Advertising

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Advertising

• How the Media Sell Messages

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Definition

• Advertising is any paid form of non-personal
  presentation and promotion of ideas, goods or
  services by an identified sponsor.
• American Marketing Association

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Origins

• Advertising comes from the Latin word
  advertisen, meaning to notify.

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The reach

• Each day, the average American encounters
  approximately 3,000 advertisements, from
  broadcast messages to signs and billboard ads.

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Timeline

• 50 A.D.City of Pompeii, part of the Roman
  Empire, posts advertising commonly on buildings.
• Post-Gutenberg Era (1456- ) Goods advertised
  through printed flyers.

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• 1625First newspaper ad appears in England.
• Colonial America (1620-1776)Printers of village
  gazettes and books use print to advertise their
  products.
• 1830Start of American Industrial Revolution
  draws people to cities where goods are created
  and sold, making advertising necessary.
• 1840sAdvent of railroads allows goods to be
  shipped over great distance, creates demand for
  advertising.

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• P.T. Barnum, an 1860s circus showman and museum
  owner, is credited with being the founder of
  modern spectacle and mass culture. He knew
  inhibited Victorians needed diversion, and he
  marketed curiosities to the masses.

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Industry Founders

• 1841Volney Palmer starts first ad agency in
  Philadelphia, representing publishers who needed
  advertisers.
• 1871N.W. Ayer Son becomes first modern
  agency, representing sellers of goods, not
  publishers.

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• Late 19th Century--P.T. Barnum, owner of the
  circus he called The Greatest Show on Earth, is
  considered the Father of Advertising.

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• 1880sWith advent of electricity, many products
  hyped falsely as being electrified
• Electric hairbrush
• Electric corset
• Electric eyeglasses

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• 1890sBrand name advertising begins as a means of
  distinguishing between similar competing
  products.
• Smith Bros. Cough Drops (first product package at
  factory)
• Pears Soap (first attempt to establish brand
  with quality)
• Uneeda Biscuit (first cracker not sold in a
  barrel but in a tin.)

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• 1900Start of slogans associated with products.
• Good morning, have you used Pears today?
• Winston tastes good like a cigarette should.
• Coca-Cola. Its the Real thing.

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• 1906Congress passes the Pure Food and Drug Act,
  the first legislation to protect consumers.
• 1914Federal Trade Commission established.

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• 1925President Calvin Coolidge observes that
  mass advertising creates mass demand and is
  necessary to a manufacturing economy.
• Advent of radio turns ad slogans into jingles.

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Growth of Ad Revenue

• 1947
• 1970
• 1980
• 1983
• 2000

• 4 billion
• 20 billion
• 50 billion
• 75 billion
• 236.8 billion (52 of world advertising)

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• Post-WWII eraUshered in the following that was
  beneficial to ad industry
• Baby Boom
• Economic Affluence
• TV
• Psychological techniques of persuasion learned
  from war propaganda.

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Ad Expenditures by Medium (1995)
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• 1950s--Unique Selling Proposition (USP) developed
  by Ted Bates Company, which sought to use an ad
  to differentiate between products that had no
  difference.

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• Brand Image developed by David Ogilvey, a major
  influence in American advertising. Sought to
  associate images with products that made them
  appeal more than others.
• Ralph Lauren
• Tommy Hilfiger
• Jeep

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• 1950sFirst use of motivational research, started
  by Ernest Dichter, and reported in Vance
  Packards book The Hidden Persuaders.
• Subliminal advertising tried by researcher Jim
  Vicary.

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Methods today

• Advertisers tailor messages to audiences based
  on
• Demographics (audience characteristics)
• Psychographics (audience values, moods, opinions)

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• 1983NAB Code abandoned after court ruling finds
  restrictions violate anti-trust laws.

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• 1990sAdvertisers discover the World Wide Web
• Total ad dollars on Web--43 billion by 2005, 30
  billion from the U.S. alone.
• Studies show a correlation between Web-based
  advertising and purchasing.
• One study indicates that banner ads increase
  offline advertising by 19

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Trends

• More online ads
• Growth in Direct Mail
• Decrease in newspaper ads
• Shorter TV commercials
• Infomercials
• Place-based advertising