During the Elizabethan era, the playhouses had been established outside the city of London in order to avoid being subject to London rules, especially those promoted by puritans who were against the theatre. Some of these were located in Southwark, south of the Thames. This made advertising the play a bit more difficult than it would have been if the playhouses had been located in the city.
In Making Shakespeare: From Stage to Page (Routledge, 2004), Tiffany Stern writes,
A number of solutions were devised. At one stage, the players sent posses across the Thames with drums and trumpets, shouting out the name of that day's play; later, they covered London with advertisements ('bills'), filling the city with printed mementoes of the theatre it had so pointedly rejected. An alternative system of visual imagery also came into being, able to market to the literate and illiterate alike; the theatres' appeal was broad and extended over different classes. When a play was to be performed, the Surrey playhouses flew flags from their rooftops to herald the fact. In that way, the buildings themselves could advertise across the water. 'Each Play-house', as William Parkes explained, 'advanceth his flagge in the aire, whither quickly at the waving thereof, are summoned whole troopes of men, women and children.' The flags bore signs linked to the name of the theatre: a Swan for the Swan, (...) a rose for the Rose, a symbol for the rose-gardens the theatre replaced.
According to George Tawse, writing in the 1880s,
Playbill was the word used since the very beginnings of the English stage. It was the word used before Shakespeare came to London. Said an adversary of the stage in 1579, "They used to set up their bills upon posts some certain days before, to admonish people to make resort to their theatres."
The author goes on to claim that Shakespeare also wrote the playbills for the theatre company of which he was a member, even though no evidence for this claim is presented.
According to Stanley Wells, not a single playbill has survived (Shakespeare and Co. Penguin, 2006, pages 1–2).