Chapter 1 Background of Today’s Advertising

1. Chapter 1 Background of Today’s Advertising

2. Objectives_1 Understand • The social and economic environment that nurtured advertising in its early years • Advertising’s role in U.S. economic development • Advertising support of the American media system

3. Objectives_2 Understand • The fight for ethical and responsible advertising • Advertising growth during the post-World War II era • Modern advertising in an era of fragmented audiences and media

4. Complements to the Advertising Function • Advertising functions most efficiently in • a system of centralized exchange • an economy in which supply exceeds demand • It first prospered during the Industrial Revolution

5. The Creation of the Advertising Industry Branded products Growing middle class National distribution system

6. Advertising’s Modern Era Research Responsibility

7. Exhibit 1.2 Basic advertising research was introduced by the 1920s.

8. Exhibit 1.3 Hoarding refers to the first printed outdoor signs.

9. Periods in the History of Advertising Premarketing era Mass communication era Research era Interactive era

10. Then and Now

11. Factors Affecting the Growth of Persuasive Advertising • Brand competition • Product sales based on image over utility • Influence from behavioral research • Cars as status symbols

12. Development of Print Media • Newspaper as an Advertising Medium • Siquis • Penny press • Magazines • Mass Production • The Advertising Agency

13. American Association of Advertising Agencies

14. Influences on Advertising in the Early Twentieth Century • The Pure Food and Drug Act (1906) • The Federal Trade Commission Act (1914) • Council of Better Business Bureaus (1916) • Printers’ Ink Model Statute (1911) • Audit Bureau of Circulations (1914)

15. FTC’s Division of Advertising Practices

16. Audit Bureau of Circulations (ABC)

17. Major Periods in Advertising History • World War I • The 1920s • Great Depression • World War II • Post-WWII to 1975 • The 1980s • The 21st Century Click image to visit Advertising Age’s History Timeline

18. Exhibit 1.10 In the 1920s, radio ushered in a new form of mass communication and advertising.

19. The War Advertising Council The War Advertising Council supported numerous efforts to bring the war to a close.

20. Advertising Educational Foundation The Ad Council Retrospective, a look back at historical PSAs, is available at the AEF website (click image).

21. Developments During the 1980s • New technology • Audience fragmentation • Consolidation • Credit X-Entertainment hosts several commercials from the 1980s!

22. And Now Emphasis on defining and utilizing new technology to reach prospects Emphasis on measuring the value of investing in various communication channels

23. Transitions Afoot • Bob Garfield’s View of the Current Period of Media Transition • Visit AdAge.com (click image) to read about Garfield’s Chaos Scenario and Chaos Scenario 2.0

24. Key Points: Advertising, Past and Future • The idea of persuasive communication is as old as trade. • Advertising cannot be studied in the abstract. • Advertising is not confined to traditional media.

25. For Discussion • What factors contributed to the rise of modern advertising during the last 100 years? • How has new technology contributed to more personal relationships between advertisers and customers?