History of Advertising

History 101

1. Mass-produced goods: via industrial revolution

2. Mass communication: typewriter, printing

3. Mass distribution: transportation, mail

4. Mass education: literacy, prosperity

Four necessities

The pre-industrial age (pre-1800s)

• “None of the above”

• The grapevine (WOM)

• First paper mill in Europe: 1275

• Reading and writing? Monks and scholars

• News travels less than 50 miles

Historical Roles of Advertising

Gutenberg

The Industrializing Age (Mid 1700s Europe/1800s in U.S.)

• Mass production (machines, not animals)

• Mass consumption (costs less to buy than make) – the beginning of “the consumer”

• Ads as information – sources of supply, etc.

• Literacy, free mail delivery

• Photography, typewriter, phonograph

Historical Roles of Advertising

Mathilde C. Weil

The Industrial Age (1900s to 1970s)

• Production shifts to sales

• Branding – Wrigley’s, Coke, JELL-O, Kellogg’s, Campbell’s

• Consumer packaged goods

• Advertising wars

• Product differentiation

Historical Roles of Advertising

Albert Lasker

“Talk to people one at a time, not in the mass.”

Claude Hopkins

Claude Hopkins

Raymond Rubicam – Y&R

Helen Lansdowne Resor

John Caples

Bob and Ray

Stan Freberg

Chuck Blore

Dick Orkin

Age of radio - 1922

Bernice Fitz-Gibbon

Rosser Reeves - USP

Anything you say, people see/hear

Selling by saying your product is “better”

The beginning of clutter

“The wall” – perceptual screens

Nielsen, Gallup (market research)

Keeping up with the Jones’

The 30-second spot

Age of TV – 1950s

Bernbach

Ogilvy

Burnett

Creative Revolution – 1960s

Bill Bernbach

Bill Bernbach

Bill Bernbach

Bill Bernbach

David Ogilvy

David Ogilvy

Leo Burnett

Mary Wells

Howard Gossage

Gossage parodies Ogilvy

Charlotte Beers

Positioning era

Market segmentation

Marketing Revolution – 70s

The Post-Industrial Age (Starting 1980)

• CSR

• Lifestyle ads

• Big three TV networks

• Demarketing

• Global markets

• Global agencies (WPP, DDB, FCB, etc.)

Historical Roles of Advertising

The “me” ads (“Because I’m worth it”)

Decreased ad budgets in favor of sales promotions

Simpler visual-based executions

MTV influence

Digital fx

Catchphrases (“Where’s the beef?”)

Celebrity

The New Ads – 80s

Lee Clow

Lee Clow

IMC

More channels, new medium

Niche marketing and audience fragmentation

PoMo

Public Relations

Research/metrics

“Play it safe”

Massive ad “holding companies”

Rise of the Machines – 90s

Linda Kaplan Thaler

The Global Interactive Age (last 20 years)

• The slow death of print and broadcast

• Two-way medium – dialogue

• Branded platforms – destinations, not interruptions

• Google – search advertising and marketing

• YouTube, Facebook, Twitter, PVRs, Mobile

• Value of information over value of “stuff”

Historical Roles of Advertising

TV

• Collapse of distribution networks

• TV channels drive viewers to web platforms

• Fragmentation across devices

• Intelligent networks

• Advertising goes digital and is delivered to individuals on a personalized basis

• Branded platforms

• Netflix versus HBO models

The future

Movies

• Released simultaneously on all media and markets

• Some are free, underwritten by ad deals• Experiential films• Branded merchandise brings in more revenue

than box office

The future

Music

• World’s library is available for free on any device

• Business models rely on advertising, merchandising, and events

• Subscription-based models dwindle and fade

• Personalized streaming

• Five-way competition for consumers: TV brands, radio broadcasters, music labels, social media, music hardware

The future

Games• Dominate teenagers’ media time from other media

• Free business models – with revenue from ads and virtual purchases - replace subscriptions

• Games become a key entry point for music and product launches and attract more advertising and sponsorship

• Casual gaming booms – driven by mobile and location-based

• Immersive game controllers

The future