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EVENING kEDGEB-HlEADJELPHIA, FBIDAY, APBIU 30, 1915:
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WHAT ADVERTISING "COSTS"
When you see a great advertising campaign in progress, you are
inclined to say, "That costs a great deal. It must add considerably to
the price of the goods."
You may not realize that this advertising may double the sales, may make the work of the
salesman easier, may solve problems that would have cost the firm thousands of dollars to solve in
any other way, and may build up a good will worth millions.
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The cost of advertising, rightly done, disappears in the economies it brings.
And, after all, these advertising appropriations usually represent far less expenditure than other
. important departments of the business.
A certain manufacturer of automobile accessories invests in advertising $1,000,000 a year.
A huge sum? Yes.
But it is . less than three per cent, of the total sales of the company, which last year were
$40,000,000.
Another automobile accessory advertiser, with an advertising investment of one and one-half per
cent, obtained leadership in his field. '
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But, you say, the automobile business is exceptional.
Here is the case of an advertiser of food products.
-r:,::This year he made an appropriation of $275,000 a large sum, making possible a big, strong
campaign.
But it is less than one and one-half per cent, of the volume of business done last year.
A textile advertiser is carrying on a small but successful campaign with a sum equal to one-half
" of one per cent, of the gross retail prices. ,
A shoe company has a total selling cost including advertising of four per cent. .
A great clothing company appropriates less than two per cent of the wholesale price. i'
This means that when you go into a clothing store and buy a suit at $25, not more than 30 cents
of that price represents the advertising cost. For that 30 cents you get a guarantee of quality, an
assurance that the goods are right, a known style, a feeling of security.
More than that, that thirty cents has been saved over and over again, perhaps cutting several
dollars off the price of the suit, by the economies in production and selling made possible by the large
volume of sales which advertising produces. , j
Advertising, rightly done, is never a cost. ?: ; ..--r'A-f ..";''
It is an economy for the consumer and an 'investment for the
advertiser.
THE CURTIS PUBLISHING COMPANY
" ; INDEPENDENCE SQUARE, PHILADELPHIA '
The Ladies' Home Journal The Saturday Evening Post' The Country Gentleman
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