Is advertising a social waste?
It is true to say that, “Advertising is economically beneficial but not socially justifiable”. As the Advertising is economically beneficial, it helps the businessmen to increase the demand of particular goods or services. It can search the new market and target their customers. Advertising also helps in distribution of goods and services and also reduces dependence of customer and businessmen on the middlemen or intermediaries by providing economies of scale. Advertising attracts customers for a new product and increase its sales also.
Several objections have been raised against advertising and some people criticize advertising as a social waste. The main point of criticism is as follows:-
- Creates Monopoly in the market
- Higher the prices of product
- Misleading the consumers
- Wasteful consumption by the consumers
- Wastage of national resources
- Creates Monopoly in the Market: Advertisement leads to promotion and cover mass level of customers at a time. Sometimes it will create a monopoly in the market with the help of advertisement. Large firms can bear the advertisement expenditure but not the small firms, due to that it can eliminate the small firms from the market and creates its monopoly authority in the market. But the monopoly is only for a temporary basis as there is availability of competition in the market.
- Higher the Prices of Product: Investment of money in advertisement leads to increase in the price of goods and services for which consumer has to face high prices and pay for it. There is positive relationship between advertisement cost and its product. Hence, more the advertisement cost- more the product cost. Whereas, decrease in advertisement expenditure leads to fall in price of product cost.
- Misleading the consumers: Now days, advertisement misleads the consumers on false representation regarding their goods. Consumer attracts to those goods which are not necessary for them. Producers misguide the consumers by giving bogus testimonials and false representation regarding particular commodity. Thus, advertisement misleads the consumer and sale goods to them.
- Wasteful Consumption by the Consumers: Advertisement attracts the consumers for wasteful products which are not necessary for consumers. Due to advertisement businessmen takes undue advantage from them. They sale unhealthy and artificial goods to them and exploits consumer emotions. Now days the society has become the society of chocolate, Burger, pizza and cola’s instead of juice, fruits and vegetables just because of advertising.
- Wastage of National Resources: There will be wastage of national resources, valuable stationary, time and energy used by the people or is ignored by them. Here, Valuable resources that can be used to create new industries are wasted in the production of needless varieties and designs. Vance Packard, in his book “The Waste Makers”, gives several interesting examples on national resources.