The growth of advertising is possible because of its social value, as well as of its individual value to the business using it. Society has learned that any hu man activity, to be economically justifiable, must pro duce something of value—must add some new or higher utility to the goods which comprise the wealth of society, and by this test, over the years, all institu tions of economic endeavor ultimately stand or fall.
5. A creator of utility, service to the Some modern economic thinkers have accorded to ad vertising its rightful place with agriculture, manu facturing, commerce and transportation as one of the prominent forms in the creation of wealth. Just as "form utility" is created and added to the total utility of goods by manufacturing, and "place utility" is created by transportation, so "information utility" is created by advertising. Just as rough pig iron has only a potential value until made into a finished, usable form by manufacturing; just as the finished article has only a potential value until transported to the place of its use; so the finished product, delivered to warehouse or store, has only a potential value un til the public has been informed of its existence there, and educated to its use.
The importance of this social service of advertising can scarcely be overemphasized in view of the preva lence of the old idea that its value is to the advertiser only—its cost an unnecessary burden borne by the ultimate consumer. As a matter of fact, the con sumer is not only saved time and effort in selecting what he buys, but is enabled to get better qualities and lower prices per piece by this very power of ad vertising. There are five distinct ways in which ad vertising is of service to the consumer.
6. Assists intelligent selection.—Advertising edu cates the public to better knowledge, and thus to quicker and more intelligent selection of goods on the competitive market. If the buyer does not know the relative claims or merits of the competing products, if he does not know where to find them, or if he is in ignorance of the competing prices, he cannot effect ively utilize either his time, his means, or his selective ability in buying. Not knowing prices, he cannot buy as cheaply. Not knowing qualities, he certainly cannot find the best. The absence of advertising handicaps the consumer.
7. Improves quality of goods.—Advertising not only assists the buyer to select the best qualities, but also gives him higher and higher qualities from which to select. Present day competition forces the manu facturer to establish a sound claim of superiority for his article. This claim is voiced by advertising.
Modern advertising of branded and labeled goods, thru their established individuality and the general knowledge of their quality among the public, has set new standards for the market. The new and higher business morality brought about by advertising makes misrepresentation unsafe and in many cases impos sible of success.
8. Educates the social service of ad vertising in the introduction of new and useful devices, or of improvements on established products, need hardly be dwelt upon here. Advertising has brought new products to the consumer's attention and taught him to use them. In most cases, these products have added to the consumer's health, welfare and happiness. Soap and bath-tub manufacturers have taught the value of cleanliness in preserving the health; adver tisements for tooth brushes have emphasized the neces sity for care of the teeth until it is no longer con sidered entirely natural to lose one's teeth early in life. The makers of good food preparations have exposed many popular fallacies about eating coarse and un wholesome food, and they have spread abroad much information on the subject of pure food and sanitary cooking.
There is hardly a phase of modern life into which the influence of advertising has not entered. Railroad and steamship companies, by advertising the quality of their services, have taught travelers what to expect in convenience and in safety, and by advertising the benefits of travel have stimulated travel itself to a great degree. Insurance companies, banks and simi lar institutions have dwelt so strongly upon the neces sity of thrift and protection of the family, that men who do not provide against the risks and accidents of life are looked upon as possessing poor judgment at least. Automobile manufacturers, probably, have done more to secure good roads for the farmer than have the combined efforts of all the road commission ers thruout the land. Nobody now denies the utter futility of any new product until the public knows of its existence and has been educated to its use; but few have recognized the importance of advertising in in creasing the social serviceability of well-established products thru creating wider fields for their use. The intelligent advertiser devotes as much care to the edu cation of old customers to the fullest use of his prod uct, as he spends in attracting new buyers.