In spite of the fact that advertising today has gained immense popularity and reputation it is also faced with genuine criticisms. Many economists have either ignored advertising or have viewed it with suspicion. According to American Marketing Association 'Advertising is an impersonal sales effort aimed at inducing or encouraging people to buy goods '. The persuasive element of advertising has evoked critics.

In a country like India, saving is considered virtue and spending sinful. Many Indian economists believe that consumers are rational and thus make decisions based on priorities of quality and price, while the conducive mask put on by a product has no effect on their rational decision. Economists thus have been the severe critics of advertising.

N Kadlor, a major critic of advertising in his article written in 1950 said ' The economic aspects of advertising say that primary objective of advertising is to inform but it does do this effectively as expenditure is excessive.' Similarly well known economists such as A.C Pigore argued that advertising would lead to monopoly and D. Braithwaite quoted that advertising would restrict competition as price and quality lost their power.

Advertising being glamorous and persuasive in nature convinces consumers to buy product they do not need or afford. The common argument is that advertising increases the cost of goods. The critics say consumers- the price of a product would have been much lower if companies did not advertise. However, according to defendants, in long run advertising increases sales and reduced cost due to large scale production. Besides in the absence of advertising a consumer would have been unaware of the goods and services available to him. Several argue that advertising is false and mis-leading, the advertisers do not tell the full story and thus make false claims.

Indians seems to have a very glamorised image of foreign powers. As a result many advertisers employ the practise of using names which give a wrong impression about quality and origin of the product - for instance, the use of ' Made in France ' or Made in Paris ' in cosmetic advertising.