Advertising Final: Evans ADPR3100

*"Moral myopia" (nearsightedness)* Define Passing the buck

"All we do is reflect society back on itself"

*"Moral myopia" (nearsightedness)* Define Consumers are smart

"Even if I tried to put out an unethical ad, no consumer would be dumb enough to believe it"

*"Moral myopia" (nearsightedness)* Define The ostrich syndrome

"I don't really have time to sit and think about if the people who make this thing are really evil"

What has Patagonia said about the social responsibility of consumers?

"I know it sounds crazy, but every time I have made a decision that is best for the planet, I have made money. Our consumers know that and they want to be a part of that environmental commitment.

*"Moral muteness"* (Silence) Define compartmentalization

"I'm just providing a service to my clients. But on a personal level, I sometimes find that they want to do very offensive"

*"Moral muteness"* (Silence) Define The client is always right

"If I want to stay in business, I need to give my clients what they want"

*"Moral muteness"* (Silence) Define Pandora's box Syndrome

"If we get bent out of shape over every ethical issue, we couldn't get anything done"

What does the ad council do?

"We identify a select number of significant public issues and stimulate actions on those issues through communications programs that make a measureable difference in our society"

What is "Moral Myopia" (nearsightedness)?

"a distortion of moral vision ranging from shortsightedness to near blindness, which affects an individual's perception of an ethical dilemma"

According to Michael Shudson what is the *power of suggestions and capitalist realism*?

"advertising depicts life as timeless and placeless, models and actors are meant to be representations of a social type or demographic category so consumers could identify as a member of that category"

*"Moral myopia" (nearsightedness)* Define The first amendment misunderstanding

"how could I develop a code of ethics for my agency? It would go against the first amendment"

*"Moral myopia" (nearsightedness)* Define Going native

"if I succeed my client succeeds too. So it doesn't feel like stretching the truth is doing anything wrong."

*"Moral myopia" (nearsightedness)* Define What is legal, is ethical

"it's really hard to be unethical in this business; we have to run everything by our lawyers

*"Seeing and Talking"* Define Recognition

"smart clients" recognize that being ethical is good for their business

What does it mean to be ethically active?

*"seeing and talking practitioners"* - Agencies that openly encourage ethical decisions and actions - Some norms for acting ethically in certain agencies - Recognize moral issues - Talk about issues with co-workers and with clients

T or F: Advertising can only be legal if its ethical.

*False*: advertising can be legal but unethical

Who and what is the FTC?

*Federal Trade Commission* - created in 1914 to prevent unfair competition and to monitor and deter false, fraudulent, misleading, or deceptive advertising - to protect consumers from deceptive and/or unsubstantiated ads

FTC workshops on Native Advertising December 4th 2013 key concerns:

- "Do consumers recognize and understand these messages?" - "How can native ads be differentiated from regular content through the use of labeling and visual cues? - FTC issued new Native guidelines on December 2015.

How far is too far in social responsibility of consumers?

- "all natural" what does that mean? Can you measure this? - Greenwashing Ford "Eco boost" LG Green Health - Pinkwashing

What are some examples of measurable claims?

- "crest fights cavities" - "windex has better cleaning action" - "Apple is new and improved" - "4 out of 5 detest recommend Scope"

What is "Moral Muteness" (silence)?

- "the absence of communicating moral concerns in settings where such communication would be fitting" - Bird (2006) - "Either not voicing moral concerns or communicating in ways that obscure moral belief and/ or concerns

What is the history line of *Channel One*?

- 1989: founded - December 2006: sold to alloy media and marketing - July 2007: partner with NBC news - Later 2009: CBS news partnered - Lend satellite dish, VCRs, and TV sets - 12-minute newscast, 2-minute advertising - Require students to spend class time watching

How did the disclosures vary in sponsored, advertising, partner, brand publishing, and paid for and published by?

- 71.4% used "sponsored/sponsor" - 14.3% used "advertising/ advertisement" - 14.3% used "partner" or "presented by." - 2 used "brand publishing" - 1 each used "supported by" "paid for and published by," or "advertorial

What are ethical dilemmas under ethically questionable advertising practices?

- Advertising in schools - Pressures Decreasing funding makes it harder to say no - Forms Signage Exclusive product contracts Lessons

What does it mean to be Ethically impaired?

- Advertising people can't see ethical problems - See primarily as only affecting themselves "anyone stealing my ideas?" - Ethical problems at other levels not seen Organizational (agency/client) and societal levels

What is Native advertising articles (Sponsored Content)?

- Articles on news websites or other Web content providers that resemble the format of original content on the site. - Often include features brand or products, but not always very prominently. Occasionally not at all. When featured, not unlike review/opinion column. - Sole distinguishing characteristic is disclosure statement that tells you it's advertising.

What are 5 kinds of speech?

- Artistic Expression - Political Speech - Commercial Speech - Corporate Speech - Slander/Hate Speech

What are the *for-profiter* wants?

- Associate its product with a perceived social good, boasting its appeal to a market - Increase a broader market segment's perception for the enterprise as socially-engaged and responsible - Derive bottom line benefits from increasing market share in the targeted segment

What are the causes of Increased interest?

- Causes *(non-profits)* clearly have something to gain by joining forces with corporations to develop advertising campaigns o Direct financial support o Increased awareness o Validation o Possibility of gaining volunteer workers since corporate employees may be encouraged to donate their time to supported causes

Example of Social issues linked with Corporations.

- Example: GE and "wind energy" - Example Pharmaceuticals- "Pfizer" - Example: Subaru and Environment: Subaru and the national park service - feature social issues linked to companies, but without a link to a specific product or service - These messages position the company as one that cares about and is involved with a particular issue

Example of social issues linked with specific products.

- Example: Toms "one for one" - Example: "GE and health" - advertiser uses the product or service to draw consumers into the ad - Then... the socially responsible message becomes associated with the specific product, creating a valuable link in the minds of consumers

What are ethical dilemmas under Advertising of ethically questionable products or services

- Fast food advertising - Promoting knowingly destructive products, despite their being legal

How does the FTC become aware of deceptive practices?

- From a range of sources, including consumers, other advertisers, or *FTC* staff - EX: if "laundry detergent A" claims it makes white shirts brighter than "laundry detergent B," then "laundry detergent A" may have to provide some type of scientific evidence that it really produces these results!

Taxonomy of Native Ads

- In-feed units - Paid Search units - Recommendation - Promoted Listing - In-Ad - Custom

Why talk about Native advertising?

- It's growing quickly and it might be here to stay for a good while. - Native is big: growing from approximately $4 billion in 2013 to projected values of $8 billion in 2015, and expected to reach $21 billion in 2018 (Rosin, 2015) - Buzzfeed alone made more than $2 million per week on native advertising in 2014; nearly $100,000 per advertising campaign (Aguis, 2015).

Define Deception.

- Legal realm - Demonstrable, provable lies

How has the NFL been involved in pinkwashing?

- NFL says it raised nearly $15 million for awareness and screening programs since 2009. Most of the money is from the sale of "pink" merchandise, but little money actually goes to awareness and screening programs. This publicity stunt is a part of an effort for more women to become football fans.

Define moral conduct.

- Not "what can we get away with" - But "what is the right things to do"

Why care about disclosures?

- Our understanding of how consumers respond to persuasion is based on their ability to recognize persuasive attempts / advertising - As a general rule, advertising recognition typically leads to more critical evaluation of claims made regarding brand/products. - If consumers are unaware that a message is an ad, they may not access relevant attitudes (skepticism).

Define Native in the context of advertising.

- Paid ads that are cohesive with the page content, assimilated into the design, and consistent with the platform behavior that the view feels that they belong (IAB 2013, p 3).

What three types of advertising messages that can make a company socially responsible?

- Social issues linked with products - Social issues linked with corporation - Corporate donations to social issues

Three main categories of Native Advertising:

- Sponsored Social Media Posts - Sponsored Links - Sponsored Content

What are remedies to the FTC?

- Stop/change ads - Publicize corrective ads - pay fines

What are examples of Ethically questionable advertising practices?

- Targeting specific populations Children, elderly, ill, etc.. - Sensitive subjects (rape, sex, abortion, death, war, etc...) - Sexism and sexual imagery

What happens if an advertiser doesn't sign a consent decree, breaks it, or continues to run advertising?

- The *FTC* has the power to issue a *cease and desist order*- 10,000 a day fine if they do not sign the decree - Mandare for the advertiser to start *running corrective advertisements*- done to counteract the effect of previous deceptive advertising - If an agreement is not reached with the *FTC*, the case can *go to Federal Court*- asked to pay consumer back

Example of Corporate donations to specific issues

- The average company in the United States donates between 1% and 2% of pretax profits to philanthropic causes - Ben and Jerry's contributes $1.8 millions of their pretax profits to a number of different charities, including environmental concerns and groups battling forced child labor - Advertisers donate a percentage of their profits to a specific cause... and this contribution may be the focus of the advertising message or one of several attributes features in the message

Describe materiality.

- The dog looked like a dog... so I thought it was a dog and behaved as such - But it was actually a cat! - And because I thought it was a dog... now my hand is bleeding - So.... The presentation of something that distorts its true nature can be material

What is social marketing?

- The process of using marketing techniques to persuade consumers to adopt behaviors advocated by a special cause - Ex: using traditional advertising messages to promote behaviors such as stopping smoking, obesity prevention, recycling.

Define manipulation.

- This is the ethical realm

How are claims tested?

- Typically the claims are tested in a lab, real world setting, or previous company documents are examined

Define Commons' Dilemma

- a phenomenon in which members of a specific group (ex. Advertisers) face choices in which selfish, individualistic, or uncooperative decisions seem rational by virtue of short-term benefits, yet produce undesirable long-term consequences for the group as a whole. - have repercussions that go beyond a single ad campaign; these choices will affect advertising's interactions with society as a whole

Define Deception

- actionable - Lie likely to mislead - A consumer acting reasonably - Must be "material"

What are some examples of Advertising of ethically questionable products or services?

- alcohol - tobacco - food and beverages (fast food, high calorie/low nutrition) - gambling/ lottery - sexually orientated products - prescription drugs

Define Native.

- being the place of environment in which a person was born or a thing came into being. - Or, relating to, or characteristic of the indigenous inhabitants of a place of country. - An organism indigenous to a particular region

Define Puffery

- not actionable - an advertisers opinion of a product that is considered a legitimate expression of biased opinion - exaggeration or overstatement - expressed in broad, gauge language - not misdescriptions or false representations of specific characteristics

What is the ad council?

- over 50 advertising and media agencies - Individual employees volunteer their time and skillset to create free advertising for social causes

What are two areas of ethical concern?

1). Advertising of ethically questionable products or services 2). Ethically questionable advertising practices:

What 3 main areas has the American Association of Advertising blamed lack of respect from?

1). Pressure for short term earnings - as advertising with a short term focus may use questionable messages and imagery to break through the clutter 2). Client pressures 3). Pressures to get and keep new business, which can cause agencies to treat other agencies with a lack of respect

What are 3 sponsored content disclosures?

1). Site searches of top 50 news sites native advertising, "sponsored" 2). Open web searches: above + pub. Name 3). Examples and publications from trade/popular press articles in past year

What are the two main blurred lines in advertising?

1. Consumers have become increasingly skeptical of most forms of communication 2. Advertisers and marketers have, by necessity, crafter more entertaining, interesting, and meaningful advertising executions - Which, as a byproduct, has obfuscated what is and what isn't advertising - In other words, it is getting harder to tell what is advertising

What are the 3 parts to the three part test of the FTC?

1. There must be a representation, omission, or practice that is likely to mislead the consumer. 2. The act or practice must be evaluated from the perspective or a reasonable consumer. 3. The representation, omission, or practice must be material- that is, likely to affect a consumers choice or use of a product or service.

Substantiation

= What is measurable or can be proven? - Claims be stated, implied, or demonstrated - Claims have to be backed up - does the brand/product/service do what is stated, implied, or demonstrated

Define Materiality

= impactful to behaviors - to lesser extent - attitudes and thoughts - a brand claims it does something so I might go buy it because of that reason - but if that claim is false- we can say that behavior was influenced through misleading info.

Typology of Masked Marketing Practices: Posers

Actors/salespeople pretend to be ordinary people conducting survey to explain benefits, give consumers chance to try/sample the product

Typology of Masked Marketing Practices: Urgent ad-info

Ads that appear in the form of important account info from business with and existing relationship, sweepstakes, prize notices, or checks that are discount coupons.

What is Socially responsible committed to?

All of their stakeholders - *Employees* - *Stockholders* - *Communities*- where the business operates and sells its products/services - *consumers*- who buy the product or service

How do advertising people make sense of ethical dilemmas?

Dumwright and Murphey (2004) - 51 interviews, 29 agencies, 8 cities - Varied departments, ages, and genders, experience, type/size of agencies, billings

*"Seeing and Talking"* Define Moral imagination

Envisioning moral alternatives

*"Moral muteness"* (Silence) Define Ethics is bad for business

Ethical advertising means bland, ineffective work

T or F: Native Advertising never exploits consumers' trust in publisher or deceives them outright to influence their purchasing decisions.

False. It improperly exploits

*"Seeing and Talking"* Define Saying no

Its ok to get fired or resign

Typology of Masked Marketing Practices: Advertisement

Products and advertising placement in TV shows, movies, sporting events, and video games

Typology of Masked Marketing Practices: Buzz and viral marketing

Recruitment of people to talk about the product before it is available to the general public. Done to encourage conversation about the product.

What is social responsible advertising?

Requires an agreement between a non-profit (or cause) and for-profit..and the deal is struck to maximize perceived benefits to each partner.

*"Seeing and Talking"* Define Communication

Strong belief in the importance of over, direct communication regarding ethical questions

Is advertising amoral?

That is to say.... Without any moral obligation?

What is the primary difference in social marketing and socially responsible advertising?

The messaging.

T or F: Native advertising provides more relevant messages, increase consumer engagement, and generate awareness and buzz about products. It adds value for consumers.

True

Example 1 of Substantiation for Audi

VW/AUDI - 2008-2015 campaign claimed their diesel cars were "clean"/"environmentally friendly" - Unsubstantiated and deceptive - FTC ordered to pay owners and leases 10 billion

Example 2 of Substantiation for Walgreens

Walgreens Pharmacy - Claimed its store band boosted immune system - Unsubstantiated - $6 million in fines - Cannot claim without scientific proof

Consent decree

a document that does not admit to deception, yet acknowledges that the advertiser will stop running the sanctioned ad

Typology of Masked Marketing Practices: Advertorials

ads that appear to be information from an independent source. (prepared TV news stories; infomercials, print ads that appear to be editorial content)

What is the production consumption process?

individuals are examining the degree to which scarce resources are used for making products and testing, and disposed of

Why would an advertising campaign use social marketing?

might include a TV spot to encourage people to recycle, with a plastic manufacturer sponsoring the ad

Why would an advertising campaign use socially responsible advertising?

might involve a tv spot promoting product or brand by using a message that the product was built with 100% recycled parts

Typology of Masked Marketing Practices: Buzz and viral marketing

recruitment of people to talk about the product before it is available to the general public. Done to encourage conversation about the product.

Typology of Masked Marketing Practices: Ad-suits (paid search)

use of invisible meta tags by a marketer when the results are not identified as biased