Advertising

Objectives of Advertising

Advertising serves several objectives, which can vary depending on the product, market, or business goals:

• Brand Awareness: Introducing a new product or service to the market.
  • Example: A tech startup launching a new app might run social media ads to increase awareness among potential users.
• Persuasion: Convincing consumers to choose a product over competitors.
  • Example: A detergent brand showing side-by-side cleaning comparisons to demonstrate superior effectiveness.
• Reminder: Keeping the brand top-of-mind for existing customers.
  • Example: Coca-Cola uses holiday-themed ads to remind people of their brand’s association with celebrations.
• Call to Action (CTA): Encouraging immediate action, like making a purchase.
  • Example: An e-commerce store offering a "Limited Time Discount! Shop Now!" banner ad.

Types of Advertising Channels

Traditional Media

• Television: Reaches a wide audience and is effective for storytelling.
  • Example: Super Bowl ads, like those by Budweiser, create memorable moments that are viewed by millions.
• Radio: Targets specific demographics and geographic areas.
  • Example: Local businesses, such as car dealerships, use radio ads to reach listeners during rush hours.
• Print (Newspapers, Magazines): Suitable for reaching niche audiences or local markets.
  • Example: A luxury watch brand advertises in high-end magazines like GQ to appeal to affluent readers.

Digital Media

• Social Media Advertising: Enables highly targeted campaigns based on user interests and demographics.
  • Example: Instagram ads for beauty products targeted at users who follow skincare influencers.
• Search Engine Advertising (PPC): Uses platforms like Google Ads to target users based on specific search terms.
  • Example: A plumber runs a PPC ad targeting "emergency plumbing services" to capture leads looking for immediate help.
• Display Advertising: Uses banners or images on websites to attract attention.
  • Example: Hotel chains display banner ads on travel websites to attract potential vacationers.

Out-of-Home (OOH) Advertising

• Billboards: Placed in high-traffic areas to reach large audiences.
  • Example: McDonald's uses billboards near highways to attract drivers to their nearest location.
• Transit Ads: Ads on buses, subways, or trains that reach commuters.
  • Example: Movie posters on bus stops to generate hype before release.

Techniques Used in Advertising

• Emotional Appeal: Connecting with the audience’s emotions, such as happiness, nostalgia, or empathy.
  • Example: An insurance company ad depicting a family feeling safe thanks to their coverage.
• Humor: Using humor to make the ad memorable and relatable.
  • Example: Old Spice's "The Man Your Man Could Smell Like" campaign uses humor to connect with younger audiences.
• Scarcity: Creating urgency by highlighting limited availability.
  • Example: An online retailer advertising a "Only 3 items left in stock—Order now!" message.
• Celebrity Endorsement: Featuring well-known personalities to build credibility.
  • Example: Michael Jordan endorsing Nike’s Air Jordan shoes, helping build brand credibility and fan loyalty.

Examples of Advertising Campaigns

• "Just Do It" by Nike
  • Goal: Motivate consumers and create a brand synonymous with performance.
  • Medium: Television, print, and digital ads.
  • Impact: The campaign helped position Nike as a leading brand in athletic performance and lifestyle.
• "Share a Coke" by Coca-Cola
  • Goal: Increase consumer interaction and personalization.
  • Medium: Social media and physical products.
  • Impact: Bottles featuring names led to social media buzz, increased engagement, and boosted sales.
• "Got Milk?" by California Milk Processor Board
  • Goal: Boost milk consumption.
  • Medium: Print, TV, and billboards.
  • Impact: Created a culturally iconic tagline and increased awareness of milk consumption benefits.

Measuring Advertising Effectiveness

• Reach and Impressions: How many people saw the ad.
  • Example: A YouTube ad gets 1 million impressions during its run.
• Click-Through Rate (CTR): The percentage of viewers who clicked on an ad.
  • Example: A Google ad for a new phone with a 3% CTR indicates user interest.
• Return on Advertising Spend (ROAS): The revenue earned for every dollar spent on advertising.
  • Example: An e-commerce ad campaign returns $5 for every $1 spent on ads, showing good efficiency.
• Engagement Metrics: Likes, comments, shares, or other interactions on social media.
  • Example: A Facebook ad promoting a charity event receives 500 shares, helping to spread the message.