Advertising is good in some perspectives but Advertising Disadvantages are always neglected by Advertisers. In our daily life, we see lots of advertisements through different channels like TV commercials, Internet Ads, Email, Bill boards, boards at road, fixed LCD/LED at famous malls or roads etc. For registered companies these ads perform two basic functions to human mind.
The first is to create your need for specific thing and second one is to build your interest in that product to satisfy your created need. Most of times we buy product based upon ads we see. The more we see, the more we hear, the more we are convinced.
But Advertising Disadvantages are there
Advertising is bad thing, people say: maybe they are right. Critics are there, benefits are there too. Yet advertising is like backbone of businesses. Advertisement means showing your product to world. How will you earn if nobody knows you?
Disadvantages of Advertising for Consumers
Advertising is costly function. Most of the critics objects to advertising because of it’s costing, companies pay huge amount TV channels (especially in peak hours). Does company pay it from their profit? Obviously no, they do not.
Companies simply add advertisement cost to their production, after division of advertisement cost with number of product produced; they get cost per unit. This cost is added in actual cost of product. Let say, a pen costs to company in USD 2, they hire Advertising agency and pay them USD 1000 for different advertisements.
Company divides Advertisement cost 1000 with number of 5000 Pens produced. 1000/5000=0.2 is cost per unit i.e. pen actually costs $ 2.2 per unit, company profit percentage will be added at this cost. Advertisement is a bad thing because it increases the price.
The other way maybe like adding specific estimated advertisement cost per unit produced. A study showed that advertisement boosted sales by 6%. Advertising is burden on consumers compared to non-advertised product.
good or bad thing, here I am focusing on disadvantages of advertising that are for both buyer and sellers. Usually Advertiser mislead public, they show high product features, high quality, longer life, 100% after Sale services but later on Companies do not meet claims. Did it happened with you?
It is helpful in one way, once advertisement campaign runs, demand increase & producers install more machinery for more production, more staff hiring, new jobs and many more. Economics point of view says Increasing production decreases product cost but price is still the same and sometimes price rise. Companies earn handsome but consumer burden is still same.
Advertising Disadvantages to Businesses
Advertisements doesn’t leave place to small businesses, such small-scale companies don’t afford high advertisement costs, it results entire market get captured by big ones. Let say, Samsung is good phone, you make a phone with same specification and parts, and everything is same.
The only difference is brand. Can you capture even 1% of Samsung sale with this phone using your unknown XYZ brand? Advertisement disappears small companies, it’s one of the major disadvantage of advertisement (I feel). It makes monopolistic market for big industrialists.
Advertising and its Disadvantages doesn’t end here. Advertising influence your mind, it creates unnecessary desires for buying new product. Consumers however manages and buy those products that are actually not needs. An illiterate man is using smart phone just for hearing and calling purpose, this need could be satisfied with Java phones or Symbian phone. Once I saw office sweeper with Iphone 5S. These purchases lead unhappiness in life, your real needs are skipped for created needs.
Some of Major Advertising Disadvantages
in my view is that No body collide car intentionally. Still there is a huge number of accidents. Most of road accidents are only because Drivers distraction. Hoardings, electronic ads (big LCD) are always on important roads. These may divert driver’s attention: a single second’s diversion may risk like. Did you ever see bill board in street? Or in park? Maybe you have but hardly. Advertising Disadvantages & Advantages of Advertising are parallel.
Luxurious products advertisements influences your purchasing power, some of us start using wrong means to buy. Advertisement empowers or born culprits in society. You pay bribe or give any name to this but you pay in developing countries for your right.
I saw a sweeper with Iphone 5S, at this time Iphone priced approx. 30,000 Pak rupees or 250 US dollars. Average sweeper salary is 10,000-15,000, how he can afford? There are two ways; first one is saving and second using unethical means. Do you think you start saving money for recently launched product and you buy it after 20-30 months?
It also damages youth values. Sensational products are advertised using celebrities, immature youth builds their mind for life partner, idealize their social and business life which is impossible for everyone. Not everyone is Bill Gates or Jason Statham but these two are one from everyone.
Ads build confusions in customer’s mind; there are lots of fairness creams in market. Which one you going to buy? Actually there is very minor difference in formulas. Producers emphasis their cream to be best in market, their models are selected among thousands.
Fair & Lovely, in their recent ad they show their fairness cream to be best in Asia. If you ask from consumers, their reply will not be as same as advertisement showed. Consumer stays confused due to same claims or misinformation for the competing products. Choices or priorities are greatly injured with this source of boosting sales.