14. A Brief History of Advertising
Advertising is an Ancient Activity
• First printed ads were one-page handbills
• “Come to America! The natives are friendly and the
farmland is fertile.”
• trade advertising
• consumer advertising
• display ads
15. Advertising
• Stimulative effect of advertising
• Advertising spreads innovation
• Consumers are created as much as they
are reached
27. A Brief History of Advertising
The Advent of Advertising Agencies
• 1841, Philadelphia’s Volney Palmer becomes an ad
broker to act as a liaison between advertisers and
newspapers.
• By 1860, 30 major agencies were servicing some
4,000 newspapers and magazines.
• N.W. Ayer was founded in 1869 when manufacturers
realized they needed agencies to work directly for
them as opposed to working for the newspapers.
Ayer would not work with products that were
dangerous or place ads considered deceptive.
28. A Brief History of Advertising
Early Industry Control
• puffery
• By the late 1800s, advertisers were making
outrageous claims and outright deceptions.
• Miracle elixirs containing alcohol, cocaine, heroin
• The Pure Food and Drug Act was passed in 1906
largely in reaction to patent medicine claims.
• The Federal Trade Commission (FTC) was
established in 1914 as a national watchdog of
business and advertising.
29. A Brief History of Advertising
Ads Take to the Airwaves
• As the radio industry developed in the early 20th
Century, there was a movement to leave
broadcasting free of advertising and run it as a
common carrier of mediated interpersonal
communication.
• Britain decided to fund its state-run broadcasting
system, the BBC, by license fees paid by radio
owners, not advertising. British radio and television
did not accept advertising until the 1950s.
• In 1922, the first commercial was run by AT&T’s
WEAF in New York.
• By 1926, when network radio began, advertising had
become an acceptable means of supporting radio.
30. A Brief History of Advertising
• Advertising became a specialized art form with
the advent of television.
• 30-second TV commercials feature
entertainment value such as story lines and
jingles
• subliminal advertising
31. A Brief History of Advertising
Diversity and Target Marketing
• Target marketing breaks up the advertising
audience into diverse segments
• circulation waste
• Advertisers direct ad campaigns toward women,
African Americans, Hispanics, young white men
and others.
Globalization
• Since the 1980s, agencies in the U.S., Japan, and
Britain have merged into transnational behemoths
and adapted to indigenous cultures in new markets.
37. Understanding Today’s Advertising
Industry
• Positioning: the process of finding the product’s
most specific customer type and creating appeals
that will be effective with that customer
• focus groups
38. Mad Men
http://www.youtube.com/watch?v=R2bLNkCqpuY
Johnson “daisy” ad (1964)
http://www.youtube.com/watch?v=kYk5MNjYhmk&featur
e=related
1984
http://www.youtube.com/watch?v=OYecfV3ubP8
http://www.youtube.com/watch?v=6h3G-lMZxjo
Willie Horton ad (1988)
http://www.youtube.com/watch?v=Io9KMSSEZ0Y&NR=1
Honda ad
http://www.youtube.com/watch?v=g2VCfOC69jc
39. Understanding Today’s Advertising
Industry
Different types of ads
• Newspapers
• Display ads
• Classified ads
• Magazines
• Television
• Direct mail
• Specialty ads
• Radio
• Yellow Pages
• Outdoor ads
• Online
• Per click fee
• Per 1,000 page views
41. Understanding Today’s Advertising
Industry
• The Internet is the most rapidly growing medium
of advertising, earning nearly $6.3 billion annually
by 2009. Still a small piece of the pie; total ad
expenditures $125.23 billion in 2009.
• Web ads are a convergence of all former ads.
• Like newspapers and the yellow pages, online
ads are placed precisely where consumers
are looking for product information.
• Online ads compete with magazines in terms
of artwork.
• They involve motion and sound, and have the
entertainment advantages of radio and TV.
• Some users resent Internet ads because they
are developing a clutter problem.
42. Understanding Today’s Advertising
Industry
• The Internet is the most rapidly growing
medium of advertising, earning nearly $6.3
billion annually by 2009. Still a small piece
of the pie; total ad expenditures $125.23
billion in 2009.
• Search remains the largest online ad format:
47% of online ad revenues, up from 45% in
2008.
• Search ad spending increased 1% in 2009 to
$10.7 billion.
43. Understanding Today’s Advertising
Industry
Advertising Objectives
• The objectives of advertising are:
• Name recognition
• Spreading news.
• Image advertising
• Advocacy ads
• Corrective ads
• Counter ads
• Public service announcements (PSAs)
45. Controversies
Truth in advertising
• Bait-and-switch advertising
• Parity statements
Ads and children
• Kids as consumer trainees
• Junk food ads
46. Controversies
Alcohol and cigarette ads: A 1999 settlement between
tobacco companies and states’ attorneys general
banned:
• Transit and billboard advertising in the U.S.
• The distribution of apparel and other
merchandise with brand names or logos.
• Brand-name sponsorship of concerts and events
with a significant youth audience.
• Payments for the use of tobacco products in
movies, TV shows and theater productions.
47. Controversies
• Should government regulate consumer tracking in
the name of target marketing, or should the industry
be allowed to self-regulate.
48. Controversies
Advertiser Influence on Media Content
• Devices such as remote controls, videotape
recorders, and TiVo assist viewers in skipping ads.
Many industry professionals feel product placement
(product integration) – making commercials part of
the program – is their only recourse.