the evolution of advertising. i know i waste half the money i spend on advertising. the problem is,...

The Evolution of Advertising

I know I waste half the money I spend on advertising. The problem is, I don’t

know which half.”

-John Wanamaker, Department Store Pioneer

Merchants hung carved signs in front of their shops. Most people couldn’t read so merchants used symbols, i.e. a boot

• Machinery began to replace animals• Rail roads.• People left the farms to work in the city• Advertising was used to inform the

masses about new products• Large mail-order catalog companies

– Montgomery Ward, – Sears Roebuck & Co. (Retailers)

• Innovative manufacturers use mass-media as a way to stimulate demand for their products.

• 1841, Volney B. Palmer set up an “agency” in Philadelphia. He contracted with newspapers to receive discounts on newspaper space.

• Birth of Mass Consumption

20th century

• The development of new, inexpensive brands of consumer luxury and convenience goods.

• Focus changed from production to sales orientation

• New product development– Wrigley Gum

– Coco-Cola

– Jell-O

– Kellogg's

– Campbell’s Soup

• 1929, The Great Depression and advertising expenditure collapsed.

• Daniel Starch, A.C. Nielsen and George Gallup founded research companies to study consumer attitudes and behavior.

Advertising Time Capsule

• 1650: First newspaper ad offers reward for stolen horse.

• 1729: Ben Franklin is first to use “white space”and illustration in ads.

• 1844: First magazine ad runs.

• 1869: First Ad Agency, N.W. Ayer & Son

• 1900: Psychologists study the attention getting and persuasive qualities of advertising.

• 1905: First National Ad Campaign for the “Gillette Safety Razor”

• 1911: First Truth in Advertising Codes (American Advertising Federation)

• 1920: Albert Lasker – Full Color Magazine Ads and “Father of Modern Advertising”

• 1924: NW Ayer produced the first company sponsored radio broadcast for “Eveready”

• 1930: Advertising Age Magazine is founded.• 1946: America has 12 TV stations broadcasting

to the public.

• 1948: 46 TV stations are on the air.

• 1950: First political ads are used • (Governor Dewey of NY)

• 2000: The Internet becomes the fastest growing new ad medium with 400 million users.

Early 1950’s TV

All things to all people

• In the beginning, all products talked about Quality, Variety, and Convenience

Market Segmentation

• Marketers search for unique groups of people whose needs could be addressed through more specialized products.

Positioning Strategy/Brand Separation

Ad “gurus”

• Raymond Rubicam

• Founded Young & Rubicam with James Orr Young.

Rosser Reeves

• Premier Creative Director for Ted Bates Agency

• Credited for the “Unique Selling Proposition”– Features that differentiate a product from

its competitors.

Leo Burnett

»Founded agency carrying his name in Chicago, IL in 1935

• Credited for invention of brand icons (e.g., Tony the Tiger; the Marlboro Man)and inherent drama in ads

David Ogilvy

Founded agency in New York in 1948 under its original name Hewitt, Ogilvy, Benson & Mather

Top 10 Ad Icons of the Century

• The Marlboro Man

• Ronald McDonald

• The Green Giant

• Betty Crocker

• The Energizer Bunny

• Pillsbury Doughboy

• Aunt Jemima

• The Michelin Man

• Tony the Tiger

• Elsie

What is Advertising Supposed to Do?

• Grab the prospects’ attention

• Give them hope that you can solve their problem or fulfill their desire

• Prove beyond a shadow of a doubt that their hopes will be fulfilled

• Offer a specific, low-risk, easy-to-take action

95% of All Ads not up to the mark