2-1

The Evolution of Advertising

Explains about the Principles of Free-Market Economics, Functions and Effects of Advertising.

2-2

Many Buyers& Sellers

Economics:Principles of Free-Market Economics

Self-Interest CompleteInformation

Absence ofExternalities

2-3Economics:Functions and Effects of Advertising

2-4Economics:Evolution of Advertising

Preindustrial Industrializing Industrial Postindustrial

pre-1800 1800-1900 1900-1980 1980-present

2-5Economics:Evolution of Advertising

Stage Waggons ad from the preindustrial age

2-6Economics:Evolution of Advertising

Preindustrial Industrializing Industrial Postindustrial

pre-1800 1800-1900 1900-1980 1980-present

2-7Economics:Evolution of Advertising

Uneeda Biscuit ad from the industrializing age

2-8Economics:Evolution of Advertising

Preindustrial Industrializing Industrial Postindustrial

pre-1800 1800-1900 1900-1980 1980-present

2-9Economics:Evolution of Advertising

Weavers of Speech ad from the industrial age

2-10Economics:Evolution of Advertising

Preindustrial Industrializing Industrial Postindustrial

pre-1800 1800-1900 1900-1980 1980-present

2-11Economics:Evolution of Advertising

American Legacy Foundation ad from the post-industrial age

[Insert American Legacy Foundation ad (p. 46) herePosition: 1.55” vertical, 3” horiz.Size: 5.7” wide]

2-12Society and Ethics:Effects of Advertising

Ethical advertising can . . .

improve standards of living,

inform of availability of products,

imbue products with personality,

help us make personal statements, &

foster the free press & nonprofits.

2-13Society and Ethics:Effects of Advertising

On the other hand, advertising can:

be dangerous if misleading,

promote unhealthy products,

encourage conformity,

glorify conspicuous consumption,

or target vulnerable markets.