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Half the money I spend on advertising is wasted trouble is I don’t know which half
John Wanamaker.

Advertisement or ads in short are as much a part of our life as food or shelter. We are surrounded by it everywhere we go right from street walls to huge shopping malls. They are so well blended in our lives that we barely give them a thought except at times when they become really annoying like during the long tv intervals when we watch movies. Advertisements are the primary source of product promotion for all companies across the globe. The purpose of which is many folds which includes factors such as to create a brand identity, convey the changes in an old product to the consumers, to make them aware of the introduction of new products. Its importance can be seen from the fact that advertising industry is a multi billion dollar industry across the globe. Internationally, the largest ("big four") advertising conglomerates are Interpublic, Omnicom, Publicis, and WPP. The methods and ways of advertising have increased substantially from the 19th century to the 21st century.

Advertising- a history The world has been accustomed to advertisements since ancient times. The proof for this can be seen from the fact that in ancient Egypt and Pompeii ads were used for sales messages and commercial messages and much like modern times for political campaign. When literacy was not common among people ads were done through pictures to convey the messages. It was only in the 17th century when literacy rates started to increase again when ads were printed in handbills. Advertisements promoting medicines and books were printed in weekly newspapers. The first newspaper to print ads in it was the French newspaper La Presse. It did this to earn extra money and hence the cost of newspapers came down eventually. Thomas j barratt is known as the father of modern advertising. He created a successful ad campaign for pears in 1890s. he came up with many suggestions and ideas which are followed by millions of people in the ad world. He came up with the practice of using slogans and suggested that the product needs to constantly reinovated to meet the changing needs and tastes of people. Pears is also the first product to make a celebrity endorse its product. It used Lillie Langtry, a British music hall singer and stage actress for
endorsing its product. Under Barratt's guidance, Pears Soap became the world's first legally registered [when?] brand and is therefore the world's oldest continuously existing brand.

Volney b palmer established roots for modern day advertising agency. 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 the copy, layout, and artwork - was still prepared by the company wishing to advertise; in effect, Palmer was a space broker. The situation changed in the late 19th century when the advertising agency of N.W. Ayer & Son was founded. Ayer and Son offered to plan, create, and execute complete advertising campaigns for its customers. In the starting of 20th century many women were employed in ad companies Since women were responsible for most of the purchasing done in their household, advertisers and agencies recognized the value of women's insight during the creative process. Modern advertising was created with the innovative techniques used in tobacco advertising beginning in the 1920s, most significantly with the campaigns of Edward Bernays, which is often considered as the founder of modern, Madison Avenue advertising.

Edward bernay

With the introduction of radio in 1920s and the concept of sponsoring shows became more common businessmen started sponsoring shows on the condition that their business name gets mentioned on air at the beginning and end of the show. In 1950s the ads moved onto tvs and in 90s to the internet


Consumer cannot be over charged Helps improve quality of goods No middle men needed hence more profit for producer Improves std of living inform people about different products and services, their utilities, cost and other requirements, and help us in making better purchases. non-commercial issues like AIDS, Polio can help in educating people and notifying them of events and programs related to them. For advertisers, advertisements can help in attracting huge number of potential customers and make positive impact about their products and services. create a brand name for the product being promoted. People can recognize the products from the catchy advertisements they see and thus sales are also improved. can lead to direct feedback from customers. It has been seen that a lot of opinions are received by advertisers on their product/service, which helps in improving the product/service.


Costly Functions The strong objection and arguments against the advertising is that it is a costly function. It is generally criticized that the cost of advertising to too high and that such high cost is covered by the selling price of the advertising goods.

Misleading claims Some advertisers cleverly create a misleading impressions of their goods. They present a very rosy picture of their products, before the consumers with the object of increasing their sales.

Encourage monopoly Advertisement restricts the competition among the products. Big industrialists and manufacturers may exercise their monopolistic control over the market with the help of advertisement technique which is always against the public interest.

High prices It is undoubtedly true that effective advertising increase the sales volume. This increased sale will require more products. Thus the large scale production brings down the cost of goods per unit due to economies in various sectors which reduces the consumes selling prices. But the producers do not lower the prices and the burden of advertising remains on the shoulders of consumers.

Disconnection of business Small firms cannot properly advertise their products due to limited resources. But on the other side entire market is controlled over by great advertisers. It becomes impossible for small firms to continue their business in the business field so small firms disappear form the market.

Types of advertising Traditional method Print advertising- newspapers, magazines, fliers, brochures The oldest method of advertising is through print. This is one of the most popular methods even In modern times. Both the newspaper company and the advertiser benefit from advertising in the newspaper. More the advertisements lesser the cost of production and hence more profit while for the advertiser it covers a large group of the population. Cost of advertisements also depends on the which part of the newspaper the ad is being printed in and the quality of paper it is being printed in and the popularity of the paper. This goes for magazines too. Generally ads in magazines cost more than the ones present in newspapers Billboards, trade shows and events

Advertising through billboards has become one common of advertising in the modern times. But they need to be really attractive in order for them to grab the attention of the audience. Mobile

billboards are becoming common these days. The billboards are the attached to the back of vehicles and the ads are flashed in the billboard attached with the vehicle. Sponsoring trade shows and events Is another way of advertising for their companies. For example several companies sponsored for amity culturals and their company logos were printed in the banners and were present throughout the college that day.

Advertising through radio was really common in the early 20th century when radio became common.. businesses sponsored shows in return for their company names being mentioned in the show. The cost of sponsorship depended on which show, what time, what day etc.


The holy grail of advertising for more than half a century tv advertising still remains the most sought after way of advertising. It covers the maximum no of audience across the globe. It is also expensive. The cost depends on the program that takes place. Generally they are costly during sport intervals. Also we can see celebrities using products during their shows. This Is another form of advertising.

Modern methods e-advertising

with increase in the usage of internet amongst the global population e advertising has become “the” method for advertising. Online advertising began in 1994 when HotWired sold the first banner ads to several advertisers. A clear advantage consumers have with online advertisement is the control they have over the product, choosing whether to check it out or not.

Covert advertising

when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand, like the increasing use of iphones In movies in modern time or other apple products.
Celebrity advertising

type of branding, or advertising, in which a celebrity becomes a brand ambassador and uses his or her status in society to promote a product, service or charity, and sometimes also appears as promotional model. This is done to increase the sales of the product as people start associating themselves with the celebrities they are fond of and hence the brand

Importance of advertising Crucial for the launch of a product

helps make people aware of the presence of the new products in the market and the features of the product and its cost.

Source of revenue

It is a source of revenue for the publishers of newspapers magazines etc. it gives them the money and thus decreases their cost of production and inturn increases their profit levels. Without supporting advertising publishing industry may not survive

Sales promotion One of the main reasons for advertising is for promoting sales of the goods. A large section of population becomes aware of the product and starts buying them. One major way sales promotion is done is by making celebrities their brand ambassadors.


Advertising industry is a multi-billion dollar industry. The agencies are constantly on a look out for more talented and creative people thus creating more employment opportunities for people. Even those without a degree can pursue a career in advertising if they have the creativity

Educate society

Ads are not restricted to branding and sales promotion. There are several public awareness ads created to educate people and make them aware of their right. Thus ads play an important role in society. Ads for aids and hiv help prevent the ill treatment of those affected by them.

Maximize profit

By reaching out to a larger population it helps the producer maximize profit by increasing the sales of the goods.

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