Advertising History
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Transcript of Advertising History
![Page 1: Advertising History](https://reader036.fdocuments.in/reader036/viewer/2022081413/5474618eb4af9f89628b45c2/html5/thumbnails/1.jpg)
The History of Advertising
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Long Long ago….
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…in 3000 BC, it all started in the city of Babylon
The first form of advertising appeared in the form of clay tablets which bears the
inscription of an ointment dealer, a scribe and a shoemaker...
![Page 4: Advertising History](https://reader036.fdocuments.in/reader036/viewer/2022081413/5474618eb4af9f89628b45c2/html5/thumbnails/4.jpg)
…and in Pompeiiwhere a clay tablet of a butcher shop was
retrieved.
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The 3 periods of Advertising
• The Pre Marketing Era
• The Mass Communication Era
• The Research Era
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The Pre - Marketing Era
Days of Barter system
• Ancient: Papyrus - Ad for slaves• Greeks: Town Criers - Arrival of ships
• Romans: Inn signs
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The Pre - Marketing EraDays of Print
• 1438 : Johann Guttenberg invents the movable type
• 1478 : William Caxton printed the first paper
• 1523 : First printed Advertisement• 1622 : 1st printed Newspaper - London
‘The Weekly Newes of London’• 1625 : 1st Ad in an English Newspaper
• 1704 : 1st Ad in an American Newspaper‘Boston Newsletter’
• 1890 : Birth of Magazines
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The Mass Communication Era
From the mid 1700’s advertisers reached mass audiences through the print
media and later with the invention of the Radio
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The Research Era
Last 50 years advertisers have methodically improved the techniques
of identifying and reaching their audiences with specific messages
Great assistance with Electronic Media and now the Internet
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The Evolution of the Agency
• The Space Salesman
• The Space Wholesaler
• The First Rate Directory
• From an Agency to the Creative Inputs
• The Curtis No-Rebating rule
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The Space Salesman
• In 1840, Volney B Palmer contacted publications and sold advertising space
for a commission of 50%, but often settled for less
Palmer was very successful and soon opened up offices in Philadelphia, New
York and Boston
The Space Agent - Agency
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The Space Wholesaler
• In 1850, George Powell bought large blocks of spaces and sold them in the
form of ‘squares’ - one column wide and sold them at a retail price, his own ad
read...
‘An inch of space a month in 100 newspapers for one hundred dollars’
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The First Rate Directory
• In 1869, Powell shocked the advertising fraternity by publishing a directory of
Newspapers and their rates along with the estimation of their circulation
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Agency to Creative Inputs
• Charles Austin Bates, a writer, began writing and selling his service to whoever wanted
them.
• In 1867, ex-Navy man James Walter Thompson sold space and from the
commission he would write copy for the Client.
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Agency to Creative Inputs
• Calkin and Holden did more than write, they brought in copy, art and planning all under one roof paving the way for
an agency to function.
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The Curtis No-Rebating Rule
• In 1891, Curtis Publishing Company, USA announced that it would pay commissions to
Agencies only if they agreed to collect the full price from the Advertisers
Agency Commission ranged from 10-25%
• In 1917, this got fixed to 15% which stands true till date
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Advertising is all about Great Ideas
and behind all of them are some great minds and their reasons and philosophies
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The Advertising Heroesand their ground
breaking work
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Arnold Lasker
Had a talent for spotting talent, responsible for making people see that
creating advertising is a talent and needs passion
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Claude Hopkins
‘If you want people to buy a product, you’d better give them a very good
reason why.’Driven towards Rationality
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James Walter Thompson
Father of one of the largest agencies in the World today (JWT) - sold his
business to his employees Stanley and Helen Greser for US$ 10,000 in 1920
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John Watson
Propounded the theory ...If Consumer attitude X changes to Y due to a
Advertising Stimulus then there will be a difference of Z in Sales Turnover
Stimulus most important
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Gerard Lambert
Was one of the founders to address the issue of creating category need
advertisingAdvertising in 1924 did create a cure but
first it had to create the disease.
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Michael Gallop
Formalized the first ever commercial market research and tracking
consumer behaviour
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Leo Burnett
Deviated from the Watson TheoryIntroduced Image Advertising as
opposed to reason whyThis theory failed initially...
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Rosser Reeves
Proposed that the human mind needs to focus on one single parameter of a product - the
theory of rationalityAs choices grew this theory also had its
limitations
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David Ogilvy
~ Tried to balance Reason and Emotion create BrandingPick up insights from people
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William Bernbach
~ Whilst you need to balance emotion and reason,
the advertisement must entertain.
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George Gribbin
Must get people interested in your advertising for the brand
to be successful. This requires ingenuity. Saying it differently yet simply.
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Alyque Padamsee
An Advertiser is a Performer
Liril GirlKama Sutra
Surf - LalithajiCherry Charlie
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What is Advertising ?
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‘Advertising’ originates from the Latin Word ‘ad
vertere’which means ‘to turn the mind towards’
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There are many definitions to ‘Advertising’ including the one in the dictionary, but the all
time favourite is ….
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‘Advertising is the use of media to inform consumers about something and/or to
persuade them to do something in effect. It brings products/brands and
consumers together and then modulates the relationship between them’
- The Economist
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In short...
… Advertising is a key part of Marketing, but far from being (as is often assumed)
the sum total of it.
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The Advertising Agency
Manages products (in the from of Brands) and Consumers