Advertisement is important to attract the society but for a small business, every dollar is precious. Small businesses do not advertise for the sake of advertising. Instead, they want to get the most return for their investment. Your advertising campaign should translate to greater sales, more profits and healthier bottom line. However most of the advertisement can lead to negative consequences rather than its positive effects.
Some disadvantages that have been found to conclude the main effect of advertising are; it increases the cost of goods as the cost of the advertisement is included in the price and is ultimately borne by the customers. It also misleads the public by giving false statements about the product. (It may be true in some cases but majority of advertisers know the value of honest statements.) It can creates a dissatisfaction by creating tastes and desires for some people whose income may not allow them to buy. Such people feel dissatisfied.
In addition it increases monopolistic trend. Due to advertisement some manufacturers create monopoly in industry and thus reduce healthy competition. It becomes difficult for new firms to enter the field. It creates the possibility of wrong purchases. Being impressed by the advertisement, in some cases, a person is not able to purchase the commodity, which he actually wants to purchase. Advertisement also encourages luxury. Mostly the commodities related to comforts and luxuries are advertised, for example, cigarettes, cosmetic goods and etc. due to advertisement of cigarettes several persons start smoking cigarettes, which becomes habit. These continues to reduces cleanliness. Large number of posters and writings on the walls are used for advertisement. This makes the roads and the walls of the houses look dirty. Thus, it reduces the natural beauty. Finally, advertising can cause of wastage of natural resources. As a results of advertisement, style and fashion change quickly. It makes the goods out of fashion.
