Examine the positive and negative effects of the advertising industry Essay

Examine the positive and negative effects of the advertising industry. Illustrate your answer with examples from current advertising campaigns and assess the importance of a good advertising campaign to the success of a new product.

In commercialized society, every firm is trying to make the most out of their business. Advertising has certainly become the one of the most effective measures to adopt, since it assists the business to promote sales and revenue. However, some critics have pointed out that modern advertising has exerted a huge negative impact on the society especially to children. It has also created an unnecessary waste which they should be used to benefit those who are in need to basic living material. Whereas, it is also believed that advertising is a necessary method a firm use to develop the business, without it business would run with difficulty. This essay will discuss both views of effect that advertising industry have to the society and illustrate with examples. Initially, advertising is designed to increase the advertiser’s sales. Yet, it also has had some negative influences. Firstly, it encourages children to persuade their parents to purchase products after watching the commercials, weather necessary or not. Consequently, it is created a large number of redundant toys and also caused a great many children developing the habit of eating junk food.

According to Buzzle (2011), many websites use slick promotional techniques to target young people. . in 2002, teenagers made up more than $ 1bn in E-commerce, and the industry spent £21.6bn on internet banner ads. In addition, children are vulnerable to unhealthy information and more likely to imitate behaviours from all sorts of ads. Although some products for example tobacco, alcohol and drugs are designed to target adults, because children are exposed to all information, it has still caused an increasing number of teenage smokers and drinkers. Tobaccofreekids stats: “studies have discovered that kids are three times as sensitive to tobacco advertising than adults and are more likely to be influenced to smoke by cigarette marketing than by peer pressure; and a third of juvenile smoking can be attributable to tobacco company advertising and promotion.” There is also further evidence providing that some tobacco advertising have specifically targeted teenagers as young as 13 years of age. Furthermore, advertising creates a large amount of impulse buying. Many ads target women for products like cosmetic or health care goods. Women are more likely to believe the effects they claim to have which leads to unnecessary shopping and great waste. Also some ads use the strategy of time limit to create a feeling that if you do not buy now, you will miss your chance and you will discounts on multiple purchase, which have caused a majority of buyers bought products which they realise they do not need afterwards. SmallBusiness Administrate (2012) indicates that point-of-sale promotion can create impulse purchases specially when they call attention to “special” and “sales”. Despite all the negative effects, advertising works as an effective tool for business to promote sales and make higher profit. It benefits all the businesses microscopically and the economic macroscopically. Sethi (1997) said: “advertising is one of the functions of mass communication and all products rely on this medium of communication”. On one hand, it is a pathway that brings a business higher sales record and reduces cost by targeting market into smaller segments. On the other hand, it acts as an essential method for the society to promote its economy. When a new product is launched, in order to reach its potential market, to introduce it through advertising is the best and fastest approach. Ads also provide consumers with valuable information about the goods being offered for sale, only through advertising can they acquire the information they need. It works between firms and consumers to keep information updated. In addition, ads help businesses with their wares.

Cash flow is one of the most important factors for a business; however, business capital is usually tied up to their stocks, which seriously affects cash flow. Thus companies must seek a way to persuade customers to buy their wares to prevent the waste that is created by products produced but not bought. According to American humourist Will Rogers, advertising is “the art of convincing people to spend money they do not have for something they do not need”. More importantly, advertising can be presented for public welfare. As people have started to be concerned about the responsibility that organisations should take, an increasing number of companies have begun to do public service ads while promoting their products, which greatly enhanced the public awareness of protecting environment and prevent AIDS etc. In short, advertising is the voice of technology.

There is no denying that ads could influence the society in several negative ways especially as regarded to children, such as spreading misleading information and inappropriate eating habit. Nevertheless, advertising is essential to businesses as well as to economy. It is not realistic for any business to run without ads. In the mean time we should call organisations for more attention to the public benefit rather than purely concentrating on profit.

Tobaccofreekids , 2012, Toll of Tobacco in the United States . [online] avaible at: http://www.tobaccofreekids.org/facts_issues/toll_us/ [accessed 4 April 2013]