Chapter 03


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Chapter 03

  1. 1. Chapter 3 The Evolution of Promoting and Advertising Brands 1 PPT 3-1 © 2009 South-Western, a part of Cengage Learning
  2. 2. 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 2 PPT 3-2
  3. 3. 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 3 PPT 3-3
  4. 4. Ad in Context Example The Industrial Revolution was a key factor in creating a setting for the growth of advertising—Why? 4 PPT 3-4
  5. 5. 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 5 PPT 3-5
  6. 6. 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 6 PPT 3-6
  7. 7. Ad in Context Example During the 1930s, ads would often play on social anxieties as a way to attract and hold the attention of a target audience. 7 PPT 3-7
  8. 8. Ad in Context Example Ads from the 1950s reflected consumers’ fascination with scientific discoveries (do you see any subliminal messages here? ) (Clue=there are none) 8 PPT 3-8
  9. 9. 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 9 PPT 3-9
  10. 10. 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 10 PPT 3-10
  11. 11. Ad in Context Example 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 11
  12. 12. 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 12 PPT 3-12
  13. 13. 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 13 PPT 3-13
  14. 14. 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 14 PPT 3-14