1. The History of Advertising and Brand Promotion3 1
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2. The Rise of Advertising
Rise of capitalism
Competition for resources (capital) stimulating demand for goods and services
Industrial Revolution
Mass production of goods needed demand
stimulation
The Emergence of Modern Branding
Branding emerges to control the channel
Rise of modern mass media
Democratization of goods 3

3. The Industrial Revolution was a key factor in creating a setting for the growth of advertising — Why?
Reproduced with permission of Chevron U.S.A., Inc.

4. The Evolution of Advertising in the United States
Pre-industrialization Era (pre-1800)
Handbills and “newsbooks” appear
Early ads resembled today’s classifieds
The Era of Industrialization ( )
“Dailies” grow in popularity
Railroads spread the word
Advertising was considered an
embarrassment by some 3

5. The Evolution of Advertising in the United States
P.T. Barnum Era ( )
The “consumer culture” dawns
Advertising becomes an industry
The 1920s ( )
Advertising finds fame and glamour
Ads play on social anxieties
Segmentation begins by social class 3

6. How does this ad typify ads from the P.T. Barnum era?

7. The Evolution of Advertising in the United States
The Depression Era ( )
Depression was brutal on families
Big Business is vilified
Advertising turns to harsh, anxiety creating ads
Radio emerges as a new medium
WWII and the Fifties ( )
Products linked with patriotism
Fascination with “science”
Subliminal advertising scare hits 3 7

8. During the 1930s, ads would often play on social anxieties as a way to attract and hold the attention of a target audience.
Courtesy, Lever United States, Inc.

9. Ads from the 1950s reflected consumers’ fascination with scientific discoveries (do you see any subliminal messages here? ) (Clue=there are none)
Courtesy of IBM Corporation

10. The Evolution of Advertising in the United States
Peace, Love and the Creative Revolution ( )
Creatives gain control
Advertising emerges as an icon of a
culture fascinated with consumption
The 1970s ( )
Women and minorities adopt new roles
Hedonistic values emerge
Regulation and oversight take hold—FTC
and NARB become active 3

11. Peace, Love, and the Creative Revolution all in one ad!
History of Aviation Collection. Special Collections Department, McDerott Library, The University of Texas at Dallas.

12. The Evolution of Advertising in the United States
The Designer Era ( )
Conservative politics rule
Rapid-paced MTV editing becomes ad style
Late night infomercial is born
The E-Revolution Begins ( )
Stage I of the Web revolution—with mixed results
Problems with new media applications disappoint many advertisers
Advertisers believed digital media would “revolutionize” measurement—it didn’t (yet)
“Centers” of advertising power move West 3

13. The Evolution of Advertising in the United States
Consumer Empowerment, Branded Entertainment, The Great Recession
(2000-present)
Phase II of the e-ad-evolution (Web 2.0/3.0) has been much
more successful than Phase I in the late 1990s
Consumer control emerges in this era
Consumers begin “co-creating” ads defined as consumer
generated content (CGC)
Cultural contradiction, social disruptions and identity issues
emerge
Though less visible, business-to-business promotion on the
Web is enormous and referred to as E-business
Firms invest in newer forms of connecting with consumers 3

14. The Great Recession More Pressure on Brands and Brand Advertising
Consumers “trading down” in brand shopping
(private label/retailer brands)
Consumers are “renting/sharing” more
Cars
DVDs (NetFlix)
Recreation equipment
Consumers are shopping less with
more purpose
Smaller and larger quantities (non-standard)
Scouring the internet for “deals” 3

15. The Evolution of Advertising in the United States
Branded Entertainment
The blending of advertising and integrated brand promotion with entertainment programming
Brand “placement” key tactics are used here
Some films, television programs, and video games are considered hour-long promotions
© Associated Press 3

16. The Value of History Perspective: Despite new technologies…
Advertising is still a paid attempt to persuade
Advertising will still contribute to revenue and profit growth and nurture brand success
Big firms still spend billions on traditional media
Technology has changed the way people shop and the way they seek out and control information 3

17. Check Your Understanding
When America was experiencing tremendous economic growth after WWII, companies wanted to take full advantage of this. So advertising agencies began to conduct research to understand the
level of purchasing power in America.
psychology and motivation behind the sell.
preferences and opinions of homemakers.
differences between consumer and business purchases. 3

18. Check Your Understanding
Some analysts have referred to the current era, since 2000, as the post-advertising age. One of the elements that characterizes advertising today is that, more than ever before, consumers
rely on advertisers and agencies for information.
are empowered.
are no longer expected to “connect” with brands.
have lost interest in advertising. 3