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What Is The Economic Impact Of Advertising?

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Iris Phillips Profile
Iris Phillips answered
A comprehensive article on the economic impact of advertising can be found at FlatWorldKnowledge. It explains the economic effects of advertising in great detail, whereas we will give a brief outline here.

  • Consumers
Consumers are being constantly bombarded with adverts in the hope that they will choose the advertised products. Their spending puts money into the economy. At the same time, advertising negatively affects consumers, because rising advertising costs are pushing up prices.

  • Businesses
Businesses are putting money into the economy by paying for the advertising. The resulting sales improve profits, which make it possible for businesses to invest. They expand, need more staff and consequently create more jobs, which means fewer unemployed and more people with money to spend.

Competition is fierce, so businesses have to keep stepping up their advertising campaigns. If they are not good enough and fail to do the job of attracting customers, a business could make huge losses. These losses will either result in price rises, which will curb customer spending; or in people having to be laid off. More unemployed, less people with money to spend.

  • Advertising and Economy
Advertising has therefore a constant impact on the economy of a country. First of all, huge sums are being put into the economy through the money spent on advertising.

Secondly, the quality of adverts can either drive the economy to flourish by creating a thriving market environment; or it can cause the market to stagnate and subsequently create a situation where the economy begins to falter.

Money that is being spent on and as the result of advertising is continually being circulated throughout the economy by investments, more advertising, and hopefully more spending. The effect of advertising on the economy is very finely balanced and can swing into either positive or negative very quickly.
Aisha Profile
Aisha answered
Advertising is a communication process whose purpose is to inform the potential customers about products and services and how to use them. If the advertising is positive and effective, it plays a significance role in the economy. But if it is the other way round then the economy suffers at large. It depends no the type and effectiveness of the advertisement.
Adam Smith Profile
Adam Smith answered

Now a days advertising is one of the important thing of economic growth our business. I got an service from dubaisignadv signage companies in dubai  for advertising, they deliver a nice service to us.

Karl Sagan Profile
Karl Sagan answered

Advertising helps people discover new products, and many people use different marketing strategies to promote their products and services. I'm pretty sure that affiliate programs like Smartlink platform provide companies with the best marketing strategy since the traffic that comes to their site is from individuals that find their product or service useful.

Chips Ters Profile
Chips Ters answered

Hello to all. Please be advised that the Craigslist ad website is generally safe against threats such as viruses and identity theft. The site with themed online advertising uses standard security protocols and has a strict privacy policy. Their craigslist customer service specialists are always ready to help you. Craigslist is a different story. Although millions of people use the site every month without any problem, be careful when doing business through this site. Anyone can post to Craigslist anonymously, and Craigslist does not provide any protection policies for buyers or sellers.

Anonymous Profile
Anonymous answered
It help to inform the prohspective audience(target group)of the product availability,benefits and how to use the product.

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