Market, advertisement, literacy

First, the indictment: "If I were asked to name the deadliest

subversive force within capitalism-the single greatest source of

its waning morality-I should without hesitation name

advertising." These words belong to a commentator of the

ill-reputed supply side economics, Robert L. Heilbroner, but

could have been signed by many sharing in this definition. Now

comes the apologia: "The historians and archaeologists will one

day discover that ads of our times are the richest and most

faithful daily reflections that any society ever made of its

entire range of activities." McLuhan's words, as familiar as

they are, bear the imprint of his original thinking. The issue is

not to take sides. Whether admired or despised, ignored or

enjoyed, advertisement occupies an inordinately important place

in our life today. For anyone who went through the history of

advertisement, it becomes obvious that the scale of this

activity, which is indeed part of the market, has changed

radically.

It used to be true that only 50 to 60 percent of the investment

in advertisement resulted in higher sales or brand recognition.

Today, the 50 to 60 percent has shrunk to less than 2 percent.

But of the 2 percent that impacts the market, 2 percent (or less)

results in covering the entire expense of advertisement. Such

levels of efficiency-and waste, one should add, in full

awareness that the notion is relative-are possible only in the

civilization of illiteracy. The figures (subject to controversy

and multiple interpretation) point to efficiency as much as to

the various aspects of the market. Our concern with

advertisement is not only with how literate (or illiterate)

advertisement is, but also with how appropriate literacy means

can be to address psychological, ethical, and rational (or

irrational) aspects of market transactions.

A look at advertisements through the centuries is significant to

the role of literacy in society and in the world of

merchandising. Word-of-mouth advertising and hanging signs

outside a business reflect the literacy levels of an age of

small-scale market transactions. The advertisements of the end

of the 19th and beginning of the 20th century exemplify the

levels of literacy and the efficiency expected from it for

merchandising in the context and scale of that time. The ads

contain more text than image and address reason more than the

senses. In the age of the magazine and newspaper, advertisers

relied on the power of verbal persuasion. Honesty or value was

not the issue here, only its appearance. The word committed to

paper, black on white, had to be simple and true.

In Europe, advertisement took a different style at this time, but

still reflected value. Manufacturers engaged many well known

artists of the time to design their ads. Henri Toulouse-Lautrec,

El Lissitzky, and Herbert Bayer are among the best known. To the

highly literate but more artistically inclined Europeans of the

time, such ads for upscale products and events were more

appealing. Probably taking their cue from Europe, American

designers experimented with image advertising after World War II,

and graphic design took off in the USA. With the advent of more

powerful visualization media, and based on data from psychology

to support its effectiveness, the image began to dominate

advertising. As ambiguously as an image can be interpreted, its

efficiency in advertising was confirmed in rising sales figures.

In the rare cases when literacy is used today, it is usually for

its visual impact. In an attempt to relate to the qualities of

the black-on-white advertisement of earlier times, Mobil

started a series of ads in the mid-1980's. To those not

semiotically aware, the ad was simply text appealing to the

reader's reason. Literacy rediviva! To people attuned to

semiotics, the ad was a powerful visual device. The simple

tombstone style evoked relations between literacy and values

such as simplicity, honesty, the permanence of the idea, the

dominance of reason. The visual convention was actually stronger

than the literacy element, used as an alibi in these ads.

Indeed, the people who hand out the Clio awards for advertising

were so taken in as to award Mobil a first prize for these ads.

Markets are far from being simple causal phenomena. A market's

easy switch from a well structured, rational interpretation and

ethical conduit, to irrationality and misrepresentation is

revealed in the new forms markets take, as well as in their new

techniques for transactions and the associated advertisement. The

term irrationality describes a contradiction of common sense

rules (or economic theories setting them forth) of exchange of

goods. During the 1980's, this occurred in the oil market, the

art market, the market for adoptable children, and in new stock

market offerings.

The literate discourse of theories or of an advertisement can

only acknowledge the irrationality and suggest explanations.

There are schools of market analysis based on game theory,

psychodrama, cyclical modeling, the phases of the moon, etc.,

etc., each producing newsletters, giving advice, trying to

render understandable economic and financial phenomena difficult

to predict. Language-like explanations and advice are part of

advertising, part of market language, forming its own literacy

and keeping many captive to it. But even the most literate

participant cannot stop the process since the literacy involved

in what some perceive as an aberration is different from the

literacy embodied in the product traded or in its advertisement.

Irrational elements are present in the market, as in life, at

all times, but not to the extent to which the language of the

market reflects hysteria (as on Black Monday in 1987 on the New

York Stock Exchange) or simply ceases its pragmatic function.

We all deplore the continuous shrinking of the intimate sphere

of our lives, but admit, in the act of constituting ourselves in

the space and time of market transactions, the integrating power

that the market exercises, ignoring how close the relation

between the two aspects is. Literacy was once a protective

medium and entailed rules of discretion and decency. Illiteracy

makes us fear; it allows us to become more efficient, but at the

same time we become subject to intrusion by all the means that

capture our identity. People making purchases on-line will not

hesitate to write down their personal data and credit card

numbers, trusting in a sense of privacy that is part of the code

of literate behavior. Of all people, the computer-literate

should realize the power of the Net for searching, retrieving,

and sorting such information for all types of uses imaginable.

In the civilization of illiteracy, advertisement is no longer an

integrative device that addresses a non-differentiated market

but a device that addresses powerful distinctions that can

capture smaller groups, even the individual. "Tell me what you

want to buy or sell and I'll tell you who you are," is a concise

way of declaring how market semiosis X-rays its participants.

The enormous marketing efforts associated with a new brand of

cereal, software, a political campaign, a role in a movie, or a

sports event result in advertisement's becoming a language in

itself, with its own vocabulary and grammar. These are subject

to rapid change because the pragmatics of the activities they

represent change so fast. "Tell me what you buy and I'll tell you

who you are"-mug shots of all of us are taken continuously, by

extremely inventive digital devices, while the market fine-tunes

us. Buying products ended long ago. Products now buy us.

Advertising in the civilization of illiteracy is no longer

communication or illustration. It is an information processing

activity, bizarre at times, extremely innovative in the ability

to cross reference information and fine-tune the message to the

individual. Automatic analysis of data is complemented by

refinement methods that adjust the weight of words in order to

fit the addressee. In the reality of the market and its

attendant advertising, languages pertaining to art, education,

ideology, sexuality, are integrated at a high level of

sophistication in the infinite series of mediations that

constitute the pragmatic framework of human existence. Nothing is

more valuable than the knowledge of who we are. One can risk

stating that brokers of information about each of us will

probably fare best in this market of many competing partial

literacies.

When markets rely more and more on mediations, and market cycles

become faster and faster, when the global nature of transactions

requires mechanisms of differentiation and integration far

beyond the scope of language, literacy ceases to play a

dominating role. The literate message assumed that the human

being is the optimal source of information and the ideal

receiver. The illiterate message can send itself automatically,

as image or as speech, as video or as Internet spamming, whatever

best hits its human target, to people's addresses. Whether we

like it or not, face-to-face negotiations have already become

fax-to-fax and are bound to be converted into

program-to-program dealings. The implications are so far-reaching

that emotional reactions, such as enthusiasm or disgust, are not

really the best answer to this prospect.

Market pragmatics in our civilization is defined by the need to

continuously expand surplus to meet a dominant desire and

expectation driven exchange of goods and services. These desires

and expectations correspond to the global scale of human

interaction for which a dominant literacy is poorly suited.

Hundreds of literacies, representing hundreds of forms of human

self-constitution around the world, are integrated in the

supersign known as the market.

The market-in its narrow sense as transaction, and as a sign

process joining structure and dynamics-focuses all that pertains

to the relation between the individual and the social

environment: language, customs, mores, knowledge, technology,

images, sounds, odors, etc. Through the market, economies are

ascertained or subjected to painful restructuring. Recent years

brought with them turmoil and economic opportunity as an

expression of new pragmatic characteristics. Competition,

specialization, cooperation, were all intensified. An exciting

but just as often disconcerting growth path of economic activity

generated markets of high performance. Just-in-time,

point-of-sale, and electronic interchanges came into being

because the human pragmatic made them necessary.

This is why it is difficult to accept views, regardless of their

public acclaim, that explain the dynamics of economic life

through technological change. The increased speeds of economic

cycles are not parallel but related to the new practical

experiences of human self-constitution. Cognitive resources

became the main commodity for economic experiences. And the

market fully confirms this through mechanisms for accelerated

transactions and through sign processes of a complexity that

technology has really never reached. New algorithms inspired by

dynamic systems, intelligent agent models, and better ways to

handle the issues of opportunity and prediction are the

expression of cognitive resources brought to fruition in a

context requiring freedom from hierarchy, centralism,

sequentiality, and determinism. As exciting as the model of the

economy as ecosystem is (I refer to Rothschild's bionomics), it

remains an essentially deterministic view.

No semiosis triggers forces of economic change. But sign

processes, in the form of elaborate transactions, reflect the

change in the pragmatic condition of the human being. All those

new companies, from fast food chains to microchip makers and

robot providers that convert human knowledge into the new goods

and services, are the expression of the necessity of this

pragmatic change. Diversity and abundance might be related to

competition and cooperation, but what drives economic life,

market included, is the objective need to achieve levels of

efficiency corresponding to the global scale human activity has

reached. Central planning, like any other centralized structure,

including that of businesses, does not come to an end because of

technological progress, but in view of the fact that it prevents

efficient practical experiences.

Markets of the civilization of illiteracy, like the economy for

which they stand, are more and more mediated. They go through

faster cycles, their swings wilder, their interdependency deeper

than ever. The literate experience of the market assumed that

the individual was the optimal source of information and the

ideal receiver. Decision- making was an exclusively human

experience. The illiterate message of complex data processing

and evaluation can send itself automatically and reach whatever

has to be reached in a given context: producers of raw

materials, energy providers, manufacturers, a point-of-sale

unit. As shoppers start scanning their purchases by themselves,

information regarding their buying patterns makes it quickly into

programs in charge of delivery, production, and marketing.

Face-to-face negotiations, many times replaced by fax-to-fax or

e-mail-to-e-mail transactions, are converted into more

program-to-program dealings. Instead of mass markets, we

experience point-cast markets. Their pragmatics is defined by

the need to continuously meet desire and expectation instead of

need. Their dynamics, expressed in nuclei of self-organization,

is in the last instance not at all different from that of the

human beings self-constituted in their reality.

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