Ap Economics - Advertising
Autor: Mikki • February 14, 2018 • 952 Words (4 Pages) • 566 Views
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Advertising takes money, whether purchased through an online advertising service, print ads in a newspaper or commercials on radio and TV. Designing the ads and the copy costs money, as well. On the high end, companies spend up to $2.6 million for a 30-second commercial during the Super Bowl. While the positive impact of advertising is bringing in sales dollars, the negative impact is felt by those who are the target of the advertising. Direct-to-consumer advertising for prescription drugs has resulted in unrealistic expectations about the effectiveness of drugs and their side-effects, according to the Food and Drug Administration's study "Patient and Physician Attitudes and Behaviors Associated with DTC Promotion of Prescription Drug." Voice-overs give the downside to the drug, but the visual images show healthy, happy people. It's not unusual to hear that even death may be a side-effect of a prescription drug. Beauty and health products may also not live up to their promises, resulting in wasted consumer dollars. (Author: Katie Jensen) This case study shows that advertising has many negative effects on consumers and on businesses.
In my opinion I see advertising as a positive in most cases. I think that advertising really does help consumers by giving them options and information about certain products, which allows them to get the best price or quality of a product. This increases competition and makes the market itself more competitive. As see in the case study I researched, advertising certainly does have a positive effect on profit and shows efficiency, as it brought in an estimated $5.8 trillion in revenue and only cost $297 billion.
Sources:
"Negative Impacts of Advertising." Small Business. N.p., n.d. Web. 01 Jan. 2016.
"Study: Advertising Supported $5.8 Trillion in U.S. Economic Output." Advertising Age CMO Strategy RSS. N.p., n.d. Web. 01 Jan. 2016.
Hirschey, Mark. "Economies of Scale in Advertising." Managerial and Decision Economics Manage. Decis. Econ. 3.1 (1982): 24-29. Web.
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