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Belch: Advertising and
Promotion, Sixth Edition
VII. Special Topics and
Perspectives
22. Evaluating the Social,
Ethical, & Economic
Aspects of Advtising &
Promotion
Arguments against Advertiser Control The commercial media’s dependence on
advertising means advertisers can exert influence on their character, content, and coverage
of certain issues. However, media executives offer several reasons why advertisers
do not exert undue influence over the media.
First, they point out it is in the best interest of the media not to be influenced too
much by advertisers. To retain public confidence, they must report the news fairly
and accurately without showing bias or attempting to avoid controversial issues.
Media executives point to the vast array of topics they cover and the investigative
reporting they often do as evidence of their objectivity. They want to build a large
audience for their publications or stations so that they can charge more for advertising
space and time.
Media executives also note that an advertiser needs the media more than they need
any individual advertiser, particularly when the medium has a large audience or does a
good job of reaching a specific market segment. Many publications and stations have a
very broad base of advertising support and can afford to lose an advertiser that
attempts to exert too much influence. This is particularly true for the larger, more
established, financially secure media. For example, a consumer-product company
would find it difficult to reach its target audience without network TV and could not
afford to boycott a network if it disagreed with a station’s editorial policy or program
content. Even the local advertiser in a small community may be dependent on the local
newspaper, since it may be the most cost-effective media option available.
Most magazine and newspaper publishers insist they do not allow advertiser pressure
to influence their editorial content. They argue that they have long regarded the
formal separation of their news and business departments as essential to their independence
and credibility. This separation is often referred to as “The Wall” and is
often spoken of with a mixture of reverence and trepidation. 88 Many magazines and
newspapers have traditionally discouraged employees on the publishing side—
including advertising, circulation, and other business departments—from interacting
with those on the editorial side, who write and edit the articles. This is done by separating
editorial and advertising offices, barring the sales force from reading articles
before they are printed, and prohibiting editorial employees from participating in
advertising sales calls.
Most magazines and newspapers are very concerned over maintaining the concept
of The Wall and ensuring that decisions on the writing, editing, and publishing of stories
are made on journalistic merit rather than on whether they will attract or repel
advertisers. However, the new economics of the publishing industry is making it difficult
to maintain the separation: competition from cable TV, direct mail, and the Internet
is increasing, and newspaper and magazine readership continues to decline. There
have been several well-publicized situations in recent years where major magazines
and newspapers were found to have given favorable editorial consideration
to an advertiser. 89
The media in the United States are basically supported by advertising;
this means we can enjoy them for free or for a fraction of what they would
cost without advertising. 90 The alternative to an advertiser-supported media
system is support by users through higher subscription costs for the print
media and a fee or pay-per-view system with TV. The ad in Exhibit 22-16,
part of a campaign by the International Advertising Association, explains
how adver-tising lowers the cost of print media for consumers. Another
alternative is government-supported media like those in many other countries,
but this runs counter to most people’s desire for freedom of the press.
Although not perfect, our system of advertising-supported media provides
the best option for receiving information and entertainment.
Summarizing Social Effects
We have examined a number of issues and have attempted to analyze the
arguments for and against them. Many people have reservations about the
impact of advertising and promotion on society. The numerous rules, regulations,
policies, and guidelines marketers comply with do not cover every
© The McGraw−Hill
Companies, 2003
Exhibit 22-16 This ad
points out how advertising
lowers the cost of
newspapers for consumers
771
Chapter Twenty-two Evaluating the Social, Ethical, and Economic Aspects
of Advertising and Promotion