HOW IT PAYS TO ADVERTISE

Nelson Evening Mail, Volume LXI, 30 November 1927, Page 5

HOW IT PAYS TO ADVERTISE

STRIKING FACTS AND FIGURES Sir Russell Boncrnfl, in his presidential address to 300 delegates attending the 16th annual conference of the Bri- . lish Commercial. Gas Association at Southampton, laid stress on .the great ■yalue which could accrue to business organisations through advertising. "I am no reckless believer in the power of advertising to cure all economic evils," he said. "Merely creating new desires is not necessarily enriching the world unless people have the wherewithal to satisfy them; kit while advertising is no easy panacea for depression it can materially assist in getting us out of the vicious circle of bad trade." Sir Russell referred to the "notable success of tho co-operative advertising of the British Commercial Gas Association" and went on: "During the. 15 years in which the British' Commercial Gas Association has been in action the consumption of gas has increased by more than 30 per cent., and you cannot study the history of this progress without being forced to the conclusion that our co-operative efforts have been the principal factor in achieving it. We know also that every increase in the use of, gas or of coke for producing heat or power means that more coal, instead of being burned raw, has been converted into more efficient fuels than itself, with recovery of byproducts to boot. "Wo know that this means not only less wasteful and more fruitful use of the most important raw material that this country can produce, but also the elimination of much waste of time and energy and even waste of health, in homes and factories where gas replaces coal. "On account of all this, our advertising must fall into the category which the President of the Board of Trade has described as the best, for it adds to the national wealth. I have spoken at some length on this point because it should confirm us in our determination not only to maintain but also to enlarge our national advertising efforts. POWER OF SECOND £IO,OOO "It is worth' being clear in our own minds that, while the same cannot be claimed for a good deal of advertising our own, at least, is economically sound. When you have, as we have, an organisation on these lines you need hot hesitate to spend more money in publicity. "It is a well-known fact that the second £IO,OOO spent in advertising has more effect than the first, the third more than the second, the fourth more than the third. There is presumably a limit to this process, but we may be positive that our national expenditure on advertisements is nowhere near the limit yet. "If we doubled it at once we should reap more than double results. I scarcely need to add that this belief assumes a proportionate extension of local advertising to back up national campaigns. . . "I have advocated more advertising by the gas industry; I should not have dared to do so unless I had been sure that we can deliver the goods. There is nothing more futile than the stimulation of a demand that you cannot thoroughly satisfy." £SO FOR EVERY £1 Two examples of the power of advertising which prove tho truth of Sir Russell Pencraft's declaration were given to a London "Daily Mail" reporter. An official of the Fruit Brokers' Association of Great Britain, which organised the "Eat More Fruit" campaign, said: "Figures will, in our case, speak for themselves. We advertised extensively for three years and spent £IOO,OOO. As a result the consumption of fruit in Great Britain for that period increased bv £5,000,000." "This shows a return of £SO for every £1 spent. The Empire Marketing Board, which has been extensively advertising Empire dried fruits, had a similar experience. An official said: "We are quite satisfied with our preliminary advertising, and,, so far as we have had time to test its effect on our commodities, it has .been very well worth while. For instance, in the first half of September,' Australian sultanas had easily a record sale compared with any other year, no less than 2500 tons being sold.' This is directly attributable to advertising sound goods."