Is Advertising Good For The Economy?

Running Head : Advertising

Is Advertising Good for the Economy

[Name of Writer]

[Name of Institution]

Nowadays , in business world , advertising is considered a powerful tool for competition . Consumers can get useful information from advertisements and can choose products which best suits them according to their needs . Advertising play a significant role in the US economy it assists American economy to function smoothly . Furthermore , it keeps prices low and helps the entry of new organizations in domestic and global market depends on the organization 's business

Advertising especially in the

US , is considered as an economic work horse which has performed colossal feats with little credit . However the work horse often pocks his nose in places where he is not supposed to . Unfortunately , according to O 'Connor , Unless product meanings change in the populations , advertisers continue to associate the same values with the same products (O 'Connor , 1996

At present , the US market has become a highly mobile consumer-centric society . In this speedy market everyday millions of dollars exchange through internet and by other sources . The American economy has been conquered by retail and service business industry , and in both industries ads play a fundamental role in boosting their products and services demand . In this regard , any retailing or service business industry if desired to get succeed , both must advertise their product for consumers about product quality , cost and some useful information In this context , outdoor signs have experienced as the most rapid communicative and cost effective tool

In the year 2004 , the economy of Missouri generated approximately 108 billions dollars . According to a research conducted by Davidson revealed the facts that in the year 2004 , the aggregate economic activity produced by ads , which includes direct expenditure , goods provider spending and inter-organization activity generated approximately twenty percent of the nation 's 548 billion dollar economic activity and also provided around 429 ,700 jobs , or fifteen percent of the nation 's workforce of 2 .9 million

Interestingly , the study also showed that the the advertising industry was about 108 billion dollars that had a direct link with 54 billion dollars sale . In the same year , around 429 ,654 individuals got jobs through advertising and positively affected Missouri 's economy in a healthy way . Moreover , 94257 , jobs were generated in sales department in various organizations which was the outcome of excessive adverting in all sorts of media . Furthermore , the idea of outdoor signs in America gained so much popularity and in this regard both sate and federal state declared signage as a secure , fast and easy way for advertisement

The study also disclosed that the ads simulated additional buys by providing significant and useful information to a wide range of consumers in the household and businesses , which was also a crucial factor in the market economy (Davidson , 2005

Due to severe business competition among most of the business organizations in the US , an overwhelming growth of adverting agencies has been observed . Advertising agencies list have showed a constant growth over the past few...