The Importance of Advertising

If anyone ever doubts the power of advertising — of mass media — they only need to visit modern day Africa. Though still rooted in a subsistence farming-based economy, Africa has been "globalized." And it is advertising that powered this change. For good or bad, advertising changes minds, changes lives, even cultures and countries.

Response Magazine: January 2005
By Timothy R. Hawthorne

1970, Addis Ababa, Ethiopia:
 I was teaching chemistry and physics to orphaned teens on the outskirts of this capital city. During the evenings, we'd watch the only two hours of broadcasting available — on a dilapidated black-and-white TV playing re-runs of "Dr. Who" from Britain. There were no commercials. JFK, Muhammad Ali and moon landings were all these kids knew about America. Kids and adults dressed in their traditional, floor length "gaabi" clothing wrap. There were few phones and no outdoor advertising except for the occasional Fanta soft drink or Biz soap signs. This was the Third World — a "primitive" world with few material possessions.

2000, Windhoek, Namibia:
 My wife and I are producing a documentary on a worldwide volunteer teaching organization. In the evening, the blue glow of TVs can be seen in every home, whether tin shack or walled-in compound. Dozens of channels invade this starkly beautiful desert country. New acquaintances question us about "Florida's hanging chads" issue during the recent U.S. presidential election. Nikes, Adidas, Levis, even Lacoste labels can be seen everywhere. Traditional dress is non-existent, save the annual liberation day festivities. Billboards are everywhere. And everyone has a cell phone.

If anyone ever doubts the power of advertising — of mass media — they only need to visit modern day Africa. Though still rooted in a subsistence farming-based economy, Africa has been "globalized." And it is advertising that powered this change. For good or bad, advertising changes minds, changes lives, even cultures and countries.

How important is advertising to our economy? In late November, the Advertising Coalition — comprised of advertising giants like the Association of National Advertisers (ANA), the American Association of Advertising Agencies (AAAA) and the American Advertising Federation (AAF) — released a major new economic study for 2005 predicting $278 billion of company advertising will drive $5.2 trillion in sales and contribute to 21 million jobs. I believe the United States' unique approach to delivering advertising-supported mass media via radio (starting in the 1920s) and TV (premiering in the 1940s) enabled this country to experience unprecedented economic growth and innovation. Never before could companies deliver their selling message to so many people at one time. And no other country prospered so much and so quickly during the past 80 years.

For most of us, it's hard to imagine a world without advertising. We see more ads in one year than people 75 years ago saw in a lifetime. It's estimated we're exposed to between 250 and 1,000 advertising messages each day. And, according to the American Academy of Pediatrics, the average child sees more than 20,000 TV commercials a year.

It's all around us: our economy depends on it, yet most of the world detests advertising. Seventy-five percent of Europeans believe there is too much advertising. A Yankelovich study reported more consumers have "wholly negative" feelings (36 percent) about advertising than "wholly positive" (28 percent). Sixty percent are more negative about advertising than they were a few years ago; and a whopping 69 percent want tools that block advertising completely. A world without advertising? Who could imagine such a place?

But the seed has been planted. Technology giveth the commercial and technology may taketh away. Last October, Havas' Media Planning Group reported that 90 percent of DVR users always or usually skip commercials — with 57 percent saying they are simply annoyed by them. There will be 27 million DVRs in homes by 2008. Millions of commercials will never be seen. Unthinkable.

Madison Ave. is completely flummoxed. First, the proliferation of hundreds of channel options have made "mass advertising" nearly a thing of history. Strategically airing three TV spots was enough to reach 80 percent of women in 1965, but 97 spots are needed today. Now, viewers are taking control of whether they watch commercials or not.

What does it all mean for the future of our economy and society? What impact would reducing our commercial ad intake from 500 to 50 a day have? Where do you stand on the importance of advertising?

Most likely, you're a part of this industry that fuels our economy and reflects and directs cultural changes. Next time you have a chance to vacation a couple of weeks away from all advertising, reflect on what impact our vocation has on our world. Would a world without advertising be less wealthy, less technological, less inventive, less comfortable? Or might it be a world where watching "Dr. Who" in black and white, without commercial interruption, was just the right nightcap for a good day?