The Evolution of
Promoting and Advertising Brands
Chapter 3 with Duane Weaver
Outline
• Rise of Capitalism
• Manufacturer’s pursuit of power
• Evolution of Advertising in the USA
• The ’00s: More Hip Ads and More
Technology (2001 – present)
• DISCUSSION – seminar questions
Rise of Capitalism
• Industrial Revolution
• …basic force behind the rapid increase in massproduction goods that required stimulation of
demand
• “principle of limited liability”
• gained acceptance and resulted in large
amounts of capital to fund the Industrial
Revolution
• What was the impact on advertising as a
result of the Industrial Revolution?
Manufacturer’s pursuit of power
• Manufacturer’s attempt to gain power over
the distribution channel by building brand
demand.
• Takes consumer’s focus away from Retailer
and Wholesaler
• Mass Media – telegraph enabled rapid
communication, spawned global interest
and fostered a sense of community
– this “free communication” is supported by advertising.
Evolution of Advertising in the USA (1 of 2)
• Pre-1800
• Print media (news books, newsletters, then gazettes)
• 1800-1875
• Circulation of dailies (newspapers) 1M/day
• Circulation increased by railroad expansion
• 1875-1918
• Consumer culture breeds advertising as urbanization takes hold
(self-reliance no longer plausible)
• The 1920’s
• “roaring twenties” – advertising was the work of the young, smart
and sophisticated
• High standard of living after WW1 and plague
• A product for a cure for almost everything
• Ads became more visual than past
• 1929-1941 Depression
• Advertising seen as villainous as millions starve
• Bye-bye pretty, hello ugly harsh-reality, attention-grabbing ads
• Radio takes hold as medium
Evolution of Advertising in the USA (2 of 2)
• 1941-1960 (WWII + the 50s)
• Start of the babyboomer generation and women join the
workforce
• Fear of motivation advertising research and “subliminal ads”
• 1960-1972 (Peace, Love and Creative Revolution)
• Advertising slow to keep pace with the cultural revolution
• “creative directors” gain more control of copy and ads
• 1973-1980
• Slowing economy…ads go back to hard sell
• Regulators: ACT, FTC, NARB
• 1980-1992
• Designer era with disposable income double parents after WWII
• Greed was good, more stuff was good
• 1993-2000
• Prediction of Interactive media enabling audit of more
accountable advertising
The ’00s: More Hip Ads and More Technology (2001 – present)
• Ads seen as ads…self-aware
• Dot.bomb – websites totally dependent on
online ads for revenue (However, stock value was in
potential ad revenue not real product revenue)
• E-business selling real product online
• Increase in web advertising
– Why now?? What has changed?
• Branded Entertainment (and product
placement)
– Why does this work??
Discussion Questions:
1. Why is advertising an essential
feature of capitalistic economic
systems?
2. What forces do you think will
continue to affect the evolution of
advertising?
Social, Ethical and Regulatory Aspects
Of Advertising
Chapter 4 with Duane Weaver
OUTLINE
• Social Aspects
• Ethical Aspects
• Regulatory Aspects
• Industry Self-Regulation
• Discussion
Social Aspects
• Get together in your teams and discuss
the following. Be prepared to provide
a a brief summary of your discussion to
the class.
• What are the positive impacts to
society? Why?
• What are the negative impacts to
society? Why?
Ethical Aspects
• ETHICS = moral standards and
principles against which behavoior is
judged.
• Truth and deception (what issues?)
• Advertising to children (is it okay?)
• Is it okay to advertise alcohol, tobacco,
gambling, prostitution, etc…?
Regulatory Aspects
• Areas:
• Deception and Unfairness
• How do you regulate? Can you?
• Competition
• Cooperative, comparative, monopoly
• Advertising to children
• Industry and consumer groups vs. regulators
like FTC (USA), CRTC (Canada)
Industry Self-Regulation
• E.g.: NARB (National Advertising
Review Board) affiliated with BBB
(Better Business Bureau).
• Internet
• Consumers
Discussion
1. Should Advertising be regulated?
2. Can it be effectively managed and
who should be responsible for the
social and ethical management of
advertising?