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INTRODUCTION TO ADVERTISING
Advertising is a relatively new industry, as it only became a relatively established industry during the 19th
Century (Holland, 2017). As industrial developments took place, and with the advent of the digital age, the
landscape of advertising changed as well. This handout will give further information regarding the industry of
advertising and the general principles applied in the practice of the field.
DEFINITION
Advertising
Advertising is a paid, nonpersonal persuasive communication of an organization and its products or services
that are transmitted to a target audience through mass media such as television, radio, newspapers,
magazines, new media, direct mail, outdoor displays, or mass-transit vehicles (Johnson & Lee, 2005) (Mitchell,
Moriarty, & Wells, 2012).
Advertising plays a significant role in marketing. Essentially, it enables the process of marketing. This will be
discussed further in the following topics in this course.

Classifications of Advertising
1. Product Advertising – the majority of advertising revolves around exposure for new products and services.
An example would be the advertisements created by Surf whenever they have new detergent products or
advertisements of Nestle Bear Brand for new variant products.
2. Corporate Advertising – it focuses on awareness or establishing corporate identity to win over the public in
the perspective of the organization. An excellent example of this is Banco De Oro (BDO) for their TV
advertisements about their banking services, which establishes their corporate identity.
3. Business-to-Business Advertising – it is direct advertising to the organizations, industries, or professionals
who are actual users of a product or service. This is more common with manufacturers who persuade
businesses to buy products or services essential for their operations, just like publishing houses advertising
their books to schools for student use.
4. Political Advertising – it is a common practice in politics to persuade voters. Essentially, it gives exposure
to candidates so the public would know who to vote.
5. Directory Advertising – it is less common today, but it is a kind of advertising that still exists, so consumers
may directly call the organization for products and services. This is evident within Yellow Pages directories.
6. Direct Response Advertising – this works when an organization advertises online, and the consumer
subscribes or directly responds to an online prompt, and a product availed is delivered through mail. An
excellent example of this would be some online ads that convince a consumer to try a 14-day trial for a
specific application or service.
7. Public Service Advertising – it operates for public interest and welfare. This is commonly known as a public
service announcement (PSA).
8. Advocacy Advertising – its major concern is to spread awareness of an idea or clarify controversial social
issues relevant to the public. The most popular advocacy advertisement in the Philippines is the
Department of Tourism’s “It’s More Fun in the Philippines” campaign.

Advertising Functions
According to Johnson and Lee (2005)
1. Inform Function – it communicates information about a new product, its features, and location of sale.
2. Persuasive Function – advertisers try to persuade customers regarding a product or service or change their
attitudes towards a product or service.
3. Reminder Function – advertising consistently reminds consumers to buy their product and not the product
of the competition.

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EVOLUTION
Phases of Advertising
Period Development
Boston Newsletter carried an advertisement offering a reward to anyone who captures
1704
an identified thief.
Industrialization peaked and changed the landscape of the market and the products and
1700s – 1950s
services the customers need.
Advertising developed to build exposure or awareness among consumers regarding the
1800 available products and services. The rise of telephones, telegraphs, and typewriters
improved mass message delivery.
1900s Advertising focused on product and service benefits.
1920s “Democracy of Goods” advertising formula was commonly used as an ad strategy.
The first radio commercial was aired by AT&T Station WEAF in New York. The industry
1922
evolved on a national level in the USA after 2 years.
The focus of advertising shifted to the consumers and their testimonies about products
1930s
or services.
1941 The first commercial station was established.
1948 Cable television system started and peaked during the 70s to 80s.
1950s Product surplus was rampant because of the post-world war economic changes.
1960s Guilt and fear appeal in advertising.
Products became emblems for group identification. Advertising shifted its focus to the
1970s
categorization of the market.
Differentiated market segments led to more specific advertising aligned to a target
Late 1980s
market.
The rise of consumer cynicism caused the advertisers to change ways of communicating
1990s – Present advertising messages. This led to more personal and emotionally appealing ad
campaigns.

ADVERTISING ENVIRONMENT
Advertising Environment
The environment, along with the behavior of people in a family, society, or country, constantly change.
Advertisers are expected to adapt to these changes for a product or a service to thrive. Advertisers try to
predict what may change and modify their strategies based on these changes. These responses of advertisers
are classified into two (2) categories:
1. Reactive Response – having no control over environmental elements, being reactive is to respond and
adjust accordingly to what just happened. It may be in the form of damage control for any controversy or
other factors that needs a response.
2. Proactive Response – having some degree of control, being proactive is to respond by trying to change the
outcome of an advertising endeavor by acting upon perceived steady changes. An example would be the
existence of LGBTQ+ advertising characters in the Philippines as they become slowly accepted in Philippine
society.

Forces Affecting Advertising

Advertising is affected by three (3) significant forces:
1. Economic Force – this affects both advertiser and consumer behaviors in decision making for advertising
and product or service consumption. The idea is that the increase in sales through advertising is directly
proportional to the increase in budget for advertising. It is a marker for a growing economy as more people

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are convinced to avail of a product or service. This affirms that the advertisers are effective in
communicating their advertising message.
2. Social Force – societal perspectives significantly affect advertising in such a way that advertisements are
regulated based on social issues or factors affected by an advertising message. Some ads are not allowed
to be aired on a prime-time schedule or a specific region because of the demographics of the viewers.
3. Technological Force – the advancements in technology impacted the way advertising works today. As
advertising started in one platform, it is now increasing in traditional and digital platforms, and it continues
to evolve as more advances take place.

References
De Burgh-Woodman, H. (2018). Advertising in Contemporary Culture. Cham, Switzerland: Palgrave Macmillan.
Hays, C.F., Wind, Y., & The Wharton Future of Advertising Innovation Network (2016). Beyond advertising.
John Wiley & Sons, Inc.
Holland, T. (2017, August 11). Content Standard: Creativity - Branding Brief History. Retrieved from Skyword
Web site: https://www.skyword.com/contentstandard/creativity/branding-brief-history
Johnson, C., & Lee, M. (2005). Principles of Advertising A Global Perspective. New York: Routledge.
Rodgers, S., & Thorson, E. (2019). Advertising Theory. New York: Routledge.

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