©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to...

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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The History of Advertising and Brand Promotion

The History of Advertising and Brand Promotion

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The Rise of Advertising

The Rise of Advertising• Rise of capitalismo Competition for resources (capital) stimulating demand for goods and services

• Industrial Revolutiono Mass production of goods needed demand stimulation

• The Emergence of Modern Brandingo Branding emerges to control the channel

• Rise of modern mass mediao Democratization of goods

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TThe Industrial he Industrial

Revolution was Revolution was a key factor in a key factor in

creating a creating a setting for the setting for the

growth of growth of advertising advertising ——

Why?Why?

TThe Industrial he Industrial

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The Evolution of Advertising in the United StatesThe Evolution of Advertising in the United States

Pre-industrialization Era (pre-1800)• Handbills and “newsbooks” appear

• Early ads resembled today’s classifieds

The Era of Industrialization (1800-1875)• “Dailies” grow in popularity

• Railroads spread the word

• Advertising was considered an embarrassment by some

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The Evolution of Advertisingin the United States

The Evolution of Advertisingin the United StatesP.T. Barnum Era (1875-1918)• The “consumer culture” dawns• Advertising becomes an industry

The 1920s (1918-1929)• Advertising finds fame and glamour• Ads play on social anxieties• Segmentation begins by social

class 35


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HHow does this ad typify ads from the P.T. ow does this ad typify ads from the P.T.

Barnum era?Barnum era?

HHow does this ad typify ads from the P.T. ow does this ad typify ads from the P.T.

Barnum era?Barnum era?



The Evolution of Advertisingin the United StatesThe Depression Era (1929-1941)• Depression was brutal on families• Big Business is vilified• Advertising turns to harsh, anxiety

creating ads• Radio emerges as a new medium

WWII and the Fifties (1941-1960)• Products linked with patriotism• Fascination with “science”• Subliminal advertising scare hits

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AAds from the ds from the

1950s 1950s reflected reflected

consumers’ consumers’ fascination fascination

with scientific with scientific discoveries discoveries (do you see any (do you see any

subliminal subliminal messages here? ) messages here? )

(Clue=there are none)(Clue=there are none)

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1950s 1950s reflected reflected

consumers’ consumers’ fascination fascination

with scientific with scientific discoveries discoveries (do you see any (do you see any

subliminal subliminal messages here? ) messages here? )

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The Evolution of Advertisingin the United StatesPeace, Love and the Creative Revolution

(1960-1972)• Creatives gain control• Advertising emerges as an icon of a culture fascinated with consumptionThe 1970s (1973-1980)• Women and minorities adopt new roles• Hedonistic values emerge• Regulation and oversight take hold—FTC and NARB become active

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PPeace, Love, eace, Love,

and the and the Creative Creative

Revolution all Revolution all in one ad!in one ad!

PPeace, Love, eace, Love,

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The Evolution of Advertisingin the United StatesThe Designer Era (1980-1992)• Conservative politics rule• Rapid-paced MTV editing becomes ad style• Late night infomercial is born

The E-Revolution Begins (1993-2000)• Stage I of the Web revolution—with mixed results• Problems with new media applications disappoint

many advertisers• Advertisers believed digital media would

“revolutionize” measurement—it didn’t (yet)• “Centers” of advertising power move West

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The Evolution of Advertisingin the United States Consumer Empowerment, Branded

Entertainment, The Great Recession (2000-present)• Phase II of the e-ad-evolution (Web 2.0/3.0) has been much more successful than Phase I in the late 1990s• Consumer control emerges in this era• Consumers begin “co-creating” ads defined as consumer generated content (CGC)• Cultural contradiction, social disruptions and identity issues emerge• Though less visible, business-to-business promotion on the Web is enormous and referred to as E-business• Firms invest in newer forms of connecting with consumers

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The Great Recession

The Great Recession

More Pressure on Brands and Brand Advertising

• Consumers “trading down” in brand shopping (private label/retailer brands)

• Consumers are “renting/sharing” more• Cars• DVDs (NetFlix)• Recreation equipment

• Consumers are shopping less with more purpose

• Smaller and larger quantities (non-standard)• Scouring the internet for “deals”

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Branded Entertainment

• The blending of advertising and integrated brand promotion with entertainment programming

• Brand “placement” key tactics are used here

• Some films, television programs, and video games are considered hour-long promotions

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The Value of History

The Value of History

Perspective: Despite new technologies…

• Advertising is still a paid attempt to persuade

• Advertising will still contribute to revenue and profit growth and nurture brand success

• Big firms still spend billions on traditional media

• Technology has changed the way people shop and the way they seek out and control information

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Check Your Understanding


When America was experiencing tremendous economic growth after WWII, companies wanted to take full advantage of this. So advertising agencies began to conduct research to understand thea.level of purchasing power in America.b.psychology and motivation behind the sell. c.preferences and opinions of homemakers. d.differences between consumer and business purchases.

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Some analysts have referred to the current era, since 2000, as the post-advertising age. One of the elements that characterizes advertising today is that, more than ever before, consumers a.rely on advertisers and agencies for information. b.are empowered. c.are no longer expected to “connect” with brands.d.have lost interest in advertising.

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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to...

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