2 Evolution of Advertising

8/10/2019 2 Evolution of Advertising

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SESSION 3

Evolution ofAdvertising

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HOW ADVERTISING HAS EVOLVED!


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Advertising is...

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... thousands of years old, yet ithas only come into its own in thelast 100years.

Whattriggered its development?

1) Growing population wanting more,

2) Evolving production technology.

Evidence:Ad-campaigns developedover the years.


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Advertising in pre-industrial

times

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Demand increased slowly in the pre-industrial age. (18thcentury)

Merchants displayed store signage to

attract passers-by.

Two developments that that led toadvertising:

1) Invention of paperin China(Year1275) &

2) First printing press in Germany (Year1440).


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Advertising in pre-industrial

times

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1472: First advertisement in English:Handbills placed on church doors to

announce prayer book for sale.

200 years later - first newspaper adoffered reward for return of 12 stolen

horses.

End of 18thCentury: Print advertisingmore common - relied on puffery.


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Advertising in the Industrial

age

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Mid-1800s: World population 1.2billion.

Mass production/ consumptionin

evidenceAdvertising only support formass marketing.

Early 20th century (World War I):

Marketing: domain of wholesalers

Advertising: an information

vehicle.


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age

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Consumer advertising in US viacatalogs of Mail-order companies:

Montgomery Ward, Sears Roebuck.


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age

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Patentmedicines, soaps, tobaccoproducts, canned foods advertised.

Bulk-purchase of space for print

advertising: Contracts signed byagencies - precursors of modern-day

ad-agencies.


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age

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First ad-agency N. W. Ayer & Sons in

Philadelphia establishedbyFrancis Ayer.

Role: Planning, creating, executing

campaigns, in exchange for Commission

from print media, or Fee from advertiser.


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What change did Industrial age

bring?

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Major growth in industry. Literacy rates up to 90% in US &

other developed countries.

Commodity markets saturated.

Mass marketing of FMCGs.

Advertising regarded as science:based on fixed operating principles.

Radioused for mass communication.


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What change did Industrial age

bring?

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Manufacturers focus moved fromproduction to sales.

Early brands: Wrigleys gum, Coca-

Cola, Jell-O, Kellogg's cornflakes, &Campbells soup.

Wheatiesfirst to call itself Breakfast

of Championseffort to create product

differentiation.


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Advertising in 1960s: Image

Era

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Emphasis shifted from productfeaturesto brand image & brand

personality.

Cadillacbecame symbol of luxury &Rolls-Royce symbol of aristocracy.


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1967 1969

Advertising in the Image

era

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http://www.flickr.com/photos/pinkponk/505514446/in/set-72157600267969060


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1970s: Competition rears its

head

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A new kind of advertising strategyevolves, based on what...

...Jack Trout & Al Ries introduced as

Positioning.


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1970s: Competition rears its

head

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Whydid Positioning become so

important?

Competition?

What was needed?

1. MORE effective means of product

differentiation &

2. MORE precise market

segmentation.


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1975 1983

Advertising in the creativeera:1970s & 1980s

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1980
http://www.flickr.com/photos/blakespot/3872627308/


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1980s: The best of times, the worst oftimes

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1980s: Energy shortagesswept theworld: Concept of De-marketing wasborn.

Advertising promoted lowerconsumption: Conserve energy!Avoidtoo many electrical appliances.

Social problems coming to the fore.


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D ti h i l t


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Dramatic change in late

1980s!

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Positive sentiment led large MNCs& Ad-agencies to go formegamergers.

European & Asian advertisingcaught up with US: Saatchi & Saatchiin UK, Dentsu in Japan.

rama c c ange n a e


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rama c c ange n a e1980s!

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TVbecame the hot medium: ad

agencies focused on growth,acquisition & superior creative

executions.

BUT, the euphoria was short lived:Countries going back into recession

(late-1980s/ early 1990s.)

f


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Economic factors impacting

Marketing

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1. Competition: lower trade barriers,growing international trade led to

global competition.

Book Marketing Warfare, by Al Ries

& Jack Trout caught attention: Focus

on four strategic positions -

Defensive, Offensive, Flanking,

Guerrilla.

E i f t i ti


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Economic factors impacting

Marketing

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2. Growing affluence &sophistication among the public:

Baby boomer generation, keen

on saving time & money, to spend onleisure activities.

Choosyabout products, services.

Impressed by social causes.


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Volkswagen getting Eco-friendly

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FORD says: Wasting energy is acrime

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Coming of the 1990s

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Worsened recession: clients

demanded accountabilityfrom ad-

agencies

Conventional advertising out of favor.

Newtechnology, re-inventionof

advertising agencies. Downside:job-

losses!

Print & TV networks down too.

Focus moved to building higher


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Into the 2000s

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The Internet bubble burst.

9/11 hit US - advertising dipped in US

& overseas.

Rebound in 2003 - Internet reachednew highs again.

Ad ti i i th ti


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1990s 2009

Advertising in the creativeera:1990s & 2000s

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A i l f Th Gl b l I t ti


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Arrival of The Global Interactive

Age

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1. Changing rules of the game.2. Advertising takes hold in E. Europe.

3. New technologies start impacting

affecting advertising.

4. Shift from mass media to more

specialized, narrowcast media.5. Advertisers impacted by TiVo

software capable of skipping

commercials.


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Interactivity...

...The essence of advertisingin the 21stcentury.

We are living through the largest

expansion of expressive

capability in the history of the

human race.

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2 Evolution of Advertising