People commonly believe that advertising is of benefit to the advertiser alone. Some people argue that it harms the customers because of an increase in the product’s price due to the marketing costs.

Advertising are fixed costs for which the relative price decreases the higher the quantity of product sold. A buyer is paying very little per item for the advertising required to get it in front of them if it is popular. Advertising resulting in increased sales can result in a customer spending less on the product, given the economies of scale.

Advertising also benefits the customer because it saves them time and money on identifying which product is of the quality they desire. An omniscient being may not need advertising to help them find what they want, but a human being benefits. Behind brand names is a reputation, one successfully maintained when customers agree that it is of a quality that justifies its costs. In this sense, brand names are a substitute for knowledge, and their value is dependent on how much you independently know where to source equivalent or better alternatives. The best-known brands are those with the most to lose. The responsibility that brands feel to continue satisfying their customers makes it a good proxy for where they can best spend their money.