History of Advertising
Jan 27, 2015
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