ECONOMIC ROLE OF ADVERTISEMENT

“Every coin has two sides”
As much as advertising is praised, it is far more criticized. Given all the positive aspects of advertising, it also brings along a huge negative side to it. As said by John O’ Toole, “advertising is something else, it is not related to studies, but it educates. It is not a journalist but gives all the information. And it is not an entertaining device but entertains everyone.”
We will be looking at some of the economic aspects of advertising.

Whatever that is advertised, does not means it is the best thing in the market. Sometimes, there are products that are not advertised and yet they are far better than the ones that go viral. However, what advertisement does it, increase the value of the product by creating a positive brand image which then convinces customers into buying the product. This is how advertising helps with the thinking process of consumers by shaping their minds into buying something thus increasing a product’s value. Let us take an example of cell phones, of how they used to be a necessity before but lately it has all come down to minute things that make them stand out. Certain features that are more trending and more in demand. Hence, this makes a mode of convenience for the customers.

For a fact, sometimes products that are advertised make more cost than a product that has never made it to an advertisement but the opposite can also be true. For instance, if there is a tough competition in the market, then the prices are automatically reduced. For example, canned juices are made by various brands and they're a lot of varieties in it so their competition is challenging. On the other hand doctors and chartered accounts are not permitted to advertise.
But some products do not promote much, and they don’t need much of it and even they are expensive but they are still the leaders in the market as they have their brand name. e.g., Porsche cars.

This is true that advertising creates job opportunities and also payrolls for people working in this field. It helps to accumulate more revenues for sellers which they use for the improvement of products and services. But there are some bad effects of advertisements on the business cycle also. Sometimes, the consumer may find the imported product enhanced than going for the national brand. This will certainly affect the making of the product, which may, in turn, affect the GDP of the country.

The economic aspects are supported by the Abundance Principle which says producing more products and services than the consumption rate which helps firstly keeping consumers informed about the options they have and secondly helps sellers for playing in a healthy and competitive atmosphere with their self-interest.
In Pakistan, we at Creative Junction are doing their best to help improve the advertising market. To incorporate the latest technology and trends and rank as the best digital and ad agency in Pakistan. Karachi is a huge metropolitan, we have provided our services there as well and we are one of the best advertising agencies in Karachi as well. We are a top advertising agency in Pakistan.