Economic Effects of Advertising Presented by Amlin David
What is Advertising Advertising is a form of communication used to persuade an audience (viewers, readers or listeners) to take some action with respect to products, ideas, or services.
Definitions of Advertising Any paid form of non personal presentation and promotion of ideas of goods and services by an identified sponsor (Philip Kotler 2006) Paid non personal communication from an identified sponsor using mass media to persuade or influence an audience ( Wells, Burnett and Moriaty 1998)
Economic reactions of Advertising Generates a net gain in direct sales due to promotion of the industries products and services Generates indirect sales and jobs among the first level suppliers to the industries that incur advertising expenditures Generates indirect sales and jobs among all other levels of economic activity as the sales ripple through the economy
Effects of Advertising on Economics Consumer information Competition Consumer Manupulation
Effects of advertising in a free economy Creating a market Its about brand Pop culture Influence on Children Consumerist society
Social problems of Children in Advertising Child Obesity Materialistic Habits Violence/Harmful
Side A(Proposed government regulation) General Parties: Some parents Some pediatricians & health care professionals Most child psychologists Consumer protection groups Specific Parties:
Emily Roberts (Treaty Oak Psychotherapy – Austin)
Side AIssues and Arguments “Childhood obesity is quickly becoming a global health concern as figures reach epidemic proportions” (*Source: Advertising to Children 2). “Children create and begin to model a lifestyle based on the advertisements they view” (*Source: Wright 51). “Advertisers expose too many negative and potentially harmful advertisements to children (*Source: Gunter, Oats, & Blades 81).
Side B(Opposed government regulation) General Parties Some advertising agencies Some global economists Some parents Some television stations Specific parties
American Association of Advertising Agencies (AAAA)
Side BIssues and Arguments “It is the parents or guardians responsibility to monitor what their children view” (*Source Toops 3). “Since we live in a capitalistic society, advertising is a business that sustains a way of life and economic success for the U.S.” (*Source: United States 4). People rely on it to work, businesses rely on it to sell their products, and consumers rely on it to choose products they identify with” (*Source: United States 9).
Analysis of Side A’s Arguments Values Health, family, self-esteem, fairness, & education Obligations Protecting their children, pushing for more gvnt. regulation Consequences Statistics will begin to show the decrease of child obesity, the fall of child/adolescent violence, and less materialistic habits
Analysis of Side B’s Arguments Values National & global economy, the right to freedom of speech, currency, competition, fairness, and education Obligations To distribute their informative ad campaigns to children & parents to sell their goods and create awareness of their brand Consequences The national economy will suffer tremendously as advertising is a billion dollar industry
Solutions for influences of Children Education Educating children about advertisements, what the effects are, and the different ways we can change how current messages are sent out. Both sides to merge together in effort to agree that organizations like CARU will serve as a review committee that will have experts from areas such as: education, communication, child development, child mental health, marketing and nutrition.
Disadvantages of advertising Misleading claims Encourage Monopoly High prices Disconnection to business Misuse of advertising Creating unrequired desire Buying problems