Summary of Developments Since

SUMMARY OF DEVELOPMENTS SINCE 1850 Considering the period since 1850 as a whole, the chief develop ments, in addition to those mentioned, may be designated as follows:— Growth in has been a tremendous growth in the number of firms employing advertising in one form or an other. In 1938 there were about 12,000 firms doing some national advertising. The report entitled zoo Leading Advertisers in Na tional Publications, prepared each year by the Curtis Publishing Co., mentions 14 firms which spent $1,000,000 or over in that year, in 35 leading national magazines. In this list there were 86 firms which spent $200,000 or more in 35 leading national publications in 1938. There has been likewise an enormous growth in the num ber of media. In 1830, it is estimated that there were approxi mately Boo magazines and newspapers in the United States, of which some so were daily publications. Their combined annual circulation was estimated at about 6o,000,000 copies, or a circula tion of approximately 950,000 copies per issue. In 1830 the total population of the United States was 23,500,00o.

In 1861 there were 5,203 papers and magazines for a population of approximately 30,000,000. In 1938 there were 21,059 magazines and newspapers in the United States for a population of about 130,000,000. In other words, there has been an increase of maga zines and newspapers since 1861 of approximately 4 times, whereas the population during the same period of time has in creased approximately 41 times; but since 1830 the population has increased approximately 6 times, while the number of magazines and newspapers has increased almost 25 times. A more striking in crease has taken place in the total combined circulation. The es timated combined circulation per issue of III magazines was (1938) approximately 140,372,925 copies, and the total combined circulation of the newspapers approximately 72,429,100. Thus since 1830 there has been a growth in total combined circulation of all magazines and newspapers from less than L000,000 to approximately per issue. Besides the marked increase in the number of media and in the extent of their circulation, there has been an equally marked increase in the amount of ad vertising carried in a given issue of a publication. Two represen tative newspapers in the United States show an increase in adver tising space of 21% and 5o% respectively over a ten-year period, ending at the close of 1938.

During that period. also, there developed entirely new media of advertising, including bus and car cards, posters, direct-mail, motion-picture and radio advertising. Street-car advertising did not come into general use until about 1890, when the change was made from horse-drawn cars to electric cars. The mail-order field developed rapidly. Not only did mail-order houses spring up in large numbers during the period, but also business firms of all kinds developed a very extensive use of direct-mail material in the form of circulars, catalogues, letters and so on. The large mail-order houses commonly sent out twice a year upwards of 15,000.000 large catalogues in addition to numerous smaller depart mental catalogues issued. Figures obtained in 1936 estimated the total approximate amount spent in direct-mail advertising to he $266,000,000; in 1938 the amount was almost $4.000,000 greater.

Advance in Quality and

the period under consideration there was a distinct improvement in the quality of advertising. Methods of printing, typography, colour printing, art work and the like, greatly advanced. Besides the mechanical im provements there were likewise distinct advances in such essential qualities as accuracy of statement and descriptions, reliability and truthfulness. A widening of the scope of advertising developed rapidly. There was a marked increase in the variety of advertising used. Perhaps the dominating types of advertising which flourished originally—that is, about the middle and latter half of the 19th century—were patent-medicine advertising and circus bills and in general much unreliable, dishonest and objectionable advertising. As developed there is hardly a business or type of commodity for which the printed word is not used as a means of selling. Banks and financial institutions of high grade turned to advertising, find ing it profitable to employ in a dependable manner the methods which had been found profitable by unreliable financial houses. Advertising suffered because of the objectionable features which were so prominent in its earlier development. For this reason, un doubtedly, high-grade financial houses and to some extent other types of business were slow to take advantage of the possibilities which it offered; but, today, have adopted the modern technics of general advertising.

Public service institutions use advertising to place themselves before the public in the proper light, to secure the co-operation of the community and to offer their securities to customers and to others. What is termed institutional or good will advertising is widely used, not only by banking or similar institutions, but by large firms of all kinds, retail stores and manufacturers. Causes of one kind or another—local, national and international—use advertising to secure publicity and to gain adherents. Churches, charitable institutions, schools, educational endowments, public health bureaux, political parties, candidates and even governments find advertising a suitable and dignified means of publicity. In industrial disputes, employers and employees alike use advertising as a means of influencing public opinion, securing sympathy and moral support.

The development of trade marks is likewise a conspicuous char acteristic of the periods mentioned, particularly of the first quarter of the 20th century. A large proportion of the trade marks known throughout the United States and all over the world devel oped during this time. Of the somewhat more than 300,00o valid trade marks registered in the U.S. Patent Office up to June 1938, practically none was used prior to 187o, and only a small handful go back to 1885 or 1890. The development of national and inter national business made trade marks virtually a necessity; and advertising became an important means, perhaps the chief means, of making them known to the public.

Volume of Advertising.

Advertising is playing an impor tant role in the operation of business. It is assuming such large proportions that it is difficult to estimate its magnitude and to calculate its exact place in commercial affairs. We may gain some notion of its immense proportions from the amount of money expended and from the amount of space used each. year for printed advertising in the United States. It has been estimated that in the neighbourhood of a billion dollars is spent annually for this purpose. Approximately $500,000 is spent annually for adver tising any one of a score or more of well-known commodities, as high as $5,000,000 and $8,0oo,000 being spent in exceptional cases. Or we may gain a concrete idea of the immensity of advertising from the cost of space for single advertisements in some of the leading media. Thus, for example, a page in a well-known monthly magazine in a single issue may cost $6,300, and the back outside cover $11,55o. A page in a well-known weekly publication would run to $8,000, and the back outside cover $15,000. A page in the large metropolitan newspapers costs as high as $1,750 to $2,200. From still another angle the immensity of advertising is indicated by the fact that approximately three-fourths of the cost of main taining a newspaper or a magazine comes from its advertising space.

The outsider naturally wonders whether advertising with such high rates for space can really be a profitable aid in selling; or whether it may not be an expensive luxury indulged in by large business concerns. The extent to which advertising plays a justi fiable role in the distribution of goods is an important and intri cate problem which must be dealt with in any important con sideration of the subject.