Advertising Costs – A Vital Investment

In 2008 in Australia, the 45 biggest spending businesses collectively spent roughly $2.4 to $2.6 billion in advertising costs. Every year around the world, businesses are prepared to spend billions of dollars on advertising. Big business are committed to spending such enormous amounts on advertising because they know a simple truth: advertising is an investment. Big business know that for every million dollars they invest, they’ll see returns that make their initial investment worthwhile. But if you’re a small business owner, you need not be scared away by these figures, because it’s all relative. Even a small amount now can pay substantial dividends later. In this article, I’ll discuss why advertising is one of the most vital investments a business can make, and I’ll discuss what it is exactly that you’re investing in, and why it is so critical.

Investments can take many shapes and sizes but they usually involve spending money on something now that can make you more money in the future. The more money you put in, the more money you can get back. Advertising is exactly the same. But all too often advertising is treated as an expense rather than an investment. Let’s take a look at this concept in more detail, and consider what exactly it is that you’re investing in.

As with all investments, there’s a certain level of risk involved, and the returns can vary. Some investments perform better than others, and some leave you wondering where your money went. Advertising is no exception. Some advertising campaigns can produce exceptional results and drive business growth, while other campaigns may have little impact or in some cases, even a negative impact on business. If you think of advertising as an investment, then you should approach it the same way you would approach any other investment, such as a house, or stock market shares. The first step is research.

Research as much as you can about that investment, and all the factors that affect its value, in order to evaluate the risk and potential profits. The ideal combination that most people look for is an investment that minimizes risk and maximizes profits, but some people are prepared to accept higher levels of risk for potentially higher profits. Similarly, before you spend money on advertising, it’s important to do the necessary research in order to minimize the risk and maximize the profits, to get the most out of your investment.

If you’re looking to buy a house, for example, what you’re investing in is clear – a tangible object, but with advertising it isn’t so clear. If advertising is an investment, what is it that we’re actually investing in? To answer that question, first let’s look at what advertising is, in essence. Advertising can be defined as a form of communication, where the aim is to persuade someone to do business with you. That someone could be a potential new customer, a previous customer, an existing customer, or someone who isn’t a potential customer but knows someone else who is. Advertising is a way of communicating with customers, either indirectly or directly, impersonally or personally. So this means that an investment in advertising, is really an investment in communication with customers. Why is it so important to invest in communication?

Communication is the backbone of all our relationships. You can’t build a new relationship with someone if you don’t communicate with them, in some way. In our personal lives, communication allows us to form new relationships with other people, whether it’s a friend, an acquaintance or a doctor. Communication is also what maintains our relationships. Just think if you stopped talking to a friend altogether, how would that affect your relationship with them? So if advertising is a form of communication, and communication is how we build and maintain relationships, then you could say that advertising is ultimately an investment in the relationships with your customers. Advertising is a way of fostering new customer relationships, and strengthening existing ones. Stop and think for a second about how important customers are to your business.

I suspect you’d agree that your business could not exist without your customers/clients/consumers (whatever you prefer to call them). Whatever your business is, whatever shape your customers take – your business needs them. Customers are the life-blood of any business. It therefore makes a great deal of sense to invest (both money and time) in the relationships that customers have with your business, by communicating with them regularly through advertising. Whether it’s communicating for the first time about your business, or reminding a past customer about your services, advertising forms a key part of growing vital client relationships. And that’s where any advertising strategy needs to start – by focusing on your customers. How well do you know your customers?

In conclusion, advertising plays a vital role in maintaining relationships with your customers, through regular communication. Advertising is a way to tell customers about your business and services, and leave them with a positive impression. Advertising is also a way of ‘keeping in touch’ with past customers. In the world of business, you could say that customers make the world go round. Without them, where would your business be? So don’t be deterred by advertising costs now – think of it as an investment today in your customer relationships, that will ensure your business’ success well into the future.

Types of Advertising

The field of advertising management is made up of a system of interacting organizations and institutions, all of which play a role in the advertising process. At the core of this system are advertisers, the organizations that provide the financial resources that support advertising. Advertising is classified on the basis of the following principles: (1) Purpose (2) Media type used (3) Advertising scale and (4) Budget

National Advertising:
As clear from the term itself, it refers to advertising on a national scale, where the manufacturer stimulates the demand of the product he is offering to the ultimate customers. It refers chiefly to advertising done by a producer to get people to by his branded goods, whenever they are sold. As the advertiser is addressing to a wide audience, the immediate sales can not be expected just by a single insertion of the advertisement.

Local and Regional advertising:
As the name shows, this advertisement is confined to one specific region of any country. This is done when a product is available and is being consumed on a regional level; such advertisement takes place either from the manufacturer, the retailer or the whole seller. Just like this the local advertising is what people are pretty much familiar with as the medium is daily newspapers, radio, etc. The product which is available to the local consumers is advertised through local advertisement.

Retail Advertising:
Service organizations or the local merchants’ convey their message through retail advertising. In this, the customers are directly addressed and are induced in such a way to visit the nearest store and shop the product. The exemplary bodies are the super markets, departmental stores, discount stores etc.

Trade and Professional Advertising:
This type of advertising specifically focuses on the professional people, retailers and the whole sellers. The manufacturers aim at these people through this advertising in order to persuade them to stock its products and to feature them in their respective stores, and run a national advertising campaign for their retail advertisement.

Industrial advertising:
Industrial marketing is similar to the marketing of durables in that advertising can rarely be expected to make the sales. Rather, a salesperson is usually required to supply information and to handle the deals of the transaction. Advertising in this case, can provide the engineer or buyers with the opportunity to express interest in the product by returning a card which is request for additional information.

Image advertising:
The image advertising is undertaken by an organization in order to enhance its importance and value e.g. if the context “what we do” is addressed, then an image is used to nurture the pertinent purpose which enhances the life of a specific product.

The advertising management heavily focuses on all the decision making activities which require managerial and as well as financial direction, through development of advertising. The main function of advertising is to inform, and persuade the people (through central or peripheral route) to get motivated and take some action to what they are exposed to.

Advertising and Its Types to Improve Business

The global market is changing day in and day out. Every company is trying desperately to get an edge over its competitors. This sense of competition is heightened by the growing number of consumers. Advertising has become the modern day tool for these companies who are always looking to strengthen their client base. But before we proceed with advertising, one has to know what it stands for. In simple words advertising is nothing but the act of promoting one’s product in the market. Any kind of good commercial advertising should also be able to persuade hosts of customers to increase their consumption of a particular product.

Consumers of the present times are driven by brands. These brands managed to become household names primarily because of their advertising campaigns. Advertising has become the tried and tested formula that company’s use to create high demand for their manufactured products. Today advertising is being used by a number of sectors like religious groups, political parties, governmental agencies and many more. These organizations have realized the worth of promoting themselves to a larger population.

Advertising has its roots in ancient Egypt where people used to distribute wall posters, sales messages written on papyrus. With time these gave way to a more modern format of using billboards. In fact billboards are believed to be the starting point of product oriented advertising. Over the years this canon of promoting items through ads has been split into a number of groups. Here is a list of these branches or types of advertising. There are basically four basic kinds of advertising. These may be described as the following:

1) Print advertising: This is one of the earliest forms of advertising that people followed before the outbreak of electronic devices like radio, television etc. Print advertising is basically restricted to trade journals, magazines and newspapers. Newspapers are the biggest reason behind the ongoing popularity of print advertising.

2) Radio advertising: Radio was a favorable medium for promotion consumer goods until the invention of television sets.

3) Television: Television is considered to be the biggest medium of advertising. Television commercials help companies reach out to millions of consumers worldwide urging them to try out their products. One major characteristic about television advertisements is that it uses a jingle along with its visuals to grab the attention of consumers. In fact this television advertising has given birth to a new form of promotional strategy termed as infomercials. These infomercials are usually longer advertisements that try to convince buyers by showcasing demos. A standard infomercial starts with duration of five minutes, but may vary depending on the nature of the product.

4) Online advertising: Internet has become one of the best platforms for companies willing to advertise their products. Online advertising basically tries to convey marketing messages to draw the attention of netizens. The most common forms of internet advertising are email-marketing, online classifieds, social network advertising, banner advertisements, search engine advertising and the list just goes on and on.

There are also a number of other advertising tricks like billboards advertising, mobile-billboard marketing, covert advertising that continue to influence the minds of millions of buyers. All these advertising techniques are giving way to new genres of product marketing. Thus the future of advertising seems to be perfectly bright as more and more companies come up with their range of products. If you are having desire to find good advertising of your websites or products then you can get good help of Shri Sahu Services and Shri Sharma Services which will provide you good marketing of your site and products.

Role of Media Advertising Agencies in Business Promotion

Advertisement is known to be the key to a successful business. There are many forms of advertisements. Media is one among them. With the growing need of advertisements for developing business, there has been a considerable growth in the number of media advertising agencies.

Different Forms of Media Advertising

The different methods of advertising products through televisions, newspapers, radio, internet, mails and so forth is known as media advertising. The main motive of the these agencies is to take advantage of advertisements to increase the sales of a company and thereby overall profit.

How to Choose Advertising Agencies

Choosing correct media advertising agencies can be a difficult task as there are many online agencies that help companies to gain the required exposure through advertisements.

A proper research should be done online before taking advantage of the services of these agencies. Marketing your product to maximise sales should be the main priority of media advertising agencies.While choosing agencies, it is important to know whether these agencies have a successful past of marketing products. These agencies should be able to demonstrate the different strategies they adopt to market your product effectively. Maximum exposure to your products and services should be the motto of reliable and efficient media advertising agencies.

These agencies include professionals with various departments. These professionals take care to advertise your products in a manner that leads to increased sales and profit. Gone are the days when advertisements were done only through newspapers and televisions. Today with the help of media advertising agencies, businesses can utilize online advertising through internet.

By using the media advertising services for marketing your products, you can also save a lot of time and money. It is also important to bear in mind that your advertising agency should have a thorough idea about your products so that marketing is done effectively. Poor advertisements lead to poor response and lower sales. So it is crucial that you chalk out a plan along with your advertising agency in order to market your products.

Small and medium industries gain exposure only through effective advertisements. Online advertisements help them to reach out to a wide range of customers anywhere in the world. But it is important to choose professional who can help these industries to advertise their products in such a way that it attracts customers.

There are a wide number of advertising agencies in the B2B marketplaces. Some of the agencies that offer their services in advertising products include the Solid Action (India), Mod Interior, Shree Rani Sati Group and so forth. These agencies help to promote business by providing solutions to accelerate sales and maximise profits.

By utilizing the services of media advertising agencies, businesses can improve their sales and obtain more profit. It is to be noted that the methods of advertising has evolved since the olden days. The growing use of internet and other online facilities have accelerated the growth of online agencies for the purpose of advertising. The entire scenario of the business has undergone a substantial change with the use of these advertising agencies.

Author has wide knowledge of B2B Marketplace and Business industries. For latest updates and business opportunities for media advertising agencies. Visit online trade portal Trade.indiaMART.com