I tend to believe that advertising actually adds value to the good or service, especially when it's exactly the same as a competing good. When you buy General Mills' Honey Nut Cheerios instead of Offbrand Honey Oats, the advertising on the sale has actually payed for itself and then some, increasing the profit margin above the good itself.
On a macroeconomic scale, the best example I can think of is the Soviet Union. Advertising was thought to be a drain on society under the Marxist thinking of the time, so the Soviet Union didn't allow it. But then they found without advertising, it led to under consumption. I think there were other problems too, but eventually the Soviets started advertising, despite their initial misgivings about it.
A quick google didn't reveal any good citations, so I'm certainly open to other ideas on this, but my main point is that this article over-simplifies the value that advertising generates for an industry.
Edit: Found an interesting article on the Communist world's relationship with advertising: http://www.acrwebsite.org/volumes/5816/volumes/v03/NA-03