Creating Images That Matter:
Advertising in the New World
Purpose of my Research
To define the present conditions of
Internet advertising using the history of TV
advertising as a measure.
Ultimately, I would like to use this research
and findings to be able to prepare and
predict the future of Internet advertising
and incorporate into a successful e-
commerce business plan for myself.
The Federal Trade Commission (FCC) has defined advertising as
“any action, method, or device intended to draw the attention of the
public to merchandise, to services, to persons, and to
Symbolic Interaction theory:
People are motivated to act based on the meanings they assign to
people, things, and events. Further, meaning is created in the
language that people use with others and in private thought.
Language allows people to develop a sense of self and to interact
with others in community.
Examination of the Past
Using TV as the comparison for the Internet-
TV advertisements provide the ability to communicate sight, sound, motion
and emotion. Radio and print ads are limited based on the format. The
Internet has the ability to utilize the same advantages of TV because of the
flexible format. The Internet and TV advertising forum is most similar and
therefore is a valuable comparison
TV Advertising Timeline:
1946: 5000 TV sets in homes throughout the US.
1952: 15 million people in US owned TV set, over 1/3 of population. TV system
was quickly geared towards generating advertising revenue because of the
ability to reach nationwide audiences. Advertising revenues, programs and
personnel were transferred from radio with ease. By 1952, 70% of all
broadcasting advertising revenues were from TV.
TV Advertising Timeline Cont…
1952-1956: Video tape-recording technology instilled making pre-recorded
commercials a possibility. Commercials could be better planned out and
mass-produced in order to enforce the branding concept.
Hazel Bishop lipstick sales skyrocketed from $50,000 a year in 1950, to
$4.5 million two years later thanks to TV advertising.
Late 1950‟s: TV ad‟s had become ordinary and the market became saturated
with advertisements that aimed not to offend the public. Advertisers had not
really adjusted to the new format of TV advertising to create new
1959: Volkswagen campaign “Think Small” debuted and seemed
to transform the industry. Black and White photography and
simple images positioned VW as an honest car and renewed
the art of advertising.
TV Advertising Timeline Cont…
1960‟s: Counter culture era brought on revolution in advertising. Deeper
meanings in advertisements and more symbolic images. Memorable
images from Johnson & Johnson‟s heartwarming evocation of mother love
to the national Urban League‟s revolting message that the US better “give a
damn” about its black underclass.
1970‟s: Expanding scope of businesses and reach brought on imaginative
campaigns that reinforced brand‟s and a common message across the
Early 1980‟s: Network TV began to lose many viewers to cable market. Big
conglomerate advertising agencies had taken over the market and were
driving toward scientific methods not creativity.
Late 1980‟s: Viewer demands became less tolerant of ordinary „scientific‟
method ad‟s of the time. Dozens of new small agencies produced a new
generation of writers and designers who saw advertising as a craft, a work
of art and a commentary on social expectations.
Defining the Present
Formats for Advertising on the internet:
Banner Ads: Most popular form of advertisements, usually
at top of screen, often contains links to website, product,
PopUp Ads: Appears in separate screen upon opening of
webpage, similar characteristics of banner ads.
Online Sponsorships: Text based message typically
embedded in the context of a website, related to the
subject matter of the site. Considered alternative to
traditional style banner or PopUp ads.
Choosing to Advertise
Advantages of internet Advertising
Ability to precisely target customers by effective ad placement.
Internet provides advertisers a quick-response to ads without wasting time
and money on testing ads.
Reaching a sophisticated global market.
Direct links to products.
Difficult to measure effectiveness with click through rate reliability
Shared bandwidth with content on a webpage.
Users can choose to ignore advertisement, and utilize anti-ad software.
Current Share of Advertising dollars by medium:
Click rates are the measure of success:
Click rates started in 1996 at around 7% per Internet banner advertisement.
Currently click rates are around .7%. This is problematic because
advertisers do not typically allocate budgets to media that are not effective.
Why are click rates so low?
Shared bandwidth: banner ads typically occupy less than 10% of webpage.
Experienced web surfers have ability to train themselves into recognizing
banner ads for what they are without having to actually focus on them.
Study performed in 2003 revealed that only 50% of banner ads are viewed
by Internet users. TV ads are viewed at over 90% by viewers.
Advertising Agencies are Reluctant
A study conducted by the Journal of Advertising Research in 2002 revealed
that Large advertising agencies lack experience and expertise with Internet
advertising. Study concludes that the potential for advertising on the
Internet has not been fully unleashed due in part because of the
technological hesitation perceived by large advertising agencies.
Conclusion and Future
The Internet is still a relatively new medium and much like with
television advertisers have not found an innovative way to effectively
reach the huge market that the Internet provides.
In the early stages of TV advertising, it was a creative revolution that
many times rejuvenated the industry when it seemed it had lost
touch with the public.
Internet advertisers must find new creative ways to reach its
audience through meaningful content.
There has to be more positive hype around Internet advertising,
something that could create as much excitement as the Super Bowl
commercials seen on TV.
Advertisers must present greater advantages or appeal to Internet
users, and users need time to accept the advantages of being
advertised to through the internet.