Final answer:
Expensive advertising campaigns in politics often focus on negative messages and can account for a large portion of campaign spending. In the business world, they discourage competition and can manipulate the perceived demand for a company's products, leading to higher profits. The tactics and impact of such advertising are evolving, as described in Naomi Klein's 'No Logo'.
Step-by-step explanation:
Expensive advertising campaigns serve multiple purposes in the business and political world. They can be significant tools for candidates seeking office, with about 60 percent of presidential campaign spending dedicated to TV ads, despite the fact that two-thirds of such ads carry a negative tone. In the commercial sector, large advertising budgets can grant a competitive edge by making competition think twice before entering the market, especially if they have to outspend giants like Coca-Cola and Pepsi Cola. Moreover, advertising allows companies to shape the perceived value and differentiation of their products.
In monopolistic competition, advertising can cause a firm's perceived demand curve to either become more inelastic or shift to the right, indicating an increase in demand. By successfully leveraging these effects, companies can sell more or charge higher prices, increasing their profits. Naomi Klein's 'No Logo' identifies changes in advertising strategies, highlighting an increasingly synergistic approach that exposes consumers to consistent branding messages across multiple platforms for maximum impact.