Madison Avenue Comes of Age: The Advertising Industry

                     

After several decades of urbanization and industrialization, post- World War I America was marked by a rapid increase in the availability of mass-produced merchandise. The 1920's brought a boom in advertising as post war consumerism and the cult of salesmanship corresponded. Most advertising still appeared in the print during the 1920's, and ad revenue promoted the growth of the mass-circulation magazine, called slicks. Advertising became a specialty, and advertising firms, like law firms and accounting firms, began to move into the commercial world, where they offered their services in the creation of local and nationwide advertising campaigns.

The radio boom from 1921 to 1928 was an unprecedented media explosion. The 1920’s in America were rapid years, packed with fads and speculations and climaxes of every sort. The American public in the 1920’s flocked to novelty; fascinated by radio technology, millions of Americans rushed out almost at once to buy radio receivers. In 1921 there were nearly seven thousand radio sets in use throughout the United States. By 1928 there were nearly ten million. Corporations such as Westinghouse, RCA and General Electric built hundreds of stations to fulfill the public's demands for radio. Only a handful of radio stations sprinkled the nation in 1921. By 1922 there were 670. The Department of Commerce was overwhelmed with applications for radio station licenses and did not know how to handle the assault. Initially the Department prearranged all stations the same frequency and told them to work out frequency-overlap arrangements with the neighbors.  

Just as advertising was starting to get its ethical house in order, a new and potentially powerful medium, radio on the horizon. The potential for advertising abuse within this medium worried many people, and early amateur broadcasters. As the radio industry developed in the early twenties century, there was a movement to leave this medium free of advertising. Secretary of Commerce Herbert Hoover insisted “the quickest way to kill broadcasting would be to use it for direct advertising. Hoover also believed the radio was different then print media in a sense that the audience would find it more difficult to avoid advertising over the air. In spite of all the resistance to idea of using radio to sell products in the U.S., government and industry eventually agreed that advertising was the best way to cover the steep costs of setting and operating a radio station. The first radio commercial was run by AT&T flagship station, WEAF in New York, in 1922. The commercial advertised an apartment complex in Queens.

By 1926, when network radio began, advertising had become the accepted means of supporting radio. Network radio changed the ad industry, giving it greater reach an impact than the industry had known previously. The consensus among ass agencies was that the radio advertising needed to entertaining and attention grabbing to keep the listeners tuned in. Creative talent was needed moiré than ever, and ad agencies grew as they hired radio specialists.

The term Madison Avenue was taking because all the big time ad agencies such as GM, Ford and other big business were all located around Madison Avenue in New York. Radio made the biggest impact of advertising in the United States.

             Saks & Company's Display of Model of S.S. Giulio Cesare, 1922

The rapid growth of Madison Avenue and the main road to advertisement in the United States .

LINKS

http://www.louisville.edu/~kprayb01/1920s.html

http://www.angelfire.com/co/pscst/

http://www.myinsulators.com/commokid/telephones/1920s_telephone_ads.htm

http://library.thinkquest.org/C005846/introduction/introduction.htm

By: David Awwad

Spring 2002