Effects of Generic Advertisement on Demand: The Case of the Washington State Apple Commission

The Washington Apple Commission (WAC) generically promoted apples for the Washington state industry from 1937 until 2003. This paper provides an analysis of the effects on demand attributable to these activities. Demand movement associated with promotion tends to be positive, though the results are mixed. Overall, WAC promotion increased growers’ total revenue by approximately $53.4 million for 2002. The estimated average return to advertising topped $8.7 per dollar of advertising. Continuing selected promotional activities could increase revenue for growers if these activities could be carried out by voluntary, coordinated efforts.