Evening journal., 1914-02-18
ADVERTISING
A PRODUCTIVE
INVESTMENT
address by George Frank
Lord Before the Rotary
Club in Philadelphia
INSTANCES SUCCESS OF
PRINTERS' INK USERS


George Frank Lord, advertising
manager OF the y. l. DUPONT dc Ne
mours Powder Company. last night
gave an interesting talk, showing
that advertising is a productive in
vestment before the Rotary Cub, in
Philadelphia. The Rotary Club is
one of chain Of rotary clubs es-
tablished IN all the principal cities
Of the United States. These clubs
have Tor their object the improve
ment OF business conditions through
the free discussion by its members
of commercial and economic prob
lens affecting modern business.
"Advertising-An Investment or an
EXpense?" was the subject of Mr..
Lord. In part he said:
"As men Of affairs, the men Of this
club must realize the importance Of
advertising in modern life.
You must each know that whether
you make, buy or sell advertised
goods whether you are q manufac-
turer. dealer or consumer, adyertis-
ing is to you a vital economic fac
tor, and as such should be under
stood, appreciated and properly
classified
For the second time I am a ma
tional advertising manager. and for
a number OF years was in the adj
vertising agency business.
THE watchword OF business to-
dy is efficiency. In no other de-
partment of a business is greater ef-
ficiency more necessary or more re-
sultful in dollars and cents than in
the advertising.
ITO secure maximum efficiency IRON
money and effort spent in advertising
it is certainly fundamental necessity
that we know how its cost should b'
entered on the ledger, and on what basil
advertising appropriations should b.
granted.
1T has been my experience and OBJ
servation that the man with schem
for making money out Of his brains
nerve and q few dollars, regarded ad
vertising as an investment which if for
tune favored him, would return prin
cipal and ample interest.
"On the other hand, the manufacture
OF a more or less staple commodity, f
nally half convinced that advertising
might be a good thing for his business
almost invariably regards it as an cx
pense item like the bookkeepers' salar,
or the electric light bill. Which,
either, Is right!
"The usual conception OF expense,
a necessary but non'productive tier
that enters into the cost OF doing bust
ness, something that can't be helped
but must be endured with the best grac
possible.
The average mans idea Of an invest
nent IS a purchase Of something that
win return dividends more or less regu
larly, and in fair amount, and az th'
same time have in itself a constant
value at least equal TO its original cost.
1T MS consider how these definitions
1pply 10 advertising. II advertising i
productive, if IL adds anything to III
credit side Of the ledger, it cannot be al
an expense item.
Recently ! heard Herbert -rson Civ
the following excellent definition: "Ad
vertising is the art OF compelling appre
ciation.' Thinking about the subject o
nv talk tonight suggested three othe
definitions:
will
"'2. Business integrity is the mothe
Of good viii
8. Goodwill, is the chief produce
of common stock values and divi
dends.
we know that the CHIEF difierenc
between a new business aud Que j.
the same line long established IL thi
the latter has valuable asset IL il
good will. Many an old concern ha
been sold for round sum that ha
no other asset worth buying.
Nowadays when most concerns Ar
incorporated and issue prefcrre
stock and bonds covering most {
their tangible assets, good-wih
the chief asset back OF their commo
stock. II Is the best guarantee {
continuous sales and the best bu
wark against competition
Mr.. Lord cited many instances {
the success and wealth that hav
come to large and consistent advei
tisers OF products like Postum, Uneed
Biscuit, etc.