Saturday 19 January 2008

Is the ad industry's net economic gain to the economy zero?

Robert Shaw, Professor of Marketing Metrics at Cass Business School, challenged in a letter to the FT an assertion that the advertising industry adds £160bn to the UK economy.

"Advertising is a zero-sum competitive game, strong advertisers grow at the expense of weak ones, stealing customers from the weak. Econometric studies show that advertising performance follows a bell curve, with as many campaigns showing negative performance as there are a positive ones."


Of course it is…need we say more?


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