Presentation on theme: "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."— Presentation transcript:
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
20 th 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