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Advertising class presentation for advertising and marekting professionals.
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AdvertisingAdvertisingMKTMKT00350035
Chapter 2:Chapter 2:Economic, Social & Economic, Social & Regulatory Aspects Regulatory Aspects
of Advertisingof Advertising
Advertising’s Advertising’s ControversiesControversies
Advertising’s Controversy Cause for consumer distrust. People will say ANYTHING to sell stuff. People don’t rely exclusively on
advertisers for information, product comparisons, facts, features & benefits.
Expands/fosters/creates MATERIALISM. US Advertising 2% GDP highest in world. Makes products cost more? Or less??? Reduces competition?
Economic ImpactEconomic Impact
““Abundance”Abundance” PrinciplePrinciple
In an economy that produces more goods and services than can be
consumed, advertising plays 2 crucial roles: 1) Keeps consumers informed of
their alternatives (complete information) and: 2) Allows companies
to compete more effectively for consumer dollars (self-interest.)
Abundance Principle
Social ImpactSocial Impact
PufferyPuffery
From pyffanpyffan, old English word meaning “blow in short bursts” or “to
inflate; make proud or conceited.”
Puffery
“Advertising, by its
very nature, is not complete information. It is biased in favor of
the advertiser.”
Puffery
Subliminal Subliminal AdvertisingAdvertising
Subliminal Advertising Placing hidden messages in ads to
influence consumer behavior at a subliminal (subconscious) level.
Fear that advertisers mess with our heads.
Wilson Bryan Key: to seduce consumers, advertisers intentionally create ads with sexual messages hidden in the illustrations.
Social ImpactSocial Impact
Social Impact Advertising lowers our collective values
by promoting hedonistic, materialists way of life.
Continuous proliferation in ad messaging that bombards consumers.
Per Nielsen, 16-21 minutes of an hour’s TV programming is advertising.
Stereotypes played out through insensitivity to women, minorities, the disabled, elderly, and others.
Social Impact Advertising’s negative impact on
CHILDREN.
Yeah Perhaps Yeah Perhaps But…But…
Don’t consumers Don’t consumers have the FINAL say have the FINAL say
in whether in whether advertising is advertising is successful?successful?
Social Responsibility & Ads Laws control what advertisers say but
there’s a large amount of leeway. Ethics and corp. social responsibility play
a role.
What ETHICALWhat ETHICALOrganizationsOrganizations
Look LikeLook Like
How How NOTNOT to Act to Act
Hall of ShameHall of Shame
Advertiser Responsibilities Participate in civic events. Support local enterprises. Improve local, regional and national
economies. 4A & Ad Council.
Regulatory Regulatory ConsiderationsConsiderations
Regulatory Factors Supreme Court distinction between FREE FREE
speech & “CommercialCommercial” speech. 1980 Supreme Court case: “Central Hudson
Gas…” presented 4 key considerations for advertising:• Does the commercial speech at issue concern a
lawful activity?• Will the restriction of commercial speech serve
the asserted Gov’t interest substantially?• Does the regulation directly advance the Gov’t
interest asserted?• Is the restriction no more than necessary to
further the interest asserted?
Regulatory FactorsThe current Supreme Court is EXTREMELY
PRO-business.
The Regulators FCC. FTC. FDA. USPTO. Library of Congress.
Terms DECEPTION: Any ad that contains a
misrepresentation, omission or any other practice that can mislead a significant # of reasonable consumers to their detriment
UNFAIRNESS: Occurs when a consumer is “unjustifiably injured” or there is a “violation of public policy.”
Self-Regulation Advertising agencies regulate
themselves. Most have “In-house” legal counsel. 4A, Amer. Advertising Federation, Assn.
of National Advertisers and the BBB.
ResourcesResources
Resources
