Brett Danner
Mr. Router
Econ
9/16/2015
How advertising affects the economy
Yes, they are annoying, and repetitive, and are constantly getting in the way of you trying to watch dancing with the stars. Advertising from a company perspective though is important to remind us that they exist and have awesome products. It’s so important that last year, in the US 180.12 Billion dollars were spent on advertising, which is equal to 0.01 percent of America's GDP which was 16.77 trillion last year. While we have to put up with unappetizing McDonald's commercials every five minutes, it’s an effective tool to get customers in the door buying their product.
While a lot of money is spent on advertising, it does have a trade off; for instance, McDonald’s could spend no money on advertising and take the 963 Million spent on advertising and put it in research on how to make their food taste better and make their trucks that transport the food environmental friendly.
Advertising is everywhere from the side bars on your computer to billboards in the middle of nowhere. It’s optimal for businesses to remind us that they exist and sway our choices we make to pull in more profit for them. It would be hard to imagine a market where advertising doesn't exist.
"Total US Ad Spending to See Largest Increase Since 2004 - EMarketer."Free Digital Marketing Article. N.p., n.d. Web. 17 Sept. 2015.
Bhasin, Kim. "This One Statistic Shows Just How Much McDonald's Tries To Entrench Itself In Everybody's Minds." Business Insider. Business Insider, Inc, 14 Mar. 2012. Web. 17 Sept. 2015.
Without advertising it would be so hard to get your product out there. Advertising is the life of marketing. I think it's good that companies spend as much on their advertising each year, because that is why they are such large companies. Companies usually don't expand greatly until they start getting better advertising. I mean companies should be paying less but if they have to pay it, I mean they got to pay it to get out there.
ReplyDeleteAlthough we might not like advertisement we all know the slogans for companies like McDonald's and Jimmy John's. and remembering those slogans makes us want to go to those places which is the true intent of advertising.
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ReplyDeleteI agree, if it wasn't for advertising, products and companies would not be known to the public which would cause a decrease in their business. Although companies are spending excessive amount on advertising, it is crucial in order to get out there and known to the public. I like the information you provided and how advertising affects the economy and businesses, however you could've added more evidence to prove your statements. Overall, great job explaining what a market without advertising would be like and the affect of advertising products and companies.
ReplyDeleteI do agree with your statement, it is very clear how advertisement is effecting our economy. It was very well stated when you mentioned McDonald's and how bad they are turning out. It makes me wonder what will happen if advertisement doesn't exist? The only thing I recommend was to expand more of thought on what your opinion would be if ads didn't exist. Overall very fun and exciting to read.
ReplyDelete-Mike S
It is crazy how much money goes into advertising, and I like how you listed the trade off of how companies could spend that money towards of areas of their business. And without advertising it would be very hard to get a product out there and make money.
ReplyDeleteI was completely unaware of the time and money that is used for advertising. For several years, it has been a great tool for companies to get their message across in a fun creative way to the public. The money spent towards advertising could definitely be used for something more relevant that would benefit the society at large, because after all advertising doesn't always guarantee a company a profit so why invest millions of dollars into something that we can't control the outcome? Overall, I thought you had effective evidence but maybe elaborate as to a possible solution to the issue.
ReplyDeleteYou made it very clear that advertising is very costly and there are trade offs. However, I would've liked to see you mention some of the benefits. Why do companies advertise? In order for it to be beneficial the opportunity benefits have to exceed the costs. I did some research on this, specifically regarding social media. According to adweek.com, 78% of small businesses that use social media see an increase in web traffic, leading to an increase in sales. It's really hard to calculate the exact profit due to sales, but it's clear that advertising gets a company out there.
ReplyDeleteYou have made it very clear Brett that advertising is really costly, but it is a must if you want your company to excel. Why do you see all of these advertisement ads along the highways and on the internet and why do you know about a certain company. Advertising on the internet is huge because 40% which is pushing roughly around 3.5 million users of the world is connected to the internet according to internetlivestats.com .Take abercrombie and fitch for example how does everybody know about them. Also word of mouth goes around as well which increases the income of the business allowing the business to slowly become bigger and bigger which then will soon lead into increasing the opportunity cost. There is a lot more to talk about in how advertisements help attract customers, its to much to cover in one paragraph but advertising on the roads and on the internet clearly shows that advertisement helps bring in customers and get your name out there.
ReplyDeleteI agree with what you said that advertising is an important but also that with the money companies are spending on them, the money could be used for something better like increasing what they are paying their workers or how to make the company better. You did a really good job of finding information and numbers like the GDP which helped back up your statement. One thing you could have done was make it a little longer and add more points about what companies could put the money to instead of advertisements but overall you did a great job providing information.
ReplyDeleteI agree with what you said that advertising is an important but also that with the money companies are spending on them, the money could be used for something better like increasing what they are paying their workers or how to make the company better. You did a really good job of finding information and numbers like the GDP which helped back up your statement. One thing you could have done was make it a little longer and add more points about what companies could put the money to instead of advertisements but overall you did a great job providing information.
ReplyDeleteAdvertising is a very effective way for companies to get notice more, as you mentioned, yeah they're annoying but it'ts a way of engraving the companies name in your head without you even knowing. Consider this, you see McDonald commercials every day pretty much every where so when you think of fast food or burgers what's the first thing that pops up in your mind? McDonald's right? because that all you see everywhere, so know if it works out great for them, like why would they stop advertising just to make their trucks less contaminating or make healthier food? yes it's a really good idea but I don't think it'll happen.
ReplyDelete-Danna P
Advertising is a very effective way for companies to get notice more, as you mentioned, yeah they're annoying but it'ts a way of engraving the companies name in your head without you even knowing. Consider this, you see McDonald commercials every day pretty much every where so when you think of fast food or burgers what's the first thing that pops up in your mind? McDonald's right? because that all you see everywhere, so know if it works out great for them, like why would they stop advertising just to make their trucks less contaminating or make healthier food? yes it's a really good idea but I don't think it'll happen.
ReplyDelete-Danna P
You clearly displayed some valuable statistics on McDonald's advertisements. While these statistics were beneficial, it may have been useful to add more statistics on other companies. You also could have discussed some of the benefits of advertisements from the buyers view.
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