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Advertising

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Abstract

Advertising has been controversial, probably more so that its economic importance would justify, at least since the emergence of the mass media in the 19th century. In the United States, advertising spending in the second half of the 20th century was just above two per cent of GDP. This ratio grew slowly over time; it is much lower in most other countries, especially in developing nations. In the United States and elsewhere, the ratio of advertising to sales varies dramatically among industries, even if attention is limited to industries selling consumer goods and services.

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© 2008 Palgrave Macmillan, a division of Macmillan Publishers Limited

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Schmalensee, R., Genesove, D. (2008). Advertising. In: Durlauf, S.N., Blume, L.E. (eds) The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-58802-2_12

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