ‘what’s out there’ would be impaired. Advertising
does have its place in society, at an aggregate as well at an individual level.
Advertising serves several functions. First, advertising facilitates competition among firms. Due to
advertising they can communicate with consumers, fast and efficiently. Thereby, it plays a role in the
competition between firms for consumer attention, consumer preferences, consumer choice and
consumer financial resources. Second, advertising is the prime, with which companies have to inform
consumers about new and existing products. Third, advertising is a key source of funding for major mass
media. Fourth, advertising market produces loads of jobs.
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