IT IS A TIME FOR REFLECTION

Taupo Times, Volume I, Issue 17, 7 May 1952, Page 3

IT IS A TIME FOR REFLECTION

With the observance of World Advertising Week from today (May 5) to May 10, it would seem appr'opriate to. reflect on the place of advertising in today's world. Few doubt that advertising is indeed a potent force. As to its power for good this fact stands out above all others. Today the standard of living is highest in those countries where the volume of advertising is greatest. It becomes obvious on examination that advertising has, through its dissemination of news about superior goods and services, played a significant part in hastening progress. Advertising is basically a news service. It tells people what they can aspira to; it tells of new inventions to save toil for the housewife . . . of new types of prepared foods; it emphasises the advantages of good grooming; it tells of new machines for farm and factory. In a thousand ways advertising plays a dominant part in ereating new standards of production, convenience and comfort . . . and, by doing so, serves to raise the standard of living itself. A survey over twenty-three years conducted by the Market and Consumer Research Pty. Ltd for the Australian Association of Advertising Agencies (Federal) has proved conclusively that advertised goods have remained more stable in price than unadvertised goods. The Australian figures are quoted as no similar survey has been made in New Zealand. While prices in New Zealand have not risen to the same extent as those in Australia it is obvious a survey in New Zealand would have comparative results. The survey, which was made in 1951 and covered 296 advertised lines and 108 unadvertised lines, showed that since 1928 advertised goods in Australia had advanced in price by 60.38 % while unadvertised goods had advanced in price by 217.31%. Six nationally advertised products were selling at a lesser price in 1951 than in 1928. A further 13 advertised products were the same price in 1951 as they were in 1928. Only 19 advertised products according to this survey, had increased in price by over 100% in 23 years. On the other had only one unadvertised commodity was cheaper in 1951 than it was in 1928. Of the remainder. one nroduct had increased in

— 7 x — price by 1000%, another one by over 700%, two by over 400%, six by over 300%, 18 by over 200% and 55 by over 100%. This left only 19 unadvertised products whose increase in price had not exceeded 100%. The survey disclosed that prominently advertised goods had maintained a reasonably steady price despite the steep rise in the cost of raw materials. This had been achieved by the increased turnover. brought about by advertising and the use of mass production to match the increasing demand. The increased demand for advertised goods has enabled manufacturers to use mass production methods, lower the profit margin on each unit without sacrificing his overall profit and the saving has been passed on to the consumer. So the theme of World Advertising Week "Advertising makes better living and better buying," appears appropriate and a true reflection of advertising's functions and worth.