UNIT 2 Am
UNIT 2 Am
Impact of Advertising
The impact of advertising is far-reaching and can influence both individuals and society in
numerous ways. While it can drive sales and build brand loyalty, it can also shape societal
values, influence consumer behavior, and contribute to economic growth. However, advertising
can also have negative effects if not done responsibly.
Positive Impact of Advertising:
1. Informs Consumers:
o Advertising provides consumers with information about products, services, and
innovations. It helps consumers make informed decisions by presenting key
benefits and features of a product.
o Example: Samsung’s Galaxy Phone Ad Campaign: Samsung’s ads highlight
the innovative features of their smartphones (camera quality, battery life, etc.),
informing consumers about what sets them apart from competitors like Apple.
2. Stimulates Economic Growth:
o Advertising drives demand for products and services, which can boost sales and
contribute to the economic growth of businesses and industries.
o Example: McDonald's Advertising: McDonald’s global advertising
campaigns stimulate demand for their fast food, contributing significantly to the
global fast food industry’s growth.
3. Brand Awareness and Recognition:
o Effective advertising can build strong brand awareness and recognition. When
consumers frequently see or hear an ad, they are more likely to remember the
brand and consider it when making purchasing decisions.
o Example: Apple's Advertising: Apple’s advertising has played a key role in
creating a strong brand identity and making its products instantly recognizable
worldwide, contributing to their market dominance.
4. Encourages Healthy and Positive Lifestyles:
o Advertisements that promote healthy products or lifestyles can have a positive
effect on consumer habits.
o Example: Ariel’s "Share the Load" Campaign: Ariel launched an advertising
campaign encouraging men in India to share the load of household chores,
promoting gender equality and challenging stereotypes.
5. Supports Media and Creative Industries:
o Advertising revenue supports media outlets, including TV, radio, print, and
digital platforms, enabling them to produce content that entertains, educates,
and informs the public.
o Example: Television Advertising: Advertisements shown during popular TV
programs like Bigg Boss or KBC in India generate revenue for the media
company, helping fund their production of high-quality content.
In the world of advertising, two concepts that often arise when discussing the ethical boundaries
of marketing are deception and puffery. While both can influence consumer perceptions, they
are fundamentally different in their nature and legal implications. Understanding the distinction
between the two is essential for businesses to ensure they remain compliant with advertising
regulations and avoid misleading consumers.
Deception in Advertising
Deception refers to any form of advertising or marketing practice that misleads or creates a
false impression in the mind of the consumer. It involves giving information that is untrue,
misleading, or omitting important facts that could alter the decision-making process of the
consumer. Deceptive advertising violates the basic principles of honesty and transparency,
and it can lead to legal actions, financial penalties, and a loss of consumer trust.
• False Claims: The ad makes statements that are outright lies or significantly
exaggerated to mislead consumers.
• Omission of Important Facts: The advertisement might leave out crucial information
that a consumer would need to make an informed decision.
• Misleading Impressions: It creates a false impression about a product’s performance,
benefits, or characteristics.
Examples of Deception:
In India, deceptive advertising is illegal and is governed by The Consumer Protection Act,
2019. The Act defines deceptive practices and provides for consumer protection by imposing
penalties, including fines and imprisonment. The Advertising Standards Council of India
(ASCI) also enforces guidelines to ensure advertisements do not deceive or mislead consumers.
Puffery in Advertising
Puffery, on the other hand, refers to exaggerated claims or statements that are subjective and
cannot be proven true or false. These statements are often made in a way that an average
consumer would not take them literally. Puffery is legal and is considered part of creative
advertising because it doesn’t mislead consumers into making decisions based on false
information. Puffery is more about promoting the brand image than providing specific, factual
information about a product.
• Subjective Exaggeration: Puffery often involves broad, subjective claims like "the
best," "the finest," or "the most amazing."
• Not Meant to be Taken Literally: Consumers generally understand that puffery is just
a marketing tactic and not a factual claim about the product’s actual performance.
• Safe from Legal Action: Since puffery doesn’t deceive consumers into making
purchasing decisions based on false facts, it’s usually exempt from legal scrutiny.
Examples of Puffery:
Puffery is generally not subject to legal action because it does not mislead consumers into
making decisions based on false or misleading facts. However, advertisers need to ensure that
their puffery does not cross over into deception. While puffery is allowed, it must not make
claims that could potentially mislead an average consumer.
1. Deceptive Advertising:
o Example: Patanjali: In 2018, the Advertising Standards Council of India
(ASCI) raised concerns over Patanjali’s claims regarding its “Patanjali Dant
Kanti” toothpaste. The advertisement claimed that it could cure oral diseases,
but the claims were not substantiated by scientific evidence. This claim was
considered misleading and was addressed by ASCI under the guidelines for
false advertising.
2. Puffery in Indian Advertising:
o Example: Amul: Amul, a well-known dairy brand in India, often uses puffery
in its advertisements. A typical slogan like “Amul Butter – The Taste of India”
is a subjective and exaggerated claim, which is meant to evoke emotional appeal
rather than provide factual evidence.
o Example: Maggi Noodles: Nestlé India has often used puffery in its marketing,
especially with the tagline "2-minute noodles." While this is not an actual
statement of fact, it highlights the convenience of the product in an exaggerated,
but generally accepted, way.
Advertising plays a significant role in shaping consumer behavior, and children are one of the
most vulnerable target audiences for advertisers. The impact of advertisements on children has
raised concerns regarding their influence on children's health, attitudes, values, and social
behavior.
1. Psychological Impact
Children, especially those under 12, are less capable of critically analyzing advertisements.
They are more susceptible to persuasive messages and often have difficulty distinguishing
between entertainment and advertising. This makes them highly influenced by advertisements.
Example: A candy brand might use a character that children love (e.g., a cartoon character) to
create a strong association with the product. The child is not just interested in the candy but is
emotionally attached to the character, making the product even more desirable.
Example: Commercials for toys like Barbie or Hot Wheels often show extravagant lifestyles
or worlds, leading children to believe that owning such toys will give them access to the same
fantasy world.
2. Health-Related Impact
The promotion of unhealthy foods and beverages through advertisements targeting children
has raised concerns. Many ads for sugary snacks, junk food, and fast food create long-term
health implications for children, contributing to childhood obesity, diabetes, and poor eating
habits.
• Example: Fast food brands like McDonald's and KFC often use colorful and attractive
advertisements featuring cartoon characters, offering toys or fun experiences along with
the food. This can encourage children to choose fast food over healthier options.
Advertising can affect how children perceive social roles, gender, and behavior. For instance,
advertisements can reinforce gender stereotypes by depicting girls as passive, nurturing, and
beauty-focused, while boys are shown as active, adventurous, and strong.
• Example: Ads for toys like dolls often target girls with messages about beauty and
domesticity, whereas action figures or cars are marketed toward boys, emphasizing
adventure and power.
• Gender Representation: Brands like Dove have taken steps to counteract stereotypical
portrayals of women by promoting real beauty and self-esteem. However, many
traditional ads still show women in domestic or subordinate roles, contributing to
gender inequality.
4. Cognitive Development
Children's ability to recognize and understand the persuasive intent of advertisements develops
gradually. Younger children (under 7 years) are particularly vulnerable because they don’t
understand the persuasive nature of ads and believe everything presented in ads is true.
• Example: Commercials that feature animated characters often make children think that
the product is both fun and reliable, which may mislead them into believing the
advertised claims.
In response to these concerns, several regulations have been implemented to protect children
from deceptive advertising. The Advertising Standards Council of India (ASCI) has
established guidelines for advertisements directed towards children, including:
Women, as a major segment of the consumer market, are both directly and indirectly impacted
by advertising. Over the years, advertising has influenced women’s self-image, aspirations, and
societal roles. While advertising can empower and inspire women, it can also perpetuate
stereotypes, unrealistic standards, and harmful ideals.
Historically, women have often been portrayed in traditional and stereotypical roles in
advertisements, such as being primarily responsible for household chores, childcare, or beauty.
Example: Ads for household cleaning products like Harpic or Vim often depict women as the
ones who must clean and manage the household, reinforcing gender-specific responsibilities.
Example: Beauty product brands like Fair & Lovely (now rebranded as Glow & Lovely) have
been criticized for promoting fairness as a standard of beauty, which contributes to colorism
and perpetuates harmful stereotypes about skin tone.
2. Impact on Self-Esteem
The portrayal of women in ads often leads to a negative impact on self-esteem, as women
compare themselves to the idealized images they see in advertisements. This can lead to body
dissatisfaction, eating disorders, and unhealthy beauty standards.
• Example: The use of Photoshop and airbrushing in magazine and cosmetic ads often
results in unrealistic portrayals of women’s bodies. When women cannot live up to
these ideals, it can result in dissatisfaction with their appearance and self-worth.
In recent years, there has been a shift toward portraying women as empowered, independent,
and diverse in advertisements. Brands have started to break traditional stereotypes by showing
women in leadership roles, as professionals, athletes, or adventurers.
• Example: The Nike campaign featuring athletes like Serena Williams and Saina
Nehwal showcases women excelling in sports, challenging the stereotype of women
being less capable of physical feats.
• Dove’s “Real Beauty” Campaign: Dove’s campaign aimed at portraying real women
of different body types, skin tones, and ages has been widely praised for its positive
impact on women’s self-esteem and body image. By focusing on the natural beauty of
women, Dove has helped change the narrative in the beauty industry.
• Example: Brands like HDFC Bank or ICICI Bank have focused on advertising their
services to women, portraying them as independent financial decision-makers.
Similarly, car brands like Hyundai have started using women in their advertisements,
emphasizing the importance of women as decision-makers in purchasing cars for their
families.
More recently, women are being portrayed in diverse and non-traditional roles in advertising.
The shift towards inclusive advertising ensures that women of all backgrounds, body types,
and ethnicities are represented in the media. Brands are adopting a more holistic approach to
advertising, focusing on women's empowerment, independence, and leadership.
• Example: Whirlpool India ran a campaign that portrayed the modern Indian woman
as a multi-tasker, juggling both professional and personal lives, highlighting how
appliances can assist in making life easier for women.
Ethics in Advertising
Advertising Ethics refers to the set of moral principles and standards that guide the conduct
of individuals and organizations in the advertising industry. The goal is to ensure that
advertising is truthful, respectful, and serves the public interest without deceiving or misleading
consumers. Ethical advertising is vital because it not only builds trust with consumers but also
contributes to a fair, transparent, and competitive marketplace.
1. Building Consumer Trust: Ethical advertising ensures that consumers receive truthful
and accurate information about products and services. It helps to build trust and loyalty,
which are essential for long-term customer relationships.
Example: Tata Motors is known for its ethical advertising practices. Their campaigns often
emphasize trust, sustainability, and social responsibility, contributing to a strong brand
reputation.
Example: Coca-Cola's campaigns that target children focus on fun and happiness, without
misleading them about the health effects of sugary beverages.
Example: Nike's "Dream Crazier" campaign highlighted the struggles of female athletes,
challenging societal norms and promoting inclusivity and empowerment for women in sports.
Example: Maggi Noodles (Nestlé India) was accused of misleading consumers about the
safety and quality of its products after the discovery of high levels of lead. This led to a major
recall and regulatory scrutiny.
2. Stereotyping and Gender Bias: Many ads reinforce gender stereotypes, portraying
women in submissive or traditional roles, and men as dominant. This not only
perpetuates harmful ideas but also harms societal development.
Example: Earlier, Fair & Lovely advertisements portrayed fair skin as the ideal standard of
beauty for women, which led to criticism and a rebranding of the product to Glow & Lovely.
3. Exploiting Vulnerabilities: Ads targeted at children or people with low literacy skills
can exploit their vulnerability by encouraging them to purchase unnecessary or harmful
products.
Example: Candy ads often target children with colorful, engaging visuals, and characters to
encourage them to choose unhealthy snacks, ignoring the potential long-term health risks.
Regulatory bodies are responsible for ensuring that advertising practices are ethical and comply
with established laws and standards. These organizations ensure that advertising does not harm
the public interest or violate consumer rights.
The Central Consumer Protection Authority (CCPA) was created under the Consumer
Protection Act, 2019 to protect consumers from unfair trade practices, including deceptive
advertising.
• Role: CCPA can take suo-motu action against misleading advertisements, conduct
investigations, and impose penalties on those found violating consumer rights.
• Example: The CCPA took action against Dabur in 2021 for misleading ads about the
effectiveness of its Patanjali product in curing COVID-19. Dabur was fined and
required to take down the advertisements.
The Ministry of Information and Broadcasting (MIB) in India oversees the content of
advertisements, ensuring that they do not violate ethical standards and the law. MIB has the
authority to regulate broadcast media (TV, radio) and online platforms.
• Role: MIB ensures that advertisements aired on television and radio comply with
guidelines for decency, public order, and consumer protection.
• Example: MIB took action against channels airing ads that promoted fake health
products or exaggerated claims about their benefits.
The Food Safety and Standards Authority of India (FSSAI) ensures that advertisements
related to food products are not misleading, particularly regarding health benefits or nutritional
value.
• Role: FSSAI ensures that health claims made by food products are scientifically
substantiated and that labels provide accurate information.
• Example: Pepsico was scrutinized for falsely claiming that its energy drink "Slice"
had health benefits that were not substantiated.
The regulatory environment for advertising in India has evolved over the years, with increasing
focus on consumer protection, ethical advertising, and transparency. Several acts and
guidelines govern advertising, ensuring that businesses follow ethical practices while engaging
with consumers.
Key Regulations
1. The Consumer Protection Act, 2019: This Act empowers consumers to file
complaints against misleading or deceptive advertisements. The Central Consumer
Protection Authority (CCPA) was created under this law to ensure fairness in
advertising practices.
Example: In 2020, the CCPA intervened against Patanjali's Coronil Kit ads, which claimed
to cure COVID-19 without scientific evidence.
2. The Cable Television Networks (Regulation) Act, 1995: This Act governs the content
aired on television, including advertisements. It prohibits the airing of ads that are
misleading or cause harm to public interests.
Example: Ads that promote harmful practices, such as quackery or unapproved medicines,
can be prohibited under this Act.
3. The Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954: This
law regulates advertisements about drugs or remedies that make claims about curing
ailments. It prohibits advertisements that promise to cure diseases like cancer, diabetes,
or COVID-19 without scientific backing.
Advertising Codes are formalized guidelines and ethical principles that advertisers are
expected to adhere to in order to ensure fairness, truthfulness, and transparency. These codes
of ethics are implemented by various regulatory bodies to prevent unethical advertising
practices.
The ASCI Code of Advertising Practice is a set of guidelines designed to ensure that
advertisements in India are truthful, legal, and socially responsible.
• Key Principles:
o Truthfulness: Advertisements must be honest and should not mislead
consumers.
o Social Responsibility: Advertisements should respect the public’s sensitivities
and social norms.
o Fair Competition: Advertisements should not unfairly discredit competitors.
• Example: Vodafone India ran a campaign featuring a puppy, but the ad was deemed
misleading because it implied the dog could "talk". After ASCI reviewed the campaign,
Vodafone was asked to modify the ad, as it could mislead children about the nature of
animals.
• Key Features:
o Advertisement content must conform to Indian cultural norms and societal
values.
o It prohibits ads that promote negative habits such as smoking or alcohol
consumption.
o It also ensures that all claims made in advertisements about product benefits are
substantiated by evidence.