Advertising Article Summary

Advertising: Article Summary
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Article Summary
Advertising is an effective strategy by businesses and companies to gain a competitive advantage over their competitors. Following the intense growth of internet and technology in the 21st century, advertisers have resulted in using digital technology to draw the consumers’ attention to products and brands. The effectiveness of an advertisement is highly dependent on the advertiser’s knowledge of the public as well as the use of media for advertising activities. Other key factors of consideration when setting up an advert are; budget, the number of targeted audience, intended purpose, as well as creativity to catch the public attention (Encyclopedia Britannica, 2012).
Advertising carries a significant amount of power in influencing consumers, especially in a free-market economy. However, critics of advertising claim that consumers end up paying higher costs for products due to the high costs of advertising. Moreover, they argue that companies and brands that can afford the high costs of advertising may end up dominating the market. Finally, advertising may affect the media industry if not well structured. If there are too many advertisements during certain media shows, leading to distractions, the viewers may lose interest hence reducing the number of audience for that media (Encyclopedia Britannica, 2012).
Influence of Advertising on Products/Services Prices
According to the Encyclopedia Britannica (2012) article,”… the consumer must pay for the cost of advertising in the form of higher prices for goods”.

Therefore, the cost of advertisement and cost of products or services are directly proportional. This means that the higher the cost of advertising, the higher the price of the products or services. This explains that reason why the common products and services are usually high prices compared to their counterparts. As advertising technology advances, the cost of advertising is deemed to go higher which translates to the higher cost of products and services.
References
Encyclopedia Britannica (2012) Advertising. Encyclopedia Britannica Online School Edition. Retrieved from https://www.britannica.com/topic/advertising