Advertising Cost, Complexity and Reputation

Agencies Have Replaced Simple Print Ads with Expensive Entertainment

Mar 4, 2009

Advertising has evolved from a few newspaper lines into costly, sophisticated forms of theater competing for prestigious awards. But it still has a bad reputation..

The traditional ad purpose is to simply deliver a message to a target audience, but with the help of ever changing media technology, ad agencies have turned ads into expensive, complex works that require sophisticated skills and resources found primarily in agencies. The Internet provided a brief opportunity to return to simplicity, but video quickly closed that window.

Despite greater sophistication and costs, industry observers say consumers generally dislike advertising and avoid it when possible. Millions look forward to Super Bowl commercials, but watch them for entertainment instead of product information. Some just want to see what companies get for $3 million.

A look at the evolution of ads may provide better perspective of what to expect from future advertising.

First American Newspaper Ad

The purpose of advertising has not changed since someone bought the first American newspaper ad in 1704 to sell a Long Island estate. The message has simply expanded from selling property and products to selling services, ideas, causes and politicians.

The audiences grew from whomever read 18th Century newspapers, to millions of national magazine readers, radio listeners and television viewers in the 20th Century. But growing costs, lower return on ad investments and new technologies have recently changed advertising strategies.

By the 21st Century, strategies switched from mass distribution to smaller, tightly targeted audiences using select magazines, radio and cable stations, the Internet, social media and even mobile phones.

Boston News-Letter Published First Ad

The format has undergone continuing change since the Boston News-Letter published that first ad. Early copy was probably written by the business owner, perhaps with assistance of the newspaper editor. Small, single column ads remained the format for over 150 years.

The first known advertising agency was established in Philadelphia in 1841, forever changing the industry. Fifteen years later the first full page ad was run as agencies began to respond to changing technologies and advertiser demands;.

Larger newspapers placed more importance on ad positioning, a negotiating function that agencies have gladly assumed with publishers, stations, billboards and the Internet.

The development of photography meant many ads needed pictures of the product or the owner. Radio provided the opportunity to talk directly to customers and prospects, but also required new production skills. Sound effects brought make-believe to advertising, often with humor.

Automobile Inspired Burma Shave Signs

The automobile inspired Burma Shave signs. As cars got faster, advertisers wanted something bigger, billboards.

In 1946, television changed everything. Celebrities stood in front of cameras and showed actual products. Bob Hope’s radio audience declined nearly 75%, but he made a successful switch to TV.

Film, and later video tape, brought more sophistication, humor and clever plots for commercials. Theater advertising had arrived, along with huge production budgets. People worried about subliminal advertising, as well as sex and violence in advertising.

Advertising Awards for Everything

Then came awards for everything to do with anything in advertising. They elevated creativity standards and at least helped to sell agencies.

The Internet briefly threatened to resimplify everything, providing the ability to really target and measure audiences and save money with simple 4-line text ads. But someone figured out how to run video in the middle of websites and entertainment advertising was back on track

Social media offered even tighter targeting and benefits of authentic advertising. Ads moved into mobile and game media

Tivo and video tape recorders complicated television advertising, giving audiences opportunity to fast forward through commercials.

The copyright of the article Advertising Cost, Complexity and Reputation in Advertising is owned by Carroll Trosclair. Permission to republish Advertising Cost, Complexity and Reputation in print or online must be granted by the author in writing.