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August 17th Notes

by: Meghan Shah

August 17th Notes ADPR 3100-0

Meghan Shah
GPA 3.78
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About this Document

Covers: Advertising and the Rise of Agencies What problems agencies solved. How they've changed. What they're like today.
Principles of Advertising
Nathaniel J. Evans
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This 3 page Class Notes was uploaded by Meghan Shah on Sunday September 4, 2016. The Class Notes belongs to ADPR 3100-0 at University of Georgia taught by Nathaniel J. Evans in Fall 2016. Since its upload, it has received 7 views. For similar materials see Principles of Advertising in Advertising at University of Georgia.


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Date Created: 09/04/16
Lecture 2: Advertising and the Rise of Agencies  Aug. 17 ­ What problem did businesses (the advertisers) and the media (newspapers and  th publishers) face in 19  century conditions? ­ How did agencies solve problems for businesses and media? ­ What were the emerging and changing roles of ad agents and ad agencies?  o (Ex. N.W. Ayers & Co.)  How exactly did we get to where we are today? th o 19  Century Conditions  Expanding industrial production  Expanding markets  Potentially a boon for businesses o Advertising problems for businesses (the advertisers)  Which publications should they advertise in in order to reach  potential consumers?  There were around 20,000 nationally.  There was no central  list that kept track of all of the information about the various  publishers and their fees.  Today we have several sources,  including the SRDS. o Advertising problems for the media (newspapers and publishers)  There really wasn’t a way to keep track of advertising revenue  There were up to 300 to 400 different businesses advertising in each issue, so that’s a lot of information that needed to be  tracked.  How would they go about increasing profits?  By increase the  price?  By increasing the quantity?  (of ads) o Ad Agencies  For businesses, agencies managed advertising placement  For media companies, agencies took over billing and they created a new revenue source by essentially selling audiences to businesses.  Over the years, the revenue from subscriptions has gone  down while the revenue from advertising has gone up. o Changing Role of Agents  In the beginning, the newspaper agents worked with the media and  with businesses to handle the various aspects of advertising:  getting advertisers (businesses) space to print their ads and placing those ads, selling audiences to these advertisers, getting  publishers’ revenue from the businesses that are advertising.   These agents acted more like space brokers and space  wholesalers; they bought large amounts of space for  advertising in newspapers and the sold pieces of that space  to businesses that wanted to advertise.  By acting as the middle man, advertising agents faced a conflict of  interest.  The businesses and the media wanted to make money.   The agents had access to the information that neither the  businesses nor the media.  Agents were able to take advantage of  both sides by charging businesses more for space than the agents  themselves did; the media only got what they’d charged for the  space.  George Rowell changed this by publishing a list of all the  information about advertising in newspapers, making it public.   Advertising became more transparent and agents and agencies  couldn’t take advantages of the media or the businesses.  This  resulted in a change of agencies’ practices.  There were two major changes (N.W. Ayers & co.):  Open contracts – publicized the cost for ad space, so no  secret deals could take place anymore  Agents worked for businesses only now – they only bought  space  On top of those changes in practices, there was some structural  change within agencies:   Several creative services were added:  Beginning in 1880, advertisers began creating  prepared ad copy  Free­lance journalists and writers worked for agencies (as copywriters)  By 1892, there was one full­time copywriter on staff  Agencies grew in size  By the 1930s, agencies employed up to around 900  people  Agencies took on more specthlized roles:  Up to the late 19  century, the copywriter did all of the work on the ads; they wrote, designed, and followed  production on adth  By the early 20  century, the Editorial Bureau wrote  the ads, the Art Bureau designed them, the Engraving Bureau produced them, the Detail Bureau coordinated departments, and the Production Bureau kept track of it all.   Rise of the agency o In the end there were new relationships foraged with other industries.   There were new ways to organize the increasingly complex work of  agencies.   o This all reflected the increasing centrality of advertising in a capitalist  economy.  Modern agencies are holding companies constructed through many mergers. o Traditional agency structure was very hierarchical.   o Ad agencies and their structures are always changing now.   o Institution: an agreed upon way of solving problems; very broad and can  include groups of people; foundational.


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