Does advertising create demand?
Tim BroadbentBrandCon
SUMMARY
The contentious issue is, does advertising increase market size?
If it does, lobbyists argue, then banning advertising for certain product categories might be in the public interest. But if it does not, then advertising bans would be ineffective.
The issue remains contentious because the evidence seems ambiguous. For every analyst who claims to detect advertising effects at the product category level, another will deny it.
One source of confusion is an ambiguity about words such as 'market' and 'category'. It is hoped this paper will help to clarify the terms in which...