Is Advertising Wasteful?

Does advertising represent a dissipation of economic resources or their efficient use? Economists generally have been lined up on one side of this question and marketing men on the other. In this article, an economist disagrees with his colleagues. The main criticisms are reviewed and analyzed. The informational role of advertising is emphasized. The fact that advertising is used generally when it is the most efficient tool in the marketing arsenal is underlined. The quantitative dimensions of so-called competitive or persuasive advertising are indicated. The relationships to competition, costs, economic growth, and the degree of affluence of a society are reviewed.