Criticism of Advertising

Although advertising renders great service to business and to buyers, it has also been the target of serious criticism. A fair-minded student should be able to state these objections and also the answers commonly given to them.

The main criticisms:

• It raises the cost of goods. Advertising is expensive, and critics say its cost is added to the price the consumer pays. Answer: by creating mass demand it makes large-scale production possible, which lowers cost per unit and can more than offset the advertising cost.
• It is often misleading or untrue. Some advertisements exaggerate, make false claims, or create wrong impressions, deceiving the buyer. Answer: this is an abuse of advertising, not a fault of advertising itself, and it is checked by law, by codes of conduct and by self-regulation of the trade.
• It creates artificial wants and encourages wasteful spending. Advertising is said to persuade people to buy things they do not really need and to spend beyond their means. Answer: advertising can only inform and persuade; the final choice rests with the buyer, and much of what looks like a "created" want is a genuine improvement in the standard of living.
• It leads to monopoly and kills small firms. Heavy advertising by large firms, it is argued, builds brand power that smaller firms cannot match, reducing competition. Answer: advertising also lets a new or small firm make itself known quickly and challenge established brands.
• It multiplies needless brands. Advertising is said to push many nearly identical brands, confusing the buyer. Answer: it also gives the buyer information and a wider choice.
• It undermines social values. Some advertisements are said to be in poor taste, to appeal to base instincts, or to promote harmful products. Answer: again, this is an abuse to be curbed by regulation and public opinion, not an argument against advertising as such.
• It results in economic waste when firms merely fight one another for a share of a fixed market without increasing total demand. …