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This skepticism is in fact the driving force that makes advertising so effective. The persuasive purpose of advertising and the skepticism with which it is met are two sides of a single process. Persuasion and skepticism work in tandem so advertising can do its job in competitive markets. Hence, ads represent the seller's self interest, consumers know this, and sellers know that consumers know it.
By understanding this process more fully, we can sort out much of the popular confusion surrounding advertising and how it benefits consumers.
How Useful is Advertising?
Just how useful is the connection between advertising and information? At first blush, the process sounds rather limited...
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