1. Background of Today’s Advertising
Chapter 1
Background of Today’s Advertising

2. ADVERTISING What is advertising? Where do we find Advertising?
Can we ever get away from advertising?
Is advertising to controlling in our lives?

3. A DEFINITION OF ADVERTISING
It is a paid for by the sponsor rather than run at the discretion of the medium
It is nonpersonal.
It identifies the sponsor of the message.

4. A DEFINITION OF ADVERTISING
It is persuasive.
It is carried by mass media.

5. A DEFINITION OF ADVERTISING
Advertising: a planned communication activity in which messages in mass media are used to persuade audiences to adopt goods, services, or ideas. Advertising is distinguished from other promotional activities in that it is paid for by an identified sponsor, nonpersonal, carried by mass media, and designed to be persuasive.

6. Advertising is: A communication tool Two requirements:
Centralized exchange
Economy where supply surpasses demand

7. Factors Creating a Foundation
Beginning of the fulfillment of a democratic ideal
Industrial Revolution
Mass production
Need for skilled workers
Introduction of the railroad
National branding

8. In the Beginning Advertising has a 5000-year recorded history
The last 100 years in US history have been most influential
Contributors from the beginning:
Babylonians
Greeks
Roman merchants

9. Four Broad Periods of Study
Pre-marketing Era
Mass Communication Era
Research Era
Interactive Era

10. Move to Creativity Increased output created a competitive environment
Emphasis on creative advertising
Advertising seen as a “science”
Idea of planned obsolescence

11. Print Media
Siquis
Newspapers – historically been the primary advertising medium
Important people
Johann Gutenberg
Benjamin Harris
Benjamin Day

12. Print Media (continued)
Magazines – slow but steady growth
Saturday Evening Post
Ladies’ Home Journal
Time

13. By 1920, high color advertising was commonplace.

14. The Advertising Agency
Forerunners
Volney Palmer
George Rowell
J. Walter Thompson
N.W. Ayer and Sons
American Association of Advertising Agencies

15. Legislation Pure Food and Drug Act (1906)
Federal Trade Commission Act (1914)
Federal Food, Drug and Cosmetic Act (1938)
Wheeler Lea Act (1938)

16. Advertising and WWI
Marked the first time advertising was used as a social instrument
Agencies tried to
Arouse patriotism
Sell government bonds
Encourage conservatism
Promote war-related activities

17. Patriotism was a common advertising theme during WWI.

18. 1920’s Mini-depression to crash Products appearing on the market
Passenger cars
Electric refrigerators
Washing machines
Electric shavers
Radios

19. Cadillac

20. Coca-Cola

21. Introduction of Radio Invented by Guglielmo Marconi
Used mainly by maritime operators in the beginning
KDKA – first commercial station

22. Modern Era of Radio Presidential Elections Sporting events
Local entertainment
NBC
CBS

23. The Great Depression of the 1930’s
Rapid growth was slowed by Depression
Causes of the Depression
Excess industrial capacity
Heavy consumer debt
Declining price levels
Consumer spending was discouraged
WWII turned this trend around
What is happening today? 2017 (fuel)

24. Advertising During WWII
Similar to WWI
Most advertising was created to encourage Americans to cooperate in the war effort
War Advertising Council

25. Exhibit 1.8 Advertising messages were sponsored by the government.

26. Exhibit 1.9 War Council reminds Americans not to disclose war secrets.

27. Growth Period from 1950-1973 Trend Percentage of growth
Population of U.S.
38%
Disposable income
327%
New housing starts
47%
Energy consumption
121%
College enrollments
136%
Car registrations
151%
Telephones in use
221%
Retail sales
250%
Frozen food production
655%
Airline passenger
963%
Homes with dishwashers
1043%
Homes with air conditioning
3662%

28. Advertising in the Fragmented 80’s
Major developments
New technology
Audience fragmentation
Consolidation
Credit

29. Service Economy and the 21st Century
Service providers are the trend
Wal-Mart (What did Wal-Mart and Google do this week?)
U.S. Bureau of Labor Statistics , service employment will outpace manufacturing by a 5-1 margin
What is the problem with this?
Trust factor challenged in first decade of 21st century
Permission Marketing

30. Summary
History of advertising can only be studied within the context of the social and economic development of a country.
Fundamental changes
Development of e-commerce
Reaching consumers on a more personal basis
Audiences are taking greater control of communication channels.
Field is fast and ever-changing.