Economic Effects of Advertising

Presented by Amlin David

 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.

What is 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)

Definitions 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

Economic reactions of Advertising

 Consumer information Competition Consumer Manupulation

Effects of Advertising on Economics

Creating a market Its about brand Pop culture Influence on Children Consumerist society

Effects of advertising in a free economy

 Child Obesity

Materialistic Habits

Violence/Harmful

Social problems of Children in Advertising

Specific Parties: General Parties:

Some parents Some pediatricians & health care professionals Most child psychologists Consumer protection groups Advertising Educational Foundation (AEF) American Academy of Pediatrics Childrens Advertising Review Committee (CARU) Emily Roberts (Treaty Oak Psychotherapy Austin)

Side A (Proposed government regulation)

 Childhood obesity is quickly becoming a global health concern as figures reach epidemic proportions
Children 2).

(*Source: Advertising to

Children create and begin to model a lifestyle based on the advertisements they view Advertisers expose too many negative and potentially harmful advertisements to children
(*Source: Wright 51).

(*Source: Gunter, Oats, & Blades 81).

Side A Issues and Arguments

General Parties
Some advertising agencies Some global economists Some parents Some television stations

Specific parties
American Association of Advertising Agencies (AAAA) Childs Play Communications Childrens Food & Beverage Advertising Initiative Hilary Fox (LatinWorks Advertising Agency)

Side B (Opposed government regulation)

 It is the parents or guardians responsibility to monitor what their children view Since we live in a capitalistic society, advertising is a business that sustains a way of life and economic success for the U.S. 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 Toops 3). (*Source: United States 4). (*Source: United States 9).

Side B Issues and 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 As 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

Analysis of Side Bs Arguments

 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.

Solutions for influences of Children Education

Misleading claims Encourage Monopoly High prices Disconnection to business Misuse of advertising Creating unrequired desire Buying problems

Disadvantages of advertising

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