Earlier quoted context omitted.
> competition drives improvement Are you saying ads helping competition? How? > customer choice is central to a functioning market, leading to innovation. Ads suppress customer choice, along with innovations. Can you recall any recent innovative carbonated drink? Marketing budgets of pepsi/coca cola make competition and innovation impossible.
Advertising is a PURE competitive move in the most fundamental sense in the business playbook, anyone who doesn't understand that doesn't understand business and therefore nor marketing nor sales. Sadly, that is a lot of people out there who profess to understand business.
I think "competition" has to be directed towards a useful end, like improving the product, else it's at danger of just causing enormous waste disproportionate* to any value it is creating, like rigs for Bitcoin mining or microsecond trading.
Say you're playing a game where every minute you can either create a new cube or steal two from your opponent. The direct optimal strategy is for both players to just repeatedly steal - "competing" in a sense, yet wasting time for no progress. The meta-strategy, if we as a society want to increase the number of cubes, would be to punish stealing so that players instead compete by doing useful work (creating cubes).
To me the problem with marketing looks the same. It could make business sense for both Coke and Pepsi to double their marketing budgets to push flyers through every door to take each other's market share back and forth, but doing so wastes disproportionate* resources for little to no gain. Also seems as though it's one factor making it more difficult for potential new competition that has a legitimately better product but doesn't have billions to spend on ads, exclusivity deals, etc.
*: There can be some value created, like slightly faster Bitcoin transactions, or people being very slightly more informed about some products. Just that the zero-sum game aspect allows resources wasted to be far in excess of the value gained (if any at all), even without externalities.