HOW IT PAYS TO ADVERTISE.

Press, Volume LXIII, Issue 19166, 24 November 1927, Page 10

HOW IT PAYS TO ADVERTISE.

STRIKING FACTS AND FIGURES. ! Sir Russell Bcncraft. in his presidential address to 300 delegates attending the 16th annual conference of the British Commercial Gas Association on October 4th at Southampton, laid stress on the great value which could accrue to busies organisations through tvdeiiing. "1 am no reckless believer u the power of advertising to cure 111 economic evils," he said. "'Merey creating new desires is not necessarily enriching the world unless people havi. tho wherewithal to satisfy them; but while advertising is no easy panacea for depression it can materially assist hi getting us out of the vicious circle of bad trade." Sir Russell referred to tho "notable success of tho co-operative advertisins of the British Commercial Gas Association" and went on: the 15 years m which tho British Commercial Gas Association has K in action tho consumption of gas has increased by more than 30 pel cent , and you cannot study the history of this progress without being forced to tho conclusion that our co-operative efforts have been the principal factor in aS eving it. We know also that every increase in the use of gas or of coke for producing heat or power means that more coal, instead of being burned raw, has converted into more efficient fuels than itself, with recovery or byproducts to boot. "We know that this means not only less wasteful and more fruitful use of the most important raw material that this country can produce, but also the elimination of much waste of time and energy and even waste of heaitm, in homes and factories where gas replaces coal. . "On account of all this, our advertising must fall into the category which the President of tho Board of Trade has described as the best, for it adds to the national wealth. I have spoken at some length on this point becauseit should confirm us in our determination not only to maintain hut also to enlarge our national advertising efforts. Power of Second £IO,OOO. "It is worth being clear in our own minds that, while the same cannot bo claimed for a good deal of advertising, our own, at least, is economically, sound. When you ha,ve, as we have, an organisation on these lines you need not hesitate to spend more money in publicity. • "It is a well-known "fact that the second £IO,OOO spent in advertising has more effect than tho first, the third more thau the second, the fourth more than the third. There is presumably a limit to this process, but we may be positive that our national expenditure on advertisements is nowhere near the limit yet. "If we doubled it at onco we should reap more than double results. I scarcely need to add that this belief assumes a proportionate extension of local advertising to back up national campaigns. "1 have advocated more advertising by the gas industry; I should not have dared to do so unless I had been sure that we can deliver the goods. There is nothing more futile than the stimulation of a demand that you cannot thoroughly satisfy." £SO for Every £l. ; i Two examples of tho power of ad- j vertising which prove the truth of Sir Russell Bencraft's declaration were given to a London "Daily Mail" reporter. An official of the Fruit Brokers' Association of Great Britain, which organised the "Eat More Fruit" campaign, said: "Figures will, in our case, speak for themselves. Wo advertised extensively for three years and spent £IOO,OOO. As a result the consumption of fruit in Great Britain for that period increased by £5,000,000." This shows a return of £SO for every £1 spent. The Empire Marketing Board, which has been extensively advertising Empire dried fruits, had a similar experience. An official said: "We are quite satisfied with our preliminary advertising, and, so far as we have had time to test its effect on oui commodities, it has been very well while. For instance, in the first half of September, Australian sultanas had easily a record sale compared with any other year, no less than 2500 tons being sold. This is directly attributable to advertising sound goods." ,