The Evolution of Advertising

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The Evolution of Advertising

• January 28, 2009

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• I know I waste half the money I spend on
  advertising. The problem is, I dont know which
  half.
• -John Wanamaker, Department Store Pioneer

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• Pre-Industrial Age
• Beginning of Recorded History to the Start of the
  19th Century

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• Merchants hung carved signs in front of their
  shops. Most people couldnt read so merchants
  used symbols, i.e. a boot
• 1275 Chinese Industrialized Age
• 1440s Gutenberg invented the Printing Press
• Low disposable income
• Town criers

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• Industrializing Age
• Mid 1700s

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• Machinery began to replace animals
• Rural, small towns, low income
• People left the farms to work in the city
• Railroads and Steamships
• Advertising was used to inform the masses about
  new products
• Large mail-order catalog companies
• Montgomery Ward,
• Sears Roebuck Co. (Retailers)

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• Innovative manufacturers use mass-media as a way
  to stimulate demand for their products.
• 1841, Volney B. Palmer set up an agency in
  Philadelphia. He contracted with newspapers to
  receive discounts on newspaper space.
• Birth of Mass Consumption

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• Industrial Age
• 20th Century 1970s

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• The development of new, inexpensive brands of
  consumer luxury and convenience goods.
• Focus changed from production to
  sales orientation
• New product development
• Wrigley Gum
• Coco-Cola
• Jell-O
• Kellogg's
• Campbells Soup

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• 1929, The Great Depression
  and advertising expenditure
  collapsed.
• Daniel Starch, A.C. Nielsen and George Gallup
  founded research companies to study consumer
  attitudes and behavior.
• Product Distinction

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• Post-Industrial Age
• Around 1980

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• The period of cataclysmic change. People became
  aware of the sensitive environment
  in which we live.
• Dependence on vital natural resources
• Refrain from using washers and dryers
• Reduce electrical consumption on HOT days
  (California)
• Used as a tool against political opponents

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• Advertising Time Capsule

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• 1650 First newspaper ad offers reward for stolen
  horse.
• 1729 Ben Franklin is first to use white
  spaceand illustration in ads.
• 1844 First magazine ad runs.
• 1869 First Ad Agency, N.W. Ayer Son
• 1900 Psychologists study the attention getting
  and persuasive qualities of advertising.
• 1905 First National Ad Campaign for theGillette
  Safety Razor

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• 1911 First Truth in Advertising Codes (American
  Advertising Federation)
• 1920 Albert Lasker Full Color Magazine Ads and
  Father of Modern Advertising
• 1924 NW Ayer produced the first company
  sponsored radio broadcast for Eveready

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• 1930 Advertising Age Magazine is founded.
• 1946 America has 12 TV stations broadcasting to
  the public.
• 1948 46 TV stations are on the air.
• 1950 First political ads are used (Governor
  Dewey of NY)

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• 1984 The Internet (Government controlled since
  1973) is turned over to the private sector.
• 2000 The Internet becomes the fastest growing
  new ad medium with 400 million users.

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Early Advertising

• Volney B Palmer becomes first advertising agent
• N.W. Ayer introduced first full service
  advertising agency and creates first campaign for
  Uneeda Biscuit for the National Biscuit Company
  (NABISCO)
• Newspaper, magazine, religious press used

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Consolidation and Growth (20th Century
1900 to 1965)
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Consolidation and Growth(20th Century 1900 to
1965)

• Economics
• More jobs and disposable income
• Poor labor conditions and business practices lead
  to self-examination and regulation
• Federal Trade Commission (1914)
• Federal Communication Commission (1934)
• Wheeler-Lea Amendment to FTC (1938)
• Food Drug Administration (1938)
• Prosperity ? World Wars ? Prosperity

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Consolidation and Growth(20th Century 1900 to
1965)

• Social Urbanization and improved education
  system
• Technology
• Automobiles and airplanes
• First commercial radio broadcast
  WEAF, New York (1922)
• First television program (1941)
• First color TV (1955)

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Consolidation and Growth(20th Century 1900 to
1965)

• Advertising
• American Association of Advertising Agencies
  (1917)
• Advertising defined as Salesmanship in Print
  (1920s)
• Creative Color printing, television
• Radio Soap Operas
• Marketing Research
• Gallup
• Starch

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Early 1950s TV
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Color 1955

• TV becomes second largest medium

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Market Segmentation

• In the beginning, all products talked about
  Quality, Variety, and Convenience
• All things to all people

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Market Segmentation

• Marketers search for unique groups of people
  whose needs could be addressed through more
  specialized products.
• (Shift from Product Feature to Brand Image and
  Personality)

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Positioning Strategy/Brand Separation

• Volkswagen

• Think Small

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Positioning Strategy/Brand Separation
7-Up
The Uncola
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Positioning Strategy/Brand Separation

• Avis

We Try Harder
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Brand Promise

• Luxury
• Performance
• Safety
• Freedom

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Principles of Free Economics

• Our economy is based on the notion of competition
• Self Interest
• People tend to act in their own self-interest
  (more-for-less)
• Complete Information
• What products are available, quality, price, etc.
• Many Buyers and Sellers
• If a company doesnt meet the consumers need,
  theyll go elsewhere
• Absence of Externalities
• Social costs - consumption of a product may
  benefit or harm (pollution, tobacco, alcohol)

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Notables in the Business

• Raymond Rubicam
• Rosser Reeves
• Leo Burnett

• Bill Bernbach
• David Ogilvy
• Jay Chiat

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Raymond Rubicam

• Founded Young Rubicam with James
  Orr Young

• Credited with the soft sell approach

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Rosser Reeves

• Premier Creative Director for Ted Bates Agency
• Credited for the Unique Selling Proposition
• Features that differentiate a product from its
  competitors.

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Leo Burnett

• Founded agency carrying his name in Chicago, IL
  in 1935
• Credited for invention of brand icons
  (e.g., Tony the Tiger the Marlboro Man)
• and inherent drama in ads

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Bill Bernbach

• Founded agency in Manhattan with
• Ned Doyle and Maxwell Dane in 1949 (DDB).

• Credited for advocacy of advertising as art and
  unique presentation (e.g., Volkswagen Beetle).
• Advertising is fundamentally persuasion and
  persuasion is an art.

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David Ogilvy

• Founded agency in New
• York in 1948 under its original name
• Hewitt, Ogilvy, Benson Mather

• Credited with fact-based long copy, the merging
  of hard and soft-sell approaches, and creation of
  brand personality.

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Jay Chiat

• TBWA/Chiat/Day
• Super Bowl Commercials
• Apple, Visa, Absolut, Anheuser-Busch, Pepsi

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Other Notables

• Mary Wells Lawrence
• First female founder of an advertising agency
  (1966)
• Barbara Gardner Proctor
• Founder of the first major agency owned and
  operated by an African-American woman (1970s)
• Lionel Sosa, Hector Norma Orci and Victor
  Ornelas
• Founded major Hispanic agencies in the 1980s
• Check out Association of Hispanic Advertising
  Agencies (AHAA)

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Why Advertising?

• Serves social needs
• United Way, Literacy, Red Cross
• Lowers overall cost of sales
• Information vehicle
• Makes us aware of products and services
• Entertainment
• Post SuperBowl, Water Cooler
• Evolving into a 2-way communication vehicle

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Top 10 Ad Icons of the Century

• The Marlboro Man
• Ronald McDonald
• The Green Giant
• Betty Crocker
• The Energizer Bunny

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Top Ad Icons of the Century

• Pillsbury Doughboy
• Aunt Jemima
• The Michelin Man
• Tony the Tiger
• Elsie

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Honorable Mentions

• Look Ma, no cavities!
• (Crest toothpaste)
• Let your fingers do the walking
• (Yellow Pages)
• Loose lips sink ships
• (public service)
• MMs melt in your mouth, not in your hand
• (MM candies)
• We bring good things to life
• (General Electric)

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Odds Ends

• The ____________ made possible posters,
  handbills, signs, and newspapers.
• The first ad in English was for __________.
• Benjamin Franklin affected US Advertising by
  using __________ and _____________.

Printing Press
Prayer Book
Bold Headlines
Illustration
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Odds Ends

• In the 1840s magazines became the ideal
  advertising medium because they provided _______
  advertising and the best quality of ____________.
• ________ is used to improve marketing
  effectiveness.

National
Reproduction
Research
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Odds Ends

• ____ represents the feature of features that
  differentiate a product from competitive
  products.
• Demarketing is used to _______ demand.

USP
Reduce
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• Goodnight.
• I have to get home for a Lifetime Miniseries
  event.