advertising history
TRANSCRIPT
The History of Advertising
Long Long ago….
…in 3000 BC, it all started in the city of Babylon
The first form of advertising appeared in the form of clay tablets which bears the
inscription of an ointment dealer, a scribe and a shoemaker...
…and in Pompeiiwhere a clay tablet of a butcher shop was
retrieved.
The 3 periods of Advertising
• The Pre Marketing Era
• The Mass Communication Era
• The Research Era
The Pre - Marketing Era
Days of Barter system
• Ancient: Papyrus - Ad for slaves• Greeks: Town Criers - Arrival of ships
• Romans: Inn signs
The Pre - Marketing EraDays of Print
• 1438 : Johann Guttenberg invents the movable type
• 1478 : William Caxton printed the first paper
• 1523 : First printed Advertisement• 1622 : 1st printed Newspaper - London
‘The Weekly Newes of London’• 1625 : 1st Ad in an English Newspaper
• 1704 : 1st Ad in an American Newspaper‘Boston Newsletter’
• 1890 : Birth of Magazines
The Mass Communication Era
From the mid 1700’s advertisers reached mass audiences through the print
media and later with the invention of the Radio
The Research Era
Last 50 years advertisers have methodically improved the techniques
of identifying and reaching their audiences with specific messages
Great assistance with Electronic Media and now the Internet
The Evolution of the Agency
• The Space Salesman
• The Space Wholesaler
• The First Rate Directory
• From an Agency to the Creative Inputs
• The Curtis No-Rebating rule
The Space Salesman
• In 1840, Volney B Palmer contacted publications and sold advertising space
for a commission of 50%, but often settled for less
Palmer was very successful and soon opened up offices in Philadelphia, New
York and Boston
The Space Agent - Agency
The Space Wholesaler
• In 1850, George Powell bought large blocks of spaces and sold them in the
form of ‘squares’ - one column wide and sold them at a retail price, his own ad
read...
‘An inch of space a month in 100 newspapers for one hundred dollars’
The First Rate Directory
• In 1869, Powell shocked the advertising fraternity by publishing a directory of
Newspapers and their rates along with the estimation of their circulation
Agency to Creative Inputs
• Charles Austin Bates, a writer, began writing and selling his service to whoever wanted
them.
• In 1867, ex-Navy man James Walter Thompson sold space and from the
commission he would write copy for the Client.
Agency to Creative Inputs
• Calkin and Holden did more than write, they brought in copy, art and planning all under one roof paving the way for
an agency to function.
The Curtis No-Rebating Rule
• In 1891, Curtis Publishing Company, USA announced that it would pay commissions to
Agencies only if they agreed to collect the full price from the Advertisers
Agency Commission ranged from 10-25%
• In 1917, this got fixed to 15% which stands true till date
Advertising is all about Great Ideas
and behind all of them are some great minds and their reasons and philosophies
The Advertising Heroesand their ground
breaking work
Arnold Lasker
Had a talent for spotting talent, responsible for making people see that
creating advertising is a talent and needs passion
Claude Hopkins
‘If you want people to buy a product, you’d better give them a very good
reason why.’Driven towards Rationality
James Walter Thompson
Father of one of the largest agencies in the World today (JWT) - sold his
business to his employees Stanley and Helen Greser for US$ 10,000 in 1920
John Watson
Propounded the theory ...If Consumer attitude X changes to Y due to a
Advertising Stimulus then there will be a difference of Z in Sales Turnover
Stimulus most important
Gerard Lambert
Was one of the founders to address the issue of creating category need
advertisingAdvertising in 1924 did create a cure but
first it had to create the disease.
Michael Gallop
Formalized the first ever commercial market research and tracking
consumer behaviour
Leo Burnett
Deviated from the Watson TheoryIntroduced Image Advertising as
opposed to reason whyThis theory failed initially...
Rosser Reeves
Proposed that the human mind needs to focus on one single parameter of a product - the
theory of rationalityAs choices grew this theory also had its
limitations
David Ogilvy
~ Tried to balance Reason and Emotion create BrandingPick up insights from people
William Bernbach
~ Whilst you need to balance emotion and reason,
the advertisement must entertain.
George Gribbin
Must get people interested in your advertising for the brand
to be successful. This requires ingenuity. Saying it differently yet simply.
Alyque Padamsee
An Advertiser is a Performer
Liril GirlKama Sutra
Surf - LalithajiCherry Charlie
What is Advertising ?
‘Advertising’ originates from the Latin Word ‘ad
vertere’which means ‘to turn the mind towards’
There are many definitions to ‘Advertising’ including the one in the dictionary, but the all
time favourite is ….
‘Advertising is the use of media to inform consumers about something and/or to
persuade them to do something in effect. It brings products/brands and
consumers together and then modulates the relationship between them’
- The Economist
In short...
… Advertising is a key part of Marketing, but far from being (as is often assumed)
the sum total of it.
The Advertising Agency
Manages products (in the from of Brands) and Consumers