The History of Advertising and Brand Promotion 3 1 ©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.

The Rise of Advertising Rise of capitalism Competition for resources (capital) stimulating demand for goods and services Industrial Revolution Mass production of goods needed demand stimulation The Emergence of Modern Branding Branding emerges to control the channel Rise of modern mass media Democratization of goods 3

The Industrial Revolution was a key factor in creating a setting for the growth of advertising — Why? Reproduced with permission of Chevron U.S.A., Inc.

The 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 3

The Evolution of Advertising in the United States P.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 3

How does this ad typify ads from the P.T. Barnum era?

The Evolution of Advertising in the United States The 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 3 7

During the 1930s, ads would often play on social anxieties as a way to attract and hold the attention of a target audience. Courtesy, Lever United States, Inc.

Ads from the 1950s reflected consumers’ fascination with scientific discoveries (do you see any subliminal messages here? ) (Clue=there are none) Courtesy of IBM Corporation

The Evolution of Advertising in the United States Peace, Love and the Creative Revolution (1960-1972) Creatives gain control Advertising emerges as an icon of a culture fascinated with consumption The 1970s (1973-1980) Women and minorities adopt new roles Hedonistic values emerge Regulation and oversight take hold—FTC and NARB become active 3

Peace, Love, and the Creative Revolution all in one ad! History of Aviation Collection. Special Collections Department, McDerott Library, The University of Texas at Dallas.

The Evolution of Advertising in the United States The 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 3

The Evolution of Advertising in 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 3

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” 3

The Evolution of Advertising in the United States 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 © Associated Press 3

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 3

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 the level of purchasing power in America. psychology and motivation behind the sell. preferences and opinions of homemakers. differences between consumer and business purchases. 3

Check Your Understanding 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 rely on advertisers and agencies for information. are empowered. are no longer expected to “connect” with brands. have lost interest in advertising. 3