Outline and Power point

Gregory Smith

The Impact of Technology on Advertising

Technology affects many areas of society in many ways, including advertising. Technology has made advertising better for business! Now that most households have computers, consumers and business owners are able to reach out to customers conveniently. Everyone is saving more money and time. Whether you’re the seller or buyer, it could be a good thing. Even teachers and education professionals are using computers to advertise education, and lessons to students.

First we must ask, what is technology? Technology is the branch of knowledge that deals with the creation and use of technical means and their interrelation with life, society, and the environment; the terminology of an art and science (http://dictionary.com). Almost every aspect of life is dependent on technology. It changes the way we live, socialize, and conduct business. It plays a vital role in human lives and we cannot ignore the importance of it. There are many forms of technology and people use it in many ways.

Advertising calls public attention to one’s product, service, or need, etc. Years ago, businesses’ advertising main sources were newspapers, magazines, radio, television, and billboards. Today, the computer technology and the internet have become the #1 advertising source because more than 80% of US households have some type of PC, and almost half have more than one (Reitsma, 2011). Computer technology is used by many businesses in creating advertisement, and the internet is the way to get the message out.

Looking back on our past, businesses are now reliant on technology in different areas of business operations; advertising as one of the top in relations. No matter how large a business is, technology is being used to create advertisement to promote goods and services. Many businesses only operate by computer technology and internet alone. Sales, production, marketing and communications are affected with lack of advertising in many businesses.

As technology continues to grow, businesses and education also evolve. According to SMLXL, White Paper 2007, the internet has unique benefits that can not be offered by print, recordings, radio, television, and movies. Search or Google search, has become the highest advertising revenue generator for many businesses. With cell phones being used widely around the world, the result of search advertising has grown even more.

The Internet Advertising Bureau, an industry group that surveyed 200 Internet publishers, said that, “spending reached $129.5 million in the first quarter of 1997. The five categories of ads that dominated the field were: computer products, telecommunications, consumer-related, financial services, and new media” (Washington Post 1997).

Internet servicing providers even invest in advertising! In 2004, America Online Inc. (AOL) bought Advertsing.com, based in Baltimore, which developed and tracked marketing campaigns for companies that bought ads on web sites. “Advertising.com buys ad space from sites including, Yahoo, Dictionary.com and Excite. When stores wanted to ramp up their online sales but hold down the ad budget, they turned to Advertising.com (David, W. Washington Post)”. Advertising.com has done work for thousands of large companies, but lost millions on sales for many reasons including accounting issues. Another reason was, companies, small businesses and professionals started finding ways to buy advertising from web sites on their own to cut them out as the middleman.

Mobile phones have added a larger effect on advertising for businesses. It is fast growing and it’s the destiny of choice for most advertising companies. It’s presumably because; “no device is closer to a consumer than his or her phone” Scribd 2010. The mobile phone added a change to technology, and added more effects on advertising. When the mobile phone was presented in the advertising market, it added measurable results crucial for advertising. It also provided video and television, which created a platform for ads and static images; this was a great combination of a computer and television commercial, all in one!

Mobile advertising today is borrowed from the traditional media and internet. There are different types of mobile advertising: mobile web, mobile application, and mobile messaging. They offer, banner, text, search ads, audio, video and images. Increasing sales of mobile phones are the key drivers to mobile advertising. Japan and the USA are the lead in mobile advertising due to the growth in the usage of mobile phones. Mobile phones have made advertising advantageous for advertisers.

Although mobile phone advertising is a fast growing lucrative business; it’s also had negative impact for intruding privacy. Just as technology can be used negatively, advertising is used by many businesses as a weapon against other companies and people. “When everyone is selling the same product, how do you distinguish yourself (Shea, n.d.)” businesses ask? Andrew T. Levine, president of Development Counselors International, a New York consulting firm says, “There is some question about how effective advertising is in the economic development market”. His firm conducted a survey that asked corporate executives to rank the three leading sources of information they perceive to be a state’s or region’s business climate. “Dialogue with industry peers, was at the top, but print advertising did not make it in the top three. Instead, it ranked ninth among 12 categories, representing four percent for the 173 corporate executives surveyed (Washington Post).”

Advertising online seems to be a trend, and many companies and people benefit from it although; some major companies, corporations and people have been hurt through online advertising. How do you advertise your business or yourself without hurting yourself or your competitor some may ask?

Jos. A. Bank Clothiers Inc., a Hampstead-based men’s clothier, “was accused in 2004 of deceptive advertising by offering sales on merchandise that weren’t discounted (Walker, 2004)”. “The company paid $425,000 in civil penalties, and $50,000 to the state of New York as part of a settlement, which caused their stock to fall”. This is an example of advertising gone bad! New York state Attorney General Eliot Spitzer, stated, “Retailers have a fundamental obligation to be truthful and accurate with their advertising”.

Advertising through social websites have a negative effect as well. We find that Facebook, Twitter, and other social networks can ruin images and the mystique of celebrities, businesses, corporations and people. Celebrities and those who use social networking sites to promote, advertise themselves, or connect with others, share information about themselves that they sometimes feel isn’t any harm to anyone, but it’s inviting to their private lives and businesses. If it isn’t advertised correctly, it could send the wrong message. The media sometime make things worst for celebrities by stealing information and creating a story or image other than what the person may have wanted to betray. When companies or people advertise online, or any matter, they must be very cautious.

Each day, more sources of technology are created to advertise. The development of technology has helped many people, especially business owners and corporations. Almost all businesses utilize computers, telephones, and other products of technology to advertise, regardless of the type of industry. Computers and laptops today have become a necessity for many people. Technology was created for convenience and production; it is now a major source in advertising. Television commercials and telephone calls to a residence are just a part of technology that reaches out to an audience or potential customer, but its all technology.

Works Cited:

Advertising online. (1997, Jun 16). The Washington Post. Retrieved from http://ezproxy.umuc.edu/login?url=http://search.proquest.com/docview/408306718?accountid=14580

Arney, J. (1999, Jan 30). Greater baltimore greatened at last; advertising: A new campaign launched by the greater baltimore alliance employs nontraditional ways of selling businesses on the region. The Sun. Retrieved from http://ezproxy.umuc.edu/login?url=http://search.proquest.com/docview/406395198?accountid=14580

Arney, J. (2002, Jan 03). Local advertising agency wins US airways account ; eisner expects to get $20 million a year from ailing airline. The Sun. Retrieved from http://ezproxy.umuc.edu/login?url=http://search.proquest.com/docview/406510019?accountid=14580

Vise, D. A. (2004, Jun 25). AOL to buy internet advertising company; baltimore firm acts as broker for web marketing. The Washington Post. Retrieved from http://ezproxy.umuc.edu/login?url=http://search.proquest.com/docview/409767320?accountid=14580

Walker, A. K. (2004, Sep 15). Jos. A. bank agrees to pay $475,000 in inquiry over advertising policies ; N.Y. attorney general alleged that clothier's discounts were deceptive. The Sun. Retrieved from http://ezproxy.umuc.edu/login?url=http://search.proquest.com/docview/406635694?accountid=14580

Reineke Reitsma http://blogs.forrester.com