By Philip Hanson
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Additional info for Advertising and Socialism: The Nature and Extent of Consumer Advertising in the Soviet Union, Poland, Hungary and Yugoslavia
In the present context, for example, space rates in the press usually seem both low and arbitrary to Western exporters. Data on domestic rates support this impression (see the appendix to this chapter). Admittedly this is only in relation to circulation, since other information on the value of the space to advertisers is lacking. e. excess demand at existing rates (see the next section), rates probably are too low. The same may be true of other media. It also appears that some services to advertisers are supplied free of charge.
Vneshtorgreklama is not formally linked to the domestic advertising organisations discussed below. Its chief importance to Soviet domestic advertising of domestic products is as a technical pace-setter and channel for information on foreign advertising methods. 1 2 For domestic advertising there is one organisation that is intended as a supreme co-ordinating body, the Mezhduvedomstvennyi soviet po reklame (Inter-Departmental Council on Advertising, hereafter IDCA). The IDCA currently has the First Deputy Minister of (Internal) Trade for the USSR as chairman, with deputy ministers from the USSR food and light industries, plus the deputy head of Tsentrosoyuz (The Central Union of Consumer Co-operatives) as vice-chairmen, and representatives from the state committees which administer the main media and from the few other national-level organisations, such as Aeroflot, which have a substantial 1 1 Soyuztorgreklama has apparently organised some advertising of imports from Hungary and Rumania, but this may well have been channelled through the foreign trade agency.
Hanson, The Consumer in the Soviet Economy (Macmillan, 1968) chapter 6). But since 1965 the revenue from Soviet turnover tax, the main indirect tax, which falls preponderantly on consumer goods, has risen more slowly than household expenditure and almost certainly less than subsidies to items of consumption, notably housing and meat. The two countries' net indirect tax/consumption expenditure ratios have therefore been converging. 1 1 ( 1 ), p. 60. How classified -type advertisements were counted is not explained.
Advertising and Socialism: The Nature and Extent of Consumer Advertising in the Soviet Union, Poland, Hungary and Yugoslavia by Philip Hanson