Advertising and Society

Part 1: Foundations
Chapter 3
 Chapter Outline
I. Chapter Key Points
II. Advertising’s Social Role
III. Review and Regulation of Advertising
IV. Advertising’s Regulatory Environment
V. Media Review of Advertising
VI. Self-Regulation
VII. Advertising Ethics
[Link] What is Ethical

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 Key Points
• Discuss the shape-versus-mirror debate
• Analyze the legal topics that guide advertising
practice
• List the key regulatory agencies and their
responsibilities
• Explain the way the advertising industry regulates
itself
• Critique the key ethical issues that challenge the
practice of advertising
• Outline three ways to determine if an advertising
decision is ethical
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 Advertising’s Societal Role
• Does advertising create a materialistic culture
or does it simply reflect it?
– Critics believe that advertising has the power to
shape social trends and the way people think and
act
– Advertising professionals believe advertising
mirrors values rather than sets them
• Advertising can potentially shape and mirror
values
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 Review and Regulation of
Advertising
Copyright Protection First Amendment
• Trademark • Commercial speech
• Copyright • Only truthful
commercial speech is
protected, not
misleading or deceptive
statements

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 Advertising’s Regulatory
Environment
Federal Trade Commission • Deceptive advertising
• Regulating misleads customers by
making claims that are
deception false.
• Regulating • Airasia
substantiation
• Remedies for
deception and unfair
advertising
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 Advertising’s Regulatory
Environment
Federal Trade Commission • The advertiser should
• Regulating have a reasonable basis
for making a product
deception claim.
• Regulating • No.1, 100% Guarantee
substantiation • Maxis, Slimming
Centres
• Remedies for
deception and
unfair advertising
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 Advertising’s Regulatory
Environment
Federal Trade Commission • Corrective Advertising
• Regulating • Advertising Agency
Legal Responsibility
deception
• Ex. Wrong Price, Terms
• Regulating and Conditions
substantiation • Giant, Tesco
• Remedies for
deception and
unfair advertising
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 Advertising’s Regulatory
Environment
Food and Drug Administration Federal Comm. Commission
• Oversees package • Can issue and revoke
labeling, ingredient licenses to broadcasting
listings, and advertising stations
for food and drugs • Can ban messages that
• Watchdog for drug are deceptive or in poor
advertising taste
• Ex. KKLIU (Msia)

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 Advertising’s Regulatory
Environment
Other Regulatory Bodies International Regulations
• Bureau of Alcohol, • Marketing practices
Tobacco, and Firearms vary in legal and
regulatory restrictions
• U.S. Postal Service
• International advertisers
• States’ Attorneys should have someone in
General the country who knows
the local laws

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 Media Review of Advertising
• The media attempts to regulate advertising by
screening and rejecting ads
• The First Amendment gives any publisher the
right to refuse to publish
• The Advertising Review Council designed the
standards and guidelines used by major
television networks

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 Self-Regulation
• Most advertisers and
• Self-discipline agencies have in-house
• Industry self- review procedures
• Every element of a
regulation proposed ad should be
evaluated by an in-
• Self-regulation house committee or
with outside lawyers

help
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 Self-Regulation
• National Advertising
Review Council
• Self-discipline – National Advertising
Division
• Industry self- – National Advertising
regulation Review Board
• Negotiates voluntary
• Self-regulation withdrawal of deceptive
advertising
with outside
help
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 Self-Regulation
• Local Groups
• Self-discipline
• Consumer Groups
• Industry self- Consumer Association or
CAP
regulation
• Self-regulation
with outside
help
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 Advertising Ethics
• A set of moral • Six key issues
1. Poor taste and
principles that offensive advertising
guide actions 2. Stereotyping
3. Body and self image
and create a 4. Targeting children
sense of 5. Misleading claims and
responsible other message
strategies
behavior 6. Controversial products

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 Advertising Ethics
[Link] Taste/Offensive 2. Reinforcing
• Advertisers and media Stereotypes
outlets must try to be • Diversity Issues
sensitive to consumer • Gender Roles
objections • Racial and Ethnic
• Creating guidelines for Stereotypes
good taste is difficult • Senior Citizens
• Sex in advertising

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 Advertising Ethics
3. Body and Self Image 4. Children
• Self-image advertising • One of the most
can contribute to self- controversial topics in
improvement the industry
• Can also lead to • Children are unable to
dangerous practices evaluate advertising
• Advertising mirrors and messages and make
shapes the standard of purchasing decisions
attractiveness

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 Advertising Ethics
5. Misleading Claims 6. Controversial
• Advertising claims are Products
unethical if they are • Though it is acceptable
false, misleading, or to advertise these
deceptive products, it is still
• Ex. Med, offensive to some
pharmaceuticals • Ex. Sanitary pads,
female undergarments

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 Determining What is Ethical
• The social ethic • The “Golden Rule”
• Social responsibility
• The motivates a business to
make a positive impact
professional on society
ethic
• The personal
ethic
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 Determining What is Ethical
• The social ethic • Industry standards help
with a decision about
• The what is ethically correct
• A code of standards
professional identifies how
ethic professionals should
respond when facing an
• The personal ethical dilemma
ethic
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 Determining What is Ethical
• The social ethic • Personal judgment and
moral reasoning rests on
• The an intuitive sense of
right and wrong
professional • Advertising
ethic professionals must be
aware of industry
• The personal standards as well as
ethic ethical questions

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Model of Cognitive response
(Anthony A Greenwald 1968)

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 Radio ad calculation
• 1 spot is 1 broadcast on air (1 ad)
• 1 spot is usually 30 seconds airtime
• 1 spot could be 20s, 30s, 40s or 60s
• Minimum spots package is 35 spots ([Link])
• Price person varies across radio station brands

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 Radio Ad Cost Calculation
• MyFM, ROS package, Peninsula rate, Mon –
Sun, Feb 2017 =
• Mixfm, on air rates, March 2017, Mon-Fri,
8am to 12mn =
• THR Ragaa, ROS package, Sept 2016, Mon-
Sun =
• [Link], Sabah, on air rates, May 2017, Sat-
Sun, 4pm -8pm =

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 Radio Ad Cost Calculation
• MyFM, ROS package, Peninsula rate, Mon –
Sun, Feb 2017 = $799.24 x 35 spots
• Mixfm, on air rates, March 2017, Mon-Fri,
8am to 12mn = $234.26
• THR Ragaa, ROS package, Sept 2016, Mon-
Sun = $203.52 x 35 spots
• [Link], Sabah, on air rates, May 2017, Sat-
Sun, 4pm -8pm = $61.48

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