Published on March 7, 2014
History of Advertising
Four necessities 1. Mass-produced goods: via industrial revolution 2. Mass communication: typewriter, printing 3. Mass distribution: transportation, mail 4. Mass education: literacy, prosperity
Historical Roles of Advertising The pre-industrial age (pre- 1800s) • “None of the above” • The grapevine (WOM) • First paper mill in Europe: 1275 • Reading and writing? Monks and scholars • News travels less than 50 miles
Historical Roles of Advertising The Industrializing Age (Mid 1700s Europe/1800s in U.S.) • Mass production (machines, not animals) • Mass consumption (costs less to buy than make) – the beginning of “the consumer” • Ads as information – sources of supply, etc. • Literacy, free mail delivery • Photography, typewriter, phonograph
Mathilde C. Weil
Historical Roles of Advertising The Industrial Age (1900s to 1970s) • Production shifts to sales • Branding – Wrigley’s, Coke, JELL-O, Kellogg’s, Campbell’s • Consumer packaged goods • Advertising wars • Product differentiation
Claude Hopkins “Talk to people one at a time, not in the mass.”
Raymond Rubicam – Y&R
Helen Lansdowne Resor
Age of radio - 1922 Bob and Ray Stan Freberg Chuck Blore Dick Orkin
Rosser Reeves - USP
Age of TV – 1950s Anything you say, people see/hear Selling by saying your product is “better” The beginning of clutter “The wall” – perceptual screens Nielsen, Gallup (market research) Keeping up with the Jones’ The 30-second spot
Creative Revolution – 1960s Bernbach Ogilvy Burnett
Gossage parodies Ogilvy
Marketing Revolution – 70s Positioning era Market segmentation
Historical Roles of Advertising The Post-Industrial Age (Starting 1980) • CSR • Lifestyle ads • Big three TV networks • Demarketing • Global markets • Global agencies (WPP, DDB, FCB, etc.)
The New Ads – 80s The “me” ads (“Because I’m worth it”) Decreased ad budgets in favor of sales promotions Simpler visual-based executions MTV influence Digital fx Catchphrases (“Where’s the beef?”) Celebrity
Rise of the Machines – 90s IMC More channels, new medium Niche marketing and audience fragmentation PoMo Public Relations Research/metrics “Play it safe” Massive ad “holding companies”
Linda Kaplan Thaler
Historical Roles of Advertising The Global Interactive Age (last 20 years) • The slow death of print and broadcast • Two-way medium – dialogue • Branded platforms – destinations, not interruptions • Google – search advertising and marketing • YouTube, Facebook, Twitter, PVRs, Mobile • Value of information over value of “stuff”
The future TV • Collapse of distribution networks • TV channels drive viewers to web platforms • Fragmentation across devices • Intelligent networks • Advertising goes digital and is delivered to individuals on a personalized basis • Branded platforms • Netflix versus HBO models
The future Movies • Released simultaneously on all media and markets • Some are free, underwritten by ad deals • Experiential films • Branded merchandise brings in more revenue than box office
The future Music • World’s library is available for free on any device • Business models rely on advertising, merchandising, and events • Subscription-based models dwindle and fade • Personalized streaming • Five-way competition for consumers: TV brands, radio broadcasters, music labels, social media, music hardware
The future Games • Dominate teenagers’ media time from other media • Free business models – with revenue from ads and virtual purchases - replace subscriptions • Games become a key entry point for music and product launches and attract more advertising and sponsorship • Casual gaming booms – driven by mobile and location-based • Immersive game controllers
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