Evolution

of
Advertising
SESSION 3

HOW ADVERTISING HAS EVOLVED!

1

Advertising is...
... thousands of years old, yet it
has only come into its own in the
last 100 years.
What triggered its development?
1)
2)

Growing population wanting more,

Evolving production technology.

Evidence: Ad-campaigns developed

over the years.
2

Advertising in pre-industrial
times
Demand increased slowly in the preindustrial age. (18th century)
Merchants displayed store signage to
attract passers-by.
Two developments that that led to
advertising:
1) Invention of paper in China
(Year1275) &
2) First printing press in Germany (Year
1440).
3

Advertising in pre-industrial
times
1472: First advertisement in English:
Handbills placed on church doors to
announce prayer book for sale.
200 years later - first newspaper ad
offered reward for return of 12 stolen
horses.

End of 18th Century: Print advertising

more common - relied on puffery.
4

Print advertising for a

microscope!

1760
5

Advertising in the Industrial

age
Mid-1800s: World population 1.2
billion.

Mass production/ consumption in

evidence Advertising only support for
mass marketing.
Early 20th century (World War I):
Marketing: domain of wholesalers
Advertising: an information
vehicle.
6

Advertising in the Industrial

age
Consumer advertising in US via
catalogs of Mail-order companies:
Montgomery Ward, Sears Roebuck.

Advertising in the Industrial

age
Patent medicines, soaps, tobacco
products, canned foods advertised.

Bulk-purchase of space for print

advertising: Contracts signed by
agencies - precursors of modern-day
ad-agencies.

Advertising in the Industrial

age
First ad-agency N. W. Ayer & Sons in
Philadelphia established by Francis Ayer.
Role: Planning, creating, executing
campaigns, in exchange for Commission
from print media, or Fee from advertiser.

What change did Industrial age

bring?
Major growth in industry.

Literacy rates up to 90% in US &

other developed countries.
Commodity markets saturated.
Mass marketing of FMCGs.
Advertising regarded as science:
based on fixed operating principles.
Radio used for mass communication.
10

What change did Industrial age

bring?
Manufacturers focus moved from
production to sales.
Early brands: Wrigleys gum, CocaCola, Jell-O, Kellogg's cornflakes, &
Campbells soup.
Wheaties first to call itself Breakfast
of Champions effort to create product
differentiation.
11

1940s & early-1950s

After WW II... Consumers sought
socially mobility.
Advertising pioneers arrived on
scene: Leo Burnett, David Ogilvy & Bill
Bernbach.
Rosser Reeves (of Ted Bates)
created idea of USP (unique selling
proposition)
Market segmentation became the
new mantra in Marketing.

12

Advertising in 1960s: Image

Era
Emphasis shifted from product
features to brand image & brand
personality.

Cadillac became symbol of luxury &

Rolls-Royce symbol of aristocracy.

15

Advertising in the Image

era

1967

1969

16

1970s: Competition rears its

head

A new kind of advertising strategy

evolves, based on what...
...Jack Trout & Al Ries introduced as
Positioning.

17

1970s: Competition rears its

head
Why did Positioning become so
important?
Competition?
What was needed?
1. MORE effective means of product
differentiation &

2. MORE precise market

segmentation.
18

Advertising in the creative

era: 1970s & 1980s

1975

1983
19

1980s: The best of times, the worst of

times

1980s: Energy shortages swept the

world: Concept of De-marketing was
born.
Advertising promoted lower
consumption: Conserve energy! Avoid
too many electrical appliances.
Social problems coming to the fore.
20

1980s: The best of times, the worst of times

Dramatic change in late 1980s!

Collapse of Berlin Wall, end of

Cold War, & Iron Curtain - Boom in
Western markets.
21

Dramatic change in late

1980s!

Positive sentiment led large MNCs

& Ad-agencies to go for
megamergers.
European & Asian advertising
caught up with US: Saatchi & Saatchi
in UK, Dentsu in Japan.

22

Dramatic change in late

1980s!

TV became the hot medium: ad

agencies focused on growth,
acquisition & superior creative
executions.
BUT, the euphoria was short lived:
Countries going back into recession
(late-1980s/ early 1990s.)

23

Economic factors impacting

Marketing
1. Competition: lower trade barriers,
growing international trade led to
global competition.
Book Marketing Warfare, by Al Ries
& Jack Trout caught attention: Focus
on four strategic positions Defensive, Offensive, Flanking,
Guerrilla.
24

Economic factors impacting

Marketing
2. Growing affluence &
sophistication among the public:
Baby boomer generation, keen
on saving time & money, to spend on
leisure activities.
Choosy about products, services.

Impressed by social causes.

25

Volkswagen getting Eco-friendly

26

FORD says: Wasting energy is a

crime

27

Coming of the 1990s

Worsened recession: clients
demanded accountability from adagencies
Conventional advertising out of favor.
New technology, re-invention of
advertising agencies. Downside: joblosses!
Print & TV networks down too.
Focus moved to building higher
28

Into the 2000s

The Internet bubble burst.

9/11 hit US - advertising dipped in US
& overseas.
Rebound in 2003 - Internet reached
new highs again.
29

Advertising in the creative

era: 1990s & 2000s

1990s

2009
30

Arrival of The Global Interactive

Age
1. Changing rules of the game.

2. Advertising takes hold in E. Europe.

3. New technologies start impacting
affecting advertising.
4. Shift from mass media to more
specialized, narrowcast media.
5. Advertisers impacted by TiVo
software capable of skipping
commercials.

31

Interactivity...
...The essence of advertising
in the 21st century.

We are living through the largest

expansion of expressive
capability in the history of the
human race.

32