In Defense of Advertising

Advertising receives a lot of criticism.

So I decided to put down my thoughts. Below is a fictional conversation that tries to get my views across:

Don't you hate how these big corporations make us buy their junk?

What do you mean by "make us"?

You know, they make us buy through advertising.

Hold on a second.

You mean to tell me that with the hundreds of milions of consumers out there, with:

• different thoughts,
• different experiences,
• different tastes,
• different personalities,
• different value scales, and
• different budgets

...are being forced to buy things through advertising?

You mean to tell me that corporations have somehow cracked the code, and individuality itself has been abolished?

OK...you make a good point, but what if you're wrong? What if advertising could make us buy?

Then there would be no such thing as a business failure.

Every company would be a smashing success. They could make anything they want...advertise it....and become multi-millionaires overnight. No need to worry about what the customers want. No need for questions, surveys, focus groups, trial balloons....No need for profits and losses...Just advertise, and the people will buy.

Does that sound like the world we live in?

So why is advertising such a huge industry? Obviously, many companies see an increase in sales afterwards. Isn't that proof that advertising makes us buy their stuff?

No.

One of the main purposes of advertising is to bring an awareness to consumers that a new product or service is available. If sales go up, it is an indication that the company has guessed right. Their projection turned out to be correct, and they've identified a way to satisfy customer wants.

Keep in mind that everyone doesn't see an increase in sales. Some companies project correctly, while many others miss the mark.

But don't advertisements try to persuade us to buy?

Of course!

However, there's a huge difference between persuading someone and forcing them. One involves a voluntary transaction; while the other doesn't. And if a customer is persuaded (i.e., convinced that the product will solve a problem, or fulfill a desire) then the situation is still a win-win. The customer values the product more than the money used to pay for it, and vice-versa for the company.

Why do companies have to put on such a circus? Isn't that proof that they're trying to manipulate us? I mean, just show us the product and move on. Why the big song and dance?

Let me ask you a question: What if Nintendo simply put a picture of the Wii on the TV screen...and that's it!

Would you know what it is? Would you know what to do with it?

No, of course not.

So instead, Nintendo shows people playing games on the Wii and having fun....and in the process explaining what the Wii is.

Companies want to show you how their product can satisfy a problem that you may have. And they want to do it in a memorable way.

How about when companies play an advertisement over and over? Won't people eventually cave-in and buy?

Not necessarily.

Have you ever heard of the Eddie Murphy film titled "The Adventures of Pluto Nash"? Well this movie had a production budget of $90 million dollars and an advertising budget of $20 million. And do you know how much the movie earned?

$4.41 million. About a quarter of the advertising budget!

Bombarding people with ads is not "the road to riches". Companies can lose a lot of money just throwing advertisements out there willy-nilly...which is why the more successful ones carefully choose where and when they will advertise, and pay attention to who will be watching.

In the end, without advertising, our standard of living would be much lower. We'd have very little idea as to what products or services are available...and thus many satisfactions that we take for granted would cease to exist.