Economic objections against advertising

The criticisms leveled against modern advertising on economic

grounds can be summarized as follows:
1.

Advertising creates monopolistic tendencies: It is argued

that skillful and forceful advertising tends to create semimonopolies particularly for branded goods. Their plea is that the
advertisements create new demands so that one product is
preferred to the exclusion of others. But this allegation is
baseless. Monopoly is not possible in a competitive market.
Advertising stimulates competition. Very often many small
advertisers complete successfully against the bigger traders.

2.

Advertising

is

unproductive:

It

is

often

argued

that

advertising is unproductive since it does not produce any

tangible products. This argument is also worthless. All productive
work need not result in tangible goods. Effective advertisement
creates

demand

for

the

product

and

thereby

stimulates

production. It is indeed a valuable service to the producer. Thus,

advertising is an economic necessity.
3.

Advertising compels the consumers to buy: Some people

argue that advertising takes advantage of the emotion of the
consumers and compel them to buy things which they cannot
afford or things which are beyond their buying capacity. It is true
that advertising generates a desire to buy. But no physical
pressure is exerted by it on the consumers. In reality, it educates
the consumers and helps them to make an intelligent buying.

4.

Advertising leads to higher cost of goods: Product

generously spend huge money on advertising. This ultimately
increases the cost of goods and the consumer has to bear the
burden of huge expenditure. Thus, the consumers are heavily
taxed due to the heavy expenditure on advertising. This
argument also found to be untruthful. It is no doubt that
sometimes huge expenditure is incurred on advertisements. But
the benefits derived from such advertisements cannot be denied.
Advertisements

correspondingly

increase

the

sales

which

ultimately lead to an increase in the production. Increased

production lowers the unit cost and so the consumers are not, in
fact, exploited. But advertisements bring a cut in the price of the
goods and services.
5.

Advertising just takes business from one concern and

gives it to another: It is also argued that advertisement creates
no new demand for the products. It simply takes away the
business of one concern and gives it to another. In other words,
advertising helps to shift the demand from one product in favor
of another. Thus, it generates no new demand for a product. The
critics who make this allegation assume that the purchasing
power of the community is static. But in fact purchasing power is
not a static concept. It is unrestricted and unlimited. Besides
tastes, styles, standards and incomes of the people are subjects
to constant change. Hence, this criticism is based upon a false
notion and cannot be upheld.

6.

Advertising

is

unnecessary:

Some

critics

plea

that

advertisement is unnecessary. Hence it is a waste. They also cite

the example of Russian economy where there is no place for
2

advertising. Russians do not advertise but they put that money

into goods. This allegation shall not also hold good. In a
competitive economy like ours there is a possibility of choicechoosing a product in preference to the other. In the Russian
economy choice is restricted and limited. Therefore, certain
goods which need no advertising. This argument shall hold good
only in case of basic necessaries or good which have no
substitutes. But in case of other products which have many
substitutes advertising is a must. Thus, advertising is necessary
and is not a waste.
Social objections against advertising:
The criticism leveled against advertising on social grounds can be
summarized as follows:
1.

Advertising is an exaggeration of facts: Most of the

advertisements are misleading and untrue. They contain all
claims and exaggeration of facts. Such exaggerated advertising
amounts to swindling. So critics say that advertising has the
effect of deceiving the society and must be condemned. This
allegation is also baseless. It is no doubt that advertisement is
often used by dishonest persons to sell worthless products. But
they are only short lived. Consumers who buy such products shall
soon find out that the product is not up to the standard and so
shift their preference to some other product. The advertiser in
the long run cannot enjoy the benefits of advertising by merely
misrepresenting the facts about the product.

2.

Advertising influences the press: Advertising, although

make newspaper cheaper, it enables advertiser to influence the
3

press

so

that

the

news

may

by

so

drafted to please the advertisers. Thus, freedom of press is

adversely affected by influenced advertisers. It is true that
advertising constitutes a major source of revenue for the very
existence of the newspapers. In reality the press is able to
maintain its freedom only because of advertising. In the recent
past, many Governments, the newspapers were able to maintain
their freedom only because of the business advertisements. The
newspapers are not depending on the advertisers but the
advertisers in fact depend on the newspapers without which their
very existence itself shall be doomed.
3.

Advertising contains emotions: It is also argued that

advertising contains outraging sentiments, exciting emotions,
rude poses of fair sex and lower down the morale of the younger
generation. This criticism is not absolutely baseless but contains
an element of truth. It is true that the reader or the listeners are
induced by highly emotionalized appeals. But emotions and
illusions are necessaries for life. Emotions and illusions constitute
a part of motivation that stimulates enjoyment. Thus, advertising
has no demoralizing effect under all circumstances.

Ethical objections against advertising

Advertising is also criticized on ethical grounds. The following are
some of the criticisms leveled on ethical grounds.
1.

Some of the advertisements are offensive to public decency.

They are vulgar, silly and full of appeals to sex.

2.

Some advertisements induce the readers to use or consume

goods which are injurious their health.

3.

Advertising causes people to want things which they cannot

afford. This makes a section of the community to remain
discontented.

These allegations are partly true. After all advertising is only an

instrument like any other instrument. Therefore, advertising in itself
is neither good nor bad. It is just like a sword and its social and
ethical significance depends on the manner in which it is used.
Unsocial and unethical advertising can be curbed by effectively
controlling them.