Evolution of Advertisng

7/31/2019 Evolution of Advertisng

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Evolution of Advertising


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The Evolution of Advertising as Economic Tool

Pre-industrial Age: Important developments enabled eventual birth ofmodern advertising.

Invention of printing press.

The modern history of advertising begins with Coco-cola.

1886: John S Pemberton served coco-cola. Delicious and Refreshing

The Industrializing Age (mid 1700s 1800s)

The Industrial Age (1900-1970): Market Segmentation and Positioningstrategy

Postindustrial Age: (1970s till date)


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First advertisement were vocal

Street cries by peddlers hawking their wares.

Greeks advertised by shouting announcements

of sale of cattle & slaves.


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Historical Landmarks


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Autolycus sings: "Come, buy of me; come buy,

come buy, buy, lads, or else your lasses cry."


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First advertisement in a newspaper


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The London Gazette, 1666

The London Gazette announced that it was going to printadvertisements. Newspaper ads became the rage.

By 1682, shopping guides were being published which

consisted entirely of ads.

In the 1700s, England was glutted with pasted-up noticesand posters.

London became jammed with large advertising signsannouncing merchants' places of business.


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Charles II

The signs became so numerous that Charles II proclaimed,

"No signs shall be hung across the streets


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In 1729 Benjamin Franklin published thePennsylvania Gazette in Philadelphia, which

includes pages of "new advertisements."


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1800s

Brand names took over the commercial arena. In 1871 there were 121 brands By 1875 there were 1138 brands

By 1926 there were 69,000 brands

Advertising became increasingly competitive.

In 1882, an electric sign was constructed anddisplayed by W. J. Hammer in London. Thepractice spread wildly.


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First Product Endorsement

________

http://www.historypages.net/PPears.html
http://www.historypages.net/PPears.htmlhttp://www.historypages.net/PPears.htmlhttp://www.historypages.net/PPears.htmlhttp://www.historypages.net/PPears.htmlhttp://www.historypages.net/PPears.htmlhttp://www.historypages.net/PPears.htmlhttp://www.historypages.net/PPears.htmlhttp://www.historypages.net/PPears.htmlhttp://www.historypages.net/PPears.htmlhttp://www.historypages.net/PPears.html


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Volney Palmer opens first advertising agency inPhiladelphia. At first the agencies were just brokersfor ad space in newspapers

Ever since marketing professionals have beenarguing, debating, and searching for the answer tothe question.

What makes a goodadvertisement?


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New York agency Carlton & Smith beginsbuying the right to place advertising inreligious magazines.


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With $250, Francis Wayland Ayer opens N.W.Ayer & Son in Philadelphia and implements thefirst commission system based on "open contracts.

His clients include John Wanamaker DepartmentStores, Singer Sewing Machines and Pond's BeautyCream.


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Most inadvertising by N.W. Ayer


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Department store founder John Wanamakeris the first retailer to hire a full-timeadvertising copywriter, John E. Powers.


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Procter & Gamble Co. begins advertising Ivory soapwith an unprecedented budget of $11,000.


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1900

Ad agencies/ ad agents proliferated in 1890s.

1900, there were 25 agencies in New York.


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Beginning of the

persuasive,hard-sell era.


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"We are making 40,000 cylinders, 10,000 engines,40,000 wheels, 20,000 axles, 10,000 bodies, 10,000of every part that goes into the car--think of it! For

this car we buy exactly 40,000 spark plugs, 10,000spark coils, 40,000 tires, all exactly alike."


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National Geographic (1913)


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1930 & 40s


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1950s

Overproduction

Rise of middle class,

Effort was launched to mass-analyze theAmerican public

Hundreds of social scientists moved into thead business.

By 1955, McCann-Erickson had 5psychologists on its staff.


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1950s


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1960s and 1970s


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The 1960's advertising transformed into a modernwith scientific approach.

Creativity was allowed to shine, producingunexpected messages that made advertisementsinteresting to read.

The Volkswagen ad campaign featuring suchheadlines as "Think Small" and "Lemon" ushered inthe era of modern advertising.


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Leo Bogart in 1967

"4.2 billion advertising messages pour forth from 1,754 dailynewspapers, millions of others from 8,151 weeklies, and 1.4billion more each day from 4,147 magazines and periodicals.

There are 3,895 AM and 1,336 FM stations broadcasting anaverage of 730,000 commercials a day, and 770 televisionstations broadcast 100,000 commercials a day.

Every day millions of people are confronted with 330,000outdoor billboards, with 2,500,000 car cards and posters inbuses, subways and commuter trains, with 51,300,000 directmail pieces and leaflets, and with billions of display andpromotion items."


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1970s

The 1970s saw the emergence of the multinationaladvertising agency/holding company, with offices

and affiliates all over the world.


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Today, advertising is evolving even further, with "guerrilla"promotions that involve unusual approaches such as stagedencounters in public places, giveaways of products such as

cars that are covered with brand messages, and interactiveadvertising where the viewer can respond to become part ofthe advertising message.

Top 7 Corporate Brands


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Top 7 Corporate Brands

Source: Forbes.com, February 08, 2005)

(www.forbes.com/forbes/2004/0419.html

Proctor and Gamble

Corporate Brand value: $ 107.4 billions

Behind the brand: Pampers, Crest, Tide andother products that are used billion times daily
http://www.forbes.com/forbes/2004/0419.htmlhttp://www.forbes.com/forbes/2004/0419.html


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Microsoft


Behind the brand: World largest softwareproducer with Windows, MSNBC cablechannel and Xbox video game


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Merck


Behind the brand: World largestpharmaceutical company, Zocor(cholesterol-lowering drug)


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Intel


Behind the brand: One of the largestproducer of microprocessor

Eli Lill


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Eli Lilly

Corporate Brand value: $ 76. 4 billions

Behind the brand: Pharmaceuticalcompany, Zyprexa, a schizophrenia

IBM


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IBM

Corporate Brand value: $ 71. 0 billions

Behind the brand: Hardware and software.

Ci S


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Cisco Systems


Behind the brand: 81% of the worldwiderouter market


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Top Advertisers

Procter & Gamble General Foods Bristol-Myers American Home Products

General Motors Colgate-Palmolive Lever Brothers Sterling Drug Sears, Roebuck Ford Motor

For company profile. http://www.mind-advertising.com/. Also visit agency's websites
http://www.mind-advertising.com/http://www.mind-advertising.com/http://www.mind-advertising.com/http://www.mind-advertising.com/http://www.mind-advertising.com/http://www.mind-advertising.com/


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Top Advertising Agencies

J. Walter Thompson (U.S.) Dentsu Advertising (Japan) Young and Rubicam International (U.S.) McCann-Erickson (U.S.) Leo Burnett Co. (U.S.)

Ted Bates (U.S.) Batten, Barton, Durstine and Osborn (U.S.) Ogilvy and Mather International (U.S.) Grey Advertising (U.S.) Doyle, Dane, BernBach (U.S.)

For company profiles and account assignments:http://www.mind-advertising.com/. Also visit companyswebsite
http://www.mind-advertising.com/http://www.mind-advertising.com/http://www.mind-advertising.com/http://www.mind-advertising.com/http://www.mind-advertising.com/


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First time in print ad in Hickey's Bengal Gazette, India'sfirst newspaper (weekly).

Horlicks becomes the first 'malted milk' to be patented on

5th June 1883 (No. 278967).


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1905: B Dattaram & Co is the oldest existing Indian agency 1912: ITC (then Imperial Tobacco Co. Ltd.) launches Gold Flake 1920: Alliance Advertising, Tata Publicity, Ogilvy & Mather and Clarion J Walter Thompson (JWT) opened to service General Motors business 1934: Venkatrao Sista opens Sista Advertising and Publicity Services as

first full service Indian agency 1936: Indian Broadcasting Company becomes All India Radio (AIR) 1939: Lever's advertising department launches Dalda - the first major

example of a brand and a marketing campaign specifically developed forIndia


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1941: Lux signs Leela Chitnis as the first Indian film actor toendorse the product

1941: JWT, coins the Balanced Nourishment concept tomake Horlicks more relevant to India

1943: Advertising & Sales Promotion Co (ASP), Calcuttaestablished

1946: Everest Advertising Pr. Ltd, Bombay established


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1950: Radio Ceylon & Radio Goa become the media option

1951: Vicks VapoRub: a rub for colds, causes ripples withits entry in the balm market

1954: Advertising Club, Mumbai set up

1957: Vividh Bharati kicks off


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1962: India's television's first soap opera - TeesraRastaenthralls viewers

1963: Wills Filter Tipped cigarettes launched andpositioned as filter andtobacco match

1967: First commercial appears on Vividh Bharati

1968: India wins the bid for the Asian Advertising

Congress


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1970: NRS data on consumers' reading habits 1970: Commercial programming on All India Radio

1973: RK Swamy /BBDO established

1974: Arun Nanda & Ajit Balakrishnan set up Rediffusion

1975: Ravi Gupta sets up Trikaya Grey 1976: Commercial Television initiated

1978: First television commercial seen


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1980: Mudra Communications Ltd set up 1982: The biggest milestone in television was the Asiad '82 when

television turned to colour transmission 1982: Bombay Dyeing becomes the first colour TV ad 1983: Maggi Noodles launched to become an overnight success

1983: Manohar Shyam Joshi's Hum Logmakes commercial televisioncome alive 1984: Hum Log, Doordarshan's first soap opera in the colour era is born

and viewers still remember the sponsor (ViCCO) ofYeh Jo Hai Zindagi! 1985-86: 915 new brands of products and services appearing on the

Indian market

1986: Mudra Communications creates India's first folk-history TV serialBuniyaad. Shown on DD, it becomes the first of the mega soaps. Pricequality positioning of Nirma detergent cakes boost sales

1989: Advertising & Marketing (A&M) magazine launched


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1990: Agencies open new media shops; go virtual with websites andInternet advertising

1990: Brand Equity (magazine) of The Economic Times is born

1991: First India-targeted satellite channel, Zee TV starts broadcast

1992: Spectrum, publisher of A&M, constitutes its own award known as

'A&M Awards' 1993: MICA (Mudra Institute of Communications Ahmedabad), is born

1999: B2B site www.agencyfaqs.com launched on September 28, 1999
http://www.agencyfaqs.com/http://www.agencyfaqs.com/interactive/afaqs_abc/index.htmlhttp://www.agencyfaqs.com/


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2000: Mudra launches www.magindia.com

2000: Game shows like Kaun Banega Crorepatibecome a rage 2000: Kyunki Saas Bhi Kabhi Bahu Thi -return of family soap

2001: Trikaya Grey becomes Grey Worldwide

2001: Bharti's Rs 2.75-crore corporate TV commercial, where a babygirl is born in a football stadium, becomes the most expensive campaign

of the year
http://www.magindia.com/http://www.magindia.com/


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Sources
http://www.magindia.com/history/intro.htmlhttp://www.magindia.com/history/intro.htmlhttp://www.magindia.com/history/intro.htmlhttp://www.magindia.com/history/intro.htmlhttp://www.magindia.com/history/intro.htmlhttp://www.magindia.com/history/intro.htmlhttp://www.magindia.com/history/intro.htmlhttp://www.magindia.com/history/intro.htmlhttp://www.magindia.com/history/intro.htmlhttp://adage.com/century/campaigns.htmlhttp://adage.com/century/campaigns.htmlhttp://adage.com/century/campaigns.htmlhttp://adage.com/century/campaigns.htmlhttp://adage.com/century/campaigns.htmlhttp://adage.com/century/campaigns.htmlhttp://adage.com/century/campaigns.htmlhttp://www.trivia-library.com/history-of-advertising/index.htmhttp://www.trivia-library.com/history-of-advertising/index.htmhttp://www.trivia-library.com/history-of-advertising/index.htmhttp://www.trivia-library.com/history-of-advertising/index.htmhttp://www.trivia-library.com/history-of-advertising/index.htmhttp://www.trivia-library.com/history-of-advertising/index.htmhttp://www.trivia-library.com/history-of-advertising/index.htmhttp://www.trivia-library.com/history-of-advertising/index.htmhttp://www.trivia-library.com/history-of-advertising/index.htmhttp://www.trivia-library.com/history-of-advertising/index.htmhttp://www.trivia-library.com/history-of-advertising/index.htmhttp://www.trivia-library.com/history-of-advertising/index.htmhttp://www.trivia-library.com/history-of-advertising/index.htmhttp://www.trivia-library.com/history-of-advertising/index.htmhttp://www.trivia-library.com/history-of-advertising/index.htmhttp://adage.com/century/timeline/timeline1.htmlhttp://adage.com/century/timeline/timeline1.htmlhttp://adage.com/century/timeline/timeline1.htmlhttp://adage.com/century/timeline/timeline1.htmlhttp://adage.com/century/timeline/timeline1.htmlhttp://adage.com/century/timeline/timeline1.htmlhttp://adage.com/century/timeline/timeline1.htmlhttp://adage.com/century/timeline/timeline1.html

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Evolution of Advertisng