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Advertising in America: Past, Present & Future 1700’s to Tomorrow

Mcom 341-2 History of Advertising

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Page 1: Mcom 341-2 History of Advertising

Advertising in America: Past, Present & Future1700’s to Tomorrow

Page 2: Mcom 341-2 History of Advertising

Advertising History in America

1700’s and the Pre-Industrial Age

American society was not yet driven by mass purchase and consumption. Literacy rates varied substantially by geographic region, gender and race.

• 1704: first American newspaper ad published in Boston Newsletter

• 1729: Benjamin Franklin begins publication of Pennsylvania Gazette• Introduced addition of graphic elements, larger headlines and multiple fonts

into advertising for more visual appeal

• 1742: Benjamin Franklin’s General Magazine publishes the first American magazine ads

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Advertising History in America

A Page of Advertisements from Franklin's Philadelphia Gazette, 1735

•Text only•Ads a conglomeration of products and offers aimed at the wealthy and literate

Source: Advertising Society & Review, Volume 11, Issue 1, 2010E-ISSN: 1534-7311 DOI: 10.1353/asr.0.0046

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Advertising History in America1800’s and the Industrial AgeDevelopment of industrial machines led to mass production, and growth of transportation via railroad and steamship allowed mass distribution. Public schooling led to 90% literacy rate.

Manufacturer Wholesaler Retailer Consumer

• 1839: Introduction of photography sparks creativity in ads

• 1841: Volner B. Palmer becomes the first media buyer, contracting with newspapers at a discount and reselling space to advertisers

• 1840’s: Magazines become first national mass medium

• 1869: Francis Ayer forms the first ad agency to charge commission and function

• 1877: J. Walter Thompson founds his agency

• 1890’s: Slogans become commonplace and build brand familiarity

• 1896: Free mail delivery to rural areas facilitates direct mail advertising and mail-order purchasing

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Source: Advertising Society & Review, http://muse.jhu.edu, William O. Barr, Vol 11: Issue 1, 2010

A Page of Advertisements from Bennett's New York Herald, 1835

•Still text only, but typography had advanced•Few “brands”

Advertising History in America

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Source: http://www.vintageadbrowser.com/clothes-ads-1800s

Sam’l Lesure store ad from September 1841.

•Store name not obvious•Soup with those boots?•Still text only

Advertising History in America

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Advertising History in America

James Means ad (top), 1887.

•Manufacturer prominent•Illustrations common by late 1800’s

Source: http://www.vintageadbrowser.com/clothes-ads-1800s

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Advertising History in America

Front of an advertising pamphlet from Charlotte doctor, c. 1897

Source: Duke Digital Collections, http://library.duke.edu/digitalcollections/eaa.A0413/pg.3/

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Advertising History in America

Source: Duke Digital Collections, http://library.duke.edu/digitalcollections/eaa.A0413/pg.3/

Photograph from an advertising pamphlet from Charlotte doctor, c. 1897

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Advertising History in America1900’s and the Industrial Age

Manufacturers switch focus from production to selling, and easy access to goods shifts American emphasis to consumption.

1915: W. K. Kellogg spends over $1 million on advertising.

1920: KDKA Pittsburgh becomes the first radio station to broadcast in the U.S.

1922: The first radio ad runs on WEAF New York. The ad, for a new apartment complex in the city, generates thousands of $$$ in sales. Radio introduces the spoken word, music and jingles.

1923/4: “Eveready Hour” becomes the first radio entertainment program to be sponsored by an advertiser.

Lux radio commercial from OldTimeRadioFans.com: http://www.oldtimeradiofans.com/old_radio_commercials/lux_toilet_soap.php

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Advertising History in America

Key Concepts of the 20th Century

Consumer packaged goods: Consumer luxury and convenience goods produced in mass quantities.

Product differentiation: The effort by manufacturers to portray their brands as different from, and better than, the competition.

Unique selling proposition (USP): Concept introduced by Rosser Reeves of the Ted Bates agency. The USP identifies the features that differentiate a company’s products from competitors, the “reason why” a person would buy it.

Market segmentation: unique groups of people addressed through specialized products.

Positioning: Associating a brand with a particular set of needs ranking high on consumers’ priority lists

Demarketing: Advertising efforts to slow the demand for a product

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Advertising History in America

Vanilla extract ad, 1900

•She’s a housekeeper•Full-color ads more common in magazines

Source: http://www.vintageadbrowser.com/food-ads-1900s

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Advertising History in America

Baker’s Chocolate ad, 1900

•Another housekeeper•Ad asks the consumer to look for the trademark on each package

Source: http://www.vintageadbrowser.com/food-ads-1900s

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Advertising History in America

Drawing of billboards lining the Hudson River in NYC, c. 1900•Advertising goes beyond print

Source: Advertising & Society ReviewVolume 11, Issue 1, 2010E-ISSN: 1534-7311 DOI: 10.1353/asr.0.0046

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Advertising History in America

Campbell’s Soup ad, 1925 (from McCall’s Magazine)

•Clear message•Less text than previous decades•Big brands emerge

Source: http://www.vintageadbrowser.com/food-ads-1920s

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Advertising History in America

The Great Depression through post-WWII

The Great Depression forces manufacturers to differentiate from competition and build loyalty; branding efforts strengthen. Radio is the dominant medium by 1938, with tens of millions of units in homes.

•1930: Advertising Age magazine is founded.

•1932: George Gallup joins Young & Rubicam, develops popular poll.

•1938: Radio surpasses magazines in advertising revenues.

•1939: First TV program airs, a college baseball game, via NBC.

•1947: JWT becomes the first agency with > $100 million billings.

•1960: Doyle Dane Bernbach introduces team concept to ad agencies: copywriter partnered with art director on VW campaign.

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Advertising History in America

Gerber Baby picture ad, 1930

•Free baby picture!•Still advertising the baby food

Source: http://library.duke.edu/digitalcollections/mma.MM0854/pg.1/

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Advertising History in America

Whitman’s Sampler ad, 1942

•WWII becomes prominent in ads of the era•Convenience treat of the wealthy?

Source: http://www.vintageadbrowser.com/food-ads-1940s/4

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Advertising History in America

The Age of Radio, ~ 1935 – 1955

Lux Radio Theaterhttp://www.freeotrshows.com/otr/l/Lux_Radio_Theater.html

•Lux Toilet Soap was the sponsor/advertiser•The advertiser paid for production and broadcast of the shows

Source: Free OTR Shows, www.freeotrshows.com

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Advertising History in America

Mid 1950’s to 1990: TV Reigns

And life is very, very good for ad agencies….

1963: “The Pepsi Generation” campaign kicks off the cola wars.

1967: Mary Wells becomes the first woman to head a major ad agency – Wells, Rich, Greene.

1971: Congress bans broadcast advertising for cigarettes.

1980: Ted Turner launches CNN.

1981: MTV goes live.

1982: The Gannett Co. debuts USA Today.

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1960’s Creative Revolution

Bill Bernbach 1

•Developed “image” for products – e.g. VW, Levy’s Jewish Rye•Believed copy should appeal to human nature, persuade•Emphasized creativity over formulaic advertisingInterview video: http://www.youtube.com/watch?v=4lhXh-loeKs

Famous campaigns: http://www.youtube.com/watch?v=BnujU8zq-kE

1 “Creativity in Advertising,” Advertising & Society Review, 2007. E-ISSN 1154-7311

Advertising History in America

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1960’s Creative Revolution

David Ogilvy 1

• Proponent of market research to drive marketing, advertising

• Featured product benefits through facts and long copy

• Valued sales results. “If it doesn’t sell, it isn’t creative.” 2

Mini documentary: http://www.youtube.com/watch?v=VsLv2-odaUA American Express commercial with Muppets: http://www.youtube.com/watch?v=23Pma0SK_y8

1 “Creativity in Advertising,” Advertising & Society Review, 2007. E-ISSN 1154-73112 Brainyquote.com, David Ogilvy quotes

Advertising History in America

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One of David Ogilvy’s famous ads: Rolls Royce

Ogilvy used more copy than his peers

Source: http://www.robertrosenthal.com

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One of David Ogilvy’s famous ads: Schweppes

Source: http://intuart.com/dotcommune/advertising/adsample.html

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1960’s Creative Revolution

Leo Burnett 1

• Developed brands and associated icons, such as Ronald McDonald, Tony the Tiger, Mr. Clean, Keebler Elves, Pillsbury Doughboy

• Introduced the “Chicago school” of advertising, sentimental ads that appealed to Mid-Western values 2

“When to Take My Name Off the Door” Speech: http://www.youtube.com/watch?v=7WUxb8YB88o

Early Tony the Tiger (Frosted Flakes) commercial:http://www.youtube.com/watch?v=f6sw39pPrr8

Tony The Tiger commercial 1990: http://www.youtube.com/watch?v=6KpSgIDQF1Y

1 “Creativity in Advertising,” Advertising & Society Review, 2007. E-ISSN 1154-73112 AdAge.com, The Advertising Century, 1999 & 2005

Advertising History in America

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Advertising History in America

Interesting TV commercials of the era…

Westinghouse LIVE commercial, 1950’shttp://www.youtube.com/watch?v=--qQoY8o-0c

Pepsi Generation commercial, 1960’shttp://www.youtube.com/watch?v=QWQkf0w5JR4

Ads for televisions from the 1960’shttp://www.classictvads.com/classicindex.shtml

Oscar Mayer bologna ial, 1970’shttp://www.youtube.com/watch?v=rAznsU_LgA8

McDonald’s, 1970’shttp://www.youtube.com/watch?v=en4muUSIRT4

Wendy’s “Where’s the Beef” ad, 1980’shttp://www.youtube.com/watch?v=Ug75diEyiA0

FedEx, 1980’shttp://www.youtube.com/watch?v=NeK5ZjtpO-M

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Advertising History in America1990’s to early 2000’s: Online revolution

•1993: 5 million users get online, and the internet is a reality

•1994: AT&T runs the first banner ad online 3

•1997: Six Degrees, the first social network site allowing users to becomes “friends” with other users debuts. It shuts down by 2001 4

•1998: Google launches and revolutionizes search

•2001: Over 30 million domain names registered, mostly by companies (.com) 5

•2003: 10 years after introduction of the internet, number of global users stands at 700+ million 6

3 http://thelongestlistofthelongeststuffatthelongestdomainnameatlonglast.com/first66.html4 www.webdesignerdepot.com

5 Internet Society, www.isoc.com 6 Global Village Online

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Advertising History in America

Early 2000’s to 2010: Get social.

•2003: LinkedIn, the first social site dedicated to business, goes live 4

•2003: MySpace introduced. By 2006, the world’s most popular social site 4

•2004: Facebook, a social site for Harvard students only, debuts 4

4 www.webdesignerdepot.com

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Advertising History in America

Early 2000’s to now: Digital dominance

•2007: Flash™ takes online ads in a new direction 7 http://www.bannersnack.com/examples/classic-flash-banner-ads.html#4

•2007: In November, Facebook introduces ads 8

•2009: Facebook overtakes Myspace as most used social medium

•2010: Facebook hits 500 million registered users, overtakes Google for most visited site (total page views)

•2010: Internet advertising revenues surpass newspaper revenues. 9

7 Youtube.com8 Facebook.com press release

9 eMarketer, www.emarketer.com

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Advertising History in America

Today…

Advertising gets more targeted every day. Advertisers want to reach only the consumers who best fit their message, and they want to be able to measure results 24/7.

Source: FTC roundtable on privacy http://www.ftc.gov

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Advertising History in America

Today… Advertisers try increasingly multi-media approaches to reach consumers, using traditional and new media.

Banner advertising with video:http://www.cmgadvertising.com/adsamples/v_hennessy.html Billboard + mobile:

Social contest + TV:http://www.youtube.com/watch?v=4rsEnwKrsvc

Magazine + video:

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Advertising History in America

Today… Advertising is becoming a 2-way communication between companies and consumers. Rich media and social media allow more interaction between advertisers and users.

Uncle Ben’s Rich Media Ad http://www.doubleclick.com/insight/gallery/examples/uncle-bens.asp•User can view, print recipes

Source: DoubleClick Ad Gallery

“Save Chuck” Social Media Campaign

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Advertising History in America

Today…

Consumers spend as much time with new media as traditional media, so advertising adapts.

Cell phone app with ad that expands when user interacts

SMS/text offers based on geographic location of user

Source: IAB Guide to Mobile, http://www.iab.net/media/file/mobile-buyers-guide-web.pdf

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Advertising History in America

Today…

Want to watch video content online? Odds are, you’ll see one or more types of ads.

http://www.wimpyplayer.com/examples/wasp/preroll/

Source: ©2002-2008 Plaino LLC. All rights reserved.

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Advertising History in America

The Future …

Will ads be able to “see” us?

Will advertisers, agencies and media figure out how to target ads to individuals?

Where do you think advertising is going?