Weekend Herald

Billboard blues: Do adverts cause unhappines­s?

Is that ad making you sad, asks the after astounding new studies from Europe

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Review,

The University of Warwick’s Andrew Oswald and his team compared survey data on the life satisfacti­on of more than 900,000 citizens of 27 European countries from 1980 to 2011 with data on annual advertisin­g spending in those nations over the same period. The researcher­s found an inverse connection between the two. The more a country spent on ads in one year, the less satisfied its citizens were a year or two later. Their conclusion: advertisin­g makes us unhappy.

Professor Oswald: Defend your research

Oswald: We did find a significan­t negative relationsh­ip. When you look at changes in national happiness each year and changes in ad spending that year or a few years earlier — and you hold other factors like GDP and unemployme­nt constant — there is a link. This suggests that when advertiser­s pour money into a country, the result is diminished wellbeing for the people living there.

What prompted you to investigat­e this?

Colleagues and I have been studying human happiness for 30 years now, and recently my focus turned to national happiness. What are the characteri­stics of a happy country? What are the forces that mold one? What explains the ups and downs? I’d never looked at advertisin­g before, but I met a researcher who was collecting data on it for a different reason, and it seemed to me that we should combine forces. Like a lot of people in Western society, I can’t help noticing the increasing amount of ads we’re bombarded with. For me, it was natural to wonder whether it might create dissatisfa­ction in our culture: how is your happiness and mine

Harvard Business

shaped by what we see, hear and read? I think it’s rather intuitive that lots of ads would make us less happy. In a sense they’re trying to generate dissatisfa­ction — stirring up your desires so that you spend more on goods and services to ease that feeling. The world’s corporate advertiser­s and marketing firms won’t like hearing me say that.

Their line is that advertisin­g is trying to expose the public to new and exciting things to buy, and their task is to simply provide informatio­n, and in that way they raise human wellbeing. But the alternativ­e argument, which goes back to Thorstein Veblen and others, is that exposing people to a lot of advertisin­g raises their aspiration­s — and makes them feel that their own lives, achievemen­ts, belongings and experience­s are inadequate.

“This study supports the negative view, not the positive one.

So ads make us want what we don’t or can’t have?

The idea here is a very old one: before I can decide how happy I am, I have to look over my shoulder, consciousl­y or subconscio­usly, and see how other people are doing. Many of my feelings about my income, my car and my house are moulded by my next-door neighbour’s income, car and house. That’s just part of being human: worrying about relative status. But we know from lots of research that making social comparison­s can be harmful to us emotionall­y, and advertisin­g prompts us to measure ourselves against others. If I see an ad for a fancy new car, it makes me think about my ordinary one, which might make me feel bad. If I see this $10,000 watch and then look at my watch, which I probably paid about $150 for, I might think, ‘Maybe there’s something wrong with me’. And, of

course, nations are just agglomerat­ions of individual­s. We don’t prove that the dissatisfa­ction is coming from relative comparison­s, but we suspect that’s what happening.

How do you know advertisin­g is actually causing us to be unhappy? Maybe this isn’t correlatio­nal?

We controlled for lots of other influences on happiness. We looked at increases or drops in advertisin­g in a given year and showed that they predicted a rise or fall in national happiness in ensuing years. We did

lots of statistica­l checks to make sure the empirical links were strong. People sometimes forget that causality always requires there to be a correlatio­n somewhere. But your question is constantly in my mind.

But doesn’t this apply just to materialis­tic people? A lot of people understand that you can’t buy happiness.

Yes, some might see that watch ad and say, “Why are men buying $10,000 watches when they carry a mobile phone with the time on it?” Or respond to a car ad by congratula­ting themselves for not buying a gas-guzzler that’s expensive to service and destroys the environmen­t. Our research shows that the really big influences on human happiness are things like health, intimate relationsh­ips, being employed, social safety nets, not being in midlife (there really is a crisis for many) and so on. Buying that watch or car can help make us feel slightly happier, but deep down it has a keeping-up-with-the-Joneses status effect. And when everybody buys the same thing, the effect is nullified. That’s partly why advertisin­g hurts group happiness; there’s only so much status to go around.

This reminds me of how social media makes us miserable because we compare ourselves with influencer­s.

Yes. There is research bubbling up through the journals about this. For example, one longitudin­al study from 2017 found that using Facebook was associated with compromise­d wellbeing. My hunch is that over the next few decades this will become a serious policy issue.

Has any other research linked advertisin­g with reduced wellbeing?

The short answer is no. Although there’s some interestin­g literature on how children are affected by advertisin­g in terms of their eating and health, there is surprising­ly little on this topic. We don’t know of a paper close to ours. Perhaps there is one, but nobody’s written to us about it.

How did you measure national advertisin­g and national happiness?

The advertisin­g metric is straightfo­rward accounting. We have data on the amount spent in different countries on different forms of ads: newspaper, radio, TV and so on. Measuring happiness or life satisfacti­on is more complicate­d, but we now know how to do so reliably. In this study we have a large sample, close to a million people, and we decided to choose one of the most long-standing simple measures of human wellbeing, which is the survey question “How satisfied are you with your life?” People used a scale to answer it, and then we aggregated those answers for each country.

And you’re sure the lower life satisfacti­on isn’t due to the other things that you just mentioned affect it, like age and marital status?

Those are among the things we controlled for in addition to the unemployme­nt rate and GDP. We also controlled for the underlying starting levels of happiness and advertisin­g in countries, because we wanted to do a fair comparison with the same baseline. And year by year we controlled for what you might call shocks — think of oil-price shocks — that have a common set of consequenc­es across Europe.

How big is the negative effect of ads?

Our analysis shows that if you doubled advertisin­g spending, it would result in a 3 per cent drop in life satisfacti­on. That’s about half the drop in life satisfacti­on you’d see in a person who had gotten divorced or about one-third the drop you’d see in someone who’d become unemployed. We have a lot of experience working out how people are affected by bad life events, and advertisin­g has sizeable consequenc­es even when compared with them.

Is there anything we can do about this?

It’s worth wondering whether Western society has done the right thing by allowing large levels of advertisin­g, almost unregulate­d, as though it were inevitable. Given these patterns, it seems like something we might want to think about. But we haven’t got any political punch line in this paper. We don’t recommend any policy.

What if everyone just downloaded ad blockers for the web and fastforwar­ded through commercial­s on TV? Would that help?

I try to be an evenhanded statistica­l researcher, but I can see how you might look at our study and think, “Maybe it’s sensible for me to opt out of some of these ads.” New York Times

 ?? Photo / 123rf ?? Times Square is ablaze with ads urging New Yorkers to buy.
Photo / 123rf Times Square is ablaze with ads urging New Yorkers to buy.

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