CH 3: The History of Advertising and Brand Promotion

Four major factors that gave rise to advertising

1) the rise of capitalism: warrant that organizations compete for resource's called capital, in a free-market environment. Stimulating the demand for the organizations goods or services. One of the tools used to stimulate demand is advertising.

2) the industrial revolution: economic force that yielded the need for advertising. 1750 England, revolution spread to North America and progressed slowly until the 1800's, when War of 1812 in the U.S. boosted domestic production. Took Western societies away from household self-sufficiency as a method of fulfilling material needs to dependency on a marketplace as a way of life.

1869 - revolution in transportation by the railroads. Beginnings of the distribution network needed to move mass quantities of goods for which advertising would help stimulate demand.

Growth and concentration of population provided the marketplaces that were essential to the widespread use of advertising.

3) the emergence of modern branding: manufacturers has to develop brand names so that consumers could focus their attention on a clearly identified item.

4) the rise of modern mass media: with the invention of the telegraph in 1844, a communication revolution was set in motion. During their period many new magazines designed for a larger less socially privileged audience & add magazines a viable mass advertising medium. National magazines made national advertising possible. Mass media is supported by advertising

Principle of limited liability

an economic principle that allows an investor to risk only his or her shares of a corporation, rather than personal wealth, in business ventures. (1840s)

Branding

the strategy of developing brand names so that manufacturers can focus consumer attention on a clearly identified item.

First branded consumer products (late 1800's): Ivory (1882), Coca-Cola (1886), Budweiser (1891), and Maxwell House (1892).

The preindustrial era (pre 1800)

Advertising grew in popularity during the 18th century in both Britain and the American colonies. The Pennsylvania Gazette printed advertisements and was the first newspaper to separate ads with blank lines. Was also the first newspaper to use illustrations in advertisements.

Dailies

Newspapers published every weekday; also, in television ad production, the scenes shot during the previous day's production. With the expansion of newspaper circulation fostered by the railroads and growing urban centers, a new era emerged for advertising. Further, no laws or regulations restricted advertisers.

The "P.T. Barnum Era (1875-1918)

Shortly after the Civil War in the U.S., modern advertising began. 1875-1918 advertising ushered consumer culture. Consumers were willing to pay for brands rather than unmarked commodities. (Generic products)

Advertising was completely unregulated until 1906, Congress passed the Pure Food and Drug Act which required manufactures to list the active ingredients of their products on their labels.

The tone and spirit of advertising of this period owed more to P.T. Barnum ("there's a sucker borne every minute") than to any other influence. Barnum was a famous showman and circus entrepreneur of his day

Ad details: more copy (words) than today's ads, very little colors very little photograp;hey, and plenty of exaggeration and even lies.

it was a period of rapid urbanization, massive immigration, labor unrest, and significant concerns about the abuses of capitalism. Age of suffer age movement, the progressive movement, silent motion pictures, and mass culture.

Consumer culture

a way of life centered around consumption

Pure Food and Drug Act

a 1906 act of congress requiring manufacturers to list the active ingredients of their products on their labels.

The 1920's (1918-1929)

After World War I, advertising found respectability, fame, and event glamor. Movement to reform and regulate advertising was dissipated by the distractions of the war and advertising's role in the war effort. During WWI, the advertising industry learned a valuable lesson: Donating time and personnel to the common good is not only good civics (make your own judgment on war) but also smart business. Advertising gave people permission to enjoy and to enjoy now.

Modern times bring on many wonderful new things, but the new way of life has side effects that, in turn, have to be remedied by even more goods and services, and on, and on.

Women were responsible for 90% of household purchases. From this time forward, women became advertising's primary targets.

Science and tech also came into play - the new religion of the modern era.

The depression (1929-1941)

The way people thought about work, money, and consumption would change forever after World War II. The change would be profitable for the advertising industry; whether it was good for society is another question.

Clients wanted their money's worth, and agencies responded by cramming every bit of copy and image they could into their ads or using obviously inappropriate sex appeals. Advertisers played on the anxieties and vulnerabilities of troubled people. Long term effect was not positive.

Notable event during this time: emergence of radio as a significant advertising medium. Important aspect was its ability to create a sense of community. Ushered the idea of broadcasting. Voices of radio friends from afar made for good company during hard times.

U.S. Congress passed real advertising reform in this period. 1938 the Wheeler-Lea Amendments to the Federal Trade Commission Act declared "deceptive acts of commerce" to be against the law and now individuals advertisers could be Helen liable for deceptive practices.

Great Depression

A period (1929-1941 for U.S.) in which the vast majority of people in many countries suffered from a severe economic decline.

World War II and the 1950s (1942-1960)

Advertised brands were linked with patriotism

Economy and consumption improved

Consumers feared being manipulated by modern science, technology, and subliminal advertising.

1950s was also about sex, conformity, chastity, the nuclear family, and strict gender roles and sexual norms.

There was also TV. This era also saw growth in the U.S. economy and in household incomes. Tech change was relentless and was a national obsession.

Oral birth control in 1960s would change the culture's view of appropriate sexual behavior, or at least consequences.

Subliminal advertising

advertising alleged to work on a subconscious level - to buy all sorts of things they didn't really want or need.

Factors in the rise of advertising

- Capitalism

- Industrial revolution

- Branding as a strategic initiative\

- Mass media

Advertising strategy responds to changes in

- Economic conditions

- Socio-cultural issues

- Technology advancements

Industrial revolution era late 1800s-WWI

Economics: factory manufacturing leads to expanded distribution reduced self-sufficiency, birth of branded products

Socio-cultural: urbanization and immigration; growing middle class

Media/Tech: daily newspapers engaged in circulation wars; yellow journalism

Advertising: localized audiences, unrestricted, disrespected, "huckerism"

Industrial era ad strategy

- Sell at all costs

- Make wild, unsubstantiated claims

- Speak to local audience about local products

War and Depression: 1920-1940

Economics: Jazz age boom, Great Depression bust. WWI, economic speculation followed by widespread unemployment

Socio-cultural: Drive to be "modern," and stylish, science/hygiene/technology valued. Depression leads to deprivation and mass migration west

Media technology: Rural electrification leads to widespread adoption of radio-in every home

Advertising: Radio joins print. Makes it possible for creation of regional and national identity. Brands go national

War & depression era ad strategy

- Brands add to consumer lifestyle

- Women emerge as key target

- Radio brings brands regional and national

- Emergence of a national identity in ad messaging and audience connection

- Government restriction and deception

WWII and post war era

Economics: WWII lifts economy out of Depression, post war era period of great expansion. Homes, cars, durable goods supported by steady jobs, war mfr turns to economic powerhouse. Brands expand

Socio-cultural: Men return, women leave job force, start families. Baby Boom generation born. Cold war, nuclear fears, Silent majority. Faith in technology and brands

Media Technology: television adoption widespread

Advertising: The "perfect" lifestyle projected, emphasis on repetition, harsh sell, abrasive, intrusive

WWII era

- Emphasized patriotism

- Supported war effort

- The "working women"

Post war era

- Men returned home to traditional roles

- Women returned to household roles

- The American Dream lifestyle takes shape through advertising

Peace, love & advertising (70s and 80s)

Economics: Inflation, gas crisis

Socio-cultural: Cultural revolution, Civil Rights, Feminism, anti-war protests, student activism, The Pill, "Me" generation

Media Technology: Television, cable TV, direct to consumer

Advertising: Creative revolution, then M&A and IMC

Creative revolution

- Advertising connects to consumers through creative ideas

- Creative teams have greater role in ad agency management

1970's-80s

- Gender roles changing

- Minorities represented in advertising

The internet era

Economics: Globalization, e-commerce, dot com bust, Great Recession

Socio-cultural: Gen X and GenY, LGBT rights, aging Baby Boomers

Media Technology: Interactive, digital, social, mobile, decline of measured media

Advertising: Lean in vs lean back, apps, branded content, Facebook, SEO, drive for ROI, behavioral targeting and programmed media buying

Industrial revolution

A major change in Western society beginning in the mid-18th century and marked by a rapid change from an agricultural to an industrial economy.

Consumer culture

A way of ife centered around consumption

Great Depression defined

A period (1929-1941 - U.S.) in which the vast majority of people in many countries suffered from a severe economic decline

Action for Children's Television

A group formed during the 1970s to lobby the government to limit the amount and content of advertising directed at children.

Federal Trade Commision (FTC)

The government regulatory agency that has the most power and is most directly involved in overseeing the advertising industry.

National Advertising Review Board: demanded higher standards of honesty and disclosure in the ad industry

Interactive media

Media that allow consumers to access games, entertainment, shopping opportunities, and educational programs, sometimes on a subscription or pay-per-view basis. Such media allow direct measurement of ad exposure and impact

Consumer generated content

Advertisements and other content related to products r brands, created in part or completely by their end users.

Branded entertainment

Embedding one's brand or brand icons as part of any entertainment property (sporting event), blending advertising and IBP with entertainment in an effort to impress and connect with consumers in a unique and compelling way.

Tell the story of advertisements birth

Discuss several significant eras in the evolution of advertising in the United States, and relate important changes in advertising practice to fundamental changes in society and cultural. How did successful ads leverage the social and cultural forces of their day?

Tell the story of greater consumer access to information and connectivity, the rise of ad blockers, and how branded entertainment works

Identify forces that will continue to affect the evolution of advertising and integrated brand promotion. Put history to work today.