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The Interaction Of The Main Subjects Of Advertising Market

Subjects Of Advertising Market

Between the subjects of advertising market a variety of functional relationships are formed – from partnership to competition. It is believed that partnerships are usually established between the advertiser and of advertisements. It is these relationships are the cornerstone of the entire advertising process. Advertiser is the central figure in subjects of advertising market and the consumer of advertising services, therefore, advertisement producer is necessary, on the one hand, as much as possible to consider its consumption needs, and on the other hand, the rational use of the resources available to it.

Competition forces of advertisements to think about the interests of advertisers, as only if there is demand for advertising services it can sell them. The main purpose of advertisements and distributors of advertisements is to make profit through timely and profitable realization of advertising services. To achieve this, the data subjects have to establish and realize their competitive advantages, to produce competitive products, to determine the target group of consumers and advertising services a niche market.

Economic relations between the main actors of the advertising market are coordinated through a pricing mechanism that maintains the balance in the market between production and consumption, supply and demand. Historically, the advertising market have developed some form of financial relationships between the customers of advertising and executing advertising. Among the most common forms of compensation for customers advertising works production are the following …

  • The payment of the fee.
  • The payment of fees.
  • Hourly rates (contract prices).
  • Mixed payment (commission + hourly fee or a commission fee +).
  • The payment of additional fees in the form of bonuses.

Further development of the financial relations between advertisers and advertisement producers shows that in response to the increasing demands of advertisers, advertisement producers start to use different forms of compensation, which depend on the outcome of their work, that is, on what actually is the contribution of the advertisement in the change in the position advertised object on market. It is this trend is beginning to be traced in the relationship between the major advertisers and advertising producer.

Competition In The Subjects Of Advertising Market

On the subjects of advertising market, as well as in other markets, the law of competition, according to which there is to improve the quality of advertising services, a decrease in their prices, as well as the objective process of exclusion from the advertising market of substandard and expensive advertising services.

Advertising services competitiveness expressed by a set of qualitative and cost characteristics that provide its benefits on the advertising market among similar services. The level of competitiveness of advertising services is strongly influenced by market factors such as the degree of satisfaction of the demand for specific advertising services, the capacity of the individual market segments, the presence and number of competitors, pricing policy.

Competitor – person, group, organization, competing to achieve identical objectives: in an effort to have the same resources, benefits, occupy a superior position in the market, produce and sell the same kind of goods or similar goods, increasing their sales by reducing sales rivals. Competitors faced by the organization, it is the producers or sellers of similar products, different individual parameters (parametric competitors), appearance and functions (trade competitors) or trademarks (unbranded competitors), and producing a fundamentally different products with high short-term replacement.

There are various types of competition: fair – unfair; price – non-price; intra – inter-industry; effective; effective. In general, to distinguish between price and non-price methods of competition. Price competition is based on price. Reduced prices for advertising services strengthens the market position of the organization compared to the competition, while the price increase for services reduces its competitiveness. Non-price competition is based on improving the level of service and quality of service. Increasing the quality characteristics of product advertising, the organization receives a significant advantage over its competitors, which could serve as the basis for the purpose of higher prices. If the organization keeps the price of their services from the competition level, the higher quality allows it to occupy a leading position in the market, increase the number of users of its services and the size of the occupied market share.

Price competition is kind of competition, which is based on lowering the price and is based on reducing the cost of services. At the same time, in a civilized market systems do not allow dumping, that is an artificial reduction of prices with the aim of ousting and ruin a competitor and gaining a monopoly position in the market. Price reduction is possible either by reducing costs or by reducing profit. Thus, to achieve the goal, which implies an offer price for its services, lower than the price of similar services to other commercial producers, the organization must either reduce the costs of providing services, or consciously go on a loss of profit to keep for a larger market share. Lowering the price usually forced, economically disadvantageous to the advertisement producer event, as in the end it leads to lower profits and thus may limit the further development of the business.

Non-price competition is kind of competition, which is based on the sale of services of higher quality and reliability, achieved through technical excellence, as well as using all legal means, in addition to lower prices, in order to attract new customers. This competition, in which the advertisement producer improves the quality of services and their conditions of sale (marketing), leaving the price unchanged. In this case, the epicenter of competition between the advertisement producer are such non-price service parameters as their novelty, quality, reliability, prospects, compliance with international standards, ease of maintenance and others. Thus, non-price competition is carried out in different directions: innovation (update) services, improving the technical aspects of services and their adaptability to the needs of consumers.

The State As The Subjects Of Advertising Market

The state acts as such a subject. It is a special subjects of advertising market – it cannot be considered, because of the specificity and magnitude of the impact of its functions, or to primary or secondary to the subjects. State function on the advertising market – the legislative and controlling – the state establishes the “rules of the game” in the market are monitored. The reasons for government intervention in the market process of production and consumption of advertising services have an objective character. The main functions of the state control on the advertising market concerns control of inappropriate, prevention and suppression of monopoly and unfair competition.

The functioning of the modern advertising market is impossible without state regulation – a system of legal, organizational and economic forms and methods of influence on the market processes in order to protect the rights and interests of all market participants. The need for government regulation due to the fact that the natural flow of market processes in some cases gives rise to contradictions of monopoly elements, imbalances and so on. State regulation is aimed at ensuring the legal and economic conditions for the smooth functioning of the market economy, free competition, protection against monopoly and administrative pressure.

Advertising Industry Content Table:

The Definition of Advertising Exposure

The Functions of Advertising

The Advertising Objectives

The Types Of Advertising

The Advertising Industry

The Concept and Basic Information about The Advertising Market

The Development Of The Advertising Market

The Interaction Of The Main Subjects Of Advertising Market

Creative Advertising: Ideas For A Creative Approach To Marketing

The Development Of The Advertising Market

Advertising Market

The advertising market is part of the economic system is functioning in unity with other markets and developing within the framework of the general laws of the market economy, ensuring social demand for advertising services. In 1980 – 1990, it was the active development of the advertising industry almost worldwide. Particularly active this process took place in all over the world.

Currently, the advertising market is a segment of the developed economies of many countries in the world and includes an extensive system of economic, legal, social, cultural and other relationship to emerge and develop between the main actors of the advertising market, advertisement producer, advertisement distributor and consumer advertising.

There is a close economic relationship between them, which is the basis of the advertising process and the functioning of the market as a whole. The state of the advertising market in the framework of a given economy is directly dependent on the general economic situation in the country, so the promotional activity in the market is sometimes seen as a kind of indicator of economic development.

The Basic Tendencies Of Development Of The Advertising Market

1) Globalization: Modern advertising market is an integral part of the global economy, and therefore on it with one hand, the same processes as in the global economy as a whole, on the other hand has its specific phenomena. The overall trend for the world economy – globalization, i.e. the integration of social and economic process, in which the world is transformed into a single market. The process of globalization is due to several factors, such as the activities of multinational companies active on a global scale; increase in the concentration process and monopolization; the accelerated development of global media and global information exchange; interpenetration of different cultures and the introduction of uniform cultural standards, and others.

2) Integration: The activities of transnational and multinational companies in the global market has led to the integration processes, combining its economic actors, deepening their cooperation, the development of relations between them. Economic integration has proved, especially in expanding product market and technological relations, sharing of resources, combining the capital, creating favorable conditions for economic activity, removal of barriers to mutual. These processes have led to the fact that multinational companies and promote their brands have become leaders in the global consumer market with a turnover equivalent to the budgets of many states. Who is the leading global advertisers lead the markets of most countries in the world, and their advertising costs account for a significant part of the national advertising market.

3) Concentration: The high level of competition on the market led to processes of concentration of its subjects through mergers and acquisitions: the advertisers in the face of industrial and commercial enterprises, and distributors of advertisements in the face of the media. As a result of mergers and acquisitions is an increase in economic efficiency, since they are accompanied by a reduction of parallel structures (administrative, research and organizational). Benefits of the merger for the subjects of the advertising market are manifested in the following …

  • Reduced competition and intro enhanced the company’s position in a particular market;
  • Cost reduction is achieved by combining the serving production units with the same function;
  • Increasing the market value of the merging companies;
  • Deepening diversification of production;
  • There is a strengthening of economic power at the expense of attracting new financial mechanisms, access to sources of information, and so on.

4) Network: One of the important features of modern advertising market is the development of a global network of advertising agencies due to the fact that advertising has become transnational, and advertising agencies – international. With the development of globalization and the increasing level of competition more and more important in the advertising market becomes fast and flexible adaptation of the internal structure and external linkages agencies to increase global needs of advertisers.

In order to share the risks, improve efficiency and optimize control systems, new forms of organization are formed, inter-institutional coordination and cooperation both vertically and horizontally, which are called “networks”. One of the most important characteristics of the network is considered to be a mutual agreement of the parties to adhere to common priorities and interests within the framework of the overall development strategy. Network helped reduce multiple parallel administrative, research, and organizational structures, as well as reduce the negative features of the administrative hierarchy of the system, on the one hand, and the fierce market competition – on the other.

For the modern advertising market is characterized by the consolidation of the process – the absorption of large advertising agencies small and the formation of holding companies. This allows the advertising holding company to minimize costs and provide a diverse range of advertising services to large advertisers that are interested in expanding markets for their products or services. Formation of large advertising agencies of their global networks began in the mid XX century. Currently, the global advertising market leading several groups of companies that collect the most profitable part of the advertising business, which allows them to control a significant share of the global advertising market.

These groups were formed by the process of mergers and acquisitions around the world many agencies and companies specializing in the field of strategic communications, public relations, market research, promotion, creativity and related activities. Now almost all of the largest advertising agencies are networked and include global advertising holding companies, while continuing to operate under their own names. With its customers network advertising agencies linked to exclusive contracts of advertising campaigns around the world or in particular regions. The close, long-term cooperation with the customer, established traditions adaptation of advertising campaigns to local conditions and monitoring their effectiveness make the communication network advertising agencies and companies with which they cooperate, strong enough.

5) Diversification: The concept of “diversification” expresses one of the trends of the modern advertising market, is associated with increased activity of market participants, primarily advertising agencies, and the output of their activities beyond the core business. The process of diversification due to increased competition in the market and the increasing complexity of advertising.

Diversification allows the subjects of the advertising market at the same time act in several market segments and insures in case of an unforeseen situation worsening on one of them, helping to respond flexibly to changes in the situation. Diversification in the advertising business has been widely developed in recent decades; it has contributed to increase business agility and integrated to meet the diverse demand for advertising services. Diversification businesses advertising services combined with specialization and combining of different types of promotional activities, allowing them to benefit in maintaining its leading position in the market.

The Development Of The Global Advertising Market

The global advertising market is a sphere of international promotional activities related to the systematic sustainable operations on purchase and sale of advertising services, organization resting on the global networks of advertising agencies. The global advertising market emerged and developed in the process of deepening and expanding economic integration, the development of world economy and international trade, transnational and international companies.

Between the global and the national advertising market, there is a close relationship and interdependence. Now there is a convergence of conditions of world and national advertising market, and consequently the working conditions to them. Under the influence of the global advertising market changing quantitative and qualitative parameters of the particular national markets by their preferential alignment to a higher level: the transition to uniform standards of production and services, alignment of the global and national levels, standardization of forms and methods of work, and so on.

State and prospects of the global advertising market are closely linked to the general economic situation in the world. At the same time, the global market has features that distinguish it as against any national market, as well as their combination. The subjects of the global advertising market does not formally belong specifically to one country, so it is assumed that the global market has a relative autonomy, independence and special conditions of the organization of advertising services. The material basis for the formation and development of the global advertising market – the international division of labor, while national advertising markets are based on the social division of labor within the states. However, despite the relative independence and autonomy of the global advertising market, its development is directly dependent on the state of the economies of developed countries of the world.

Development Of The National Advertising Market

National advertising market is a sphere of advertising activity on the scale of a country. State of the national advertising market is largely due to the specific features of the country’s development. Its formation began in the early 1990s, with the first stage of this process was spontaneous, owing to the lack of experience in the advertising market conditions and the legal framework governing the advertising business. In the mid-1990s, there is an integration of the network advertising agencies. As a result of the integration was a process of selection of leaders, at the same time part of the subjects of the advertising market was becoming more homogeneous.

In the second half of the 2000s resulted in the basic processes of formation of the advertising market : formed legislative framework, the basis of which was the Federal Law “On Advertising”, complete the process of consolidation of major advertising agencies, the level provided in the advertising market has grown considerably, there has been some harmonization of relations operators of the advertising market with customers and the media. There was also a system of self-regulation, including non-profit organizations, capable of regulating lying outside the sphere of legislative regulation of the relations between market participants. Currently, at the initiative of these organizations is developing the general principles of cooperation in industry standards.

In recent years, the ratio of the volume on the main sectors of the advertising market looks the same as in developed countries; with the only difference that the advertising market while lagging far behind in terms of the world level. On this basis, it is possible to identify the still developing, not developed. If we consider such a measure the degree of development of advertising in the country, as the ratio of advertising expenditure to Gross Domestic Product (GDP), it remains more than modest in the economy. Backlog also exists in the level and effectiveness of advertising services offered by agencies. However, the main feature of the national advertising market is a dynamic development due to the relatively favorable economic situation, the flexibility of the industry structure, quick response to market developments, the high rate of turnover of capital and the ever-increasing demand for advertising services.

The advertising market has traditionally be divided into national (where the advertising carried out by a national media) and region. Regional market, in turn, can be divided into capital and other regional markets. As a regional market of advertising are considered regions, territories and country. The basis for the differentiation of the national advertising market is the geographical, economic and administrative division.

The advertising market, as the world is heterogeneous, its different segments has its own peculiarities of development. In recent years, the fastest growing segment of the advertising is Internet advertising or Online Advertising: its growth rate twice the performance of the advertising market as a whole. At the same time, the segment of advertising in the press continues to reduce the dynamic that is already close to zero growth. One of the key factors influencing the state of the national advertising market is government regulation, both at the federal and local levels. This factor largely determines the dynamics of individual advertising segments, in particular segments of outdoor advertising, development of which has a negative impact many legislative restrictions at the local level.

National advertising market remains today on the opaque, so the official data on its volume does not exist. A number of organizations on a periodic basis to release their expert opinions on the development of the situation on the advertising market, based on their data. Data from multiple organizations are published in the form of periodic reports and include an overview of the current state of the national advertising market, estimate the amount of the overall market and individual segments, as well as development forecasts.

Advertising Industry Content Table:

The Definition of Advertising Exposure

The Functions of Advertising

The Advertising Objectives

The Types Of Advertising

The Advertising Industry

The Concept and Basic Information about The Advertising Market

The Development Of The Advertising Market

The Interaction Of The Main Subjects Of Advertising Market

Creative Advertising: Ideas For A Creative Approach To Marketing

The Concept and Basic Information about The Advertising Market

The Advertising Market

The Definition Of “Advertising Market”

In a narrow, economic sense, the advertising market is a place where the supply and demand for advertising services, and where there is the cost. The advertising market is an independent sector of the economy, in which the interaction of subjects of the market – advertisers, advertisement producers, advertisement distributors and consumers of advertising.

In a broad sense, the advertising market is a social institution designed to provide public demand for advertising services. It is part of the social system and evolves with the evolution of the economic, social and cultural processes. Therefore, the concept of “advertising market” can also act as a category representing a broad system of economic, legal, socio-cultural relationship to emerge and develop between the actors of the market.

Terms Of The Advertising Market Functioning

Advertising activity at its core, this is primarily an economic phenomenon, which arises and develops in the framework of the general laws of the market economy. For the functioning of the advertising market requires a number of socio-economic conditions …

  • Economic Freedom of the market subjects advertising – the right to dispose of to create products, set prices, to assign profits and so on.
  • There is a requirement in advertising services and effective demand among the consumers of advertising services.
  • The presence of advertising service providers, creating an offer.
  • The presence of competition between manufacturers of advertising services.
  • A well-developed market infrastructure.
  • The presence of regulations and laws governing the relationship of market entities.
  • Lack of state administrative control over the advertising activity and market participants.

The Main Functions Of The Advertising Market

The advertising market creates and regulates the relations between market participants on an economic basis. Economic relations between the subjects of the market are coordinated through a pricing mechanism that maintains the balance in the market between production and consumption, supply and demand. Acting as an economic regulator, the advertising market has the following main features …

  • Brings together the interests of advertisers and of advertisements on an economic basis, based on the needs of advertising services, expressed in terms of demand.
  • It helps to eliminate imbalances between supply and demand for advertising services and brings them into line with market needs.
  • Inform market participants through the economic indicators of the economic processes taking place in the market.
  • Creates conditions for the development of the advertising business, stimulating its effectiveness, identifies leaders – who knows better market conditions, who have lower costs and higher quality advertising services.
  • It eliminates the deficit in advertising services and expands the possibilities of business entities.

Due to the process of development of both society and relationships associated with various aspects of the subjects of the market, the regulatory functions of the advertising market increasingly complex.

Economic Fundamentals Of The Advertising Market

In the economic system of the advertising market there is in unity with other markets and developing within the framework of the general laws of the market economy. On the advertising market, as well as in other markets, there are phenomena such as supply and demand for advertising services, costs and profits, market conditions, price, pricing, competition and so on.

The economic system of the modern advertising market operates on the principles of self-regulation. It performs the function of self-supply and demand for advertising services. The specific ratio of supply and demand is manifested market conditions, which develops and changes under the influence of numerous factors, including the scope and structure of the advertising market.

For the natural development of the advertising market is characterized by the balance of supply and demand, or a surplus of supply over demand, which should help lower prices for advertising services.

Supply and demand: The basic concepts of a market economy, which describe the behavior of buyers and sellers in the market system.

Demand: A form of expression of the need for advertising services, the intent of potential advertisers to buy advertising services in a certain place at a certain time and to a certain extent. This intention is combined with an advertiser to pay for advertising services.

The proposal: A set of advertising services to the advertising market. The direction and degree of change in the basic indicators of the advertising market, including supply and demand for advertising services, the level of their prices, their sales, indicating the market sellers activity and advertising services customers, form the concept of “advertising market conjuncture.”

Principles Of Classification Of The Advertising Market

The advertising market is a generic term that includes a diverse system of markets. Modern advertising market is a multi-level economic system. The classification is based on the advertising market as a system of different criteria can be laid. The advertising market can be classified as follows …

  • On the territorial scope (global, national, regional, local);
  • Advertising Industry (the market of TV advertising market of radio advertising, market advertising in the press, the market of outdoor advertising, the market of online advertising);
  • On the function and purpose (the market of commercial advertising, the market of political advertising, the market of social advertising );
  • Development dynamics (highly dynamic, banner and the shrinking demand);
  • On the prospects for the development (and highly promising perspective of little promise and unpromising);
  • The level of competition (perfect competition, the market of pure monopoly, monopolistic competition market, oligopoly market);
  • According to the degree of monopolization (completely monopolized market, monopolized market, non-monopolized).

Territorial and Sectoral Classification Of The Advertising Market

The advertising market is localized within the territorial entities, the scope of which are different. The supply and demand for advertising services, forms of supply, terms of advertising agents functioning depend on the scale promotional activities, characteristics of the territory covered by a particular advertising market. Territorial criterion is very important, since testing the effect of certain territorial conditions, the advertising market gains space delineated within which it formed the main socio-economic characteristics.

According to the scale of activity and the territorial coverage of the advertising market can be classified as follows …

  • The global advertising market: Covers promotional activities at the international level, in different countries and regions of the world.
  • National advertising market: Covers the advertising activity on the scale of a single country.
  • Regional advertising market: Covers promotional activities within a specific region.
  • Local advertising market: Covers promotional activities within a specific region, city or town.

According to many experts, the advertising market should be divided into national and region. Regional market, in turn, it is advisable to divide the capital and other regional markets. The basis for the differentiation of the national advertising market is the geographical, economic and administrative division.

The advertising market is also a combination of several sectoral sub-markets, in particular …

  • Market TV advertising.
  • Market radio advertising.
  • Market advertising in the press.
  • The market of Internet advertising.
  • The market of outdoor advertising.
  • The market transit advertising.

Each submarket has a volume level of supply and demand, its pricing principles, its own specifics of advertising services, and other characteristics.

Advertising Types and Services

Advertising services is a paid advertiser process, including the organization of interaction between the customer service and its producer, to bring the process of information about the object of advertising in the form of promotional information, the process of organization and implementation of distribution of the advertising information.

Advertising services is the main object of relations of subjects of the advertising market, acting in the market as a commodity. The concept of “goods” includes not only physical objects but also services. In the commodity, market system is called everything that can satisfy a need and an object of exchange (purchase and sale) in the market.

Advertising services possess all the attributes of the products are created in the process of activity, accompanied by material, labor, financial costs, have use value. Advertising services are provided to individuals or organizations that, as a customer of advertising services, act on the advertising market as advertisers.

Advertising services is a synthesis of the material and non-material production. The intangible part services include full service and creativity (intellectual) of the advertising process. For materiel, include the entire manufacturing sector (production of advertising).

Modern advertising market requires a wide range of proposals and a set of advertising services, both specialized and complex, to meet the different requirements of advertisers. All advertising services can be divided into three types …

  • Services for the design, planning and organization of advertising communication.
  • Services in the production of promotional items.
  • Services in placing advertising in its distribution.

These core services involve a wide range of additional services: market research, consumer behavior, competitors and media, printing and delivery of promotional products, consulting and auditing in the field of advertising, and others. Some of these services are often inseparable from the main.

The specialized include all types of advertising services, if they are provided to the customer-advertiser differentiated that is separate from other services, or in various combinations. It can be accommodation services, the development and execution of advertising products. The service in the field of advertising is the most widespread demand among advertisers in different categories, so this specialized service in the advertising market has the biggest offer.

Our customers advertisement producers offer accommodation services to a variety of media (media) to print (flyers, posters, brochures, catalogs, and so on); in transit (all types of vehicles); stationary (boards, panels, and so on); related to the media (newspapers, magazines, radio and television), as well as many others.

The specialized services include on creative (development of advertising texts, original models, scenarios, strategies and ideas) and performance (production) of advertising products. Integrated advertising services are considered development and implementation of an advertising campaign, which includes all the main types of advertising services.

The Level Of Demand and Supply Level For Advertising Services

In the process of interaction between the subjects of the advertising market generated supply, demand and price of advertising services and advertising space.

From a macroeconomic point of view, the demand covers advertising services in the scale of society. However, demand has always focused on a specific product or service and its level in different markets different. Therefore, in trade there is always a high demand for advertising services – the vast majority of advertising orders received by manufacturers and trading companies, which constantly are in need of large amounts of commercial advertising.

Therefore, from a microeconomic point of view, the demand is considered in relation to a particular market at a particular group of consumers. From this point of view, there are several types of markets in which there is a high demand for advertising services. These include, first of all, the market of consumer goods, which combines the demand for advertising goods and services of mass use.

Demand is a form of collision intentions systemically two market participants and only considered in conjunction with the offer. Therefore, in many respects it depends on the level of demand from the supply level. It is the ability and willingness of the advertisement offer your advertising services on the market for sale at a certain price and a certain quality. At the current advertising market, there is a high demand for high-quality advertising. From this perspective, the level of supply in the national advertising market still lags behind the level of demand, but at the same time increase the level of competition makes commercial producers to improve the quality of advertising services.

On the advertising market, as well as in other markets, the law of competition, according to which there is to improve the quality of advertising services, a decrease in their prices. As a result, the competition takes place with the objective process of displacement of the advertising market of substandard and expensive advertising services. To stay on the modern advertising market, the advertisement must constantly reduce the level of costs, and if they go beyond a certain market rules, its activities become uncompetitive.

Competitiveness of services expressed by a set of qualitative and cost characteristics that provide its benefits on the advertising market among similar services. The level of competitiveness of advertising services is strongly influenced by market factors such as the degree of satisfaction of the demand for specific advertising services, the capacity of the individual market segments, the presence and number of competitors, pricing policy. The greatest competitiveness, as a rule, have new items to the services rendered for the first time, meet the current demand or cause the emergence and development of the new requirements.

Advertising Market Infrastructure

Like other markets, the advertising market has its own infrastructure. As the infrastructure of the advertising market performs a set of different organizations contributing to the functioning of the advertising market as a whole.

The structure of the infrastructure of the advertising market consists of research, marketing, consulting organizations, studying the behavior of consumers, creative and production organization, the result of which is a promotional product, communication networks, media, and other means of dissemination of advertising information, goods and services market as a whole, the impact of ways to consumers and so on.

Their main task is providing the main subjects of the advertising market – especially advertisers and commercial producers, information on the state and prospects of development of the advertising market, its separate segments, to assist in determining the strategy of advertising campaigns, determining the methods of influence on consumer advertising for maximum efficiency.

Advertising Industry Content Table:

The Definition of Advertising Exposure

The Functions of Advertising

The Advertising Objectives

The Types Of Advertising

The Advertising Industry

The Concept and Basic Information about The Advertising Market

The Development Of The Advertising Market

The Interaction Of The Main Subjects Of Advertising Market

Creative Advertising: Ideas For A Creative Approach To Marketing

The Advertising Industry

Advertising Industry

Advertising industry is a sector of the economy, which defines advertising as a product of economic activity and provides a social need for advertising services.

Promotional activities are special kind of communication activity of people who have an economic basis and accompanies humankind throughout its entire history of the development. Historically, advertising emerged and developed in the course of the evolution of society, associated with the transition from subsistence to commodity production, the emergence of the market the market of goods and services means the dissemination of information about the proposed sale goods and services, as well as the consumer market of the advertised goods and services.

The deepening of these processes advertisements gradually turned into one of the main ways of conquering markets. Historically, the long-term advertising concept meant everything connected with the spread of information society of goods and services, using all available resources at the time of communication.

Gradually, the development of advertising has led to the fact that promotional activity was transformed into a special social institution that provides a public demand for advertising services. Production base of the institution is a complex activity that is accepted to define the concept of “advertising industry”.

Socio-economic development, the spread of media and technological innovations have led to the formation of a new community of people aimed at getting commercial benefit, wanting to effectively use the profits, and therefore in need of advertising information about products and services. During the formation of the market environment, develop different sectors of the advertising business that has provided advertising as an independent activity. The totality of these factors influence the emergence and initiated the development of the advertising industry.

The concept of “advertising industry” was formed with the purchase of an advertising nature of mass activity. Researchers see it as a complex inter-branch system, which operates as part of the economic sector and is represented as a field of professional activities related to the production of material and immaterial goods, works or services.

Systematic management of such activities, system interaction advertising market entities to participate in various economic sectors and spheres of business activity, the presence of companies producing promotional items and providing advertising services, suggests that promotional activities acquired industry features.

Modern advertising industry is a well-established subjective structure that defines advertising as a product of economic activity. At the heart of the functioning of the advertising industry is the production of promotional products and advertising services.

Organization of production within the advertising industry, as well as in other sectors of the economy, is the development of specialization and cooperation of enterprises, ensuring the optimum concentration of production through a combination of large, medium and small businesses, the establishment of industry infrastructure, as well as advertising companies service system, which is carried out creative, research, marketing, consulting and other organizations.

The characteristic features of the structural completion of promotional activities, allows us to consider advertising as the industrial system is the development of enterprises of various types of advertising, producing a comprehensive advertising product and / or provide only advertising services, the establishment of numerous professional community, as well as involvement in the process of advertising the various actors of economic cooperation.

As a result, there was a development of the whole system in a modern economy – the advertising industry, which is based on a set of enterprises, which are characterized by the unity of the economic destination of manufactured products, the homogeneity of production and technical base, the specificity of the composition of staff and working conditions. The relations between the between the participants of the industrial community, the state and society based on laws and codes in advertising, taken at both the national and international levels.

Advertising Industry Content Table:

The Definition of Advertising Exposure

The Functions of Advertising

The Advertising Objectives

The Types Of Advertising

The Advertising Industry

The Concept and Basic Information about The Advertising Market

The Development Of The Advertising Market

The Interaction Of The Main Subjects Of Advertising Market

Creative Advertising: Ideas For A Creative Approach To Marketing

The Types Of Advertising

Types Of Advertising

Types of advertising – A division of advertising on some of its varieties by a classification bases, depending on the purpose and objectives of advertising, advertising tools, methods of advertising exposure, the functional purpose of advertising and other criteria.

Advertising is a special kind of communication activity that accompanies humankind throughout its entire history of the development. Historically, the long-term advertising concept meant everything connected with the spread of information society of goods and services, using all available resources at the time of communication.

Gradually, the development of advertising has led to the fact that from it seceded and became independently develop such communication areas as public relations, direct marketing, promotion of goods and services, point of sale advertising, exhibition activities, sponsorship, branding and others. The multiplicity of tasks of advertising generates considerable diversity of its varieties, channels and means of distribution options and create other elements, of which advertising is shaping up as a system.

The variety of forms of advertising communication, presented at today’s advertising market, creates a basis for the classification of advertising. Its depending on the classification of bases are different types of advertising. There are a significant number of criteria, which may be classified in types of advertising: according to industry characteristics, the nature of the target audience, distribution area (geographic coverage), advertising media types, methods of exposure and other parameters.

For practical use of the most suitable seems general classification of types of advertising, which was based on features of the respective type of advertising is the type of advertising medium or a transmission channel of advertising. Such an approach implies that all forms of advertising conventionally divided into two main groups according to media and banner advertising, which, in turn, are divided into separate functional subgroups.

Types Of Advertising: Media advertising

  1. Television advertising, or advertising on TV.
  2. Radio advertising, or advertising on the radio.
  3. Advertising in print media.
  4. Internet advertising, or advertising on the Internet.
  5. Outdoor advertising.
  6. Indoor advertising or interior advertising.
  7. Transit advertising, or advertising on transport.

Types Of Advertising: Banner advertising

  1. Direct advertising.
  2. Print advertising.
  3. Point of sale advertising.
  4. Souvenir advertising.
  5. Promotional activities.

In practical use of the classification by type of advertising often complements the classification by geographical, territorial, regional coverage of advertising. Under this approach, all types of advertising conditionally divided into the following main groups according to the area of advertising.

  1. Local advertising, which applies to the local area.
  2. Regional advertising, which applies to users in one or more regions.
  3. National advertising, which applies to most of the territory, or across the country.
  4. International advertising, which applies to the territory of more than one country.
  5. Global advertising, which applies to most of the world.

Advertising also to distinguish between the nature of the target audience of advertising consumers, i.e. the recipients of advertising messages – individuals or organizations, which are brought to the attention of, or advertising can be increased. In modern advertising practice, the most common classification of the target audience consists of two main groups: individual consumers and organizations. Under this approach, all types of advertising conventionally divided into two main groups.

  1. B2C advertising (Business to Consumer): Business to consumer advertising is the effect of which is directed to the individual or the so-called “end” consumers.
  2. B2B-ads (Business to Business): Business to business advertising is the effect of which is directed to the organization and scope of business.

In addition to the practice-oriented classification, there are the general classification of advertising, which can be called universal. One of the most common universal approaches to the general classification of the advertisement based on its division on the strategic directions, depending on the purpose and objective of advertising. This approach implies that all forms of advertising conventionally divided into two main groups: commercial and non-commercial advertising, which, in turn, are divided into separate functional subgroups.

Commercial advertising:

1) Trading ads:

  • Product ad.
  • Advertising services.

2) Non-commodity advertising:

  • Advertising company.
  • Brand advertising.
  • Person advertising.
  • Advertising territory.
  • Retail advertising.
  • Advertising activity.
  • Event advertising.
  • Advertisement ideas.

A non-commercial advertising:

1) Political advertising.

2) Social advertising.

3) Confessional advertising.

On the basis of this universal classification in this section are presented the characteristics and features of each type of advertising.

Advertising Industry Content Table:

The Definition of Advertising Exposure

The Functions of Advertising

The Advertising Objectives

The Types Of Advertising

The Advertising Industry

The Concept and Basic Information about The Advertising Market

The Development Of The Advertising Market

The Interaction Of The Main Subjects Of Advertising Market

Creative Advertising: Ideas For A Creative Approach To Marketing

The Advertising Objectives

Advertising Objectives

Universal strategic goal of advertising or advertising objectives – cause the target audience of advertising desired advertiser reaction. In terms of advertising communication, it is customary to distinguish two main goals, characteristic for the absolute majority of advertising messages …

  1. Forming the object of advertising awareness.
  2. Formation of the relation to the object of advertising.

The main purpose of the marketing mix of advertising aimed at achieving the main objectives of marketing communication system: formation of demand and sales promotion. In marketing practice is divided into three main groups of tasks that, depending on their goals, can solve the advertisement …

  • Informing: The formation of the target audience of advertising on the site advertising awareness.
  • Persuasion: The formation of the target audience advertising preferences object of advertising, audience belief in the benefits of the advertised offer in comparison with analogues.
  • Reminder: Sustaining in the target audience of advertising awareness about the object of advertising and interest in it.

Advertising objectives or setting target is determined by the situation of advertiser intentions, marketing strategies and decisions, as well as the characteristics and conditions of the target market. As part of a specific campaign, advertising objectives can be defined and by what kind of reaction the target audience wants to reach the advertiser at different stages of the campaign. In each case, the advertiser is using the path and solve the tasks that correspond to the optimum degree of achievement of the set goals.

Below is the typology of the main problems to be solved in the process of advertising communications, in accordance with the goals set by the advertiser.

1) Advertising Message

Informative advertising has the task of drawing attention to the subject of advertising and the formation of the target audience of advertising about it awareness. Under awareness is commonly understood as the ability of the recipient of the advertising message, the target audience to identify (recognize or recall) the advertising objectives in the volume, the minimum and sufficient to complete the purchase.

Informative advertising plays a key role in the initial stage of promotion of the goods or services on the market when its purpose is to create primary demand. The main function of advertising is to inform potential customers about a new offer on the market and provide the customer with relevant information to help them make the right advertiser solution. The shape of this information depends on the target audience’s needs.

Among the main problems to be solved by means of informing advertising, you can specify the following …

  1. Inform consumers about a new product.
  2. Inform consumers about the properties and benefits of the product.
  3. Inform consumers about new ways of using a known product.
  4. Inform consumers about the price change.
  5. Explain to consumers as the product concept.
  6. Describe the services provided to consumers.
  7. Correct misconceptions consumers have about the product.

2) Advertising Believe

Persuasive advertising has the task of forming the target audience advertising preferences object of advertising, consumers believe in the benefits of the advertising offer in comparison with analogues. By preference made to understand the need for a stable recipient of the advertising message, the target audience in the acquisition of the advertising objectives.

Persuasive advertising is the most common form of advertising. It plays a key role on the main stage of the competition in the market when its purpose is to create a sustainable demand. The main function of this advertisement is motivation for action – to stimulate demand for purchasing a particular product or a particular service operation. Its focus is limited, since it is addressed to consumers already aware of the advertised object.

Therefore, it is important to highlight its main strengths and positive qualities in comparison with similar proposals. This type of advertising is based on the desire to convince the consumer to make a choice in favor of one particular product from a set of possible, that usually involves a diverse mix of rational and irrational arguments beliefs that have to be more inspiring force than the arguments of competing advertisers.

Among the main problems to be solved by means of persuasive advertising, you can specify the following …

  1. To persuade consumers to buy a particular product.
  2. Convince consumers to make a purchase immediately.
  3. Convince consumers to choose a new product.
  4. Change consumer’s perception of the product properties.
  5. Change perceptions of consumers about the product.
  6. Change the product image in consumer’s minds.
  7. To generate or modify product positioning in the minds of consumers.
  8. Keep loyal customers.

3) Advertising Reminder

Reminiscent of advertising has the task of maintaining at a target audience of advertising on the site advertising and sustainable interest in their awareness. Its goal is to maintain a sustainable supply. The main function of this advertisement is a reminder of the need to purchase a particular product or a particular service operation and the reinforcement of the requirements in the minds of consumers. Its focus is limited, since it is addressed to consumers, knowledgeable about the advertised object. The set of goods and services purchased by consumers spontaneously, without forethought or by a confluence of certain circumstances.

In this case, some of the important parameters of primarily brand name, as a rule, are fixed by consumers when purchasing or during operation. Since in many cases, consumers do not attach much importance or quickly forget why you purchased a specific product or to use a certain service, reminiscent of posts affected by re-inviting buy a product or use the service again.

Reminiscent of advertising plays a key role in those cases when it is necessary to maintain awareness, retention in the memory of consumers information about the product or service, that where the place of sale, what it costs, what are the features, advantages, and so on.

Among the main problems to be solved by means of reminder advertising, you can specify the following …

  1. To remind consumers of the existence of the product.
  2. To remind consumers that the product they may need in the near future.
  3. To remind consumers about where it is possible to buy the product.
  4. To remind consumers about the properties of the product.
  5. To remind consumers about the benefits of the product.
  6. Maintain a high level of consumer awareness of the product.

Advertising Industry Content Table:

The Definition of Advertising Exposure

The Functions of Advertising

The Advertising Objectives

The Types Of Advertising

The Advertising Industry

The Concept and Basic Information about The Advertising Market

The Development Of The Advertising Market

The Interaction Of The Main Subjects Of Advertising Market

Creative Advertising: Ideas For A Creative Approach To Marketing

The Functions of Advertising

Functions of Advertising

There are four universal functions of advertising that performs any advertising campaign …

1) The economic functions.

2) The social functions.

3) The marketing functions.

4) Communication functions.

Here we are going to describe you about the four advertising functions … but before that we are going to recommend you to read our previous article “The Definition of Advertising Exposure“. If you have already read about the definition then let’s know about the functions of advertising.

1) Economic Functions Of Advertising

Advertising at its core is primarily economic phenomenon, which has a significant impact on the market players and economic agents, affecting both producers and consumers. The functions of advertising as an economic instrument is to promote the market relations of supply and demand, which is produced by providing a consumer audience information models made on the market offers. Advertising activity promotes regulation of supply and demand, thereby helping to achieve harmony of buyers and sellers in the market. Listed below are some of the most important aspects of the economic impact of advertising on market participants.

  1. Advertising creates demand and stimulate sales, and thereby contributes to the circulation of goods and services and, consequently, production. High standard of living in the advanced economies is based on a system of mass production, which, in turn, depends entirely on the mass distribution system. Advertising assigned a key role in ensuring the mass distribution. Thus, advertising contributes to the economic development of the society.
  2. Advertising has a positive effect on the development and manufacture of new types of goods and services, providing effective ways to inform consumers about their appearance. This effect, as a whole, helps to attract investment, the various innovations in all areas of production and consumption, improve the quality of goods and services that empower consumer choice. In some cases, significant costs associated with the development of new products, partially compensated through advertising, as advertising informs consumers about new products and thus creates the conditions for their acquisition.
  3. Advertising provides consumers with information about products or services, and thus helps them to make the best buying decision. In turn, the manufacturers, the derivation of new products or services on the market, using the advertising opportunities, provide themselves with an effective means of communication with consumers.
  4. Advertising assigned a key role in the creation and development of brands.
  5. Advertising has an impact on the level of market competition. In some sectors, mass market goods or services to intensive investment in advertising leads to providing a basis for commitment to customers to a limited number of trademarks and, therefore, represent a significant barrier for competitors.
  6. Advertising is a tendency to expand the production of goods, and thereby promote employment in the manufacturing sector of the economy.
  7. Advertising is one of the main sources of funding for all types of media. Some concepts of media economy are seen as a tool for creating audiences, and then sold to advertisers by providing access to these audiences.

2) Social Functions Of Advertising

The functions of advertising as a social practice is the formation and consolidation in the minds of certain consumer models, values and norms of the society. Despite the fact that the scope of advertising is recognized sufficiently narrow, it has a definite effect on the nature of social relations. Advertising has become so obvious phenomenon in the public life, which in fact transformed into a special social institution and received a single integrated management within the framework of civil law.

Advertising information addressed to consumers, besides the advertising of certain products and services affects the mass public consciousness and public relations in general. Listed below are some of the most important aspects of the social impact of advertising on society.

  1. Advertising contributes to the formation of certain standards of thinking and social behavior of different social groups, and also supports and reinforces existing traditions and the established habits of consumers.
  2. Advertising broadcasts different social groups of the material provided by man society, social and cultural opportunities. It creates the desire to use these features, as well as causes it to act to satisfy this desire and realize the opportunities offered by changes in their lives. As a rule, these actions correspond to the interests of society as a whole. Thus, advertising stimulates consumer behavior, encouraging them to increase their level of well-being, and thereby contributes to a better quality of life. It promotes the formation of the “middle class”, which in any society is the basis of its stability. However, in some cases, the functions of advertising can play a destructive role in forming social conflicts. This occurs, for example, in cases where the advertising spreads in the society ideal consumption patterns in adverse socio-economic conditions, not giving the reason the majority of the members of this society to form an opinion about the availability of these models.
  3. Advertising works on the formation of values and way of life. Advertising has become an integral part of the socio-cultural stratum of society, making it a certain contribution, but in this case, it is not the beginning of forming social values, in contrast to the art, literature and religion.
  4. Advertising promotes conscious consumer behavior, as it helps to compare the features of the proposals, giving the consumer the opportunity to decide on the purchase of already being informed.
  5. Advertisement indirectly contributes to the culture of consumption, as comparing the various goods and services, the consumer is in any case tends to get really the best.
  6. Advertising contributes to the spread of knowledge from various fields of human activity, instilling consumers some practical skills.
  7. Advertising is introducing into the consciousness of people, new knowledge and ideas about new ways to improve their lives. Advertising in some cases, offering consumers new consumption patterns and new social culture, especially in the process of introducing new products and technologies. Thus, it accelerates the implementation of technical and non-technical innovations in various spheres of social practice.
  8. Advertisement indirectly has a significant impact on social development, as it contributes to the development of social relations in the sphere of consumption, which is the backbone of social practice in a consumer society.

A look at advertising as a social phenomenon, the evaluation of its activities are entirely dependent on the country, with its historical and cultural traditions. So, now more than 50 percent of citizens have a negative attitude towards advertising. This figure is comparable with similar indicators in other economically developed countries.

3) The Marketing Functions Of Advertising

Functions of advertising as a marketing tool is creating demand for goods and services and stimulate their sales. Promotional activities in the system of market operations is regarded as a complex of means of non-price sales promotion of products and create demand for it.

Marketing is usually determined as the activities aimed at achieving harmony of buyers and sellers in the market, which is set by the exchange of mutually beneficial relations. Marketing activity is composed of a set of strategic planning and market operations that pursue the ultimate goal of complete customer satisfaction in the products or services. Marketing occurs when people to meet their needs using the exchange – the act of obtaining from anyone desired object c offer anything in return. Exchange – the basic concept of marketing. The basic unit of measurement in the marketing system is a transaction which is a commercial exchange of value between the two by the parties to – the manufacturer of the goods or services and their consumers. The audience of consumers, which the manufacturer of the goods or services directs its marketing efforts, a targeted market. The main structure of marketing elements include product, price, sales agents, as well as promotion, that is, means of communication with consumers. Marketing communication, in turn, is divided into four communication tools:

  1. Advertising;
  2. Sales promotion;
  3. Public relations;
  4. Personal selling.

Thus, advertising is a key element in the promotion of goods or services to market and promote in turn – an element of the marketing mix. Without advertising marketing efforts in an attempt to cause, the desired response from the target rink will not have a logical conclusion, and, consequently, the desired efficiency.

In marketing practice, the main functions of advertising is understood as the motivation of consumers to buy advertised products or services, and the use of advertising is determined by its goals and objectives, depending on the marketing strategies of the advertiser and the conditions of the target market. Listed below are some of the most important functions of advertising in the marketing system.

  1. Product identification, the manufacturer or seller;
  2. Promotion of goods or services;
  3. Branding;
  4. Consumer information;
  5. Forming demand;
  6. Sales promotion;
  7. Marketing regulation.

4) The Communication Functions Of Advertising

The functions of advertising as a communication tool is to inform consumers about goods and services. Advertising is one of the specific forms of mass communication that is impersonal exchange of information. It performs the corresponding communication functions implemented by a well-established practice of creating and broadcasting of marketing information to target audiences – advertising messages. In this case, advertising is not only to inform about goods or services, but at the same time transforms the information in a certain way, which becomes associated in the minds of consumers with factual information about the qualities of the advertised object. Thus, advertising provides consumers with information models advertised objects, and thereby connects advertisers and consumer audience in the market.

The essence of advertising communication is that a person or organization, which we call the advertiser, sends your message the audience, that is, consumers via the media. Advertiser commonly referred to as the sender, and its audience as the recipient of the message. The connection between the sender and the receiver by means of the communication process.

Message in the communication theory called the information received by the addressee. Consequently, some of the information only becomes an advertising message, when it transformed into a semantic-symbolic form, perceived by the audience, and then brought to the audience. In the modern theory of communication, it is accepted to use the base model of the communication process, which consists of the following successive elements:

  1. Communicator – The initiator and a source of communication.
  2. Message – The information source intends to transfer to the recipient and for which the communication.
  3. Encoding – The transformation of information into the sign-symbolic form, i.e. in the message, which is perceived by the recipient.
  4. Channel – The means by which the message is physically transmitted.
  5. Recipient – The destination to which a message is transmitted.
  6. Decoding – Decoding receiver of the message.

Based on this scheme, the following table typology advertising communication agents according to their functional sequence in the communication process.

1) Advertiser: A source of communication. The source of advertising communication is an advertiser who needs to make contact with the consumer audience. Such contact marketing strategy advertiser defines objectives.

2) Advertisement producer: The person performing the encoding information an advertiser in a form ready for distribution in the form of advertising and its perception of the audience. As a rule, the functions of the advertisement carry out special organization – advertising agencies. That advertisement producer converts commercial proposals put forward on the market advertiser, in the sign-symbolic form, perceived by recipients – the consumer audience.

3) Mass communications: The person carrying out the dissemination of advertisements using the means of communication. As a rule, the functions of the advertisement distributor performing channels of mass communication – a set of the same type of print and electronic media, as well as other information carriers, which carry out the delivery embodied in the particular form of advertising messages from source to destination.

4) Re-target advertising: Audience are advertising recipients. As a rule, it acts as re-target is collection of individuals defined by the advertiser as a target audience of advertising that targets advertising message, as well as those who one-way or another in contact with the advertising message. Re-target audience can be either global (cover the population of the countries or regions of the world) and local (to cover the population of individual regions, cities or districts).

Advertising communication system involves the transmission of information in one direction, so after receiving and decoding of the advertising message should re-target audience reaction – acceptance its individual representatives of that content, which wanted to give the advertiser. This reaction is expressed in the change of psychological or behavioral characteristics of an audience. If the advertisement was designed for direct action, such as a purchase, the reaction of the audience expressed in committing or having committed acts of purchase. If advertising has been indirect, aimed at creating a positive image of the object of advertising, the audience reaction is to change its views. The concept of reaction associated with the concept of communication effect: if there is that form of audience response, which is calculated on the device, the advertising communication has been effective; if not, then communication was ineffective.

Advertising Industry Content Table:

The Definition of Advertising Exposure

The Functions of Advertising

The Advertising Objectives

The Types Of Advertising

The Advertising Industry

The Concept and Basic Information about The Advertising Market

The Development Of The Advertising Market

The Interaction Of The Main Subjects Of Advertising Market

Creative Advertising: Ideas For A Creative Approach To Marketing

The Definition of Advertising Exposure

Definition Of Advertising

Definition Of Advertising: The word “advertising” is derived from the Latin word Reclamare, which means, “to approve, shout, shout, cry”, reflecting the existence of the primary advertising communication – oral verbal advertising. This lexeme has survived in a number of Western European languages and through French influence has taken root. The concept Werbung, used in the German language, focuses on the impact of advertising function, as shown by a related root of the word – a well-known verb “to recruit”.

In English, the beginning of the XIX century was widely used verb “Advertise”, which in XV-XVI centuries, as indicated by the Oxford Dictionary, means simply a message about anything, thus emphasizing informational advertising function. Also other languages added to the concept of Publicite (French), Publicitad (Spanish) an indication of the mass advertising destination. In general, the concept of “advertising” as a term that defines a particular type of activity, namely advertising, was finally formed in the second half of the XVIII century.

Advertising is a special kind of communication activity, which has an economic basis and accompanies humankind throughout its entire history of the development. There are three fundamental conditions for the emergence and subsequent development of advertising in the process of the evolution of society …

  1. The emergence of the market of goods and services.
  2. The emergence of a market for information dissemination tools on goods and services offered for sale.
  3. The emergence of the market for consumers of goods and services advertised.

Historically, the concept of advertising for a long time meant everything connected with the dissemination in the society of information about goods and services using all available means of communication at that time.

Gradually, the development of advertising has led to the fact that from it seceded and became independently develop such communication areas as public relations, direct marketing, promotion of goods and services, point of sale advertising, exhibition activities, sponsorship, branding, and others. At the end of XX century, the whole set of communication lines associated with informing and influence consumers, became known as marketing communications system.

Universal Definition Of Advertising

Advertising is a one-way form of impersonal communication, carried out on a paid basis in order to attract attention to the object of advertising.

To date, there are two main approaches to the definition of the term “advertising”. In the narrow sense, the term “advertising” means an announcement in the means of disseminating information. This point of view is most common in practice the concept of “advertising” interpreted in a broader sense. Advertising is also referred to as exhibition events, commercial seminars, prospectuses, catalogs, posters and so on.

Legislative Definition Of Advertising

Advertising activities are regulated by legal acts of the federal legislative bodies. The Federal Law “On Advertising” formulated definition of advertising: “Advertising – information distributed by any means, in any form or by any means, addressed to an indefinite number of persons and aimed at drawing attention to the object of advertising, the establishment or maintenance of interest in promotion on the market”.

The Federal Law “On Advertising” uses the following basic concepts related to the definition of advertising:

  • The object of advertising: Product means its individualization, the manufacturer or seller of the goods, the results of intellectual activity or event (including a sporting event, concert, contest, festival, risk-based games and betting) to draw attention to advertising which is aimed.
  • The product: A product of activity (including work, service) for sale, exchange or other introduction into circulation.
  • Improper advertising: Advertising that does not meet the requirements of the legislation.
  • Advertiser: The manufacturer or seller of the goods or otherwise determine the subject of advertising and (or) the maintenance of a person advertising.
  • Advertisement producer: The person who performs the whole or part of the above information ready for distribution in the form of advertising form.
  • Consumers advertising: The person to draw attention to the subject of advertising, which is, directed advertising.

The Federal Law “On Advertising” regulates relations arising in the process of production, placement and distribution of advertising in the markets of goods and services, and helps to navigate in the legal space of advertising, and, accordingly, distinguish advertising from other information. The law is not comprehensive and, in particular, does not apply to …

  • Political advertising and campaigning;
  • Reference and information and analytical materials that do not have as their main goal the promotion of goods on the market;
  • Messages of public authorities, other state bodies, local self-government bodies;
  • Signboards and pointers that do not contain information of an advertising nature;
  • Announcements of individuals or legal entities that are not related to the performance of entrepreneurial activities;
  • Information about the product, its manufacturer, the importer or exporter, placed on the product or its packaging;
  • Any items of registration of goods placed on the product or its packaging and not related to another product.

Legislative definition of advertising is often criticized in connection with the definition of advertising solely as “information”. It is considered by some experts to be limited, not expressing the specifics of advertising.

In practice, this definition of advertising as “information” generates a whole line of social criticism of advertising, primarily because of the difference in approaches to the definition of “information” and the associated difficulties in identifying specific information messages as advertising messages.

Analysis of the formulation of the legislative definition of advertising shows the following …

  • Legislative definition provides a broad interpretation of advertising, according to which advertising is almost unlimited information in any expression and on any media; In other words, it is information and property objects that have an advertising function.
  • The legislative definition uses the term “any”, “information” without indication of its form, and the term “indefinite” in relation to the addressee of advertising, three times in the format of one sentence, which indicates the possibility of arbitrary interpretation of the legislative formulation.
  • Legislative definition indicates that the advertisement is addressed to an indefinite circle of people, so there is ambiguity about such forms of advertising as targeted advertising messages, where the circle of persons is always certain.

These facts of non-specificity of the legislative definition lead to misunderstanding by market participants of rules of advertising by law. Unclear definition of the object, in relation to which introduced legislation, can provoke disturbances and difficulty in qualifying violations in the advertising market. This, in turn, can lead to increased administrative methods of influence in the market, which negatively affects the development of civil society institutions.

Other Definitions Of Advertising

To date, there are many definitions of the concept of “advertising.” This shows, on the one hand, the complexity of the phenomenon itself, on the other hand is the existence of different points of view on its system-forming characteristics.

In the practice to date has developed three main groups of approaches to the definition of advertising: news, activity and as well as combining group, which may be called integral.

The first group of approaches to the definition of the concept of “advertising” identifies advertising, primarily as information – a message that represents the audience some object, phenomenon, process, and the like. It is this viewpoint that is reflected in the Federal Law “On Advertising”.

The second group of approaches to the definition of the concept of “advertising” is fundamentally different from the first – advertising is not limited to “information” and “communication”, and is understood in these definitions as advertising activities, that is, to create such “messages” and bringing them to recipients.

The concept of “advertising” is thus equated with the concept of “advertising activity” and is presented as a system of activities. This is the position held by the bulk of the advertising corporate community in the person of its professional associations. It believes that advertising is not “advertising information”, but a kind of activity. Accordingly, and legislative norms should be directed to regulate “activities”, and not “messages”.

Definition Of Advertising

Therefore, the inevitable appearance of a third, integral point of view on the definition of the concept of “advertising”, according to which this phenomenon includes both advertising and advertising information. As part of the integrated approach, the definition of advertising is formulated as follows: “Advertising is a type of activity or produced in its resulting information products”.

Analysis of the wording of this definition of advertising shows the following. A communication in communication theory is information received by the addressee. Consequently, some information only becomes an advertising message when it is prepared in a special way and brought to the audience.

Until that moment, the message can be called the result of a professional activity of a specialist, but this message will only be advertised when it is passed on to the audience through mass communication channels. The transfer of an advertising message is an activity.

Consequently, in advertising, communication and activities are inextricably linked, they cannot, in fact, exist without each other. Therefore, advertising can be viewed as a systemic unity of the two components – advertising information and advertising activities.

Advertising, therefore, is identified as a field of social practice, with inherent relationships, processes, results. The fact that the legal regulation of both advertising messages and advertising activities can serve as a confirmation of the validity of this approach.

Signs Of Advertising

Regardless of the advertising definitions in question, each of them has a number of fundamental elements that determine the main content of advertising and allow you to clearly identify advertising messages and advertising activities, separate them from other activities and other messages. These include the following …

  • The cost of creating and sending a message: Advertising is a paid form of communication, as the advertising message is generated and transmitted to the audience for value basis, i.e. for a fee from the advertiser. The advertiser pays for both the development and production of the advertising message itself, as well as its placement on the advertising communication channel. Commonly used expression “free advertising” is figurative in nature and implies that advertising is paid not by the one whose offer is advertised, but by the other party. Therefore, in some cases, advertising either is free of charge on the mass communication channel, however it is always connected with the requirement of legislation or with the charity work of the mass communication channel itself. In this case, it is more correct to talk about the ethical position of the rejection of profit, since the channel pays for advertising by the fact that it loses profit from the commercial use of the advertising space or time.
  • The source of funding for advertising is clearly indicated: Advertising is carried out by a non-anonymous advertiser – the source of the advertising message, identified by the audience. Traditionally it is assumed that the source of advertising communication is the one who pays for it. The advertiser pays for advertising in order to convince people of the benefits of their proposal. At the same time, they wants the advertising audience to clearly identify the advertised object of the advertiser, and sometimes, both at once.
  • The advertising message is not personalized: Advertising communication is a form of mass communication, that is, impersonal information exchange. Thus, advertising information is not intended for a single individual or legal entity, but for a group of such persons. A group of natural or legal persons, which is intended advertising message, is defined as the target audience advertising. Audiences of advertising can be both global (to cover the population of countries or regions of the world), and local (to cover the population of individual regions, cities or regions).
  • The presentation of the advertised offer is of an impersonal nature: Advertising information is provided to representatives of the audience of advertising not personally by the advertiser, and through intermediaries, which serve most of the channels of mass communication.
  • Advertising information has a convincing character: The advertising message is aimed at attracting attention to the object of advertising and contains an element of persuasion in the advantages of this proposal in comparison with analogues. Advertising, limited representation “neutral” and does not contain information related component in order to convince the audience of advertising to take certain actions with respect to the object of advertising is not advertising in the usual sense.

This review under the term “advertising” considers a phenomenon that satisfies the five above mentioned characteristics. The same signs are used to identify this phenomenon. If the activity of an organization produces products that meet these requirements, it is called advertising products.

According to these characteristics it is also possible to determine whether an enterprise belongs to the sphere of advertising. In order to determine as the subject of the advertising market, a company must be of advertisements, i.e. to carry out the production of advertising materials, or of advertisements, i.e. to carry out distribution of the advertising information.

Advertising Industry Content Table:

The Definition of Advertising Exposure

The Functions of Advertising

The Advertising Objectives

The Types Of Advertising

The Advertising Industry

The Concept and Basic Information about The Advertising Market

The Development Of The Advertising Market

The Interaction Of The Main Subjects Of Advertising Market

Creative Advertising: Ideas For A Creative Approach To Marketing

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