ADVERTISING PAYS

Poverty Bay Herald, Volume LXIII, Issue 19104, 27 August 1936, Page 15

ADVERTISING PAYS

A STRIKING TRIBUTE

LONDON, July 14

Sir Herbert, Morgan paid a striking tribute lo the value of national advertising lo business at a lunch yesterday at the Savoy Hotel to inaugurate the New Domestic Investment Trust. A careful analysis, of the trading records of great industrial companies over the past general ion, he said, proved that Ihe profits of those companies who advertised were less likely to Uncinate than the majority of those who did not advertise. Most great advertisers had been consistent profit earners over u long period of yearn. The goodwill created by advertising was. an enormous asset and, in general, an increasing one. liesearch into tho history of industry went far to prove that goodwill was less of a wasting asset, than plant, machinery and buildings.

National advertising as known in 1936 was born about, 100 years ago, and there were firms trading to-day who still derived benefit trout advertising almost a century old. The maintenance of profits by providing for, advertising expenditure- in other words, a. development, fund —was more certain than (heir maintenance in most other ways.