Advertising is the practice and techniques employed to bring attention to aproduct orservice. Advertising aims to present a product or service in terms of utility, advantages, and qualities of interest toconsumers. It is typically used to promote a specific good or service, but there are a wide range of uses, a common form beingcommercial advertisement.
Bronze plate for printing an advertisement for the Liu family needle shop atJinan,Song dynasty China. It is the world's earliest identified printed advertising medium.Edo period LEL flyer from 1806 for a traditional medicine calledKinseitan
Egyptians usedpapyrus to make sales messages and wall posters.[6]Commercial messages andpolitical campaign displays have been found in the ruins ofPompeii and ancientArabia.Lost and found advertising on papyrus was common inancient Greece andancient Rome. Wall or rock painting for commercial advertising is another manifestation of an ancient advertising form, which is present to this day in many parts of Asia, Africa, and South America. The tradition of wall painting can be traced back to Indianrock art paintings that date back to 4000 BC.[7]
In ancient China, the earliest advertising recorded was in theClassic of Poetry (11th to 7th centuries BC) which describes bamboo flutes playing to sell confectionery. Advertising usually took the form of calligraphic signboards and inked papers. A copper printing plate dated to theSong dynasty era was used to print posters in the form of a square sheet of paper with a rabbit logo, that included the copy "Jinan Liu's Fine Needle Shop" and "We buy high-quality steel rods and make fine-quality needles, to be ready for use at home in no time" written above and below,[8] and is considered to be the world's earliest identified printed advertising medium.[9]
In Europe, as the towns and cities of the Middle Ages began to grow, and the general population was unable to read, instead of signs that read "cobbler", "miller", "tailor", or "blacksmith", images associated with their trade would be used, such as a boot, a suit, a hat, a clock, a diamond, a horseshoe, a candle or a bag of flour. Fruits and vegetables were sold in the city square from carts and wagons and their proprietors used street callers (town criers) to announce their whereabouts. The first compilation of such advertisements was gathered in "Les Crieries de Paris", a thirteenth-century poem by Guillaume de la Villeneuve.[10]
By the end of the 18th century in England, the circulation of newspapers had increased and advertising accounted for a significant proportion of newspaper content. As a result the word 'advertiser' began to be used in newspaper names/titles. Prior to the 19th century, most advertisements were for books or medicines. At this time it was rare for advertisements to use images.[11]
In the United States, newspapers grew quickly in the first few decades of the 19th century, in part due to advertising. By 1822, the United States had more newspaper readers than any other country. About half of the content of these newspapers consisted of advertising, usually local advertising, with half of the daily newspapers in the 1810s using the word "advertiser" in their name.[12]
In August 1859, British pharmaceutical firmBeechams created a slogan forBeecham's Pills: "Beechams Pills: Worth aguinea a box", which is considered to be the world's first advertising slogan.[13] The Beechams adverts would appear in newspapers all over the world, helping the company become a global brand.[13][14] The phrase was said to be uttered by a satisfied lady purchaser fromSt Helens, Lancashire, the founder's hometown.[15]
Beecham's slogan in theLos Angeles Herald, July 20, 1893
In June 1836, the French newspaperLa Presse was the first to include paid advertising in its pages, allowing it to lower its price, extend its readership and increase itsprofitability[16] and the formula was soon copied by all titles.
Around 1840, Volney B. Palmer established the roots of the modern day advertising agency in Philadelphia. In 1842 Palmer bought large amounts of space in various newspapers at a discounted rate then resold the space at higher rates to advertisers. The actual ad (copy, layout, and artwork) was prepared by the company advertising, with Palmer being a space broker. The first full-service advertising agency of N.W. Ayer & Son was founded in 1869 in Philadelphia. Ayer & Son offered to plan, create, and implement complete advertising campaigns for its customers. By 1900 the advertising agency had become the focal point of creative planning, and advertising was firmly established as a profession.[17] Around the same time, in France,Charles-Louis Havas extended the services of his news agency,Havas to include advertisement brokerage. At first, agencies were brokers for advertisement space in newspapers.[17]
Late 19th century: Modern Advertising
The late 19th and early 20th centuries saw the rise of modern advertising, driven byindustrialization and the growth of consumer goods. This era saw the early ad agencies employing more cunning methods such as persuasive diction and psychological tactics.[18]Thomas J. Barratt of London has been called "the father of modern advertising".[19][20][21] Working for thePears soap company, Barratt created an effective advertising campaign for the company products, which involved the use of targeted slogans, images, and phrases. One of his slogans, "Good morning. Have you used Pears' soap?" was famous in its day and into the 20th century.[22][23] In 1882, Barratt recruited English actress and socialiteLillie Langtry to become the poster girl for Pears, making her the first celebrity to endorse a commercial product.[24][25]
Becoming the company's brand manager in 1865, listed as the first of its kind by theGuinness Book of Records, Barratt introduced many of the crucial ideas that lie behind successful advertising, and these were widely circulated in his day. He stressed the importance of a strong and exclusive brand image for Pears and of emphasizing the product's availability through saturation campaigns. He also understood the importance of constantly reevaluating the market for changing tastes, stating in 1907 that "tastes change, fashions change, and the advertiser has to change with them. An idea that was effective a generation ago would fall flat, stale, and unprofitable if presented to the public today. Not that the idea of today is always better than the older idea, but it is different – it hits the present taste."[20]
Enhanced advertising revenues was one effect of the Industrial Revolution in Britain.[26] Thanks to the revolution and the consumers it created, by the mid-19th centurybiscuits andchocolate became products for the masses, and British biscuit manufacturers were among the first to introduce branding to distinguish grocery products.[27][28] One the world's first global brands,Huntley & Palmers biscuits were sold in 172 countries in 1900, and their global reach was reflected in their advertisements.[27]
George William Joy's depiction of the interior of a late 19th century omnibus conspicuously shows the advertisements placed overhead.
20th century onwards
Advertisement for Guy's Tonic in the 1900s Advertising revenue as a percent of USGDP shows a rise in audio-visual and digital advertising at the expense of print media.[29]AnEstonian language advertisement about a cruise betweenTallinn andHelsinki in the 1930sA print advertisement for the 1913 issue of theEncyclopædia Britannica
As a result of massive industrialization, advertising increased dramatically in the United States. In 1919, advertising expenditure was 2.5 percent of gross domestic product (GDP).[30] Industry could not benefit from its increased productivity without a substantial increase inconsumer spending. This contributed to the development of mass marketing designed to influence the population's economic behavior on a larger scale.[31] In the 1910s and 1920s, advertisers in the U.S. adopted the doctrine that human instincts could be targeted and harnessed – "sublimated" into the desire to purchase commodities.[32]Edward Bernays, a nephew ofSigmund Freud, became associated with the method and is sometimes called the founder of modern advertising and public relations.[33] Bernays claimed that:
[The] general principle, that men are very largely actuated by motives which they conceal from themselves, is as true of mass as of individual psychology. It is evident that the successful propagandist must understand the true motives and not be content to accept the reasons which men give for what they do.[34]
In other words, selling products by appealing to the rational minds of customers (the main method used prior to Bernays) was much less effective than selling products based on the unconscious desires that Bernays felt were the true motivators of human action. "Sex sells" became a controversial issue, with techniques for titillating and enlarging the audience posing a challenge to conventional morality.[35][36]
In the 1920s, underSecretary of CommerceHerbert Hoover, the American government promoted advertising. Hoover himself delivered an address to the Associated Advertising Clubs of the World in 1925 called 'Advertising Is a Vital Force in Our National Life."[37] In October 1929, the head of the U.S.Bureau of Foreign and Domestic Commerce, Julius Klein, stated "Advertising is the key to world prosperity."[38] This was part of the "unparalleled" collaboration between business and government in the 1920s.[39]
During this era, tobacco companies became major advertisers in order to sell packaged cigarettes.[40] The tobacco companies pioneered new advertising techniques when they hired Bernays to create positive associations with tobacco smoking.[41][42]
Advertising was also used as a vehicle forcultural assimilation, encouraging workers to exchange their traditional habits and community structure in favor of a shared "modern" lifestyle.[43] An important tool for influencing immigrant workers was theAmerican Association of Foreign Language Newspapers (AAFLN). The AAFLN was primarily an advertising agency but also gained heavily centralized control over much of the immigrant press.[44][45]
1916Ladies' Home Journal version of the famous ad byHelen Lansdowne Resor of the J. Walter Thompson Agency
At the turn of the 20th century, advertising was one of the few career choices for women. As women were responsible for most household purchasing, advertisers and agencies recognized the value of women's insight during the creative process. In fact, the first American advertising to use asexual sell was created by a woman – for a soap product. Although tame by today's standards, the advertisement featured a couple with the message "A skin you love to touch".[46]
In the 1920s, psychologists Walter D. Scott andJohn B. Watson contributed applied psychological theory to the field of advertising. Scott said, "Man has been called the reasoning animal, but he could with greater truthfulness be called the creature of suggestion. He is reasonable, but he is to a greater extent suggestible".[47] He demonstrated this through his advertising technique of a direct command to the consumer.
Radio from the 1920s
Advertisement for a live radio broadcast, sponsored by a milk company, Adohr milk, and published in theLos Angeles Times on May 6, 1930
In the early 1920s, the first radio stations were established by radio equipment manufacturers, followed bynon-profit organizations such as schools, clubs, and civic groups who also set up their own stations.[48] Retailers and consumer goods manufacturers quickly recognized radio's potential to reach consumers in their homes and soon adopted advertising techniques that would allow their messages to stand out;slogans,mascots, andjingles began to appear onradio in the 1920s and earlytelevision in the 1930s.[49]
The rise of mass media communications allowed manufacturers of branded goods to bypass retailers by advertising directly to consumers. This was a major paradigm shift that forced manufacturers to focus on the brand and stimulated the need for superior insights into consumer purchasing, consumption, and usage behavior; their needs, wants, and aspirations.[50] The earliest radio drama series were sponsored by soap manufacturers and the genre became known as asoap opera.[51] Before long, radio station owners realized they could increase advertising revenue by selling 'air-time' in small time allocations, which could be sold to multiple businesses. By the 1930s, theseadvertising spots, as the packets of time became known, were being sold by the station's geographical sales representatives, ushering in an era of national radio advertising.[52]
By the 1940s, manufacturers began to recognize the way in which consumers were developing personal relationships with their brands in a social/psychological/anthropological sense.[53] Advertisers began to use motivational research andconsumer research to gather insights into consumer purchasing. Strong branded campaigns for Chrysler and Exxon/Esso, using insights drawn research methods from psychology and cultural anthropology, led to some of the most enduring campaigns of the 20th century.[54]
Commercial television in the 1950s
In the early 1950s, theDuMont Television Network began the modern practice of selling advertisement time to multiple sponsors. Previously, DuMont had trouble finding sponsors for many of their programs and compensated by selling smaller blocks of advertising time to several businesses. This eventually became the standard for the commercial television industry in the United States. However, it was still a common practice to have single sponsor shows, such asThe United States Steel Hour. In some instances the sponsors exercised great control over the content of the show – up to and including having one's advertising agency actually writing the show.[55] The single sponsor model is much less prevalent now, a notable exception being theHallmark Hall of Fame.[56]
Cable television from the 1980s
The late 1980s and early 1990s saw the introduction of cable television and particularlyMTV. Pioneering the concept of the music video, MTV ushered in a new type of advertising: the consumer tunes infor the advertising message, rather than it being aby-product or afterthought. As cable and satellite television became increasingly prevalent,specialty channels emerged, including channels entirelydevoted to advertising, such asQVC,Home Shopping Network, andShopTV Canada.[57]
With the advent of thead server, online advertising grew, contributing to the "dot-com" boom of the 1990s.[58] Entire corporations operated solely on advertising revenue, offering everything fromcoupons to free Internet access. At the turn of the 21st century, some websites, including thesearch engineGoogle, changedonline advertising by personalizing ads based on web browsing behavior. This has led to other similar efforts and an increase ininteractive advertising.[59] Online advertising introduced new opportunities for targeting and engagement, with platforms like Google andFacebook leading the charge. This shift has significantly altered the advertising landscape, making digital advertising a dominant force in the industry.[60]
The share of advertising spending relative to GDP has changed little despite large changes in media since 1925. In 1925, the main advertising media in America were newspapers, magazines, signs onstreetcars, and outdoorposters. Advertising spending as a share of GDP was about 2.9 percent. By 1998, television and radio had become major advertising media; by 2017, the balance between broadcast and online advertising had shifted, with online spending exceeding broadcast.[61] Nonetheless, advertising spending as a share of GDP was only slightly lower – about 2.4 percent.[62]
Guerrilla marketing involves unusual approaches such as staged encounters in public places, giveaways of products such as cars that are covered with brand messages, and interactive advertising where the viewer can respond to become part of the advertising message. This type of advertising is unpredictable, which can cause consumers to buy the product or idea.[63] This reflects an increasing trend of interactive and "embedded" ads, such as viaproduct placement, having consumers vote through text messages, and various campaigns utilizingsocial network services such as Facebook orTwitter/X.[64]
In some instances businesses will obtain media by providingequity. This is known asmedia for equity, where advertising is not sold, but is instead provided to start-up companies in return for equity. If the company grows and is sold, the media companies receive cash for their shares. This practice started in Europe but has become increasingly popular in the US, with businesses such asUber,Airbnb andPinterest achieving global growth by using such tactics.[65]
Classification
Advertising may be categorized in a variety of ways, including by style, target audience, geographic scope, medium, or purpose.[66]: 9–15 For example, in print advertising, classification by style can includedisplay advertising (ads with design elements sold by size) vs. classified advertising (ads without design elements sold by the word or line). Advertising may be local, national or global. An ad campaign may be directed toward consumers or to businesses. The purpose of an ad may be to raise awareness (brand advertising), or to elicit an immediate sale (direct response advertising). The termabove the line (ATL) is used for advertising involving mass media; more targeted forms of advertising and promotion are referred to asbelow the line (BTL).[67][68] The two terms date back to 1954 whenProcter & Gamble began paying their advertising agencies differently from other promotional agencies.[69] In the 2010s, as advertising technology developed, a new term,through the line (TTL) began to come into use, referring to integratedadvertising campaigns.[70][71]
Traditional media
A 1938 cinema advertisement forEsso oilAdvertising man pasting a bill forMadame Tussauds, London in 1877
Virtually any medium can be used for advertising. Commercial advertising media can includewall paintings,billboards,street furniture components, printed flyers andrack cards, radio, cinema and television adverts,web banners, mobile telephone screens, shopping carts, webpopups,skywriting, bus stop benches,human billboards andforehead advertising, magazines, newspapers, town criers, sides of buses, banners attached to airplanes ("logojets"),in-flight advertisements onseatback tray tables or overhead storage, taxicab doors, roof mounts andpassenger screens, musical stage shows, subway platforms and trains, elastic bands on disposable diapers, doors of bathroom stalls, stickers on fruit in supermarkets,shopping cart handles (grabertising), instreaming audio and video, posters, and on event tickets and supermarket receipts. Any situation in which an "identified" sponsor pays to deliver their message through a medium is advertising.[72]
Television advertising is one of the most expensive types of advertising; networks charge large amounts for commercialairtime during popular events. The annualSuper Bowlfootball game in the United States is known as the most prominent advertising event on television – in 2013 it attracted an audience of over 108 million and studies have shown that 50% of those tune in to see the advertisements.[73][74] The 2025 game attracted an audience of over 123 million, with a thirty-second ad costing US$8million.[75]Virtual advertisements may be inserted into regular programming through computer graphics. It is typically inserted into otherwise blank backdrops[76] or used to replace local billboards that are not relevant to the remote broadcast audience.[77] This technique is especially used in televised sporting events.Virtual product placement is also possible.[78][79] Aninfomercial is a long-format television commercial, typically five minutes or longer. The name blends the words "information" and "commercial". The main objective in an infomercial is to create animpulse purchase, so that the target sees the presentation and then immediately buys the product through the advertisedtoll-free telephone number or website. Infomercials describe and often demonstrate products, and commonly have testimonials from customers andindustry professionals.[80]
Radio
Radio advertisements are broadcast as radio waves from a transmitter to an antenna and thus to a receiving device. Increasingly radio is transmitted via the internet.[81] Airtime is purchased from a station or network in exchange for airing the commercials. While radio has the limitation of being restricted to sound, proponents of radio advertising often cite this as an advantage. AccordingNielsen Media Research data published by theRadio Advertising Bureau, 82% of people in the US aged 12 and older listened to terrestrial radio in a given week, in 2022.[82]
Domain name advertising is most commonly done through pay per clickweb search engines, however, advertisers often lease space directly on domain names that generically describe their products. Domain name registrants can be easy to identify throughWHOIS records that are publicly available at registrar websites.[85] Domain name advertising was originally developed by Oingo (later known as Applied Semantics), one ofGoogle's early acquisitions.[86]
This is when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use a branded product, such as in the movieMinority Report, whereTom Cruise's character John Anderton uses a brandedNokia phone and wears a watch engraved with theBulgari logo. Another example of product placement in film is inI, Robot, where main character played byWill Smith mentions hisConverse shoes several times, calling them "classics", because the film is set far in the future.I, Robot andSpaceballs also showcase futuristic cars with theAudi andMercedes-Benz logos clearly displayed on the front of the vehicles.Cadillac chose to advertise in the movieThe Matrix Reloaded, which as a result contained many scenes in which Cadillac cars were used. Similarly, product placement forOmega Watches,Ford,VAIO,BMW andAston Martin cars are featured inJames Bond films, most notablyCasino Royale. In "Fantastic Four: Rise of the Silver Surfer", the main transport vehicle shows a largeDodge logo on the front.Blade Runner includes some of the most obvious product placement; the whole film stops to show aCoca-Cola billboard.[87][88][89][90]
Print
Print advertising describes advertising in a printed medium such as a newspaper, magazine, or trade journal. This encompasses everything from media with a very broad readership base, such as a major national newspaper or magazine, to more narrowly targeted media such as local newspapers and trade journals on very specialized topics. One form of print advertising isclassified advertising, which allows private individuals or companies to purchase a small, narrowly targeted ad paid by the word or line. Another form of print advertising is the display ad, which is generally a larger ad with design elements that typically run in an article section of a newspaper.[66]: 14
Billboards, also known as hoardings in some parts of the world, are large structures located in public places which display advertisements to passing pedestrians and motorists. Most often, they are located on main roads with a large amount of passing motor and pedestrian traffic; however, they can be placed in any location with large numbers of viewers, such as on mass transit vehicles and in stations, in shopping malls or office buildings, and in stadiums. Street advertising involves creating outdoor advertising on street furniture and pavements and can use products such asReverse Graffiti,air dancers and 3D pavement advertising.[91] Sheltered outdoor advertising combines outdoor with indoor advertisement by placing large mobile structures (tents) in public places on a temporary basis. The large outer advertising space aims to entice the observer in, with the product promoted inside.[91]Mobile billboards are generally vehicle mounted billboards or digital screens. These can be on dedicated vehicles built solely for carrying advertisements and can travel along routes preselected by advertisers. They can also be specially equipped cargo trucks or, in some cases, large banners strewn from planes. Billboards are often lighted; some beingbacklit, and others employing spotlights. Some billboard displays are static, while others change; for example, continuously or periodically rotating a set of advertisements. Mobile displays are used for various situations in metropolitan areas throughout the world, including: target advertising, one-day and long-term campaigns, conventions, sporting events, store openings and similar promotional events, and advertisements from smaller companies.[91]
An advertisement for a diner. Such signs are common on storefronts.
Point-of-sale
In-store advertising is any advertisement placed in a retail store. It includes placement of a product in visible locations in a store, such as at eye level, at the ends of aisles and near checkout counters (a.k.a. POP – point of purchase display), eye-catching displays promoting a specific product, advertisements in places such as shopping carts and in-store video displays.[92]
Novelties (promotional products)
Small tangible items such as coffee mugs, T-shirts, pens and bags, that typically include company branding can be given as gifts. These are sometimes referred to asnovelty advertising and these promotional products are often given to increase brand awareness and customer loyalty.[93]
Celebrity endorsements
Advertising where a celebrity endorses a product and a brand leverages celebrity influence, fame and popularity to gain recognition for their products or to promote specific stores' or products. Advertisers often advertise their products when, for example, celebrities share their favorite products or wear clothes by specific brands or designers. Celebrities are often involved in advertising campaigns, appearing in television, digital and print adverts to advertise brands and their products. The use of celebrities to endorse a brand can have disadvantages, as mistakes, poor behaviour or controversy involving the celebrity can be detrimental to thepublic relations of a brand.[94][95] Celebrities such asBritney Spears have advertised for multiple products including Pepsi, Candies from Kohl's, Twister, NASCAR, and Toyota.[96]
Using aircraft,balloons orairships to create or display advertising media.Skywriting is a notable example.[97] Drones are now used for aerial advertising.[98][99]
Advanced advertising isdata-driven advertising, using large quantities of data and precise targeting and measurement tools.[100] Advanced advertising makes it easier for companies who sell ad space to attribute customer purchases to the ads they display or broadcast.[101] Increasingly, new media approaches are overtaking "traditional" media such as television, radio and newspaper as people shift to using the internet for activities such as reading, watching or listening to the news.[102]
Online advertising began with unsolicited bulk e-mail advertising known as "e-mail spam". Spam has been a problem for e-mail users since 1978.[103] As new online communication channels became available, advertising followed. The first banner ad appeared on the World Wide Web in 1994.[104] Internet advertising allows companies to target specific audiences, which can improve return on investment.[105]
The rise of the internet resulted in people usingsearch engines to find websites and the emergence of search engine advertising, as companies sought to advertise to consumers online.Google was founded in 1998 and by the early 2000's had become the most widely used search engine. In 2000 Google launchedAdWords, which allowed advertisers to bid, in order for their adverts to appear in paid search results. Their auction bidding system used factors such asclick-through rate and relevance, with advertisers using high quality ads rewarded with better ad placements and lowercosts per click (CPC).[106]
In online display advertising, display ads can generate awareness quickly. Whereas search requires someone to be aware of a need, display advertising can drive awareness of something new, without previous knowledge. Display can work well for direct response. Online display advertising is not only used for generating awareness, it can also be used for direct response campaigns.[107]
Mobile phones became a new mass medium in 1998 when the first paid downloadable content appeared on mobile phones in Finland,[108][109]mobile advertising followed, first launched in Finland in 2000.[110] In 2007, the value of mobile advertising was expected to be $3 billion, with most of this generated via mobile search and video.[111] By 2025 this had increased to an estimated market size of $262 billion.[112]
More advanced mobile ads include banner ads, coupons,Multimedia Messaging Service picture and video messages, advergames and variousengagement marketing campaigns. One feature driving mobile ads is the2D barcode (QR code) which replaces the need to type web addresses, and uses the camera in mobile phones to access web content. 83 percent of Japanese mobile phone users are active users of 2D barcodes.[113]
Some companies have proposed placing messages or corporate logos on the side of boosterrockets and theInternational Space Station.[114] An advertising method has emerged called "ARvertising", which usesaugmented reality technology.[115] The emerging technology ofdrone displays has been used for advertising purposes.[116]
The internet has also had a significant impact on how people watch TV, with many people now choosing to stream TV content at a time that is convenient to them. This is particularly true of people in younger age groups, with 50% of streaming viewers being aged 35 or less.[117] In the UK, less than half of 16-24 year olds were watching traditional TV in an average week, in 2023-2024.[118] As a result, companies are increasingly usingconnected TV (CTV) to advertise, with this being one of the growing media channels. In 2024, it was suggested that ad spend in this class of media was increasing by almost 20% each year, with this type of advertising offering increased targeting opportunities, to improve effectiveness.[119]
The emergence of social networking sites such as Facebook,Instagram, Twitter/X andTikTok has led to companies increasingly using social media for advertising. In 2024, global social media advertising spend was expected to be $247 billion, a 14.3% year on year increase.[120] In 2025,Alphabet,Meta andAmazon controlled more than 50% of all advertising spend (globally, excluding China). These technology companies are able to invest heavily inAI optimisation and creative automation which can improve advertising campaign effectiveness and they all have a first-party data infrastructure.[121]
The concept of crowdsourcing has given way to the trend ofuser-generated advertisements. User-generated ads are created by people, as opposed to an advertising agency or the company themselves, often resulting from brand sponsored advertising competitions. For the 2007 Super Bowl, the Frito-Lays division ofPepsiCo held the "Crash the Super Bowl" contest, allowing people to create their ownDoritos commercials.[122]Chevrolet held a similar competition for their Tahoe line of SUVs.[122] Due to the success of the Doritos user-generated ads in the 2007 Super Bowl, Frito-Lays relaunched the competition for the 2009 and 2010 Super Bowl. The resulting ads were among the most-watched and most-liked Super Bowl ads. In fact, the winning ad that aired in the 2009 Super Bowl was ranked by theUSA Today Super Bowl Ad Meter as the top ad for the year while the winning ads that aired in the 2010 Super Bowl were found by Nielsen's BuzzMetrics to be the "most buzzed-about".[123][124] Another example of companies using crowdsourcing successfully is the beverage companyJones Soda that encourages consumers to participate in the label design themselves.[125]
This trend has given rise to several online platforms that host user-generated advertising competitions on behalf of a company. Founded in 2007, Zooppa has launched ad competitions for brands such as Google,Nike,Hershey's,General Mills,Microsoft,NBC Universal, Zinio, andMini Cooper.[126] Crowdsourcing remains controversial, as the long-term impact on the advertising industry is still unclear.[127]
Advertising has gone through five major stages of development: domestic, export, international, multi-national, and global. Forglobal advertisers, there are four, potentially competing, business objectives that must be balanced when developing worldwide advertising: building a brand while speaking with one voice, developingeconomies of scale in the creative process, maximizing local effectiveness of ads, and increasing the company's speed of implementation. Born from the evolutionary stages of global marketing are the three primary and fundamentally different approaches to the development of global advertising executions: exporting executions, producing local executions, and importing ideas that travel.[128]
Advertising research is key to determining the success of an ad in any country or region. The ability to identify which elements and/or moments of an ad contribute to its success is howeconomies of scale are maximized. Once one knows what works in an ad, that idea or ideas can be imported by any other market.Market research measures, such asFlow of Attention,Flow of Emotion andbranding moments provide insight into what is working in an ad in any country or region because the measures are based on the visual, not verbal, elements of the ad.[129]
Purposes
Companies and organisations have a number of business goals they wish to achieve. Broadly, advertising is used to help achieve these objectives.[130] Advertising delivers a message to customers and prospective customers. Advertising predominantly informs consumers about a product or service to convince customers that their offerings are the best, to enhance the image of the company, to demonstrate new uses for established products, to promote new products/services, to draw customers to the business, and to retain existing customers.[131] A successful advertising campaign initially defines a clear purpose. Common objectives include:
Brand awareness
This consist of advertising which aims to increase the number of people who know about (recognise and recall) a brand. This purpose will impact the type of channels/media and ad formats selected to achieve greater brand awareness.[132] This type of objective can include creating awareness of new features a brand is offering, such as improving the in-store experience.[133]
Customer retention
Typically a broader marketing activity, advertising campaigns can contribute to companies retaining existing customers. Such advertising may promote customer loyalty schemes and can involve showing personalised offers and promotions.[132][134]
Lead generation
This involves a business or organisation conducting an advertising campaign where the purpose is to collect information such as name and email addresses, which constitutes a 'lead'. This can involve providing downloadable content or running webinars. Advertising effectiveness is measured by establishing the cost per lead. This data is then used for marketing activities with the aim of converting the prospect/lead to become a customer.[135][136][137]
Sales promotions
Sales promotions are another way to advertise. Sales promotions are double purposed because they are used to gather information about what type of customers one draws in and where they are, and to jump start sales. Sales promotions include things like contests and games, sweepstakes, product giveaways, samples coupons, loyalty programs, and discounts. The ultimate goal of sales promotions is to stimulate potential customers to action.[138]
Hierarchies of effects models attempt to theoretically explain that consumers go through a number of stages, that can be prompted by advertising, before purchasing a product or service.[139][140][141]
The model of Clow and Baack[142] clarifies the objectives of an advertising campaign and for each individual advertisement. The model postulates six steps a buyer moves through when making a purchase:
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Means-end theory suggests that an advertisement should contain a message or means that leads the consumer to a desired end-state.[143]
Leverage points aim to move the consumer from understanding a product's benefits to linking those benefits with personal values.[144]
Themarketing mix was proposed byHarvard Business School professorNeil H. Borden and expanded on, and popularized by professorE. Jerome McCarthy in the 1960s.[145][146] It consists of four basic elements called the "four Ps".Product is the first P representing the actual product.Price represents the process of determining the value of a product.Place represents the variables of getting the product to the consumer such as distribution channels, market coverage and movement organization. The last P stands forPromotion which is the process of reaching the target market and convincing them to buy the product.[147]
The concept of thefour Cs was introduced as a more customer-driven replacement of the four P's.[148] There are two theories based on the four Cs: Lauterborn's four Cs (consumer,cost,communication,convenience)[149] and Shimizu's four Cs (commodity,cost,channel,communication). Shimizu expanded the four Cs, to the7Cs Compass Model by adding company or competitor, consumer and circumstances, to acknowledge the impact of competition, consumers who are not customers and circumstances beyond a companies control.[147]
Advertising research is a specialized form of research that works to improve the effectiveness and efficiency of advertising. It entails numerous forms of research which employ different methodologies. Advertising research includes pre-testing (also known ascopy testing) and post-testing of ads and/or campaigns.[150]
Pre-testing includes a wide range of qualitative and quantitative techniques, including: focus groups, in-depth target audience interviews (one-on-one interviews), small-scale quantitative studies and physiological measurement. The goal of this research is to better understand how different groups respond to various messages and visual prompts, thereby providing an assessment of how well the advertisement meets its communications goals.[151]
Post-testing employs many of the same techniques as pre-testing, usually with a focus on understanding the change in awareness or attitude attributable to the advertisement.[152] With the emergence of digital advertising technologies, many firms have begun to continuously post-test ads using real-time data. This may take the form of A/B split-testing or multivariate testing.[153] Continuousad tracking and theCommunicus System are competing examples of post-testing advertising research types.[154]
Meanings between consumers and marketers depictsigns and symbols that are encoded in everyday objects.[155]Semiotics is the study of signs and how they are interpreted. Advertising has many hidden signs and meanings withinbrand names,logos, package designs, print advertisements, andtelevision advertisements. Semiotics aims to study and interpret the message being conveyed in (for example) advertisements. These signs can be images, words, fonts, colors, slogans, or a combination which must be interpreted by the audience or consumer.[156] The "key to advertising analysis" is the signifier and the signified. The signifier is the object and the signified is the mental concept.[157] A product has a signifier and a signified. The signifier is the color, brand name, logo design, and technology. The signified has two meanings known as denotative and connotative. The denotative meaning is the meaning of the product. A television's denotative meaning might be that it is high definition. The connotative meaning is the product's deep and hidden meaning. A connotative meaning of a television would be that it is top-of-the-line.[158]
Apple's iPod commercials, starting in 2003,[159] used a blacksilhouette of a person that was the age of Apple's target market. They placed the silhouette in front of a blue screen so that the picture behind the silhouette could be constantly changing. However, the one thing that stays the same in these ads is that there is music in the background and the silhouette is listening to that music on a white iPod through white headphones. Through advertising, the white color on a set of earphones now signifies that the music device is an iPod. The white color signifies almost all of Apple's products.[160]
"More Doctors Smoke Camels than Any Other Cigarette"advertisement forCamel cigarettes in the 1940s
While advertising can be seen as necessary for economic growth,[38] it is not without social costs.Unsolicited commercial e-mail and other forms ofspam became so common it was considered to be a nuisance, as well as being a financial burden oninternet service providers.[161] Advertising is increasingly prevalent in public spaces, such as schools, which some critics argue is unethical.[162] In tandem with these criticisms, the advertising industry has seen low approval rates in surveys and negative cultural portrayals.[163] A 2021 study of TV advertising found that only a third of advertisers achieved a positive return on investment.[164] Unsolicited ads have been criticized asattention theft.[165]
One of the common criticisms of advertising is the predominance of advertising foods high in sugar, fat, and salt specifically to children. Critics claim that food advertisements targeting children are exploitative and are not conducive with nutritional education to help children understand the consequences of their food choices. Children may not understand that they are being sold something, and may therefore be more impressionable.[166] Michelle Obama criticized food companies for advertising unhealthy foods to children.[167] Other criticisms include the influence of advertising on society and that some advertising can deceive.Cosmetic andhealth industry advertising has created causes of concern, such as being misleading.[168] Political advertising has been scrutinized formisinformation,ethics andpolitical bias.[169]
Regulation
There have been increasing efforts to protect people by regulating the content and influence of advertising. Some examples include restrictions for advertisingalcohol,tobacco orgambling imposed in many countries, as well as bans onadvertising to children, in some parts of Europe. Some advertising regulation focuses heavily on the veracity of claims and as such, there are often tighter restrictions placed around advertisements for food and healthcare products.[170]
The advertising industries within some countries rely less on laws and more on systems of self-regulation.[170][171][172] Advertisers and the media agree on a code of advertising standards that they attempt to uphold. The general aim of such codes is to ensure that any advertising is 'legal, decent, honest and truthful'. Some self-regulatory organizations are funded by the industry, but remain independent, with the intent of upholding the standards or codes like theAdvertising Standards Authority in the UK.[173]
In the UK, most forms ofoutdoor advertising, are regulated by the UK Town and County Planning system. The display of some advertisements without consent is a criminal offence liable to a fine of £2,500.[174] In the US, where some communities believe that outdoor advertising is a blight on some landscapes, attempts to ban billboard advertising occurred in the 1960s, leading to theHighway Beautification Act.[175] Cities such asSão Paulo have introduced an outright ban.[176]
Some governments restrict the languages that can be used in advertisements, but advertisers may employ tactics to try to avoid them. In France for instance, advertisers sometimes print English words in bold and French translations in fine print to deal with Article 120 of the 1994Toubon Law limiting the use of English.[177]
The advertising of pricing information is another topic of concern for governments. In the United States for instance, it is common for businesses to only mention the existence and amount of applicable taxes at a later stage of a transaction.[178] In Canada and New Zealand, taxes can be listed as separate items, as long as they are quoted up-front.[179][180] In most other countries, the advertised price must include all applicable taxes, enabling customers to easily know how much it will cost them.[181][182][183]
Gender interpretation and portrayal
According to a 1977 study by David Statt, females process information comprehensively, while males process information through heuristic devices such as procedures, methods or strategies for solvingproblems, which could effect how they interpret advertising. Men prefer to have cues to interpret the message, whereas females engage in more creative, associative and imagery-laced interpretation.[184] Later research found that advertising attempts to persuade men to improve their appearance or performance, whereas its approach to women aims attransformation towards an impossible ideal of female presentation.[185]
Paul Suggett's article "The Objectification of Women in Advertising" discusses the negative impact of portraying unrealistic ideals of female beauty in advertisements on women, as well as men.[186] Studies show that these expectations on women and young girls can negatively affect their views about their bodies and appearance, although others disagree with these findings.[187] There are some companies likeDove that are creating commercials to portray more natural women and all forms of beauty, via theirCampaign for Real Beauty.[188]
Research by Martin in 2003 revealed that males and females react differently to advertising depending on their mood at the time of ad exposure and the tone of the advertising. When feeling sad, males prefer happy ads to boost their mood. In contrast, females prefer happy ads when they are feeling happy.[189] Susan Wojcicki, author of the article "Ads that Empower Women don't just Break Stereotypes—They're also Effective" discusses how advertising to women has changed since the firstBarbie commercial, where a little girl tells the doll that, she wants to be just like her.[190]
Late 1800s –Thomas J. Barratt (1841–1914) of London – called "the father of modern advertising" by T.F.G. Coates[4]
Early 1900s – J. Henry ("Slogan") Smythe Jr of Philadelphia – "world's best known slogan writer"[191]
Early 1900s –Albert Lasker (1880–1952) – the "father of modern advertising"; defined advertising as "salesmanship in print, driven by a reason why"[192]
Influential thinkers in advertising theory and practice
N. W. Ayer & Son – probably the first advertising agency to use mass media (i.e. telegraph) in a promotional campaign
Claude C. Hopkins (1866–1932) – popularised the use of test campaigns, especially coupons in direct mail, to track the efficiency of marketing spend
Ernest Dichter (1907–1991) – developed the field of motivational research, used extensively in advertising
E. St. Elmo Lewis (1872–1948) – developed the first hierarchy of effects model (AIDA) used in sales and advertising
Arthur Nielsen (1897–1980) – founded one of the earliest international advertising agencies and developed ratings for radio & TV
David Ogilvy (1911–1999) – pioneered the positioning concept and advocated of the use of brand image in advertising
Charles Coolidge Parlin (1872–1942) – regarded as the pioneer of the use of marketing research in advertising
Rosser Reeves (1910–1984) – developed the concept of the unique selling proposition (USP) and advocated the use of repetition in advertising
Al Ries (1926–2022) – advertising executive, author and credited with coining the term "positioning" in the late 1960s
Daniel Starch (1883–1979) – developed the Starch score method of measuring print media effectiveness (still in use)
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^Morin, Richard (February 2, 2002)."When Celebrity Endorsers Go Bad".The Washington Post. Archived fromthe original on April 20, 2024. RetrievedMarch 2, 2022.British actress Lillie Langtry became the world's first celebrity endorser when her likeness appeared on packages of Pears Soap.
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^Ewen,Captains of Consciousness (1976), p. 33. "As Ford's massive assembly line utilized 'extensive single-purpose machinery' to produce automobiles inexpensively and at a rate that dwarfed traditional methods, the costly machinery of advertising that Coolidge had described set out to produce consumers, likewise inexpensively and at a rate that dwarfed traditional methods."
^Ewen,Captains of Consciousness (1976), p. 34. "While agreeing that 'human nature is more difficult to control than material nature,' ad men spoke in specific terms of 'human instincts' which if properly understood could induce people 'to buy a given product if it was scientifically presented. If advertising copy appealed to the right instincts, the urge to buy would surely be excited'."
^Donley T. Studlar (2002)Tobacco Control: Comparative Politics in the United States and CanadaArchived May 9, 2016, at theWayback Machine p.55 quotation: "... from the early days advertising has been intimately intertwined with tobacco. The man who is sometimes considered the founder of modern advertising and Madison Avenue, Edward Bernays, created many of the major cigarette campaigns of the 1920s, including having women march down the street demanding the right to smoke."
^Donald G. Gifford (2010)Suing the Tobacco and Lead Pigment IndustriesArchived May 10, 2016, at theWayback Machine, p.15 quotation: "... during the early twentieth century, tobacco manufacturers virtually created the modern advertising and marketing industry as it is known today."
^Ewen,Captains of Consciousness (1976), pp. 68–59. "Widespread within the socially oriented literature of business in the twenties and thirties is a notion of educating people into an acceptance of the products and aesthetics of a mass-produced culture. ... Beyond this, and perhaps more important to the consciousness of many, were the indigenous networks of social structure which generated mistrust or open opposition to corporate monopolization of culture."
^Ewen,Captains of Consciousness (1976), pp. 62–65.
^Benjamin, L.T., & Baker, D.B. 2004. Industrial–organizational psychology: The new psychology and the business of advertising.From Séance to Science: A History of the Profession of Psychology in America. 118–121. California: Wadsworth/Thomson Learning.
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^Copeland, M.A.,Soap Opera History, BDD Books; 1991,ISBN0792454510
^Leigh, F.,Historical Dictionary of American Radio, Greenwood Publishing Group, 1998, p.8
^Karmasin, H., "Ernest Dichter's Studies on Automobile Marketing", in Schwarzkopf, S. and Gries, R. (eds.), Ernest Dichter and Motivation Research: New Perspectives on the Making of Post-war Consumer Culture, Palgrave Macmillan, 2010, pp. 109–125
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