Advertisement is a Waste. Do you Agree?
No, I don’t fully agree with this view. Advertisement has got advantages and disadvantages both.
Advantages of Advertising :
Advertising encourages autonomy of mass media: Mass media earns a huge amount of income through advertisements. Because of these ads, we can get a newspaper at a low price. These earnings make the media financially self-supporting Media can publish all the matters of public interest freely and frankly with the medium of advertising.
Advertising provides useful information: One can get proper and useful information through advertisements regarding products, prices, quality, servicing etc. People living in remote areas, far-off places or outside the country can also be informed about the new products.
Also read | 6 Things about Successful Video Marketing.
Advertising generates employment: One can earn a good amount by working in advertising agencies and mass media like TV, newspapers etc, People get benefit from advertising as it helps in generating employment.
A large number of artists, designers, models, technicians etc. work in various advertising agencies and mass media and earn their livelihood.
Advertising leads to reduction in the cost of goods: Businessmen prefer to use the medium of advertising rather than personal selling because the cost of advertising is much less. If one doesn’t use advertising as a medium to sell goods, firms have to go for more expensive methods.
Also read | 7 Benefits of PPC Advertising for Startup, Small and Mid Businesses.
Through ads, demand increases and this in turn increase the production. Increased product leads to economies of scale. These scale economies have got certain benefits that offset the advertising cost.
Disadvantages of Advertising:
Advertising causes undesirable social effects: Certain social effects can be. there due to advertising like it influences the materialistic values and life styles of people in society, certain sex and, horror appeals are used in order to draw the consumers attention, it creates frustration and disappointment when a person cannot purchase and enjoy a particular product.
Advertising leads to monopoly: Small competitors find it difficult to enter the market due to advertising. This is because large firms create hurdles in their way.
New competitors find it difficult to compete with such big and established firms if they don’t have large financial resources. Advertising acts as a barrier to entry and leads to monopoly.
Advertising encourages unnecessary competition: In order to create the brand’s image, small and large competitors compete with each other. Conflicts also arise at times due to this. It is good to have healthy competition but a conflict-oriented competition can never prove to be useful.
Advertising leads to higher prices: One has to put in a lot of money to advertise a product. If the expenditure on advertising is curtailed, the cost of goods can be reduced and they can be made available to the consumers at cheaper and affordable prices.
Consumers may get a better product, if the businessmen utilize the money on improving the quality of the product instead of advertising it.