Have you ever wondered why you see so many advertisements for things you cannot afford? I hadn’t thought about this very much before reading Kevin Simler and Robin Hanson’s book The Elephant in the Brain, but if you look around you will see tons of ads for expensive things that many of us won’t end up buying. I won’t buy a Rolex watch, but I can picture billboards and advertisements for them. I know the slogan that both BMW and Mercedes have at the end of their advertisements, but I likely won’t ever buy a either car. Why are companies like BMW and Rolex advertising to people like me who don’t have the money or intention to buy their products? Wouldn’t it be wiser for the companies to advertise to people who actually wanted and could afford to buy the things they sell?
“When BMW advertises during popular TV shows or in mass-circulation magazines,” write Simler and Hanson, “only a small fraction of the audience can actually afford a BMW. But the goal is to reinforce for non-buyers the idea that BMW is a luxury brand. To accomplish all this, BMW needs to advertise in media whose audience includes both rich and poor alike, so that the rich can see that the poor are being trained to appreciate BMW as a status symbol.”
Sure, we can appreciate the aesthetic beauty of the car, the horsepower, the sport performance, and the quality of the interior, but a big part of purchasing a BMW is the status symbol. If the true reason for buying a BMW were the list of things we might give as reasons for purchasing the car, then advertisers would not need to make sure that everyone knew the car was an expensive way to show one’s status. Ads could be targeted to the people who really care about car aesthetics and performance, not to people who are just going to shuttle a bunch of kids back and forth to soccer practice.
I try hard to be aware of the pressures I feel when making purchases or considering new purchases. I try to understand that I am pulled to make a purchase to show off my status. I also try hard to understand that owning expensive items, having a large salary, and being economically successful do not necessarily define my value as a human being. Understanding what advertisers are doing when they show ads to mass audiences about things that demonstrate our wealth and should be seen (in the mind of the advertiser) as desirable helps me keep my focus on what matters – being a good person, producing value for human beings, and avoiding negative externalities that arise from my desire to show off. This is why I think it is beneficial to understand the mind and what is happening in our heads when we see a BMW advertisement. By recognizing what impulses the ad is targeting and understanding the human drive for status, we can redirect our money and energy to things that truly matter, and away from hollow status markers.