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I.

Introduction

A. Background of the Study

The improvements in technology have given businesses an unprecedented ability to
communicate with their target markets, causing a dramatic evolution in the way marketers craft
advertising strategies. Modern technology greatly enhances the advertisers ability to perform
market research and testing when developing ads. Extensive collections of consumer data can
be obtained online, and the results of feedback and opinions can be analysed instantly with
computers with ease. Modern technology allows advertisers to create more effective and
impressive ads for television, print, radio and the Web.
One huge factor that technology has provided is the internet. There are hundreds of
online stores ready to serve anyone who does not want to go through the trouble of going to
physical stores like traditional shopping. Social networks have given many small business
owners free forms of advertising. Through word of mouth, the business gains new customers
from referrals, contests, and promos that they launch on the social networks.
The internet has become a global electronic supermarket. Uniting producers and
consumers directly, instantly, and interactively. It expands the consumers knowledge about the
products in the market by obtaining new information that they can gather online. It has provided
thousands of business owners the opportunity to advertise their product with reduced cost.
Some small businesses only rely on internet advertising and word of mouth to attract customers
and this trend has been successful to several of these small businesses.

B. Statement of the Problem

This research aims to provide the readers adequate knowledge about the advancements
in technology that made the advertising industry thrives. These advancements have made a
huge impact on many businesses since advertising is the most valuable means of businesses to

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gather clients and generate income. Every business should take the opportunity to adapt to the
developing trends in the advertising industry so that they could stay ahead of their competitors
and gain more customers by new means of advertising technology.
This research aims to answer the following questions:
1. Why is advertising vital to the life of a business?
2. What are the types of technology that can be used to help the advertising industry?
3. How does the advertising industry help in generating sales for businesses?

C. Definition of Terms

Advertising is the art of marketing a certain good or service to prospective customers

through a medium of communication.

II.

Technology is the application of science in industry to produce an innovative way of

advertising.
Industry is a business/market sector that sells goods/services to potential clients.
L.E.D. is an acronym for Light Emitting Diode. It is a sustainable light source that

consumes minimal power.

Programmatic Advertising allows the cross-platform buying and selling of digital

advertising.
Ubiquitous simply means being present everywhere.
Medium is a form or system of communication.
Review of Related Studies and Literature
The consumer isn't a moron. She is your wife. (Ogilvy, 2004) What does this tell us

about advertising? But before that, just what is advertising? And why is it important for
businesses to engage in advertising?
A. Definition of Advertising
Richards and Curran (2002) explained that advertising is a paid, mediated form of
communication from an identifiable source, designed to persuade the receiver to take some

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action, now or in the future (pp. 63-67). By breaking down this definition, we can discover and
understand the different characteristics of advertising.
First, advertising calls for payment. Creation of messages and channelling these
messages to people requires exchange of money. Second, advertising is mass-mediated.
Notifying your friends about your newly bought products through oral or written communication
is simply transmitting information between people. Advertising is not advertising unless it passes
through a medium (e.g. billboards). Third, advertising communications is anything but simple.
They are normally organized in such a way that it will influence the minds and perspective of the
consumers. How businesses communicate their messages is an important factor in advertising.
Fourth, it is important that people can easily identify the source of a message because they
want to know whether there is a sense of persuasion; hinting that the message is an
advertisement. Distinguishing the source would also enable the consumers to know how to
react to the message. Lastly, advertising is an act of persuasion (Thorson & Duffy, 2012).
Burnett regarded advertising not only as a disseminator of information alone but also mentioned
that it penetrates the public mind with desires and belief. There are different reasons why
businesses advertise and whether the people like it or not, their persuasive intent is essential.
These reasons will be discussed when we start talking about the importance of advertising.
B. Importance of Advertising
If we look at the big picture, the aim of advertising is to increase sales and/or prevent
sales from heading toward a depression. To generate more business for the business. Its
ultimate goal however is to influence the stance and actions of its customers (Miranda, 1987).
People will remain uninterested and will not attempt to look, inquire, or perhaps buy/order
unless they are informed often enough in a compelling and stimulating fashion. This is why we
have advertising. Attracting attention in the first instance is already a small success for the
business. Unless enthrallment is yielded, the message will remain unheard and unseen (Jefkins,
1976).

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The role of advertising is further explained using the AIDA concept which means: (1) to
attract attention, (2) to create interest, (3) to stimulate desire and; (4) to induce action (Miranda,
1987, p. 9). As advertising appeal to the customer and create interest, the customers go into the
process of trying to know what the product is. Advertising make it easy for the consumer how to
act as they stimulate desire. After giving inducements to act straightaway, the consumer puts
forth their formulated decisions to action (Miranda, 1987).
The consumers are a vital aspect of the business. The consumer to you is like a wife to
a husband; the consumer is your wife for without them the business would not flourish.
C. Modern Technology in Advertising
Gupta (2013) once said that the insurance industry in the United States is mature and
highly competitive. Among the biggest players, you see what amounts to an advertising arms
race. In the property and casualty space alone, the top five U.S. advertisers spent $3.6 billion in
2012. That is a seven percent increase over 2011. Still, when you see ad expenditures like that,
you need to make sure you seize every advantage to create value for the customer. This is
where technology and the innovation it provides steps in. With the application of modern
technology to advertising, this industry will surely transform and flourish. Those three trends are
connectivity, cloud computing, and decision sciences, big data and analytics. They enable
almost limitless ways to create value for the customer.
Connectivity represents the convergence of increased bandwidth, processing power,
internet capacity and device proliferation, to name some elements. Connectivity allows users to
contact a sales agent, call center agent, or any information officer directly. This advantage of
technology created a wide gap between traditional means of advertising and the modern
methods of advertising. It can be said that with connectivity, the customers are readily
accessible to the business which is an important aspect in advertising.

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According to Vence (2004), the advancements in technology has made it possible for
advertisements to be acknowledged by a larger crowd through the use of outdoor
advertisements:
L.E.D.s
By far, LED is one of the most popular features in modern outdoor advertising
technology. It's commonly used by such big-name advertisers as Procter & Gamble and
McDonald's for billboard ads in highly populated areas, but this LED technology bears little
resemblance to the glowing numbers on the bedside alarm clock. LED contains a chemical
compound that emits light when an electric current passes through it. In multicolor displays,
several LEDs banded together create one pixel. One LED product developed in the last two
years by Evanston, Ill.-based iLight Technologies Inc. is Plexineon, a solid plastic material that is
integrated with LED technology in such a way that produces a bright, even glow across an
entire surface, comparable to glass neon but extremely durable and less costly. Being a cost
efficient device, it has been a preferable choice by businesses to advertise their products
through L.E.D. banners. An excellent example of L.E.D. advertising is the famous Times Square
in New York, USA. Many residents of New York and thousands of tourists go through Times
Square because of its amusing L.E.D banners and billboards which has made the place an
effective area to advertise different products simultaneously.
Digital Ink
This new means of outdoor advertising was developed by New York-based Magink
Display Technologies Inc. The privately held company develops full-color, versatile digital ink
technologies for use in outdoor advertising billboards, consumer electronic devices and in-store
promotional displays. What's new about this technology is the fact that the lighting system is
brighter; there's more color quality and contrast; and most importantly, it's wireless. Magink's
new digital ink billboards are solar-powered, which is healthier for the environment, says Ran
Poliakine, CEO of Magink. Magink's digital ink technology uses organic material that can display
all the colors of the spectrum, including shades of gray. It is wireless and remains visible day

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and night. The digital images can be changed instantaneously based upon factors such as
viewer reaction, time of day, sales results or even current events. The displays are networked
together and controlled via Magink's centralized software program. This new mode of
advertising has made billboards in roads very effective to the target audience because of the
appealing contrast of colors and the very clear and precise details on the billboard
advertisement.
Projector-based Technology
Major retailers, such as Gap, have been using projector-based technology to advertise
outdoors. Through a projector, or series of projectors, light images can be cast on the side of a
building. The factors that are important to consider in projector-based technology are brightness
and resolution. The brightness of the projection must be brighter than the natural light in the
area so that the image could be clearly visible to the target audience. Resolution is also an
important key for the advertiser to get right. With the proper resolution projected, the viewers
can clearly see and understand the advertisement being projected. "Digital technology is being
deployed widely right now. If you walk up and down Fifth Avenue (in New York), there are
screens popping up everywhere," notes Michael Hudes, executive vice president of corporate
development for Phoenix-based Clear Channel Outdoor, a division of Clear Channel
Communications Inc. "Technology is definitely becoming more ubiquitous in placing content on
a billboard" (Vence, 2004).

III.

Methodology
The researchers have gathered information from numerous sources related in the field of

advertising. Several books were used to gather adequate knowledge about the topic. Online
databases like EBSCO were also used by the researchers to gain information that ordinary
search engines could not provide. These library materials are the main sources of data that the
researchers used to complete the content of this library research paper. The content of the
research are up to date and relevant to the purpose of the research. Research strategies were
gathered from different sources from the internet and also with the help of our professor. The
researchers have adapted the APA citation format in the reference section of the research for
formality and uniformity.

IV.

Results and Discussion

Recently, online advertising has offered new technologies that target consumers directly

rather than indirectly through tailored content. Other means of computer advertising has created
programmatic advertising. Programmatic technology allows for the automation of cross-platform
buying and selling of digital advertising through real-time bidding, which is a cost-effective way

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to take advantage of target marketing. Advertisers will continue to adopt programmatic buying
practices with study after study showing rapid gains in programmatic spending and projections
that show rapid increase in the years to come.
The significance of technology in advertising has really affected businesses positively.
Developments in our technology helped advertising companies to advertise the products in
large scale rather than in small areas. It paved way for advertisers to communicate with their
target markets. Modern technology also allowed advertisers to create new and improved ads to
attract a lot of people to their product. It has greatly impacted advertising in a way that ads could
also be seen by people from other countries. Because of technology, traditional ways of
advertising are less likely being used today because people are tired of just staring large
billboards outside. They want advertisements to be more creative for them to be attracted. That
is what technology has done for advertisements.
As technology evolves, so does advertisements. One of the greatest impacts of
technology to advertisement is the development of the internet. Advertisements have been
more effective and efficient with the use of the internet. Advertisements are immediately
published which is not restricted by time or any geographical boundaries thus reaching global
consumers at large (Jones, 2007). Advertisers can have information in which they could know
how many visitors have seen their advertisements or even how many have purchased products
online. Also, consumers could have a direct interaction with the advertisers. And advertising with
the use of the internet cost less than traditional advertising and also could be accessed 24/7.
According to Rissler, website promotion has become commonplace since webmasters
discovered the drastic increase in revenue when they took advantage of certain tricks and
techniques that made their websites more popular. The internet is an interactive, influential and
ubiquitous medium all at the same time. First, the internet is interactive because lets consumers
interact instantaneously with fellow consumers including the administrator of a given site. It also
hands over content people want to like, buy, answer to, and/or share. Second, the study

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conducted by PR Firm Fleishman-Hilliard indicates that when it comes to consumer purchase
decisions, the internet is broadly influential. The internet surpasses all information
sources/providers (e.g. word-of-mouth from friends and family). Eighty-nine percent of
consumers use search engines to make purchase deals and decisions as ascertained by the
study. Finally, communication opportunities in the mobile environment heightened due to the
vast and growing number of digital devices/gadgets (e.g. cell phones, tablets, laptops, net
books, cameras, etc.). Eighty-seven percent of people worldwide are already cell phone
oriented and is currently on the process increasing the use of tablets. Meanwhile, the go-to
gadgets of people living in developing countries are cell phones. These gadgets help in
accessing internet in an easier and faster way thus making it a ubiquitous medium (Sheehan,
2014).
Advertising keeps consumers aware and interested in you products benefits. It
convinces consumers that your product is more superior among others. Through advertising,
your product becomes more visible to consumers enabling them to go more for your products. It
attracts new and replaces lost customers and it makes them more loyal to your product. It also
eliminates competitors if you advertise more than they do.
Advertisings effect may be dramatic when executed correctly. It makes the product and
its origin distinguishable against to others. Every product has their own logo and this logo helps
consumers easily identify the product and also, using these logos, consumers can tell the
differences of a product to another product. Advertising reveals information about the product,
its details, and its location of sale. Advertising gives consumers a clue on what the product is all
about and what does it do. It also tells the consumers where they can buy the product.
Advertising convince consumers to try new products and to recommend reuse. Through giving
potential consumers something relating to the product like free tastes or free tests, the
consumer will have an idea what is the product all about. And when the consumers liked it, they
will buy the product and possibly be encouraged to buy more of it. Advertising also triggers the

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dissemination of the product. A company can introduce their product in another location through
advertising. With this, their product will become more recognized and more consumers will try
their product. Advertising boosts the usage of the product. Through advertising the product
effectively, large companies might get convinced and use also the product and will result to
produce massive sales. Advertising builds value, brand preference and fidelity to the product.
Other businesses that have the same type of product with yours may disturb the amount of
sales that you generate but when you use advertising campaigns, there will likely be a better
chance of consumers preferring to you product and you will have an edge among other
businesses. And lastly but the most important, advertising lowers the diminish cost of sales.
Advertising in different kinds of media will attract a variety of consumers to your product and will
make your product more sellable. Your sales will overpower your expenses and therefore will
result in the increase of the profit.
IV.
A.

Conclusion and Recommendations

Conclusion

The advancements in technology have made a significant impact on the advertising industry.
Through new methods of advertising, businesses are now able to generate more sales which
lead to greater income. Developments in technology have enabled businesses to advertise their
products to a larger audience with minimal expense. The use of online advertising has also
provided potential customers the ease of access to the business sales representatives, call
center agents, etc.

New methods of advertising were conceived by the advancements in technology. These are
namely: programmatic advertising and outdoor advertising. These new methods are being
adapted by numerous businesses around the world because of its innovation and effectiveness.

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Technology will surely develop even more and only time will tell what new significant
improvements it will bring to the advertising industry.
B.

Recommendations
Technology has created numerous opportunities but advertisers and businesses must not

stop there. Nothing is ever permanent so they must always look forward and envision
themselves as victors in the future. As a guide and to further utilize the existing technologies
that will benefit them and their customers in the long run, the researchers recommend the
following:
Instead of providing entertainment and humour, they should focus on providing values
and knowledge to consumers. Educating the consumers about the advantages of using
their products with integrity at most. Much better if they educate the audience about
issues and critical factors in their industry and combine their brand with that.

Business owners should adapt to the developments in technology so that they could stay
ahead of their competitors. It is better for businesses to be the benchmark of other
companies so that the business can attract more customers knowing that they are in the
front line of the industry.

Businesses that are just beginning to enter the market should know the current trends in
advertising and have a careful examination of their environment for potential
advertisement placing.

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References
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https://www.nibusinessinfo.co.uk/content/how-advertising-can-help-your-business
Arens, W. F., Schaefer, D. H., & Weigold, M. F. (2012). Advertising / William F. Arens,

David

H. Schaefer, Michael Weigold. New York: McGraw-Hill Irwin, c2012.

Burnett, L. (n.d.). BrainyQuote.com. Retrieved November 3, 2014, from BrainyQuote.com
Web site: http://www.brainyquote.com/quotes/authors/l/leo_burnett.html
Gupta, S. (2013). The Role of Technology in Advertising. Siliconindia, 62-63.
Ingram, D.(n.d.). Contributions of Modern Technology Toward Enhancing Advertising Campaign
Strategies. Retrieved from http://smallbusiness.chron.com/contributions-modern
technology-toward-enhancing-advertising-campaign-strategies-3259.html
Jefkins, F. (1976). Advertising Today (2nd ed.). The Purpose and Value of Advertising (pp. 3-5).
London: International Textbook Company, Ltd.
Miranda, G. S. (1987). Advertising. Advertising in Our Economic Society (pp. 1-9). Metro Manila:
National Book Store

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Modern Advertising Methods Combine Traditional & Technological Methods. (n.d.). Retrieved
from http://university-essays.tripod.com/advertising.html
Ogilvy, D. (2004). Confessions of an Advertising Man. Retrieved November 3, 2014 from
http://www.goodreads.com/book/show/44895.Confessions_of_an_Advertising_Man
Sheehan, K. B. (2014). Controversies in Contemporary Advertising (2nd ed.).
California, USA: Sage Publications, Inc.

Rissler, N.(n.d.). Modern Online Advertising Techniques Bring Life to your Business. Retrievd
from http://www.articlesnatch.com/Article/Modern-Online-Advertising-Techniques-BringLife-To-Your-Business/684777#.VF9bx2c

The rise of programmatic advertising: as media buyers ramp up their use of programmatic
advertising technology, publishers can no longer ignore the revenue power of
targeted, automated buying and selling. (2014). Folio: the Magazine for Magazine
Management, (2). 28.

Thorson, E., & Duffy, M. (2012). The Principles of Advertising and Marketing Communication
at Work (1st ed.). Cengage Learning.
Vence, D. L. (2004). Outdoor ads leverage new technology. Marketing News, 38(15), 11-13

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Appendices
Personal Information
Name: Giles Orven C. Carbonel
Date of Birth: March 1, 1997
Nationality: Filipino
Religion: Roman Catholic
He is currently taking up BS Accountancy in AMV-College of
Accountancy in the University of Santo Tomas.

Name: Ceferino C. Carpio, IV

Date of Birth: November 20, 1996
Nationality: Filipino
Religion: Roman Catholic
He is currently taking up BS Accountancy in AMV-College of
Accountancy in the University of Santo Tomas.

Name: Rhandt Benedict B. Gepilano

Date of Birth: April 21, 1997
Nationality: Filipino
Religion: Roman Catholic
He is currently taking up BS Accountancy in AMV-College of
Accountancy in the University of Santo Tomas.

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Name: Erika Mae P. Guazon
Date of Birth: January 28, 1997
Nationality: Filipino
Religion: Roman Catholic
She is currently taking up BS Accountancy in AMV-College of
Accountancy in the University of Santo Tomas.