{"id":3833,"date":"1948-07-01T01:00:00","date_gmt":"1948-07-01T01:00:00","guid":{"rendered":"https:\/\/www.rbc.com\/en\/about-us\/history\/letter\/july-1948-vol-29-no-7-the-advertising-business\/"},"modified":"1948-07-01T01:00:00","modified_gmt":"1948-07-01T01:00:00","slug":"july-1948-vol-29-no-7-the-advertising-business","status":"publish","type":"rbc_letter","link":"https:\/\/www.rbc.com\/en\/about-us\/history\/letter\/july-1948-vol-29-no-7-the-advertising-business\/","title":{"rendered":"July 1948 &#8211; Vol. 29, No. 7 &#8211; The Advertising Business"},"content":{"rendered":"<div id=\"layout-column-main\">\n<p class=\"boldtext\">People don&#8217;t make a beaten path                     to the mousetrap maker s door unless they know he has made                     a better mouse trap and has a stock for sale at a price they                     can pay. <\/p>\n<p> That is what the advertising business is all about. Mousetraps                     and pig iron, automobiles and breakfast foods are useless                     if people remain in ignorance of their existence and unaware                     of how they may be used. Advertising serves the man who produces,                     by enabling him to dispose of his goods, and the man who consumes,                     by telling him what is available to add to his satisfactions                     in life. <\/p>\n<p> The question is sometimes asked &#8211; and not only by persons                     with queer economic ideas &#8211; &#8220;why advertise?&#8221; The answer can                     be given by drawing three circles: a big one, a smaller one                     inside it, and a smaller inside that. The little circle indicates                     the number of prospects that can be met personally by the                     sales force, the next larger shows the wider group that can                     be reached by a well-built mailing list, while the outer                     circle shows the extent to which prospects can be canvassed                     by advertising in its various forms of publication and display.                   <\/p>\n<p> One of the first positive rules is that advertising is an                     investment, not a speculation. Gambles in advertising, followed                     by disappointment and retrenchment, are wasteful. They upset                     the economic equilibrium. They give business that air of starts                     and stops so well summed up in the terse telegram of the conductor                     of the often-derailed train: &#8220;Off again, on again, gone                     again: Finnegan.&#8221; <\/p>\n<p> Another rule is that advertising is fruitless if the advertiser                     does not offer something which will genuinely serve some human                     want. <\/p>\n<p> The third rule is not to expect overwhelming returns in                     the way of sales from the first ad or two. Advertising does                     not work that way. It deposits in the mental storehouse of                     the prospect impression after impression until he has a well-defined                     picture of the product and the service it will perform for                     him. <\/p>\n<p> And, last but not least in this small list of principles,                     the business executive is headed for disappointment if he                     satisfies his ego merely by matching the competitor&#8217;s advertising                     appropriation dollar for dollar, or even by topping it. Not                     the size of the appropriation, but the quality of advertising                     is important. Every campaign should be tailored to the needs                     and to show off the advantages of the particular business                     concern. A follow-my-leader campaign is an evidence                     of lack of originality and initiative. <\/p>\n<h3>Think of the Customer<\/h3>\n<p> It does not do, in these days, to concentrate upon techniques                     to the exclusion of thought about the consumer. It is the                     customer who puts the goods to use. He pays the wages and                     expenses from the first stroke made in harvesting a natural                     resource to the final stroke of the pen by which a purchaser                     contracts for the finished product. <\/p>\n<p> How is advertising useful to the consumer? Well, it keeps                     him informed. Whether the advertisement be one of the mammoth                     billboards, a catalogue, a full page newspaper spread, or                     one of the tiny items in the miles of classified ads, it should                     be designed and written to tell people about something they                     may want to buy, not about something the advertiser wants                     to sell. <\/p>\n<p> Most of us are specialists, producing nothing which we ourselves                     use. In our capacity as specialists we may not need anyone                     to help us, but in our sphere as consumers we need to be told                     what is available for our use, how good it is, and how we                     can obtain it. <\/p>\n<p> We said that advertising works for the consumer as well                     as for the advertiser: it also works for the community. It                     helps stabilize industry and employment: it emphasizes quality,                     which is certainly a community service: and it is a factor                     in competition, which helps keep prices within bounds. <\/p>\n<h3>Two Kinds of Advertising<\/h3>\n<p> There are two kinds of advertising, the product advertising                     which introduces a commodity or a service, and institutional                     advertising, which interprets a company and tells its point                     of view. <\/p>\n<p> Many Canadian firms are doing good public relations work                     through their advertising, and are making institutional advertising                     a part of their advertising budget. <\/p>\n<p> Public relations advertising means telling about the satisfactory                     industrial relations within the firm, the unusual provisions                     for safe-guarding health and welfare of workers, the                     special qualifications of the firm for giving the service                     it offers, the expertness of its workers, the carefulness                     to meet or surpass standards, the use made of raw materials                     with consequent spreading of spending over large sectors of                     the economy, and the history of the company showing its dependability,                     stability, and its essential place in the welfare of many                     people. <\/p>\n<p> This kind of advertising provides answers to those who maliciously                     or ignorantly attempt to tear down the private enterprise                     system. These people hammer away at human aspects of life,                     and they are not answered by statistics or records of production.                     There are human features in the present economic set-up                     which can be used through institutional advertising to explain,                     demonstrate and sell the system as well as its products. <\/p>\n<p> One unanswerable presentation of this nature is to show                     the contrast between living conditions in private enterprise                     countries and in those countries which are hamstrung by dictatorial                     government management. The thinking person gathers this lesson                     in his daily contact with advertising, but it needs pointing                     up for those less observant. As L. S. Lyon says in a scholarly                     article in <em>The Encyclopaedia of the Social Sciences<\/em>:                     &#8220;Consumer advertising is the first rough effort of a society                     becoming prosperous to teach itself the use of the relatively                     great wealth of new resources, new techniques and a reorganized                     production method.&#8221; <\/p>\n<p> The Western world is learning to produce goods at an ever                     faster rate and in always widening variety. Advertising brings                     this production into everyday life, spreads it around among                     people, and thus contributes to the rising standard of living.                     Instead of taking a generation or a century to become known,                     new aids to comfortable living are made known in a day. By                     doing this, advertising brings forward the demand that encourages                     manufacture, provides jobs, and spreads purchasing power.                   <\/p>\n<h3>Raising Living Levels<\/h3>\n<p> It may seem absurd to many persons when we say that the                     consumer doesn&#8217;t know what he wants until he is told about                     it, but an example will make it clear. Not one of us knew,                     in 1914, that he wanted a radio, or had the dollars to buy                     one. Then, suddenly, we all wanted radios and millions of                     persons on this continent had dollars to buy them. <\/p>\n<p> Advertising brings new products to our attention, and teaches                     us to use them; at first they are novelties, then luxuries,                     then staples, and finally necessities. The fact that goods                     considered necessities today were the luxuries of a generation                     ago and quite unthought of in the days of our grandfathers                     is surely an indication of an advancing level of living. <\/p>\n<p> Two authorities may be quoted: Paul H. Nystrom, Professor                     of Marketing at Columbia University, whose <em>Marketing Handbook                     <\/em>was distributed at last Spring&#8217;s public relations seminar                     in Montreal, and George B. Hotchkiss, whose <em>Outline of                     Advertising <\/em>is a textbook in the advertising course at                     McGill University: <\/p>\n<p> It is generally admitted that advertising tends to raise                     the standard of living by acquainting the population with                     the advantages of socially desirable products or services,                     making them available at lower prices, and stimulating greater                     effort to attain the standard of living that goes with the                     use of such products and services. <\/p>\n<p> Allowing for a certain amount of advertising that caters                     to human vanity, the net effect of the whole has probably                     been to cultivate appreciation of better and more wholesome                     standards of living. The percentage of people who regularly                     use dentifrices, razors and bathtubs has constantly risen.                     The family diet has become more varied and sensible; so has                     the family clothing. Houses and offices are managed with less                     labour and more comfort. Advertising has had a very definite                     share in this development. And it has certainly stimulated                     individual ambition and morale by awakening desires which                     can only be gratified by increasing one&#8217;s earning power. <\/p>\n<h3>Reducing Costs<\/h3>\n<p> It is a paradox that the more business advertises a worthy                     product the less that product costs the consumer. By stimulating                     large demand, advertising increases production and reduces                     unit production cost. At the same time, big production is                     dependent upon bulk distribution methods with a relatively                     stable demand over a wide area. And, as Nystrom remarks: &#8220;Stability                     of demand and a market great enough in territorial expanse                     to absorb local shocks without greatly affecting the total                     market are fundamental to mass production and continuous employment.&#8221;                   <\/p>\n<p> Over a period of only a few years the demand for electric                     refrigerators increased so greatly in response to advertising                     that production costs came down, and the purchase price per                     unit fell by 54 per cent. In the United States in 1905 the                     average cost of an automobile was $1,600 and there were 200,000                     sold; in 1935 the average cost was $600 and sales totalled                     3,200,000. Even in such everyday items as toilet soap, reductions                     of 60 per cent have been shown in twenty years. <\/p>\n<p> At the same time as prices have been reduced, quality and                     variety have improved. Product improvement is a legitimate                     offspring of advertising. Producers strive to outdo one another                     in finding ways to reduce prices, increase quality, and provide                     wider choices. Every sensible manufacturer is trying to turn                     out a better product at a competitive price, and he tells                     the world about it through his advertising. <\/p>\n<h3>How Advertising Appeals<\/h3>\n<p> Choice of what is called advertising appeal depends upon                     the kind of goods, the kind of person to whom the advertisement                     is addressed, what we want him to do, and the kind of medium                     used. Every appeal, whatever its specific nature, should show                     some benefit that will accrue to the purchaser. <\/p>\n<p> This kind of advertising can be orderly, clear and simple,                     free from elements of mystery. Women know, or learn by sad                     experience, that grab-bag buying, or buying pigs in pokes,                     is expensive sport. They wish to learn why a product should                     be bought, and if the producer is not willing to display it                     and tell the reasons, they view with suspicion. There are,                     of course, some who like taking chances, but consumers on                     the whole are intelligently aware of the inevitable result                     of buying blind. <\/p>\n<p> When manufacturers and dealers advertise the quality, usefulness                     and desirability of their products they are competing on a                     basis of sound values, and the consumer has confidence that                     their claims can be substantiated. Advertising a buggy in                     1904, a Toronto company said it this way: &#8220;We make one style                     only and we make it well. It looks well. It wears well. What                     more do you want?&#8221; <\/p>\n<h3>Importance of Research<\/h3>\n<p> It is good for the advertiser to spend 90 per cent of his                     time thinking about the prospect, and only 10 per cent thinking                     of what to say. From this there arises research into the buying                     habits and preferences of the consumer. One marketing research                     company lists 32 points about which research is conducted                     in connection with the marketing of goods. <\/p>\n<p> All business men, regardless of their specific work, can                     benefit by study of marketing and merchandising. It is the                     duty of research to find the facts, to interpret them, and                     to enable business to make the most of them. Marketing research                     aims at securing facts about consumers, competitors, trade                     channels, market conditions and media; while psychological                     research aims at discovering the reactions of human minds                     to elements in the product to be advertised and the means                     planned to advertise it. From this comes improvement in the                     product, in the packaging, in distribution methods and in                     presentation. <\/p>\n<p> Markets change more often than is usually assumed. Take,                     for example, the year-by-year change due to births                     and marriages. In the five years ending December 31, 1946,                     there were 1,454,500 new consumers born in Canada. There were                     582,000 marriages &#8211; and every marriage changed the pattern                     of the market in some degree. These are the changes in a mere                     five years; consider the changes in a quarter century, which                     is not long in the life of a business concern, and the need                     for continuous research and advertising becomes obvious. <\/p>\n<p> One purpose of research is to find the most suitable sales                     channels and sales appeals. How are we to reach this changing                     and expanding market? <\/p>\n<p> Advertising stretches all the way from a one-line want-ad                     in 6 point type (1\/\/12th of an inch high) to the sky-writing                     in which the letters are a mile from top to bottom, and the                     message spreads over 15 to 20 miles. Which shall we use? <\/p>\n<p> The principle we mentioned of looking at the product from                     the consumer s viewpoint applies also to advertising. An undelivered                     message is wasted, so the advertisement must be the kind best                     calculated to attract the reader&#8217;s attention and secure his                     interest. It should be clear, informative, and colorful. <\/p>\n<p> Two examples, from opposite ends of the scale, will illustrate                     better than any amount of preceptual writing. The first is                     an exact reproduction of the wording of an advertisement from                     a moving picture show which ran in newspapers in the 1920&#8217;s,                     surrounded by gargantuan teardrops: &#8220;Come out and see Cleo                     Madison weep Did you ever see Cleo Madison&#8217;s tears? Jupiter                     pluvius, but they&#8217;re wet and big and slippery. She cried 8                     minutes and 9 seconds in Damon and Pythias. The best previous                     record was 6 minutes and 4 seconds, held by Olga Nethersole                     in Camille. When Cleo Madison cries, it&#8217;s hard to keep the                     rest of the cast from crying, she&#8217;s that affectin&#8217;.&#8221; <\/p>\n<p> Contrast this overdone bathos with the story told of a blind                     beggar who had a sign reading &#8220;I am blind.&#8221; When he changed                     it for one that read &#8220;<em>It is springtime, and I am blind<\/em>,&#8221;                     his cup was filled and running over. <\/p>\n<h3>Blatancy and Exaggeration<\/h3>\n<p> A question was asked us when it was learned we were doing                     an article on advertising: &#8220;Is the suggestive, quiet type                     of advertising better than blatant advertising?&#8221; It depends                     on the audience, its environment, upbringing, sensitivity,                     education and susceptibility to suggestion. Obviously, he                     would be a daring advertiser who invested his advertising                     appropriation in running advertisements in a pulp magazine                     similar to those he used in a scholarly journal. <\/p>\n<p> Somewhat allied to this question is the matter of exaggeration.                     Sometimes and with some people exaggeration pays. We live                     in an age of exaggerations and on a continent where exaggeration                     is as natural as breathing. The time when it doesn&#8217;t pay is                     when it runs over into misstatement about quality; deceit                     as to the service the commodity will give, and illusion about                     economy. There is harmless exaggeration such as every one                     of us uses every day to gain attention, but no advertiser                     can afford to base a sale on exaggeration of the basic worthwhileness                     of his goods. <\/p>\n<p> Most instances which come to attention are of overemphasis                     on a selling point, and this is pretty generally discounted                     by people who know that the advertiser is putting his best                     foot forward. <\/p>\n<p> Every ex-soldier knows how the quartermaster discounted                     requisitions for supplies, on the general theory that any                     soldier always asked for twice as much as he really needed.                     In the same way, North Americans are fairly well used to stripping                     an advertisement of its superlatives, clearing away the puffery,                     and disregarding claims of the near-miraculous. <\/p>\n<h3>New Advertising Standards<\/h3>\n<p> For its own sake, the advertising business must keep high                     standards. As the result of vigorous educational campaigns                     carried on by advertising clubs and associations, much objectionable                     advertising has been eliminated. Not so much appeal is made                     as formerly to mankind&#8217;s lower motives, though some advertisers                     argue that this kind of appeal is necessary because the audience                     has not risen above it. <\/p>\n<p> Of all the classes of business men who have sincerely attempted                     to work out standards of business conduct, the advertising                     men have had the hardest problem. On the one hand they have                     many kinds of employers, some of whom are short-sighted                     when dealing with the public; on the other hand, advertising                     men are dealing with many credulous people who leap at everything                     new, and swallow the most outrageous claims without making                     a face. Between these two, it is no wonder that some advertising                     went astray, and that those who would improve the ethical                     concepts of the business found themselves with a difficult                     task. <\/p>\n<p> Advertising has done much in the past quarter century to                     establish nation-wide standards of good practice. All                     of the big advertisers are substantial concerns, and their                     success has been built on maintained quality. The money-back                     guarantee is commonplace, and even when such a guarantee is                     not given specifically the reputable firm is ready to make                     any reasonable adjustment to meet its advertising claims.                   <\/p>\n<p> Magazines and newspapers are not keen about questionable                     advertisements. They recognize that untruthful advertising                     lowers the tone, influence and desirability of their publications.                     Many include in their policy statements words to this effect:                     &#8220;It is the policy of this periodical to eliminate from its                     columns all questionable medical, doubtful financial and all                     other advertising which fails to measure up to the best standards                     of advertising practice.&#8221; <\/p>\n<p> One of the ridiculous criticisms of advertising is that                     it tends to regiment the people, to deprive them of the will                     to think for themselves. Most advertisers, we are told by                     an advertising manager, &#8220;would give their eye-teeth to                     have the whole crowd behind them to the exclusion of other                     competitors.&#8221; The fact that so many advertisements appear                     for the same class of goods is an indication of wide-open                     competition, under which people make choices that keep the                     competing advertisements running. <\/p>\n<p> Advertising men are aware of the responsibility that is                     theirs. They have organized themselves into associations and                     clubs, not one of which is without its ideals. One demands                     &#8220;fresh and accurate sales and advertising information&#8221;; another,                     &#8220;to do away with unscrupulous claims for media&#8221;; another,                     &#8220;to rid advertising of that load of bunk which threatened                     to drag it down in its infancy.&#8221; The first object of the Association                     of Canadian Advertisers is &#8220;to promote the highest standards                     of advertising.&#8221; In standards of practice it pledges its members                     &#8220;to support unequivocally the principle of truth in advertising,                     avoiding all manner of misrepresentation and falsification.&#8221;                     Advertising and Sales clubs, organized in all big business                     centres in Canada, have as their general objective the advancement                     of knowledge and sound practice in advertising and selling.                   <\/p>\n<h3>The Advertising Worker<\/h3>\n<p> The advertising business seems to have an unusual lure for                     young people. They see the glamourous aspects of what is really                     a business of exceedingly hard work. <\/p>\n<p> The beginner in advertising must realize that, as in most                     other businesses, drudgery in early years is essential to                     development. Our advertising manager informant says: If a                     man has a creative urge, likes people, enjoys selling and                     prefers variety and headaches to a comfortable rut with no                     headaches; if he enjoys competition with his fellow-men,                     and is not obsessed with the &#8216;art&#8217; side of the business to                     the extent that he becomes difficult to live with, then I                     think he might like advertising and make good at it.&#8221; Junior                     Advertising and Sales Clubs, usually proteges of senior clubs,                     exist to help young people decide about, and then to learn,                     the advertising business. <\/p>\n<p> Advertising is not easy work. No one knows as well as a                     creative man the mental wear and tear that goes into the building                     of an advertisement. The writer cannot take the time to work                     up masterpieces. It is said that Thomas Gray sat under an                     elm daily for seven years writing his &#8220;Elegy.&#8221; It would be                     unfair and untrue to say that creative advertising men do                     not share his desire for perfection. If they are temperamental                     it is likely blameable upon the fact that they want to do                     things right, and know they could, but they are under the                     pressure of deadlines. <\/p>\n<p> Most people think they could write if only they felt like                     it; and many people honestly believe they could do a better                     job than the author of an advertisement, an essay or a novel.                     Many executives look upon the ad man or writer as one who                     has a kind of juke box for a brain: when the executive wants                     an advertisement for Flamboyant Sope or a speech on Possibilities                     of Trade with the Moon, the writer presses the appropriate                     button and out flows what would be a masterpiece &#8211; if the                     executive just had time to polish it up a bit. <\/p>\n<h3>What Advertising Does<\/h3>\n<p> In summing up, it may be said that advertising has these                     qualities: it tends to make for better products at lower cost;                     it informs the people about new commodities and new uses;                     it helps to raise the standard of living; it fosters understanding                     of competitive business enterprise, a service vital to continuance                     of our free way of life; it develops employee pride in the                     company, and demonstrates management&#8217;s pride in the workers.                   <\/p>\n<p> Advertising is here to stay. Whatever some academic people                     may say, the activities of marketing are a part of the work                     of production. No one can think of anything more futile than                     a factory producing goods and stockpiling them forever. <\/p>\n<p> Advertising can be a great force for good, if it is approached                     ethically by the advertiser, and with common sense by the                     consumer. <\/p>\n<\/p><\/div>\n","protected":false},"author":0,"featured_media":0,"template":"","categories":[1],"rbc_letter_theme":[],"rbc_letter_year":[28],"class_list":["post-3833","rbc_letter","type-rbc_letter","status-publish","hentry","category-uncategorized","rbc_letter_year-28"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>July 1948 - Vol. 29, No. 7 - The Advertising Business - RBC<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rbc.com\/en\/about-us\/history\/letter\/july-1948-vol-29-no-7-the-advertising-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"July 1948 - Vol. 29, No. 7 - The Advertising Business - RBC\" \/>\n<meta property=\"og:description\" content=\"People don&#8217;t make a beaten path to the mousetrap maker s door unless they know he has made a better mouse trap and has a stock for sale at a price they can pay. 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That is what the advertising business is all about. 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