F.W. Ayer's Professional Life
Ayer entered the world of advertising in 1868 after giving up an offer of $700 a year to teach. He went to work for Dr. Boyd, a friend of his father's, who was the director of a weekly religious newspaper called the National Baptist. He offered Ayer a 25% commission to sell advertising space for the publication.
Because he did not make any sales, Ayer's first week as an ad man was grim. However, the following week, Ayer finally made his first $50 off a sale of $200, and his success was only the beginning. By the end of the year, Ayer had earned $1,200, and Boyd made him an offer of an annual salary of $2,000.
Again, the ambitious, young Ayer refused the offer of a steady job to take the chance with opening his own advertising agency. On April 1, 1869, with only $250 in capital, N.W. Ayer & Son was born. The agency was so named for a couple of reasons. First of all, Ayer gave his father a 50% share of the business as a tribute. Secondly, being only 21, Ayer felt his age would hinder his credibility. Therefore, the name gave the impression that the agency was bigger and more established than it really was.
N.W. Ayer & Son opened for business on 530 Arch Street in Philadelphia. A third-story room adjacent to the offices of the National Baptist was rented to house the agency. The business comprised of selling advertising space in the numerous religious publications popular during the period. In its first year, N.W. Ayer & Son made $15,000.
In 1870, the business moved to larger headquarters on 719 Samson Street. The growing agency also led to the hiring of the first employee, George O. Wallace as the agency's first bookkeeper.
By 1873, the agency was making $79,000 annually. The same year Ayer's father died. The death of his father troubled Ayer and threatened the future of the business. Ayer feared that his stepmother would sell his father's share of the business to outsiders who would not have the agency's best interest at heart and who would not be willing to run the agency in the same ethical and moral manner in which Ayer believed. Luckily, Ayer's stepmother sold him his father's shares, and the agency was able to continue as he had planned.
Starting in 1874, Ayer became involved in issuing his own publications. The first was the Ayer & Son's Manual for Advertisers. The annual publication listed papers from which the agency sought its business, the papers' rates, and their circulation.
The agency established a printing department the following year. However, printing purposes were limited only to typesetting. Other creative services were not offered because of Ayer's belief that the client knew its product best.
Also in 1875, N.W. Ayer & Son introduced the open contract, a practice which would alter the history of advertising forever. The open contract guaranteed clients the lowest possible rates the agency could negotiate with publications. Commission was later added and ranged from 8.5% to 15%. By 1909, the open contract became known as "O.C. + 15" by the agency, and the 15% commission later became an industry standard.
In 1876, N.W. Ayer put out The Advertiser's Guide which comprised of business articles, essays on advertising, humorous anecdotes, and other information. The quarterly magazine was available at no cost to the agency's clients. Others could subscribe to the magazine for 50¢.
In October 1877, N.W. Ayer & Son made another historical step. The agency took over Coe, Wetherhill, & Co., formerly Joy, Coe, & Co., which had bought Volney B. Palmer's business. The significance of this acquisition was that it linked N.W. Ayer & Son with what is to believed the first advertising agency. This merger added another item to the list of "firsts" associated with N.W. Ayer & Son.
In 1884, N.W. Ayer & Son finally began to offer its clients advertising production services. The first ad written by the agency was for Police Plug Tobacco. However, the first full-time copywriter was not hired for another nine years, and the first artist was not hired until 1892. The agency began creating ads for several large clients such as RJ Reynolds, Ford, De Beers, Canada Dry, H.J. Heinz, Cadillac, Western Union, American Telephone and Telegraph, and Steinway.
In 1919, N.W. Ayer & Son celebrated its 50th anniversary. Ex-president Taft was in attendance and paid a glowing compliment to Ayer: "We are honoring a man who has made advertising a science, and who has robbed it of many evil tendencies, and who has the right to be proud of the record he has made" (Applegate 11).
Wilfred W. Fry, who married Ayer's oldest daughter, Anna, in 1904 became employed at N.W. Ayer & Son five years later. In 1911, he became a junior partner. He later became the agency's manager in 1916 and took complete control over the agency when Ayer died on March 5, 1923.
Over the years, the offices of N.W. Ayer & Son moved as the business grew. From the rented room on Arch Street to the building on Sansom Street, the agency continually sought larger space. In 1872, the office was moved down the street to 733 Samson Street. Four years later, the agency moved into the Philadelphia Times Building. In 1902, it moved once again to the Mariner and Merchant Building. By its 60th anniversary, the business was moved into the 13-story Ayer Building.
During this period of growth and expansion, branch offices were also established across the United States in cities including Cleveland, Chicago, and San Francisco. In 1927, the agency went international and opened offices in Europe and Latin America. The agency changed its name to N.W. Ayer ABH International, inadvertently leaving out the "Son" referring to F.W. Ayer himself. Today, the agency is called N.W. Ayer & Partners. Although F,W, Ayer's presence may no longer be visible in his agency's name, his legacy continues.
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