"publicity, hype," 1908, from circus slang, "a short sample of a sideshow" used to lure customers (1901), which is of unknown origin. The word seems to have been in use in various colloquial senses in the 1890s. To catch ballyhoo is attested from 1895 in sense "be in trouble." In nautical lingo, ballyhoo, also spelled ballahou or ballahoo (185o, perhaps 1836) was a sailor's contemptuous word for any thing or person they disliked, said to be from Spanish balahu "schooner." As a verb from 1901 (implied in ballyhooer).
There is a village of Ballyhooly in County Cork, Ireland, (the Bally- is a common Irish place-name element meaning "a town, village"). To give (or get) ballyhooly, "give (or get) a noisy reprimand" is recorded by 1868. According to Green's Dictionary of Slang, the village was "notable for its faction fights."