Advertising can be defined as the process of producing marketing communications to promote products and services. They can also be used to express certain opinions and stories. This marketing tactic of paying for space to promote products or services. Advertisements are intended to persuade the target audience to respond in a certain way to what is being advertised.
The history of advertising can be traced back to ancient civilizations. Word of mouth is the oldest form of advertising.
The evolution of advertising has become an important driver of capitalist economies. This was supported in the mid-19th century. It was mainly based on magazines and newspapers. Advertising agencies were also created during this period.
During the 20th century, advertising grew rapidly. This is due to the emergence of new technologies. Radio, television, mobile devices, and the Internet have contributed significantly to this growth.
The 21st century has led to innovative advertising techniques. They are aimed at an ever-growing and competitive market. Digital technology is becoming increasingly popular with advertisers. Analysis of consumer behavior and demographic data is now at the center of attention when it comes to advertising.
Over the years, the role of advertising has grown considerably. It has been able to establish links between consumers and product manufacturers and service providers. Over the centuries, it has become a billion-dollar industry. Here is the importance of advertising:
1. Launch or announcement
We all know how crucial advertising is for the launch of the new product, service, or a new idea in the market. It’s not only used to present this new product to the public but also has a significant role in promoting brand presence. If done in the right and efficient way, it can lead to desired attention to a product or service.
Advertising is the only medium that connects a business with the targeted audience before they become their customers. And thus, globally, businesses are spending staggering $80+ billion annually on just advertisement. US companies alone spent $13.23 billion on digital video ads across various platforms.
Now you have to understand that there are multiple types of advertisement. In today’s digital era, the most popular are banner ads which you must have come across while browsing your favorite website. Then there are video advertisements which are quite common on platforms like YouTube and DigitalMotion. Some traditional advertisement method includes billboards, advertisement on television, radio ads, etc.
Overall ads are an essential component of any successful marketing, and every business has a dedicated team of professionals to look after their brand presence and promotional campaigns.
2. Sales promotion
Sales promotion is all about promoting products or services in order to generate sales. As I have already discussed that there are multiple forms of advertisements that business implement in their day-to-day marketing campaigns. The problem is that there are certain campaigns which cannot be tracked or monitored. For example, there is no way for a brand to know the number of customers that are coming to their stores because of a billboard on a highway. So, they usually invest in campaigns which not only helps them to get new customers and improve their brand presence but also provides them with essential data on performance, user interactivity, ROI, etc.
This is why almost every business has a dedicated sales team who are responsible for managing promotional campaigns and building strategies to drive in more customers.
Now you must understand that you can promote literally anything (except few health, arms, CBD) with the help of advertisement. On a daily basis, you come across advertisements promoting products like electronics, cosmetics, jewelry, healthcare, insurance, banking services, mortgage.
You will also find your advertisements where someone explains to you the reasons you should join a certain particular rally. Every such thing which leads you deciding to buy a product, a service or join a specific bank or a rally, is a part of sales promotion.
3. Consumer awareness raising
Advertising leads to consumer awareness. This is done by informing them. This helps consumers make the right choices when buying a product or service.
Awareness provides relevant information to help consumers differentiate products on the market. They can know the different characteristics of each product or service.
Advertising is capable of building a brand’s image. More people can know a company through advertising. They know what the company is doing. They may be able to establish relationships with a company because they have seen advertisements about it.
Constant advertising leads to the popularity of branded services and products. The general public has an attitude of trust in these brands. This, in turn, increases the value of a brand. A company’s reputation also grows.
Advertising creates jobs for many people. Advertising agencies need talented people to meet the needs of their clients. This offers many employment opportunities.
Artists, models, directors, designers, directors of photography, salespeople, and creative thinkers are all necessary for this industry. Companies also have departments that focus on marketing. These departments offer advertising jobs.
6. Product differentiation
Advertising is used to promote products and services to distinguish them from those of competitors. It can show the characteristics and advantages offered by a product. This helps consumers to understand why a certain product is better than a similar product offered by a competitor.
This shows how unique a product is. It creates a lasting imprint in the minds of consumers.
7. Increases goodwill
4/10 Internet users except that they follow their favorite brands on social media and various other different networking channels. Is it amazing, right?
But how? Why do these individuals feel the need to follow their favorite brands on social media?
Maybe because they want to know about the latest products they’re going to release, or they want to be among the first few to get their hands on those products or services.
That influence is only because of the advertisement. The vision of a brand is reiterated by advertising, and that can have some serious impact on your brand presence and customer loyalty towards a brand.
8. Eliminates intermediaries
Advertising removes many intermediaries in the process of selling products and services. It ensures that an advertisement reaches the general public without intermediaries. It also reduces information distortion.
9. Support personal sales
Selling a product that has been advertised is easier. Sellers can easily convince people to buy a product they have already announced since then. People tend to warm up easily to something they have already seen. Converting sales becomes easier.
10. Relationship building
Advertising can ensure the establishment of relationships with consumers. Existing consumers are reassured about the quality of a product through advertising.
New consumers can use the products and services. This allows them to get an idea of the brand. Relationships are built when consumer satisfaction is high.
Content delivered through advertising has an impact on many aspects of a business. He can influence the way other competitors’ products are packaged. Advertising influences both buyers and society.
The company can be impacted in various ways by advertising. It contributes to the education and information of society. This education can have both a positive and negative impact on society.
Advertising is capable of growing companies. Business growth affects the livelihoods of members of society. Employment is also created by business growth.
Advertising leads to competition between different brands. When competition is strong, prices fall. The aim is to attract more consumers. The products are also of high quality to ensure consumer loyalty. In the long term, it is a plus for society.
Advertising allows the company to be informed. This information is power. Advertising can inform society about the dangers of certain things. It can be used to warn people of the dangers of excessive alcohol and tobacco consumption, for example. She can also inform us about the dangers of unprotected sex and the importance of family planning.
Advertising can be used to promote national interests. Tourism, tax compliance, political awareness, and monument protection can also be achieved through advertising. This ensures that the company’s interests are not overlooked. A conversation about the environment can also be encouraged here.
Advertising also has negative effects on society. Individuals, especially young people, can engage in vices that are promoted by advertising. This includes excessive alcohol consumption. Poor nutrition and eating habits can also occur.
Another negative impact is that society tends to judge individuals according to the brands they use. You can gain more prominence to drive a certain brand of one car compared to another. This results in disparities and inequalities within society.
Misinformation and misrepresentation can have a serious impact on the livelihoods of members of society. Side effects of various products can be harmful due to misunderstanding or omission of certain information. The company must be cautious about the information provided in advertisements.
For example, a prescription drug may intentionally not include the side effects that may be experienced after its use. Weight gain and fatigue may not be included in the information provided. It is the responsibility of advertisers, the media, and advertising agencies to ensure that the information provided to the general public is in no way misleading.
The evolution of advertising has developed considerably since antiquity. More innovative advertising methods can now be used to complement traditional methods. The rise of the Internet has led to an explosion in advertising revenues.
Companies were able to reap the benefits. They can compete through effective marketing and advertising strategies. This allows them to increase their sales and profitability.
On the other hand, the company also benefits from the advertising. People can learn more about products and services. They are educated on societal issues such as environmental conservation. This contributes greatly to raising awareness in society.
Too many people are complaining of “too much” advertisement.
First, know this that 83% of people agree with the fact that not every advertisement is that, but they just want a way to stop those ads that annoy the hell out of them.
So, it turns out that people don’t hate advertisement; they only hate bad promotions.
If you are an Internet marketer or a businessman and your only way to generate revenue from your website is by showing advertisements to your visitors, then without a doubt, you will do everything to show as many ads as possible to your visitors. You just don’t want to lose any chance of making them click on any of your ads because that’s how they’re going to generate revenue and maintain a sustainable business.
As a regular Internet user, I understand this, and I don’t have any problem with looking at banner advertisements and videos and whatnot. What really annoys me personally are the ads that pop up when you are just about to scroll down, or when you try to exit the page.
I mean if the New York Times starts implementing this type of pop-up ads on their site, trust me, I’m not going to visit the site anytime soon. As a reader, as a visitor, as a customer, I need to read the data or the content you have shared on your site because that’s where you will have published it on your site. I don’t understand why you want to interfere with my reading. As a marketer, you might feel that I will click on the advertisement to just get rid of it and will continue getting your content, but the fact is just the opposite. I’m going to just click on the close tab button and will never visit your site.
Remember that consumers have the power to choose what they prefer.
According to statistics, there are 198 million Internet users who have installed ad blockers on their web browser (both mobile and desktop users). This has resulted in a loss of $22 billion in 2015 alone, and according to a few data, the loss is going to increase. By 2020, publishers will lose around $35 billion a year because of ad blockers.