The Evolution of Advertising. I know I waste half the money I spend on advertising. The problem is,...
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Transcript of The Evolution of Advertising. I know I waste half the money I spend on advertising. The problem is,...
The Evolution of Advertising
I know I waste half the money I spend on advertising. The problem is, I don’t
know which half.”
-John Wanamaker, Department Store Pioneer
Merchants hung carved signs in front of their shops. Most people couldn’t read so merchants used symbols, i.e. a boot
• Machinery began to replace animals• Rail roads.• People left the farms to work in the city• Advertising was used to inform the
masses about new products• Large mail-order catalog companies
– Montgomery Ward, – Sears Roebuck & Co. (Retailers)
• Innovative manufacturers use mass-media as a way to stimulate demand for their products.
• 1841, Volney B. Palmer set up an “agency” in Philadelphia. He contracted with newspapers to receive discounts on newspaper space.
• Birth of Mass Consumption
20th century
• The development of new, inexpensive brands of consumer luxury and convenience goods.
• Focus changed from production to sales orientation
• New product development– Wrigley Gum
– Coco-Cola
– Jell-O
– Kellogg's
– Campbell’s Soup
• 1929, The Great Depression and advertising expenditure collapsed.
• Daniel Starch, A.C. Nielsen and George Gallup founded research companies to study consumer attitudes and behavior.
Advertising Time Capsule
• 1650: First newspaper ad offers reward for stolen horse.
• 1729: Ben Franklin is first to use “white space”and illustration in ads.
• 1844: First magazine ad runs.
• 1869: First Ad Agency, N.W. Ayer & Son
• 1900: Psychologists study the attention getting and persuasive qualities of advertising.
• 1905: First National Ad Campaign for the “Gillette Safety Razor”
• 1911: First Truth in Advertising Codes (American Advertising Federation)
• 1920: Albert Lasker – Full Color Magazine Ads and “Father of Modern Advertising”
• 1924: NW Ayer produced the first company sponsored radio broadcast for “Eveready”
• 1930: Advertising Age Magazine is founded.• 1946: America has 12 TV stations broadcasting
to the public.
• 1948: 46 TV stations are on the air.
• 1950: First political ads are used • (Governor Dewey of NY)
• 2000: The Internet becomes the fastest growing new ad medium with 400 million users.
Early 1950’s TV
All things to all people
• In the beginning, all products talked about Quality, Variety, and Convenience
Market Segmentation
• Marketers search for unique groups of people whose needs could be addressed through more specialized products.
Positioning Strategy/Brand Separation
Ad “gurus”
• Raymond Rubicam
• Founded Young & Rubicam with James Orr Young.
Rosser Reeves
• Premier Creative Director for Ted Bates Agency
• Credited for the “Unique Selling Proposition”– Features that differentiate a product from
its competitors.
Leo Burnett
»Founded agency carrying his name in Chicago, IL in 1935
• Credited for invention of brand icons (e.g., Tony the Tiger; the Marlboro Man)and inherent drama in ads
David Ogilvy
Founded agency in New York in 1948 under its original name Hewitt, Ogilvy, Benson & Mather
Top 10 Ad Icons of the Century
• The Marlboro Man
• Ronald McDonald
• The Green Giant
• Betty Crocker
• The Energizer Bunny
• Pillsbury Doughboy
• Aunt Jemima
• The Michelin Man
• Tony the Tiger
• Elsie
What is Advertising Supposed to Do?
• Grab the prospects’ attention
• Give them hope that you can solve their problem or fulfill their desire
• Prove beyond a shadow of a doubt that their hopes will be fulfilled
• Offer a specific, low-risk, easy-to-take action
95% of All Ads not up to the mark