August 17th Notes
August 17th Notes ADPR 3100-0
Popular in Principles of Advertising
verified elite notetaker
Popular in Advertising
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.
Reviews for August 17th Notes
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
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.
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'