Advertising plays a critical part in all market economies. It helps stimulates growth and innovation, encourages competition and increases consumer choice through information provision. Advertising helps to create awareness among the consumer about product innovations and keeping them informed of the range, nature and quality of the products available to them. Advertising is crucial for maintaining or increasing market share and vital to the introduction of a new product or the improvement of an existing one.
To fulfil these roles, advertising must also attract consumer trust and confidence. It must be legal, decent, honest and truthful. If not done properly, advertisers can mislead consumers. It can be offensive and can result in unintended results. Bad advertising, even when it account for only a small percentage of the whole, can undermine consumer confidence and all advertising will suffer. So it is in the interests of the advertising industry and consumers, regulation becomes important.