1The Evolution ofPromoting andAdvertisingBrandsChapter 3© 2006 Thomson/South-WesternCh 3: Evolution 2Fundamental 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-WesternCh 3: Evolution 3The Evolution of Advertising inthe United States• Pre-industrialization Era (pre-1800)– Handbills and “newsbooks” appear– Early ads resembled today’sclassifieds• The Era of Industrialization (1800-1875)– “Dailies” grow in popularity– Railroads spread the word– Advertising was considered anembarrassment by some© 2006 Thomson/South-Western2The IndustrialRevolution was akey factor in creatinga setting for thegrowth of advertising© 2006 Thomson/South-WesternCh 3: Evolution 5The 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-WesternCh 3: Evolution 6The Evolution of Advertising inthe United States• The Depression Era (1929-1941)– Big Business is vilified—advertisingturns 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-Western3During the 1920s, adswould often play onsocial anxieties as away to attract andhold the attention of atarget audience.© 2006 Thomson/South-WesternAds from the 1950sreflected consumers’fascination withscientific discoveries(do you see any subliminalmessages here? ) (Clue=no)© 2006 Thomson/South-WesternCh 3: Evolution 9The 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 takehold—FTC and NARB become active© 2006 Thomson/South-Western4Ch 3: Evolution 10The 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 interactivemedia arrives– Problems with new media applicationsdisappoint many advertisers© 2006 Thomson/South-WesternCh 3: Evolution 11Present and Future• The 00s: More Hip Ads and MoreTechnology (2001 – present)– Interactive/wireless/broadbandrevolution– On-line ads soar– Ads become more self-aware and self-referential© 2006 Thomson/South-WesternCh 3: Evolution 12Technology and Advertising1. 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 andpromotion4. Wi-fi expands how and when toreach consumers© 2006 Thomson/South-Western5Ch 3: Evolution 13Advertainment The blending of advertising withentertainment programming Brand “placement” key here Some films and televisionprograms are considered hourlong promotions© 2006 Thomson/South-WesternCh 3: Evolution 14The Value of an EvolutionaryPerspective• The Evolution of advertising– Efficient methods of production made advertising anessential 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 focusingmore on brand development creating an IBP approach– More and more money is being allocated topromotional tools other than advertising© 2006
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