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Hum 176 Week 4 Midterm

In: Film and Music

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THE BUSINESS OF MASS MEDIA

Advertising and Commercial Culture
345 Early Developments in American Advertising 351 The Shape of U.S. Advertising Today 359 Persuasive Techniques in Contemporary Advertising 366 Commercial Speech and Regulating Advertising 374 Advertising, Politics, and Democracy

Back in 1993, the trade magazine Adweek wrote about “The Ultimate Network”— something called the Internet: “Advertisers and agencies take note: It has the potential to become the next great mass/personal medium.”1 The prediction was correct, if not understated. The Internet has become a huge medium for advertisers, targeting audiences more precisely than any medium before it. Yet, none of the venerable ad agencies at that time could have guessed that an Internet start-up—Google— would become bigger than the leading multinational advertising holding companies like Omnicom, WPP, Interpublic, and Publicis. Nearly 99 percent of Google’s $16.6 billion revenue in 2007 came from advertising.

THE BUSINESS OF MASS MEDIA B

343



ADVERTISING

However, Google is different from the Madison Avenue agencies. It doesn’t design witty, slick ad campaigns. Instead, it facilitates the dull but effective text-based sponsored links that appear in Google searches or on affiliated sites. “We are in the really boring part of the business…the boring big business,” Google’s CEO Eric Schmidt says.2 What Google’s ads lack in creativity, they make up in precision. Google’s AdWords advertising system has made advertising both targeted (by keyword or geographically) and inexpensive (ad buyers can preset daily spending limits). This has revolutionized advertising and enabled millions of new small advertisers to afford their own customized advertising plan along with traditional big advertisers. Google also notes that “we will do our best to provide the most relevant and useful...

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