Evolution of Advertising

To identify important milestones in the history of advertising. Discuss how the role advertising has changed recent years of in

The Evolution of Advertising as Economic Tool

Pre-industrial Age: Important developments enabled eventual birth of modern 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 Positioning strategy Postindustrial Age: (1970s till date)

First advertisement were vocal

Street cries by peddlers hawking their wares. Greeks advertised by shouting announcements of sale of cattle & slaves.

Historical Landmarks
In ancient times the most common form of advertising was 'word of mouth'. Egyptians used papyrus to create sales messages and wall posters. Lost-and-found advertising on papyrus was common in Greece and Rome.

As printing developed in the 15th and 16th century, advertising expanded

In the 17th century advertisements started to appear in weekly newspapers

Shakespeare's A Winter's Tale, 1610

Autolycus sings: "Come, buy of me; come buy, come buy, buy, lads, or else your lasses cry."

First advertisement in a newspaper

The first newspaper appeared in England, The Weekly News, in 1622.

First newspaper advertisement is said by historian Henry Sampson to have been an ad for the return of a stolen horse.

Advertising Age
The first newspaper advertisement was an announcement
seeking a buyer for an Oyster Bay (Long Island) estate published in the Boston News-Letter.

The London Gazette, 1666

The London Gazette announced that it was going to print advertisements. 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 notices and posters.

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

Charles II

The signs became so numerous that Charles II proclaimed,

shutting out the air and the light of the heavens."

"No signs shall be hung across the streets

 In 1729 Benjamin Franklin published the Pennsylvania Gazette in Philadelphia, which includes pages of "new advertisements."

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 and displayed by W. J. Hammer in London. The practice spread wildly.

First Product Endorsement

Pears hired a famous and beautiful actress, Lily Langtry, to do a testimonial, "Since using Pears Soap, I have discarded all others." Pears also paid a large sum of money for a painting by artist

John

Everett Millais'
products.

and started the trend of using fine art to sell

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

1843
Volney Palmer opens first advertising agency in Philadelphia. At first the agencies were just brokers for ad space in newspapers Ever since marketing professionals have been arguing, debating, and searching for the answer to the question.

What makes a good advertisement?

1867

New York agency Carlton & Smith begins buying the right to place advertising in religious magazines.

1868
With $250, Francis Wayland Ayer opens N.W. Ayer & Son in Philadelphia and implements the first commission system based on "open contracts.

His clients include John Wanamaker Department Stores, Singer Sewing Machines and Pond's Beauty Cream.

Most enduring slogans in advertising by N.W. Ayer

"When it rains it pours", advertising salt for Morton Salt, coined in 1912 "I'd walk a mile for a Camel", advertising Camel cigarettes for R.J.
Reynolds Tobacco, coined in 1921. "A diamond in 1948

is forever", advertising diamonds for De Beers, coined

"Reach out and touch someone", advertising long-distance telephone service for AT&T, coined in 1979

"Be all you can be", advertising military service for the United States
Army, coined in 1981

1877
James Walter Thompson buys Carlton & Smith from William J. Carlton, paying $500 for the business and $800 for the office furniture.

He renames it after himself and moves into general magazine advertising.

Later, he invents the position of account executive.

1880
Department store founder John Wanamaker is the first retailer to hire a full-time advertising copywriter, John E. Powers.

1882
Procter & Gamble Co. begins advertising Ivory soap with an unprecedented budget of $11,000.

1900
Ad agencies/ ad agents proliferated in 1890s. 1900, there were 25 agencies in New York.

Beginning of the Persuasive, Hard-sell Era

In 1900, Albert D. Lasker, turned copywriting into a big business. From then on, the production of carefully researched and constructed ad copy became perhaps the central concern of advertisers. This was the beginning of the

persuasive,

hard-sell era.

Ford Motor Company Ad (1906)

"We are making 40,000 cylinders, 10,000 engines,
40,000 wheels, 20,000 axles, 10,000 bodies, 10,000 of every part that goes into the car--think of it! For this car we buy exactly 40,000 spark plugs, 10,000 spark coils, 40,000 tires, all exactly alike."

National Geographic (1913)

After World War I

In the U.S., the total advertising expenditure in 1918 was almost $1.5billion.

By 1919, it was almost $2.5 billion.

By 1925, advertising expenditure had jumped up over $3 billion. Advertising became almost as important as industrial production itself.

Radio and Advertising

Mass radio happened in the 1920s.
Advertising spending jumped from $4 million (1927) to $10 million ( 1928)
Radio advertising introduced

human voice, emotions & home

dramatic appeal
Radio pushed advertising directly into the

Radio provided a medium where advertisers and ad agencies actually controlled program content

1930 & 40s

The U.S. Government attempted to regulate advertising to an unprecedented degree, but failed. Congress introduced a bill in 1933. The bill was hotly contested and finally defeated in 1934. A milder law- the Federal Food, Drug and Cosmetic Act was passed with the approval of both advertising and industry. In the early 1940s, the U.S. Federal Trade Commission came down hard on certain advertisers for phony claims.

1950s
Overproduction Rise of middle class, Effort was launched to mass-analyze the American public Hundreds of social scientists moved into the ad business. By 1955, McCann-Erickson had 5 psychologists on its staff.

1950s
Dieting became a major national issue. Consumption of low-calorie soft drinks multiplied "Slim" became a significant social goal. In 1957, a congressional committee found that nearly all of the dietary products were practically worthless. And cigarettes, in the 1950s, didn't escape; there was a cancer scare.

1960s and 1970s

 The 1960's advertising transformed into a modern with scientific approach. Creativity was allowed to shine, producing unexpected messages that made advertisements interesting to read. The Volkswagen ad campaign featuring such headlines as "Think Small" and "Lemon" ushered in the era of modern advertising.

Leo Bogart in 1967

"4.2 billion advertising messages pour forth from 1,754 daily newspapers, millions of others from 8,151 weeklies, and 1.4 billion more each day from 4,147 magazines and periodicals. There are 3,895 AM and 1,336 FM stations broadcasting an average of 730,000 commercials a day, and 770 television stations broadcast 100,000 commercials a day. Every day millions of people are confronted with 330,000 outdoor billboards, with 2,500,000 car cards and posters in buses, subways and commuter trains, with 51,300,000 direct mail pieces and leaflets, and with billions of display and promotion items."

1970s
The 1970s saw the emergence of the multinational advertising agency/holding company, with offices and affiliates all over the world.

 Today, advertising is evolving even further, with "guerrilla" promotions that involve unusual approaches such as staged encounters in public places, giveaways of products such as cars that are covered with brand messages, and interactive advertising where the viewer can respond to become part of the advertising message.

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 and other products that are used billion times daily

Microsoft
Corporate Brand value: $ 103.4 billions Behind the brand: World largest software producer with Windows, MSNBC cable channel and Xbox video game

Merck
Corporate Brand value: $ 91.3 billions Behind the brand: World pharmaceutical company, (cholesterol-lowering drug) largest Zocor

Intel
Corporate Brand value: $ 80.2 billions Behind the brand: One of the largest producer of microprocessor

Eli Lilly
Corporate Brand value: $ 76. 4 billions Behind the brand: Pharmaceutical company, Zyprexa, a schizophrenia

IBM
Corporate Brand value: $ 71. 0 billions Behind the brand: Hardware and software.

Cisco Systems
Corporate Brand value: $ 69.0 billions Behind the brand: 81% of the worldwide router market

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.mindadvertising.com/. Also visit agency's websites

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 companys website

History of Indian Advertising

18th Century
First time in print ad in Hickey's Bengal Gazette, India's first newspaper (weekly). Horlicks becomes the first 'malted milk' to be patented on 5th June 1883 (No. 278967).

1900s
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 for India

1940s
1941: Lux signs Leela Chitnis as the first Indian film actor to endorse the product 1941: JWT, coins the Balanced Nourishment concept to make Horlicks more relevant to India 1943: Advertising & Sales Promotion Co (ASP), Calcutta established 1946: Everest Advertising Pr. Ltd, Bombay established

1950s
1950: Radio Ceylon & Radio Goa become the media option 1951: Vicks VapoRub: a rub for colds, causes ripples with its entry in the balm market 1954: Advertising Club, Mumbai set up 1957: Vividh Bharati kicks off

1960s
1962: India's television's first soap opera - Teesra Rasta enthralls viewers 1963: Wills Filter Tipped cigarettes launched and positioned as Made for Each Other, filter and tobacco match 1967: First commercial appears on Vividh Bharati 1968: India wins the bid for the Asian Advertising Congress

1970s
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

1980s
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 Log makes commercial television come alive 1984: Hum Log, Doordarshan's first soap opera in the colour era is born and viewers still remember the sponsor (ViCCO) of Yeh 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 serial Buniyaad. Shown on DD, it becomes the first of the mega soaps. Price quality positioning of Nirma detergent cakes boost sales 1989: Advertising & Marketing (A&M) magazine launched

1990s
1990: Agencies open new media shops; go virtual with websites and Internet 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

2000s
2000: Mudra launches www.magindia.com 2000: Game shows like Kaun Banega Crorepati become 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 baby girl is born in a football stadium, becomes the most expensive campaign of the year

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