Advertising comes of age. Some advertising executives were trying to gain back the public trusts and stop the faulty ads so they created the American advertising federation. They launched a campaign to promote truth within the industry. This committee is now the Council of Better Business Bureaus: a national organization that coordinates a number of local and national initiatives to protect consumers.
The Printers’ Ink Model Statue was initiated. This act was directed at fraudulent advertising, prepared and sponsored by Printers’ Ink, which was the pioneer advertising magazine- was adopted and still exists today. Audit Bureau of Circulations (ABC) the organization sponsored by publishers, agencies, and advertisers for securing accurate circulation statements- which conducts its own audits and issues own circulation reports
During WWI, advertising agencies promoted patriotism, US government bonds, conservation, and other war-related activate rather than products. The iconic Uncle Sam ad to recruit soldiers was created.
During the 1920s, radio advertisements grew as more and more people owned radios. The great depression of 1930 turned the advertising industry into one that was deeply devastated. Basically, the advertising industry had an intensified version of their involvement in WWI. Created the war advertising council in 1942 to promote WWII mobilization and evolved into the Advertising Council. This would ultimately lead to the creation of the famous Rosie the Riveter –women in workforce ad.
Buy us bonds, Promoted rationing, etc. Advertising Council: a nonprofit network of agencies, media, and advertisers dedicated to promoting social programs through advertising. Today, they produce campaigns about environmental issues to educational concern. Created Smokey the Bear and McGruff the Crime Dog.
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Advertising after WWII to 1975 was a time of growth. After the war, the pent-up demand led to an unprecedented growth rate in consumer spending. Once everyone got what they needed, advertisers were called on the persuade consumers to replace the items they already have. Televisions became a household must and thus creating another portal to advertise. Almost everything increased in the US: population, disposable income, automobile registration, homes with air conditioning, etc., as well as growth in advertising. During this time, many developments would arise in advertising. Ad agencies began to negotiate the commission with clients. This encouraged the growth of specialized companies. Creativity (especially humor) became hallmarks during this period. Legislation limited outdoor ads along interstate highways and banned cigarette ads from TV. FTC deemed that ads can compare each other but are accountable for honest claims
Radio took a dive when TV came along. Advertising in the fragmented 1980s became a volatile business that was constantly changing and adapting to economic conditions, technology, social, and cultural environment. During this period: New technology: cable, home video recorders, specialized magazines, direct mail, home shopping, sales promotion all changed the fundamentals of advertising. Today, ad agents are more likely to know how to evaluate research and understand the psychology of consumers as well as being able to execute ads.
- Audience fragmentation: the segmentation of mass-media audiences into smaller groups because of the diversity of media outlets. This time period marked the beginning of the end of the traditional mass-market strategies. Advertisers began to see consumers are individuals; this changed the way market research was carried out.
- Consolidation: as media and audiences proliferated, ownership of the brand, ad agencies, and media were consolidated by a few giant firms. This created a unique dynamic as some agencies, media, and companies were acquired and combined into a giant, global conglomerate when they used to be rivals
- Credit: “buy now, pay later” mentality that plagued everyone also hit the ad. Industry. Media saw ad revenues fall, ads were harder to sell, merchants dealt with consumers looking for discounts, not fancy ads.
- America becomes a service economy
The 2000s have been marked by 2 significant developments in marketing and advertising. Defining and using new technology to reach prospects, technology allows consumers to determine when, where, and if they will invite advertisers to deliver their message. This era of permission marketing, asking consumers for permission or to opt-in before sending them ads and other forms of marketing communications, requires companies to rewrite the old rules of marketing and fundamentally redefine exactly what constitutes advertising. For example, cell phones. Measuring the value of investing in various communication channels as it relates to the changes in how we reach prospects. With media fragmentation and consumers increased control over how, when, where they receive ad messages, marketers have to come up with new strategies such as product integration, viral marketing, and contextual internet advertising.
The change from mass media to class media has increased the cost of advertising, individualized the audience, and forced advertisers to change their mindset concerning audience measurement. Content delivery is harder to deliver when companies who used to be competitors are now all owned by the same conglomerate. Branding in the 21st century includes a return to strong branding with companies searching for new means to differentiate their products and move away from price competitors and generic brands. Finally, the globalization and diversity of the world make it necessary to understand the language, culture, economy, and political environment of countries around the world necessary for market research of the international market.
Three key points:
- Today’s advertising industry is sophisticated and is worth billions of dollars, the idea of using persuasive communication to sell is as old as trade and commerce.
- Advertising cannot be studied in the abstract. All developments in advertising of technology, research, and society as a whole must be understood.
- Today’s advertising and promotion are no longer confined to the rules of traditional media that dominated the 20th century.
