Advertisement is a form of communication used to persuade an audience to take some action, with products, ideas or services. Advertisement are usually paid for by sponsors and viewed through various media such as magazines, newspapers, radio, television, outdoor or direct mail etc.
Before the 1900’s, advertisement was mostly information. They described products and appealed them to consumers’ judgment and logic. They focused mostly on how fine the product was.
During the 1920’s however, advertisement started putting more emphasis on emotion and pictures. The ads focused more on showing the life of the consumer rather than the qualities of the product.
Because advertisement has such a great impact and influences on society, there have been many controversies on whether advertisement is good or bad for the economy.
Is advertising good or bad for the Canadian economy?
Advertising benefits the Canadian economy, as it contributes to economic growth, innovation and competition, as well as informs individuals of the new products, stimulates demand and increases jobs.
• Advertising in the Canadian economy influences and increase the economic growth.
• Advertisement helps increase employment and creates more jobs in Canada.
• Advertising benefits consumers in many ways by informing individuals/consumers about new products being sold.
Advertising in the Canadian economy influences and increases the economic growth.
Evidence and Analysis
1) “In helping companies succeed, advertising plays a key role in a dynamic economy. Successful companies create more jobs, pay more tax and contribute directly to economic growth”
Advertising plays a major role in the economy by helping many companies succeed. This happens by companies being able to advertise their products and the consumers desiring to purchase that product after they have seen the advertisement. Along with succeeding, many companies create more jobs and pay more tax, which immediately contributes to economic growth.
2) “There has been a proven link between advertising and economic growth
• There is a positive correlation between the rates of investment in advertising and GDP growth in major markets.
• Business sectors with the highest rates of investment in advertising are those where competition, a recognized driver of growth, is liveliest.
• Countries where relatively little is invested in advertising are also those where economic growth is weakest.”
3) “The advertising industry itself also contributes in a big way to economic growth. At 6.4% in 2007, the communications industry was the third-fastest growing sector of the Canadian economy – far above the 2.2% growth for the economy as a whole.”
Through these statistics, we can see that the advertising industry itself contributes greatly to the economic growth. In 2007, the growth rate of the communication...