Advertising has long been recognised for creating a virtual reality of life, leading some individuals to develop expectations surpassing practical expectations. This phenomenon is driven by idyllic imagery, storytelling, and an emphasis on materialism, among other techniques.

Consequently, critics argue that advertising fosters unrealistic consumer expectations, which can lead to disappointment regarding overall life satisfaction. On the other hand, some posit that advertising enhances life satisfaction by providing valuable information that consumers can use to improve their lives.

These contrasting perspectives were the impetus for a comprehensive and thorough research, representing a rare and comprehensive examination of the relationship between consumer life satisfaction and advertising. The study, titled “A Longitudinal Examination of the Relationship Between National-Level Per Capita Advertising Expenditure and National-Level Life Satisfaction Across 76 Countries,” was published in the peer-reviewed INFORMS journal Marketing Science. The authors include Michael Wiles from Arizona State University, Saeed Janani from the University of Denver, Darima Fotheringham from Texas Tech University, and Chadwick Miller from Washington State University.

“Given advertising’s ubiquity and its influence on consumption decisions, it is reasonable to consider that advertising may also be linked to life satisfaction,” says Wiles. “Advertising can serve as an effective mechanism for disseminating information, which individuals rely on to gain knowledge about consumption options, ultimately enhancing life satisfaction.”

Wiles adds, “Another perspective on advertising suggests that it distorts individuals’ preferences towards consumption options that they may neither need nor want. Consequently, advertising can establish unrealistic or unhealthy consumption norms, potentially diminishing life satisfaction.”

The researchers delved into these issues by analysing patterns in a global context, covering 76 countries from 2006 to 2019. They examined the association between per capita advertising expenditure and national-level life satisfaction. To achieve this, they developed empirical research models to analyse perception data, utilised secondary data, and conducted a series of experiments.

“We discovered that per capita advertising expenditure is positively correlated with national average life satisfaction,” says Wiles. “However, we also found that excessive advertising can have negative effects, particularly when considering factors such as culture, income, and inequality. In certain contexts, advertising can contribute to reduced life satisfaction.”

“The takeaway from our research is that when advertising is utilised to reduce marketplace uncertainty, it can be a powerful force for good,” Wiles concludes. “Nonetheless, it is crucial to remain aware that this force can sometimes overemphasise materialism and, as a tool for life satisfaction, its impact can vary across different settings.”

More information: Michael A. Wiles et al, A Longitudinal Examination of the Relationship Between National-Level Per Capita Advertising Expenditure and National-Level Life Satisfaction Across 76 Countries, Marketing Science. DOI: 10.1287/mksc.2021.0136

Journal information: Marketing Science Provided by Institute for Operations Research and the Management Sciences