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© 2009 South-Western, a part of Cengage Learning

Chapter 3

The Evolution of Promoting and Advertising Brands

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The Rise of Advertising

Rise of capitalism– Competition for resources, stimulating demand

Industrial Revolution– Mass production of goods needs demand stimulation

Advertisers, Retailers, Consumers– Branding emerges to control channel

Rise of modern mass media– Democratization of goods

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The Evolution of Advertising in the 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

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The Industrial Revolution was a key factor in creating a setting for the growth of advertising—Why?

The Industrial Revolution was a key factor in creating a setting for the growth of advertising—Why?

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Ad in Context Example

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The Evolution of Advertising in the 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

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The Evolution of Advertising in the United States

The Depression Era (1929-1941)– Depression was brutal on families– 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

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During the 1930s, ads would often play on social anxieties as a way to attract and hold the attention of a target audience.

During the 1930s, ads would often play on social anxieties as a way to attract and hold the attention of a target audience.

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Ad in Context Example

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Ads from the 1950s reflected consumers’ fascination with scientific discoveries (do you see any subliminal messages here? ) (Clue=there are none)

Ads from the 1950s reflected consumers’ fascination with scientific discoveries (do you see any subliminal messages here? ) (Clue=there are none)

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Ad in Context Example

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The Evolution of Advertising in the United States

Peace, Love and the Creative Revolution (1960-1972)– Creatives gain control– Advertising emerges as an icon of a culture

fascinated with consumption

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

become active

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The Evolution of Advertising in the United States

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

The E-Revolution Begins (1993-2000)– Stage I of the Web revolution—with mixed results

– Problems with new media applications disappoint many advertisers– Advertisers believed digital media would “revolutionize”

measurement—it didn’t– “Centers” of advertising power move West

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During the 1990s, New Media offered the promise of new and different communications options—but advertisers experienced a wide range of problems using new media

During the 1990s, New Media offered the promise of new and different communications options—but advertisers experienced a wide range of problems using new media PPT 3-11

Ad in Context Example

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The Evolution of Advertising in the United States

Consumer Empowerment and Branded Entertainment (2000-present)– Phase II of the e-ad-evolution (Web 2.0) has been much more

successful than Phase I in the late 1990s– Consumer control emerges in this era– Consumers begin “co-creating” ads defined as consumer

generated content (CGC)– Though less visible, business-to-business promotion on the Web

is enormous and referred to as E-business– On- line shopping makes a major comeback– Ad spending continues to grow online due to further growth in

interactive, wireless, and broadband technologies

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The Evolution of Advertising in the United States

Branded Entertainment

The blending of advertising and integrated brand promotion with entertainment programming

Brand “placement” key tactic here

Some films and television programs are considered hour long promotions

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The Value of an Evolutionary Perspective

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

essential tool for demand stimulation in a free enterprise economic system

– Urbanization, transportation and communications allowed 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

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