Studying the Effects of Alcohol Advertising on Consumption

The effects of advertising on alcohol consumption (and alcohol abuse) are controversial, and research on the subject has produced mixed results. An economic theory underlying the general relationship between advertising and consumption can help explain this variance, however. Studies that use national data on annual alcohol advertising expenditures measure advertising at a high level with little yearly change and are likely to find no effect on consumption. In contrast, studies that use local-level data measured over the course of a year find wide variation in the level of advertising and are likely to conclude that alcohol advertising significantly increases alcohol consumption. To mitigate consumption increases, some countries and localities have tested alcohol advertising bans or counter advertising campaigns. Studies of advertising bans show a decrease in alcohol consumption to some degree when intervening factors are controlled. Counter advertising likewise reduces alcohol consumption. Thus, policymakers can choose from various forms and combinations of these strategies to curb consumption and, presumably, alcohol abuse.