Sunday, March 29, 2009

Online advertising has created new ethical questions to consider. One consideration that is not only a problem on the web are advertorials. These are advertisements that are made to look like editorials. This is appealing to advertisers because the reader is more likely to believe the content; however, the dishonesty raises ethical questions and can cause people to distrust the brand that made the advertorial. The generally accepted rule at this point is that any advertisement that can be confused as regular content should be marked as advertising. This is true for print and online media outlets. Another issue is kick through ads. These ads sends the reader to a different website if their mouse scrolls over it, without them clicking on it. Also, these links are often put in words or phrases within editorial content. Some classify this as spyware since it sends users to a website without their consent. The makers of this technology, however, contend that since the words that are links are underlined in green, and the ensuing content is labeled as advertising, there is no ethical violation.

Wednesday, March 18, 2009

The current recession has had a remarkable impact on the advertising industry. Overall, spending on advertising has fallen 2.6%. The three companies that spend the most money on advertising have all cut their ad spending significantly. Procter&Gamble, the top spender on advertising, cut their spending from $3.53 billion to $2.85 billion, a 19% decline. General motors dropped their spending 14.9%, and AT&T dropped theirs 7.2%. One of the most interesting parts, however, is that P&G claims that their reach has not been affected by the decline in spending. They say that they have managed to make deals on radio, print, and broadcast ads. This could be the result of a 20% drop in broadcast television advertising rates.