Advertising regulation refers to the laws and rules defining the ways in which products can be advertised in a particular region. Rules can define a wide number of different aspects, such as placement, timing, and content. In the United States, false advertising and health-related ads are regulated the most. Many communities have their own rules, particularly for outdoor advertising. Sweden and Norway prohibit domestic advertising that targets children | Economic, Social, and Regulatory Aspects of Advertising Identifies and explains economic, social, ethical, and legal issues advertisers must consider Chapter 3 Chapter Title Chapter 3 Objectives Classify two main types of social criticisms Employ an economic model to discuss effects Explain social responsibility and ethics Understand how governments regulate here and abroad Discuss court rulings that affect freedom of speech Describe how federal agencies regulate Define the regulatory roles of state and local governments Discuss self-regulation 3- Controversies Economic Societal affect product value? make us more materialistic? increase prices? discourage competition? affect demand? make us buy things we don’t need? debase language? affect art? affect us subliminally? influence consumer choice? Does advertising . . . 3- Economic Impact: Principles Self-interest Complete information Absence of externalities Many buyers & sellers 3- Economic Impact: Global . | Economic, Social, and Regulatory Aspects of Advertising Identifies and explains economic, social, ethical, and legal issues advertisers must consider Chapter 3 Chapter Title Chapter 3 Objectives Classify two main types of social criticisms Employ an economic model to discuss effects Explain social responsibility and ethics Understand how governments regulate here and abroad Discuss court rulings that affect freedom of speech Describe how federal agencies regulate Define the regulatory roles of state and local governments Discuss self-regulation 3- Controversies Economic Societal affect product value? make us more materialistic? increase prices? discourage competition? affect demand? make us buy things we don’t need? debase language? affect art? affect us subliminally? influence consumer choice? Does advertising . . . 3- Economic Impact: Principles Self-interest Complete information Absence of externalities Many buyers & sellers 3- Economic Impact: Global Bleustein-Blanchet: Advertising expenditure is directly proportional to standard of living Insert ex. 3-1, p. 58 Per capita ad spending Position = ” horiz., vertical Size = ” TALL Resolution: 300 dpi 3- Economic Impact: Billiards Model Insert ex. 3-2, p. 59, Advertising billiards Position = centered horiz., ” vertical Size = ” TALL Resolution: 300 dpi 3- Economic Impact: Four Affected Areas Product Value -Communicates brand image -Educates customers -Associates w/ desirable image 3- Economic Impact: Four Affected Areas Product Value Prices & Competition -Communicates brand image -Educates customers -Associates w/ desirable image Increase: -Branding -Ad costs Decrease: -Competition -Efficiency 3- Economic Impact: Four Affected Areas Product Value Prices & Competition Consumer Demand -Communicates brand image -Educates customers -Associates w/ desirable image Increase: -Branding -Ad costs Decrease: -Competition -Efficiency Primary: -Product Category Secondary: .
