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06/09/2015 MIT32141 Advertising History, 1860-1920.

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Presentation on theme: "06/09/2015 MIT32141 Advertising History, 1860-1920."— Presentation transcript:

1 06/09/2015 MIT32141 Advertising History, 1860-1920

2 06/09/2015 MIT32142 Patent Medicines 1. Herbal compounds, tonics, liniment oils 1. “Dr. Duponco’s Golden Periodical Pills” 2. “Hamlin’s Wizard Oil” 2. 1804: 80; 1860: 1,500 + 3. Gout, fallen arches, liver disease, etc.

3 06/09/2015 MIT32143 Why Popular? 1. Commonplace illness 1. Civil War veterans 2. Weak allopathic medicine 3. Homeopathic tradition (Women) 4. Rural society 5. Magical Belief/ Irrational?

4 06/09/2015 MIT32144 Advertising Oriented 1. ad-to-sales ratios: 40%+ 2. national advertisers 3. pioneer brands/ trademarks 4. 1/2 newspaper ads1860; 1/3 -1890 5. “red clause” contracts

5 06/09/2015 MIT32145 Patent Medicine Advertising 1. newspapers, trade cards, billboards, etc. 2. travelling medical shows 3. “modern” advertiser 1. symbolism 2. image/text 3. sensationalism

6 06/09/2015 MIT32146 Advertising Orientation 1. “Patent” for trademark protection 1. “printer’s ink on the bottle” 2. Alcohol 3. Pain-killers (coca/opiates)

7 “Trickster” and Patent Medicines Here Today… Belief/Disbelief Real/False Liars; “Inventive and Creative Cultural Force” Treat Illness/Renew, Invigorate 06/09/2015 MIT32147

8 Advertising/Truth Daniel Boorstin: “Advertising befuddles our experience, not because advertisers are liars, but precisely because they are not… Advertising fogs our daily lives less from its peculiar lies than from its peculiar truths…The simple question, ‘Is it true?’ is as obsolete as the horse and buggy.” 06/09/2015 MIT32148

9 06/09/2015 MIT32149 Case Study: Lydia E. Pinkham Co. 1. Lydia E. Pinkham Co. 1875- 2. pleurisy root, fenugreek seed, unicorn root, alcohol 3. Vegetable Compound/Kidney Pills 4. Ad-to-sales ratio: 40-60% 5. Sales peak, $3.4 mil (1925)

10 06/09/2015 MIT321410 Why Successful? 1. “Age of the Womb” 1. menstruation/menopause/ pregnancy 2. “ovaritis” “prolapsed uteris” 2. Weak allopathic alternative 3. “home doctoring”/ homeopathy

11 06/09/2015 MIT321411 Psychological Problems (1900s) 1. “nerves,” jitters, “the blues” 2. Psychology 3. Psychic/physical health 4. Tempo of “modern” life 5. Women’s “tonic”

12 06/09/2015 MIT321412 Pinkham– “Human Chemistry” 1. Advice Letters 1. 1929 -400,000 on file 2. Testimonial Letters 3. Customer Relations 4. Improve Advertising (copy research)

13 06/09/2015 MIT321413 Patent Medicine/Market Research 1. Track diseases, illnesses, complaints 2. Information/Letter Brokers 1. Mailing Lists by Disease 2. Advertise/Sell Lists to patent medicine dealers

14 06/09/2015 MIT321414 Patent Medicine/Market Research 1. Direct Mail 2. Database Marketing 3. Target Marketing vs. “Shotgun” approach 1. One-to-One Marketing 4. Two-fold Commodification 5. Marketing Capitalism

15 06/09/2015 MIT321415 Patent Medicines Today? hair-growth lotions Aromatherapy Chiropractic pain-relief bracelet others?

16 06/09/2015 MIT321416 Examples www.infomercial-hell.com www.infomercial-hell.com

17 06/09/2015 MIT321417 P.T. Barnum 1. 1840s Sudder's American Museum, NY 2. Handbills, posters for Museum 3. Carnivalesque 4. High-brow/Low-Brow

18 06/09/2015 MIT321418 Barnum-Advertising Promotional Spectacle: banners, brass bands, gas lighting Advertising Perceived as: insincere, false, deceptive “Erase the Barnum image” Authentic/artificial Sincere/Contrived

19 06/09/2015 MIT321419 Endurance of Barnum Tradition Carnival Fairs-Exhibitions Niagara Falls ‘museums’ Others?

20 Barnumesque Tradition 06/09/2015 MIT321420

21 06/09/2015 MIT321421 Patent Medicine Opponents 1. Professional Medicine (AMA/CMA) 2. Magazine Publishers 3. Corporate Mass Advertisers Reasons: 1. Consumer Fraud 2. Public Health 3. Public Decency

22 06/09/2015 MIT321422 “Modern” Corporate Advertisers Campbell’s Soup (1869) Procter & Gamble Ivory Soap (1879) Coca Cola (1886) Kodak Gillette Social Legitimacy

23 06/09/2015 MIT321423 Corporate Advertising, 1880-1920 1. Rising Population (US) 1. 1880: 50 mil; 1920 106 mil. 2. Urbanization (2,500+) 1. 1880: 28%; 1920; 51% 3. Higher Per Capita Income: 1. 1880: $147; 1920: $639 2. discretionary spending

24 06/09/2015 MIT321424 Second Industrial Revolution, post- 1860s 1. Large-scale factory system 2. Coal replaces wood/water 3. Iron/steel industries 4. Economies-of-scale production 5. Capital-intensive/high fixed costs 6. Realization Thesis? Bonsack Machine (1880s)

25 06/09/2015 MIT321425 Retailer-Advertiser Power Struggle 1. Manufacturer wrest power from retailer via branding/advertising 2. Product Substitution 3. Ivory Soap – Manufacturer Power 1. Sunshine Biscuits

26 06/09/2015 MIT321426 Advertising Spending (US) 1. 1880: $104 million; 1919: $1.4 billion 2. Ad share of newspaper-mag revenue 1. 1880: 44% ; 1920: 66% 3. Number of US Daily Newspapers: 1. 1854: 254 2. 1900: 2,226 4. How advertise in so many local papers?

27 06/09/2015 MIT321427 Advertising Agents George P. Rowell New England, 1865- 1. line rates 2. wholesaler of white space 1. “space jobber” 2. bulk buy for lowest price

28 06/09/2015 MIT321428 Space Jobbers 1. Lord & Thomas 1. religious publications 2. J. Walter Thompson 1. magazines 2. exclusive access deals 3. “closed” contracts 4. Aligned with newspapers 5. Rebates, etc., if sell space full price 6. Buy space only w/ affiliated papers

29 06/09/2015 MIT321429 A.J. Ayer (N.W. Ayer & Son) 1. modern agency 2. “open” contract (1875) 3. advertiser-oriented service 4. commission system

30 06/09/2015 MIT321430 Ad Agent Functions 1. knowledge of newspaper/periodical market 2. lowest prices (rate card cutting) 3. Media Buying: 1. researchers 2. space-buyers 3. checkers

31 06/09/2015 MIT321431 Ad Agent Functions 1. Copywriting: little in late 1880s 1. advertisers “knew best” 2. freelance ‘advertising specialists’ 2. Illustration 1. print shops/commercial artists

32 06/09/2015 MIT321432 Full Service Agency (Today) 1. Media Buying (Media Research) 2. Copywriting/Art Direction 3. Market/Consumer Research 4. (Public Relations, Govt Relations, etc)

33 06/09/2015 MIT321433 Ayer & Son: Full Service Agency 1. American Newspaper Annual 1880 2. 1900: 160 employees/12 depts 3. Account executives 1. copywriters, art directors 4. Clients: Hires Root Beer, Procter & Gamble 5. Legitimacy 6. Remedial market research

34 06/09/2015 MIT321434 Summary 1. Patent Medicines & Problem of Body/Mind 1. Modern Advertising: Symbolism/Market Data 2. Endurance of Patent Medicine Tradition 2. P.T. Barnum 3. Corporate Advertisers (Consumer Goods) Kellogg’s, 4. Socio-Economic Change 1. Second Industrial Revolution 2. Retailer-Manufacturer Power Struggle 5. Advertising Agents 6. Full-Service Ad Agency


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