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Advertising Spending (US)

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Presentation on theme: "Advertising Spending (US)"— Presentation transcript:

1 Advertising Spending (US)
1880: $104 million; 1919: $1.4 billion Ad share of newspaper-mag revenue 1880: 44% ; 1920: 66% Number of US Daily Newspapers: 1854: 254 1900: 2,226 How advertise in so many local papers? 23/04/2017 MIT3214

2 Advertising Agents George P. Rowell New England, 1865- line rates
wholesaler of white space “space jobber” bulk buy for lowest price 23/04/2017 MIT3214

3 Space Jobbers Lord & Thomas religious publications J. Walter Thompson
magazines exclusive access deals “closed” contracts Aligned with newspapers Rebates, etc., if sell space full price Buy space only w/ affiliated papers 23/04/2017 MIT3214

4 A.J. Ayer (N.W. Ayer & Son) modern agency “open” contract (1875)
advertiser-oriented service commission system 23/04/2017 MIT3214

5 Ad Agent Functions knowledge of newspaper/periodical market
lowest prices (rate card cutting) Media Buying: researchers space-buyers checkers 23/04/2017 MIT3214

6 Ad Agent Functions Copywriting: little in late 1880s Illustration
advertisers “knew best” freelance ‘advertising specialists’ Illustration print shops/commercial artists 1. advertisers “knew best" product best/how describe it 2. freelance ‘advertising specialists’ (writers do ad copy for advertisers) 23/04/2017 MIT3214

7 Full Service Agency (Today)
Media Buying (Media Research) Copywriting/Art Direction Market/Consumer Research (Public Relations, Govt Relations, etc) 23/04/2017 MIT3214

8 Ayer & Son: Full Service Agency
American Newspaper Annual 1880 1900: 160 employees/12 depts Account executives copywriters, art directors Clients: Hires Root Beer, Procter & Gamble Legitimacy Remedial market research 1. Media Research American NEWSPAPER ANNUAL 5. Legitimacy: End Alcohol Accounts 1890s; Patent Meds (1900s) 6. Market Research, 1910s 23/04/2017 MIT3214

9 Summary Patent Medicines & Problem of Body/Mind
Modern Advertising: Symbolism/Market Data Endurance of Patent Medicine Tradition P.T. Barnum Corporate Advertisers (Consumer Goods) Kellogg’s, Socio-Economic Change Second Industrial Revolution Retailer-Manufacturer Power Struggle Advertising Agents Full-Service Ad Agency 23/04/2017 MIT3214

10 Advertising History 1880s-1930s
23/04/2017 MIT3214

11 Ad Spending (US newspapers/mags)
1880: $39 mil 1900: $95 mil 1910: $202 mil 1920: $528 mil (13-fold increase) 23/04/2017 MIT3214

12 Advertising –Chain of Command
Publisher>Agent> Advertiser>Consumer 2. ‘Modern’ (Today) Advertiser-client>Agency> Media/Publisher>Consumer Ayer and Son –Full Service Agency 1 Media Buying 2 Copy Writing 3 Market Research 23/04/2017 MIT3214

13 “Science” of Advertising
How demonstrate Ad’s effectiveness? Tension: Science-Art Research-Creative Da Vinci “Vitruvian Man”. (Also “Last Supper”; “Mona Lisa”) 23/04/2017 MIT3214

14 Copywriting: Reason Why
John E. Powers (1890s) Approach: informative, rational, straightforward Conscious deliberation and reason “state firmly what the product does and how it will benefit the buyer.” 23/04/2017 MIT3214

15 Reason Why plain speech/direct reader conversational style
emulate personal rapport w/shopkeeper from focus on product to user Today’s Examples? 23/04/2017 MIT3214

16 Psychology and Advertising
Outgrowth of philosophy, late 1800s mental processes, idea formation, behavior empirical approach to know mind/brain influence of science/medicine 23/04/2017 MIT3214

17 Order-of-Merit Technique
Harlow Gale, (psychologist 1890s) “what made ad noticeable? Experiments: Eye tracking buy fictional brands Subjects ‘order-of- merit’ preference “Idealist” vs. behaviorist 23/04/2017 MIT3214

18 Order-of-Merit (Behaviorist)
H.L. Hollingworth (1910s/20s) compare order-of-merit rankings w/actual sales “general laws” for copywriting 1920s, dozens of studies 23/04/2017 MIT3214

19 Theory of Suggestion Walter Dill Scott
The Theory of Advertising (1904) consumer: non-rational, suggestible to power of copywriter persuasive techniques not information ad aesthetics 23/04/2017 MIT3214

20 Scott/Suggestion Women as more suggestible
1920s: women --80% of consumption Male advertisers & “emotional” women consumers “irrational” women/ social prejudice 23/04/2017 MIT3214

21 John B. Watson J. Walter Thompson Behavioral psychology to advertising
“University of Advertising” Behavioral psychology to advertising Blind-fold cigarette brand recognition test 23/04/2017 MIT3214

22 Impressionistic Approach (early 1900s)
Ernest Elmo Calkins appeal to reader imagination beautiful ads penetrate “open minds” colour, sensation, visual splendor read magazines for diversion 23/04/2017 MIT3214

23 Aesthetics/Colour 23/04/2017 MIT3214

24 Pears Soap (1890s) Soap as Commodity Thomas J. Barratt
”Any fool can make soap” Godliness, cleanliness, Pears 23/04/2017 MIT3214

25 Pears and High Art John Everett Millais “A Child’s World” (1887)
“Bubbles” “incomplete angels” 23/04/2017 MIT3214

26 Pears/”Bubbles” Barratt buys painting blur art/advertising
children-innocence- cleanliness-Pears Controversy Associative Transfer Pears/Middle-brow Culture 23/04/2017 MIT3214

27 Art, Advertising/Consumerism
Pop Art (1960s) A. Warhol Low Culture High Culture 23/04/2017 MIT3214

28 Advertising, 1920s/30s (Marchand)
Capitalist Realism Socialist Realism Ads as Historical Evidence Mirror or Zerrspiegel 23/04/2017 MIT3214

29 Parody (Socialist Realism)
23/04/2017 MIT3214

30 Advertising, 1920s/30s (Marchand)
Therapeutics of Advertising Apostles of Modernity 23/04/2017 MIT3214

31 Advertiser as Wise Counsel
Listerine: 1920: general antiseptic $100k profit 1927 Mouthwash $4 mil profit new social/medical affliction (“halitosis”) heavy ad spending 23/04/2017 MIT3214

32 Listerine mini social dramas dramatic realism
vindicates use of psychology emotional appeal over reason 23/04/2017 MIT3214

33 Worry Appeal/Scare Copy
Great Depression Job loss fears Examples Advertising during Recessions? 23/04/2017 MIT3214

34 Interwar Advertising Social Change: urban/immigration
Social Adaptation emotional/personal insecurities Listerine/’halitosis’ apostles of modernity conformity/emerging ‘mass society’ -Image: Armstrong Kitchen (1930s) 23/04/2017 MIT3214


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