The Evolution of the Advertising Agency
What does a modern ad agency do?
How does it differ from ad agencies in the past?
If you’ve ever watched TV shows set in the 1950s and 1960s like Mad Men or Bewitched, you likely have an ingrained image that springs to mind when you hear the term “advertising agency”. Today, however, a modern advertising agency looks quite different – and it operates differently as well, thanks in great part to the move from traditional advertising into the digital realm.
Here’s the (succinct) story of how advertising agencies have evolved from their origin to the 2020s…
What is Advertising? Advertising can be defined as “the art of communicating to influence consumer behaviour”. It dates to ancient times, when, for example, ancient Egyptians etched commercial messages onto walls.
The Pre-Internet Era
Before advertising agencies, companies or individuals purchased ad slots at affordable prices from newspapers and sold them to other brands at a significant markup.
The earliest advertising agencies (acknowledged as such) include:
- William Taylor – 1786
- White Bull Holmes – 1800, located in London, which was in business until the 1980s)
- Reynell & Son – 1812, which remained in business until 1993 and is now under the umbrella of TMP Reynell).
The first US-based ad agency was opened in 1850 in Philadelphia.
At this time, and for several decades after, the focus of advertising agencies was to place commercials in newspapers on behalf of their clients. What soon set them apart from their forebears, however, was their involvement in the creative process of advertising – planning, visualising, composing, and executing advertising campaigns. In the 1800s, this included using distinct typefaces and fonts as well as images (drawings, photographs, ambrotypes, and daguerreotypes).
Advertising space in magazines was sold for the first time in 1864 and in 1869 N.W. Ayer & Son was founded – the first full-service advertising agency, which remained in business until 2002.
Over the next century, advertising grew to rely on what we consider to be “traditional” mediums of communication:
- Newspapers
- Magazines
- Letterbox Flyers
- Radio
- Television
- In-Cinema Ads
- Billboards
- Posters
Brands hired ad agencies to design and run print campaigns and produce radio and TV commercials.
Print Adverts published in newspapers, magazines, and similar materials offered detailed information and captivating visuals.
Billboards, posters, signage, in-cinema, and other “Out-of-Home” advertisements caught the eyes of consumers where they went for work and recreation, capturing attention as people went about their daily business.
Radio offered a greater reach and accessibility than print media and became a vital advertising medium. Consumer imaginations were captured by voice and sound effects, with product jingles becoming very effective for brand recognition and awareness.
Television exponentially improved this reach and impact.
The Post-Internet Era
The internet transformed the advertising industry with a distinct paradigm shift and a switch from traditional to digital advertising over the last twenty years or so. Globalisation has meant greater competition, and promoting a brand or product now requires much more than traditional advertising alone.
Today, ad agencies create, manage, and run online campaigns using advertising (and potentially other marketing) strategies.
The internet unlocked an array of new channels for brands to advertise to their target audiences – from Search Engine Marketing to Banner Ads and Pop-Up Ads. Modern ad strategies (which are just one aspect of marketing) include ad creation, graphics, content, blogs, video, social media, and much more.
There has been, however, a drawback to this explosion of opportunities for advertisers: ad fatigue in consumers. Consumers can become wary and annoyed by irrelevant or intrusive advertising, and ad agencies have to adapt.
Modern Advertising
Modern advertising agencies have to strategise much more widely than they did in the past, and even without a whole marketing approach, contemporary advertising strategies may incorporate everything from social media ads to digital billboards.
Choose a reputable, experienced ad agency – ideally one that offers comprehensive marketing services to get the very best return on your investment.
