2The Rise of Advertising Rise of capitalismCompetition for resources (capital) stimulating demand for goods and servicesIndustrial RevolutionMass production of goods needed demandstimulationThe Emergence of Modern BrandingBranding emerges to control the channelRise of modern mass mediaDemocratization of goods3
3The 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.
4The Evolution of Advertising in the United States Pre-industrialization Era (pre-1800)Handbills and “newsbooks” appearEarly ads resembled today’s classifiedsThe Era of Industrialization ( )“Dailies” grow in popularityRailroads spread the wordAdvertising was considered anembarrassment by some3
5The Evolution of Advertising in the United States P.T. Barnum Era ( )The “consumer culture” dawnsAdvertising becomes an industryThe 1920s ( )Advertising finds fame and glamourAds play on social anxietiesSegmentation begins by social class3
6How does this ad typify ads from the P.T. Barnum era?
7The Evolution of Advertising in the United States The Depression Era ( )Depression was brutal on familiesBig Business is vilifiedAdvertising turns to harsh, anxiety creating adsRadio emerges as a new mediumWWII and the Fifties ( )Products linked with patriotismFascination with “science”Subliminal advertising scare hits37
8During 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.
9Ads from the 1950s reflected consumers’ fascination with scientific discoveries (do you see any subliminal messages here? ) (Clue=there are none)Courtesy of IBM Corporation
10The Evolution of Advertising in the United States Peace, Love and the Creative Revolution ( )Creatives gain controlAdvertising emerges as an icon of aculture fascinated with consumptionThe 1970s ( )Women and minorities adopt new rolesHedonistic values emergeRegulation and oversight take hold—FTCand NARB become active3
11Peace, Love, and the Creative Revolution all in one ad! History of Aviation Collection. Special Collections Department, McDerott Library, The University of Texas at Dallas.
12The Evolution of Advertising in the United States The Designer Era ( )Conservative politics ruleRapid-paced MTV editing becomes ad styleLate night infomercial is bornThe E-Revolution Begins ( )Stage I of the Web revolution—with mixed resultsProblems with new media applications disappoint many advertisersAdvertisers believed digital media would “revolutionize” measurement—it didn’t (yet)“Centers” of advertising power move West3
13The 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 muchmore successful than Phase I in the late 1990sConsumer control emerges in this eraConsumers begin “co-creating” ads defined as consumergenerated content (CGC)Cultural contradiction, social disruptions and identity issuesemergeThough less visible, business-to-business promotion on theWeb is enormous and referred to as E-businessFirms invest in newer forms of connecting with consumers3
14The Great Recession More Pressure on Brands and Brand Advertising Consumers “trading down” in brand shopping(private label/retailer brands)Consumers are “renting/sharing” moreCarsDVDs (NetFlix)Recreation equipmentConsumers are shopping less withmore purposeSmaller and larger quantities (non-standard)Scouring the internet for “deals”3
16The Value of History Perspective: Despite new technologies… Advertising is still a paid attempt to persuadeAdvertising will still contribute to revenue and profit growth and nurture brand successBig firms still spend billions on traditional mediaTechnology has changed the way people shop and the way they seek out and control information3
17Check 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 thelevel of purchasing power in America.psychology and motivation behind the sell.preferences and opinions of homemakers.differences between consumer and business purchases.3
18Check 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, consumersrely on advertisers and agencies for information.are empowered.are no longer expected to “connect” with brands.have lost interest in advertising.3