ADVERTISING

Definition: Advertising is a means of communication with the users of a product or service.

Advertisements are messages paid for by those who send them and are intended to inform or influence
people who receive them, as defined by the Advertising Association of the UK.

Description: Advertising is always present, though people may not be aware of it. In today's world,
advertising uses every possible media to get its message through. It does this via television, print
(newspapers, magazines, journals etc), radio, press, internet, direct selling, hoardings, mailers,
contests, sponsorships, posters, clothes, events, colours, sounds, visuals and even people
(endorsements).

The advertising industry is made of companies that advertise, agencies that create the advertisements,
media that carries the ads, and a host of people like copy editors, visualizers, brand managers,
researchers, creative heads and designers who take it the last mile to the customer or receiver. A
company that needs to advertise itself and/or its products hires an advertising agency. The company
briefs the agency on the brand, its imagery, the ideals and values behind it, the target segments and so
on. The agencies convert the ideas and concepts to create the visuals, text, layouts and themes to
communicate with the user. After approval from the client, the ads go on air, as per the bookings done
by the agency's media buying unit.

10 Reasons Why Advertising Is Important

Ads are everywhere. You turn on the TV, open up an internet browser, or
walk down a street and you’ll see ads. They’re all clamoring for your
attention and – ultimately – your money. Ads can be annoying, but what
would the world be without them? Here are ten reasons why advertising is
important to businesses and society at large:

#1 Advertising is a crucial part of marketing

Many people use marketing and advertising interchangeably. Marketing
identifies what customers want, encourages them to buy, and engages with
them afterward to retain their loyalty. To get their attention and let them
know you have what they’re looking for, you need advertising. Advertising
is like the fish hook while marketing is the whole fisherman’s tackle.

#2 Good advertising tells a story

Narrative advertising has gained traction in recent years. If you look at ads
from the past, many of them describe a product or service. As an example,
an old Chevrolet ad shows an illustration of the car. It’s surrounded by text
detailing different aspects of the vehicle, such as its wide tread and
handling ease. Today, most car ads focus more on the people driving the
car than the car itself. A recent Chevrolet ad features a montage of actors
in various life scenarios, such as moving away from home. The car’s
features – like parking assistance and the size of the trunk – are still
highlighted, but they’re not front and center. Consumers respond better to
more narrative-style ads.

#3 Advertising lets you target specific customers

Being strategic about advertising helps a business reach out to the
customers most likely to buy from them. In the past, that meant advertising
things like health products in fitness-focused magazines and running ads
for toys during children’s TV programs. Thanks to digital marketing and
analytic software, businesses can get very specific about who sees their
ads and who has bought their products before.

#4 Advertising helps retain customers

Experts say ongoing advertising campaigns are key to keeping customers.
A consumer might buy a product from a business and not think about them
again, even if they were satisfied. If they keep seeing ads, however, they’re
reminded that this is a company they like. Running consistent ad
campaigns is especially important if the business isn’t doing well and needs
returning and new customers. Thanks to modern forms of advertising (like
ads on social media and SEO optimization), businesses can run ads on
small budgets.

#5 Advertising helps businesses stand out

In a sea of businesses selling their products and services, how does one
set themselves apart? Good advertising. A company can sell something as
basic as soap and do better than a competitor simply because they run ads
that consumers like. The soap obviously needs to do its job, but with
cleaning products, there’s usually not a massive difference in effectiveness.
It comes down to branding and advertising.
#6 Advertising tells customers if a business
aligns with their values
Consumers are getting pickier about the companies they chose to support.
Research shows corporate responsibility mattersa lot to people – especially
younger people – and they want to buy from businesses that align with their
values. Advertising tells consumers who a business is and what matters to
them.

#7 Advertising affects a brand’s reputation

How a business represents itself can draw customers in or repel them.
There are many examples of businesses running ads that backfired. In
2017, Dove uploaded a short video of a Black woman lifting a shirt over her
head and appearing to transform into a white woman. This woman then
removes her shirt, revealing a Middle Eastern woman. The ad’s intent
seemed to be representation, but consumers were not pleased and Dove
apologized. This isn’t the first time Dove has gotten in some hot water,
which shows how essential ads are to a brand’s reputation.

#8 Advertising affects sales

Advertising impacts a brand’s reputation, but does that translate into a
difference in sales? Sometimes. One big example is an Oldsmobile ad from
1998. The campaign tried to appeal to younger buyers. Their slogan: “This
is not your father’s Oldsmobile.” It did not do the trick and also insulted their
older consumer base. While it’s probably not accurate to say this ad killed
Oldsmobile, it certainly didn’t increase sales. On the flip side, when
Wendy’s released their “Where’s the Beef” ad in 1984, their sales hit a
record profit the next year.

#9 Advertising impacts the economy

Spending on advertising is increasing worldwide. Experts estimate that in
2024, advertising will hit over $630 billion. That translates into more jobs,
more buyers, stronger competition, and increased GDP. Advertising is
good for the creative industry as well. Companies often need
photographers, animators, musicians, fashion designers, and more to help
with ads. This all plays into economic growth.

#10 Advertising transcends its campaigns

Advertising affects more than just a company’s bottom line and the
economy. Ads can transcend a product and change cultural norms. De
Beers is a good example. For many years, it wasn’t common for people to
buy diamond engagement rings. In 1948, De Beers released an ad with the
slogan “A diamond is forever.” Ring sales went up as young men obeyed
the ad and took advantage of good diamond prices. Today, newly-engaged
couples are expected to have at least one ring between them.

Functions of Advertising:

Advertising has become an essential marketing activity in the modern era of large-
scale production and severe competition in the market.

It performs the following functions: 

(i) Promotion of Sales: 

Advertising promotes the sale of goods and services by informing and persuading the
people to buy them. A good advertising campaign helps in winning customers and
generating revenues. 

(ii) Introduction of New Products: 

Advertising helps in the introduction of new products in the market. A business
enterprise can introduce itself and its products to the public through advertising.
Advertising enables quick publicity in the market. 

(iii) Support to Production System: 

Advertising facilitates large-scale production. The business firm knows that it will be
able to sell on a large-scale with the help of advertising. Mass production will reduce
the cost of production per unit by making possible the economical use of various
factors of production. 

(iv) Increasing Standard of Living:

Advertising educates the people about the products and their uses. It is advertising
which has helped people in adopting new ways of life and giving up old habits. It has
contributed a lot towards the betterment of the standard of living of the society. 
(v) Public Image: 
Advertising builds up the reputation of the advertiser. Advertising enables a business
firm to communicate its achievements and its efforts to satisfy the customers’ needs
to the public. This increases the goodwill and reputation of the firm. 

(vi) Support to Media: 
Advertising sustains press. Advertising provides an important source of revenue to
the publishers of newspapers and magazines and the producers of T.V. programmes. 

Significance of Advertising: 

Advertising helps in spreading information about the advertising firm, its products,
qualities and place of availability of its products and so on. It helps to create a non-
personal link between the advertiser and the receivers of the message. 

The significance of advertising has increased in the modern era of large scale
production and tough competition in the market. Advertising is needed not only to
the manufacturers and traders but also to the customers and the society. The benefits
of advertising to different parties are discussed in the following paragraphs. 

Benefits to Manufacturers and Traders:

It pays to advertise. Advertising has become indispensable for the
manufacturers and distributors because of the following advantages: 
(i) Advertising helps in introducing new products. A business enterprise can
introduce itself and its products to the public through advertising. 

(ii) Advertising develops new taste among the public and stimulates them to
purchase the new product through effective communication. 

(iii) Advertising assists to increase the sale of existing products by entering into new
markets and attracting new customers. 

(iv) Advertising helps in creating steady demand of the products. For instance, a
drink may be advertised during summer as a product necessary to fight tiredness
caused by heat and during winter as an essential thing to resist cold. 

(v) Advertising helps in meeting the forces of competition in the market. If a product
is not advertised continuously, the competitors may snatch its market through
increased advertisements. Therefore, in certain cases, advertising is necessary to
remain in the market. 
(vi) Advertising is used to increase the goodwill of the firm by promising improved
quality to the customers. 

(vii) Advertising increases the morale of the employees of the firm. The salesmen feel
happier because their task becomes easier if the product is advertised and known to
the public. 

(viii) Advertising facilitates mass production of goods which enables the

manufacturer to achieve lower cost per unit of product. Distribution costs are also
lowered when the manufacturer sells the product directly to the customers.
Advertising also facilitates distribution of the product through the retailers who are
encouraged to deal in the advertised products. 

Benefits to Customers:

Advertising offers the following advantages to customers: 

(i) Advertising helps the customers to know about the existence of various products
and their prices. They can choose from the various products to satisfy their wants.
Thus, they cannot be exploited by the sellers. 

(ii) Advertising educates the people about new products and their diverse uses. 

(iii) Advertising increases the utility of existing products for many people adding to
the amount of satisfaction which they are already enjoying. 

(iv) Advertising induces the manufacturers to improve the quality of their products
through research and development. This ensures supply of better quality products to
the customers. 

Benefits to Society:

The whole society is benefitted because of advertisement in the following

ways: 

(i) Advertising provides employment to persons engaged in writing, designing and

issuing advertisements, and also those who act as models. Increased employment
brings additional income with the people which stimulate more demand.
Employment is further generated to meet the increased demand. 
(ii) Advertising promotes the standard of living of the people by increasing the
variety and quality in consumption as a result of sustained research and development
activities by the manufacturers. 

(iii) Advertising educates the people about the various uses of different products and
this increases their knowledge. Advertising also helps in finding customers in the
international market which is essential for earning foreign exchange. 

(iv) Advertising sustains the press, and other media. It provides an important source
of income to the press, radio and television network. The customers are also
benefitted because they get newspapers and magazines at cheaper rates. The
publishers of newspapers and magazines are benefitted because of increased
circulation of their publications. Lastly, advertising also encourages commercial art.