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The Evolution ofPromoting andAdvertisingBrands

Chapter 3

© 2006 Thomson/South-Western

Ch 3: Evolution 2

Fundamental Influences on theEvolution of Advertising

• Rise of capitalism– Competition for resources

• Industrial Revolution– Mass production of goods

• Manufacturers pursuit of distributionchannel power– Branding emerges

• Rise of modern mass media– Democratization of goods

© 2006 Thomson/South-Western

Ch 3: Evolution 3

The Evolution of Advertising inthe United States

• Pre-industrialization Era (pre-1800)– Handbills and “newsbooks” appear– Early ads resembled today’s

classifieds

• The Era of Industrialization (1800-1875)

– “Dailies” grow in popularity– Railroads spread the word– Advertising was considered an

embarrassment by some© 2006 Thomson/South-Western

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The IndustrialRevolution was akey factor in creatinga setting for thegrowth of advertising

© 2006 Thomson/South-Western

Ch 3: Evolution 5

The Evolution of Advertising inthe United States

• P.T. Barnum Era (1875-1918)– The “consumer culture” dawns– Advertising becomes an industry

• The 1920s (1918-1929)– Advertising finds fame and glamour– Ads play on social anxieties– Segmentation begins by social class

© 2006 Thomson/South-Western

Ch 3: Evolution 6

The Evolution of Advertising inthe United States

• The Depression Era (1929-1941)– Big Business is vilified—advertising

turns to harsh, anxiety creating ads– Radio emerges as a new medium

• WWII and the Fifties (1941-1960)– Products linked with patriotism– Fascination with “science”– Subliminal advertising scare hits

© 2006 Thomson/South-Western

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During the 1920s, adswould often play onsocial anxieties as away to attract andhold the attention of atarget audience.

© 2006 Thomson/South-Western

Ads from the 1950sreflected consumers’fascination withscientific discoveries(do you see any subliminalmessages here? ) (Clue=no)

© 2006 Thomson/South-Western

Ch 3: Evolution 9

The Evolution of Advertising inthe United States

• Peace, Love and the CreativeRevolution (1960-1972)– Creatives gain control– Advertising emerges as a cultural icon

• The 1970s (1973-1980)– Women and minorities adopt new roles– Hedonistic values– Regulation and oversight take

hold—FTC and NARB become active

© 2006 Thomson/South-Western

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Ch 3: Evolution 10

The Evolution of Advertising inthe United States

• The Designer Era (1980-1992)– Conservative politics rule– Rapid-paced MTV editing becomes ad style– Late night infomercial is born

• The Second Nineties (1993-2000)– The challenge and promise of interactive

media arrives– Problems with new media applications

disappoint many advertisers

© 2006 Thomson/South-Western

Ch 3: Evolution 11

Present and Future

• The 00s: More Hip Ads and MoreTechnology (2001 – present)– Interactive/wireless/broadband

revolution– On-line ads soar– Ads become more self-aware and self-

referential

© 2006 Thomson/South-Western

Ch 3: Evolution 12

Technology and Advertising

1. On-line ads surpass $10 billion in ’052. E-business over the Web exceeds

$2.5 trillion in ’053. New technologies—interactive,

wireless, broadband—facilitatepersonalized advertising andpromotion

4. Wi-fi expands how and when toreach consumers

© 2006 Thomson/South-Western

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Ch 3: Evolution 13

Advertainment

The blending of advertising withentertainment programming

Brand “placement” key here Some films and television

programs are considered hourlong promotions

© 2006 Thomson/South-Western

Ch 3: Evolution 14

The Value of an EvolutionaryPerspective

• The Evolution of advertising– Efficient methods of production made advertising an

essential tool for demand stimulation in a freeenterprise economic system

– Urbanization, transportation and communicationsallowed the use of advertising to grow

• The Evolution of Integrated Brand Promotion– Integrated marketing communications is focusing

more on brand development creating an IBP approach– More and more money is being allocated to

promotional tools other than advertising

© 2006 Thomson/South-Western