History of Advertising 1980s

We often discuss current issues on this blog, but it’s important to remember our roots. Sometimes when you look back at history, it can inspire ideas for the future. At the very least, you’ll learn something. This week, we’ll cover the 1980s.

In the 1970s lots of small agencies underwent big changes. And the 1980s were no different. More agencies were being bought out by the big dogs. WPP Group bought J. Walter Thompson Co in 1987 for $566 million and two years later, they acquired Ogilvy Group.

Only a third of the 100 largest advertisers in the 1980s were still independent by the next decade.

Technology had a strong impact on the TV industry during the 80s. The network television stations saw their audience go down a little less than 60%. The reason for the decline was Cable. CNN, which launched in 1980, and MTV, which started in 1981, took up 40% of the audience alone. CNN sold advertising all over the world, giving companies the chance to advertise their products and services on a global level.

Early on, MTV was actually saved by advertising, as many cable operators refused to carry it. A year into MTV’s struggle, George Lois’s famous “I want my MTV”  campaign ( later immortalized in the Dire Straits song, “Money for Nothing”) was born. Kids started demanding their MTV, and they got it.

Another 80s phenomenon that kept advertisers on their toes was the VCR, which allowed people to record their favorite shows, grab a remote and fast-forward through commercials. Heavier use of remotes also allowed the audience to easily change channels during commercials — much to the dismay of advertisers.

But while challenges arose, so did new opportunities. Direct-response home shopping became the new fad. Home Shopping Network and QVC both launched in the 80s, selling goods at low prices to consumers who called in to place orders. These shopping networks paid the cable operators a percentage of the profit instead of buying commercials to advertise products. Infomercials, 30-minute commercials often centered around product promotion by celebrities. became another popular avenue.

By the mid-1980s, advertising agencies started making 15-second commercials, hoping to maximize the ad’s effectiveness and of course, profits. Doing these 15-second ads allowed advertisers to run a larger amount of ads on TV, increasing frequency and profits, while decreasing cost.

A few TV commercials from the decade that are worth remembering:

The spot that got Reagan elected to a second term:

The Apple spot that aired only once but remains famous to this day:

The old lady that gave McDonald’s a run for its money:

The fast-talking business guy that absolutely needs it to be there overnight:

And the commercial that had teenagers all over America rolling down their windows and pretending to be obnoxiously wealthy: