Advertising Spending US 1880 104 million 1919 1

Advertising Spending (US) 1880: $104 million; 1919: $1. 4 billion 2. Ad share of newspaper-mag revenue 1. 1880: 44% ; 1920: 66% 3. Number of US Daily Newspapers: 1. 1854: 254 2. 1900: 2, 226 4. How advertise in so many local papers? 3/17/2018 MIT 3214 1

Advertising Agents George P. Rowell New England, 18651. line rates 2. wholesaler of white space 1. 2. “space jobber” bulk buy for lowest price 3/17/2018 MIT 3214 2

Space Jobbers 5. Lord & Thomas 1. religious publications J. Walter Thompson 1. magazines 2. exclusive access deals “closed” contracts Aligned with newspapers Rebates, etc. , if sell space full price 6. Buy space only w/ affiliated papers 1. 2. 3. 4. 3/17/2018 MIT 3214 3

A. J. Ayer (N. W. Ayer & Son) 1. 2. 3. 4. modern agency “open” contract (1875) advertiser-oriented service commission system 3/17/2018 MIT 3214 4

Ad Agent Functions 1. 2. 3. knowledge of newspaper/periodical market lowest prices (rate card cutting) Media Buying: 1. 2. 3. researchers space-buyers checkers 3/17/2018 MIT 3214 5

Ad Agent Functions 1. Copywriting: little in late 1880 s 1. advertisers “knew best” 2. freelance ‘advertising specialists’ 2. Illustration 1. print shops/commercial artists 3/17/2018 MIT 3214 6

Full Service Agency (Today) Media Buying (Media Research) 2. Copywriting/Art Direction 3. Market/Consumer Research 4. (Public Relations, Govt Relations, etc) 1. 3/17/2018 MIT 3214 7

Ayer & Son: Full Service Agency 1. American Newspaper Annual 1880 2. 1900: 160 employees/12 depts 3. Account executives 1. copywriters, art directors 4. Clients: Hires Root Beer, Procter & Gamble 5. Legitimacy 6. Remedial market research 3/17/2018 MIT 3214 8

Summary 1. 2. 3. 4. 5. 6. Patent Medicines & Problem of Body/Mind 1. Modern Advertising: Symbolism/Market Data 2. Endurance of Patent Medicine Tradition P. T. Barnum Corporate Advertisers (Consumer Goods) Kellogg’s, Socio-Economic Change 1. Second Industrial Revolution 2. Retailer-Manufacturer Power Struggle Advertising Agents Full-Service Ad Agency 3/17/2018 MIT 3214 9

Advertising History 1880 s-1930 s 3/17/2018 MIT 3214 10

Ad Spending (US newspapers/mags) 1880: $39 mil 1900: $95 mil 1910: $202 mil 1920: $528 mil (13 -fold increase) 3/17/2018 MIT 3214 11

Advertising –Chain of Command 1. 1860 s: Publisher>Agent> Advertiser>Consumer 2. ‘Modern’ (Today) Advertiser-client>Agency> Media/Publisher>Consumer 3/17/2018 MIT 3214 12

“Science” of Advertising How demonstrate Ad’s effectiveness? Tension: ◦ Science-Art ◦ Research-Creative 3/17/2018 MIT 3214 13

Copywriting: Reason Why John E. Powers (1890 s) 2. Approach: 1. informative, rational, straightforward Conscious deliberation and reason 4. “state firmly what the product does and how it will benefit the buyer. ” 3. 3/17/2018 MIT 3214 14

Reason Why plain speech/direct reader conversational style emulate personal rapport w/shopkeeper from focus on product to user Today’s Examples? 3/17/2018 MIT 3214 15

Psychology and Advertising Outgrowth of philosophy, late 1800 s 2. mental processes, idea formation, behavior 3. empirical approach to know mind/brain 4. influence of science/medicine 1. 3/17/2018 MIT 3214 16

Order-of-Merit Technique Harlow Gale, (psychologist 1890 s) 1. “what made ad noticeable? 2. Experiments: 1. Eye tracking 2. buy fictional brands 3. Subjects ‘order-ofmerit’ preference 4. “Idealist” vs. behaviorist 3/17/2018 MIT 3214 17

Order-of-Merit (Behaviorist) 1. 2. 3. 4. H. L. Hollingworth (1910 s/20 s) compare order-of-merit rankings w/actual sales “general laws” for copywriting 1920 s, dozens of studies 3/17/2018 MIT 3214 18

Theory of Suggestion 1. 2. 3. 4. 5. Walter Dill Scott Theory of Advertising (1904) consumer: non-rational, suggestible to power of copywriter persuasive techniques not information ad aesthetics 3/17/2018 MIT 3214 19

Scott/Suggestion Women as more suggestible 2. 1920 s: women --80% of consumption 3. Male advertisers & “emotional” women consumers 4. “irrational” women/ social prejudice 1. 3/17/2018 MIT 3214 20

John B. Watson 1. J. Walter Thompson 1. “University of Advertising” 2. Behavioral psychology to advertising ◦ Blind-fold cigarette brand recognition test 3/17/2018 MIT 3214 21

Impressionistic Approach (early 1900 s) 1. 2. 3. 4. 5. Ernest Elmo Calkins appeal to reader imagination beautiful ads penetrate “open minds” colour, sensation, visual splendor read magazines for diversion 3/17/2018 MIT 3214 22

Aesthetics/Colour 3/17/2018 MIT 3214 23

Pears Soap (1890 s) Soap as Commodity 2. Thomas J. Barratt 3. ”Any fool can make soap” 4. Godliness, cleanliness, Pears 1. 3/17/2018 MIT 3214 24

Pears and High Art John Everett Millais 2. “A Child’s World” (1887) 3. “Bubbles” 4. “incomplete angels” 1. 3/17/2018 MIT 3214 25

Pears/”Bubbles” 1. 2. 3. 4. 5. 6. Barratt buys painting blur art/advertising children-innocencecleanliness-Pears Controversy Associative Transfer Pears/Middle-brow Culture 3/17/2018 MIT 3214 26

Art, Advertising/Consumerism Pop Art (1960 s) ◦ A. Warhol Low Culture High Culture 3/17/2018 MIT 3214 27

Advertising, 1920 s/30 s (Marchand) Capitalist Realism 1. Socialist Realism 2. Ads as Historical Evidence 3. Mirror or Zerrspiegel 1. 3/17/2018 MIT 3214 28

Parody (Socialist Realism) 3/17/2018 MIT 3214 29

Advertising, 1920 s/30 s (Marchand) Therapeutics of Advertising Apostles of Modernity 3/17/2018 MIT 3214 30

Advertiser as Wise Counsel Listerine: ◦ 1920: general antiseptic $100 k profit ◦ 1927 Mouthwash $4 mil profit ◦ new social/medical affliction (“halitosis”) ◦ heavy ad spending 3/17/2018 MIT 3214 31

Listerine mini social dramas dramatic realism vindicates use of psychology emotional appeal over reason 3/17/2018 MIT 3214 32

Worry Appeal/Scare Copy Great Depression Job loss fears Examples Advertising during Recessions? 3/17/2018 MIT 3214 33

Interwar Advertising Social Change: urban/immigration Social Adaptation ◦ emotional/personal insecurities ◦ Listerine/’halitosis’ ◦ apostles of modernity ◦ conformity/emerging ‘mass society’ 3/17/2018 MIT 3214 34