AN ADVERTISING LEAD.

Hauraki Plains Gazette, Volume XXXX, Issue 5476, 18 September 1929, Page 4

AN ADVERTISING LEAD.

£1,600,000 SPENT ON MARGARINE. MR. lORNS SUPPORTS POLICY. An article strongly favouring increased advertising of New Zealand dairy produce and mentioning the huge sums spent on advertising by the big European margarine combine is contributed to the last number of the Exporter by the chairman of the Dairy Produce Board, Mr W. A. lorns. He says :— “One could not but admire the attitude taken up by Mr Leeson, of Morrinsville, at the annual conference of the National Dairy Association at Wanganui on June 26, when he urged the necessity for an increased levy for advertising purposes. While there were individuals present at that conference who ridiculed Mr Leeson most unfairly, there was abundant evidence of the recognition not only of the soundness of Mr Leeson’s arguments, but also of the necessity for advertising New Zealand dairy produce. Those who sought to belittle Mr Leeson’s arguments were quite evidently out of touch with the attitude of the producers regarding advertising. Further, the statements made that advertising was a failure because it had not meant enhanced returns to producers were not only futile, J>ut were not capable of proof. Is it possible to say that prices would not have been lower if nothing had been spent on advertising ? When prices of New Zealand dairy produce are low, so are prices of margarine. Do we find the margarine companies reducing their advertising expenditure because of this ?” Mr lorns described the new margarine combine, covering 20 European countries, and quoted the following from an English paper : — “During 1928 no less a sum than £1,600,000 was spent in advertising margarine and was charged to the profit and loss account. Machinery had depreciated by £1,000,000, and a further £1,200,000 allocated as cost of upkeep and repairs, with £900,000 spent in alterations at several works. The capital of the two companies on December 31 last was £13,753,920, and an issue of ordinary shares since then has raised the capital of the combine to £14,851,753. The profit represented 161 per cent, on the ordinary capital.”

“And yet,” Mr lorns wrote in conclusion, “there are those who say ‘There is no use in advertising.’ ”