The encoding/decoding model of communication emerged in rough and general form in 1948 in Claude E. Shannon's "A Mathematical Theory of Communication," where it was part of a technical schema for designating the technological encoding of signals. Gradually, it was adapted by communications scholars, most notably Wilbur Schramm, in the 1950s, primarily to explain how mass communications could be effectively transmitted to a public, its meanings intact by the audience (i.e., decoders). As the jargon of Shannon's information theory moved into semiotics, notably through the work of thinkers Roman Jakobson, Roland Barthes, and Umberto Eco, who in the course of the 1960s began to put more emphasis on the social and political aspects of encoding. It became much more widely known, and popularised, when adapted by cultural studies scholar Stuart Hall in 1973, for a conference addressing mass communications scholars. In a Marxist twist on this model, Stuart Hall's study, titled "Encoding and Decoding in the Television Discourse", offered a theoretical approach to how media messages are produced, disseminated, and interpreted. Hall proposed that audience members can play an active role in decoding messages as they rely on their own social contexts and capability of changing messages through collective action.

Thus, encoding/decoding is the translation needed for a message to be easily understood. When you decode a message, you extract the meaning of that message in ways to simplify it. Decoding has both verbal and non-verbal forms of communication: Decoding behavior without using words, such as displays of non-verbal communication. There are many examples, including observing body language and its associated emotions, e.g. monitoring signs when someone is upset, angry, or stressed where they use excessive hand/arm movements, crying, and even silence. Moreover, there are times when an individual can send a message across to someone, the message can be interpreted differently from person to person. Decoding is all about understanding others, based on the information given throughout the message being received. Whether there is a large audience or exchanging a message to one person, decoding is the process of obtaining, absorbing and sometimes utilizing information that was given throughout a verbal or non-verbal message.

Since advertisements can have multiple layers of meaning, they can be decoded in various ways and can mean something different to different people.

Definition The encoding of a message is the production of the message. It is a system of coded meanings, and in order to create that, the sender needs to understand how verbal (e.g. words, signs, images, video) and non-verbal (e.g. body language, hand gestures, face expressions) symbols for which he or she believes the receiver (that is, the decoder) will understand. The symbols can be words and numbers, images, face expressions, signals and/or actions. It is very important how a message will be encoded; it partially depends on the purpose of the message.Bankovic, M. (2013). Business communication: script. Retrieved from: http://www.vts.edu.rs/images/nastava/PoslovneKomunikacije/POSLOVNE_KOMUNIKACIJE-skripta.pdf

The decoding of a message is how an audience member is able to understand, and interpret the message. It is a process of interpretation and translation of coded information into a comprehensible form. The audience is trying to reconstruct the idea by giving meanings to symbols and by interpreting messages as a whole. Effective communication is accomplished only when the message is received and understood in the intended way. However, it is still possible for the message recipient to understand a message in a completely different way from what the encoder was trying to convey. This is when "distortions" or "misunderstandings" rise from "lack of equivalence" between the two sides in communicative exchange.

In his essay, Hall compares two models of communication. The first, the traditional model, is criticized for its linearity – sender/message/receiver – and for its lack of structured conception of various moments as a complex structure of relations. The author proposes the idea that there is more to the process of communication and, thus, advances a four-stage model of communication that takes into account the production, circulation, use and reproduction of media messages. In contrast to the traditional linear approach of the sender and receiver, he perceives each of these steps as both autonomous and interdependent. Hall further explains that the meanings and messages in the discursive "production" are organized through the operation of codes within the rules of "language." "Each stage will affect the message (or "product") being conveyed as a result of its 'discursive form' (e.g. practices, instruments, relations)." Therefore, once the discourse is accomplished, it must be translated into social practices in order to be completed and effective – "If no 'meaning' is taken, there can be no 'consumption'." Each of these steps helps define the one that follows, while remaining clearly distinct. Thus, even though each of these moments (stages) are equally important to the process as a whole, they do not completely ensure that the following moment will necessarily happen. "Each can constitute its own break or interruption of the 'passage of forms' on whose continuity the flow of effective production (i.e. reproduction) depends."

These four stages are: Production – This is where the encoding, the construction of a message begins. Production process has its own "discursive" aspect, as it is also framed by meanings and ideas; by drawing upon society's dominant ideologies, the creator of the message is feeding off of society's beliefs, and values. Numerous factors are involved in the production process. On one hand "knowledge-in-use concerning the routines of production, technical skills, professional ideologies, institutional knowledge, definitions and assumptions, assumptions about the audience" form the "production structures of the television." On the other hand, "topics, treatments, agendas, events, personnel, images of the audience, 'definitions of the situation' from other sources and other discursive formations" form the other part of wider socio-cultural and political structure. Circulation – How individuals perceive things: visual vs. written. How things are circulated influences how audience members will receive the message and put it to use. According to Philip Elliott the audience is both the "source" and the "receiver" of the television message. For example, circulation and reception of a media message are incorporated in the production process through numerous "feedbacks." So circulation and perception, although not identical, are certainly related to and involved into the production process. Use (distribution or consumption) – For a message to be successfully "realized", "the broadcasting structures must yield encoded messages in the form of a meaningful discourse." This means that the message has to be adopted as a meaningful discourse and it has to be meaningfully decoded. However, the decoding/interpreting of a message requires active recipients. Reproduction – This stage is directly after audience members have interpreted a message in their own way based on their experiences and beliefs. The decoded meanings are the ones with "an effect" (e.g. influence, instruct, entertain) with "very complex perceptual, cognitive, emotional, ideological or behavioral consequences." What is done with the message after it has been interpreted is where this stage comes in. At this point, you will see whether individuals take action after they have been exposed to a specific message. Since discursive form plays such an important role in a communicative process, Hall suggests that "encoding" and "decoding" are "determinate moments." What he means by that is that an event, for example, cannot be transmitted in its "raw format." A person would have to be physically at the place of the event to see it in such format. Rather, he states that events can only be transported to the audience in the audio-visual forms of televisual discourse (that is, the message goes to processes of production and distribution). This is when the other determinant moment begins – decoding, or interpretation of the images and messages through a wider social, cultural, and political cognitive spectrum (that is, the processes of consumption and reproduction).

"The event must become a 'story' before it can become a communicative event."

- Stuart Hall, 1980, "Encoding/decoding"

Application of model This model has been adopted and applied by many media theorists since Hall developed it. Hall's work has been central to the development of cultural studies, a field that had started challenging the mainstream media effects models in 1960. The main focus was how audience members make meanings and understand reality through their use of cultural symbols in both print and visual media. Theorists such as Dick Hebdige, David Morley, and Janice Radway have been heavily influenced by Hall, and applied his theory to help develop their own:

Hebdige was a British cultural and critic scholar who studied under Hall at the Birmingham School of Cultural Studies. His model builds from Hall's idea of subculture. He is most known for his influential book Subculture: The Meaning of Style, where he argues that younger generations are challenging dominant ideologies by developing distinct styles and practices that manifest their separate identity, and subversions. His exploration of the punk subculture outlines the potential causes and influences of the punk movement, especially for the youth. His extensive study on subcultures and its resistance against mainstream society showed that the punk subculture used commodification to differentiate themselves from, or become accepted by, the mainstream. Hebdige believed that punk was incorporated into the media in an attempt to categorize it within society, and he critically examines this issue by applying Hall's theory of encoding and decoding.

David Morley is a sociologist who studies the sociology of the television audience. Known for being a key researcher in conducting The Nationwide Project in the late 1970s, Morley took this popular news program that aired daily on BBC. It reported on national news from London and the major events of the day, and was broadcast throughout the UK. He applied Hall's reception theory to study the encoding/decoding model of this news program. This study focused on the ways this program addressed the audience member and the ideological themes it presented. Morley then took it a step further and conducted qualitative research that included individuals with varying social backgrounds. This was where Hall's research came into play. He wanted to see how they would react to certain clips of the program based on Hall's three decoding methods: dominant/hegemonic, negotiated, or oppositional.