Advertising

Advertising is an important tool of promotion. Advertisement is a non-personal presentation

of an idea or a product (where as personal selling or salesmanship help in personal
promotional.) Advertisement supplements personal selling to a great extent. Advertising has,
acquired great importance in the modern era characterized by tough competition in the
market and fast changes in technology, and fashion and taste customers.

Advertising is used for communicating business information to the present and prospective
customers. It usually provides information about the advertising firm, its product qualities,
place of availability of its products, etc. Advertisement is indispensable for both the sellers
and the buyers. However, it is more important for the sellers. In the modern age of large scale
production, producers cannot think of pushing sale of their products without advertising
them.

Advertising is the dissemination of information concerning an idea, product or service to

induce action in accordance with the intent of the advertiser.

According to William J. Stanton, ―Advertising consists of all the activities involved in

presenting to an audience a non-personal, sponsor-identified, paid-for message about a
product or organization.‖

Advertising is any paid form of non-personal : presentation and promotion of ideas, goods or
services of an identified sponsor. The message which is presented or disseminated is known
as ‗advertisement‘. Any paid form of non-personal presentation and promotion of goods and
services by an identified sponsor is known as Advertising. It is one of the most popular
tools of promotion. Information or details regarding benefits, price, and availability of the
products and services are provided with the help of advertising. The main aim of
advertising is to increase the demand and sale of goods and services. Newspapers,
televisions, magazines, etc., are common modes of advertising.

According to David Ogilvy, “If you are tiring to persuade people to do something, or buy
something, it means to me you should use their language, the language in which they think
“.
 According to William J. Stanton, “Advertising consists of all the activities involved in
presenting to a group, a non-personal, oral or visual, openly sponsored message regarding
a product or service or idea, this message is called advertisement, is disseminated through
one or more media and is paid for, by the identified sponsor”.
According to the American Marketing Association, “Any paid form of non-personal
presentation and promotion of ideas, goods and services, by an identified sponsor. The
medium used are print broadcast, and direct”.

Features of Advertising
American Marketing Association has defined advertising as ―any paid form of non-personal
presentation and promotion of ideas goods and services of an identified sponsor‖. This
definition reveals the following features of advertising:

1. It is a paid foam of communication. Advertisements appear in newspapers, magazines,

television or cinema screens because the advertiser has purchased some space or time to
communicate information to the prospective customers.
2. It is non-personal presentation of message. There is no face-to-face direct contact with the
customers. That is why, it is described as non-personal salesmanship. It; is a non-personal
form of presenting products and promoting ideas and is complementary to personal selling. It
simplifies the task of sales-force by creating awareness in the minds of potential customers
3. The purpose of advertising is to promote idea about the products and service, of a
business. It is directed towards increasing the sale of the products and services of a business
unit.
4. Advertisement a issued by an identified sponsor. Non disclosure of the name of the
sponsor in propaganda may lead to distortion, deception and manipulation. Advertisement
should disclose or identify the sources of opinions and ideas it presents.
 Objectives of Advertising
The fundamental purpose of advertising is to sell something – a product, a service or an idea.
In addition to this general objective, advertising is also used by the modern business
enterprises for certain specific objectives which are listed below :

1. To introduce a new product by creating interest for it among the prospective customers.
2. To support personal selling programme. Advertising maybe used to open customers‘ doors
for salesman.
3. To reach people inaccessible to salesman.
4. To enter a new market or attract a new group of customers.
5. To light competition in the market and to increase the sales as seen in the fierce competition
between Coke and Pepsi.
6. To enhance the goodwill of the enterprise by promising better quality products and services.
7. To improve dealer relations. Advertising supports the dealers in selling he product. Dealers
are attracted towards a product which is advertised effectively.
8. To warn the public against imitation of an enterprise‘s products.

Functions of Advertising
Advertising has become an essential marketing activity in the modern era of large scale
production and serve competition in the market. It performs the following functions:

 Promotion of Sales. It promotes the sale of goods and services by informing and persuading
the people to buy them. A good advertising campaign helps in winning new customers both
in the national as wet] as in the international markets.
 Introduction of New Product. It helps the introduction of new products in the market. A
business enterprise can introduce itself and its product to the public through advertising. A
new enterprise can‘t make an impact on the prospective customers without the help of
advertising. Advertising enables quick publicity in the market.
 Creation of Good Public Image. It builds up the reputation of the advertiser. Advertising
enables a business firm to communicate its achievements in an effort to satisfy the customers‘
needs. This increases the goodwill and reputation of the firm which is necessary to fight
against competition in the market.
 Mass Production. Advertising facilitates large-scale production. Advertising encourages
production of goods in large-scale because the business firm knows that it will be able to sell
on large-scale with the help of advertising. Mass production reduces the cost of production
per unit by the economical use of various factors of production.
 Research. Advertising stimulates research and development activities. Advertising has
become a competitive marketing activity. Every firm tries to differentiate its product from the
substitutes available in the market through advertising. This compels every business firm to
do more and more research to find new products and their new uses. If a firm does not engage
in research and development activities, it will be out of the market in the near future.
 Education of People. Advertising educate the people about new products and their uses.
Advertising message about the utility of a product enables the people to widen their
knowledge. 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.
 Support to Press. Advertising provides an important source of revenue to the publishers and
magazines. It enables to increase the circulation of their publication by selling them at lower
rates. People are also benefited because they get publications at cheaper rates. Advertising is
also a source of revenue for TV network.

Characteristics of Advertising

1. Paid Announcement: In advertising, the advertiser pays to the advertising company for
drafting the advertisement message and also for purchasing the advertising media slot or
space and to assess the efforts thereon.
2. One-way communication: There is only one-way communication in advertising, in the sense
that the brands communicate their message to the customers, through various platforms,
channels or media.
3. Personal or Nonpersonal: In earlier days when traditional methods (TV, radio, newspaper)
of advertising is used, the advertising is highly non-personal. However, with the introduction
of digital advertising, advertising has become personal since social media, content-based or
cookie-based advertisement came into vogue.
4. Promotional Tool: Advertising is one of the elements of the promotion mix. Indeed, it is the
highly used element, for boosting the sales of the company.
5. Wide applicability: Advertising is one of the highly used methods of mass communication.
Not just businesses, but advertising is also used for serving other purposes by political parties
for the campaign, charitable trusts for donations, an educational institution for admissions,
states for tourism, government agencies for creating awareness etc.
6. Use of Media: One of the biggest challenges which the company encounters is the selection
of the right media to communicate the message. Most commonly used media are television,
radio, newspaper magazine, pamphlets, hoardings, wall printing, banners, internet, etc.
7. Difference in objectives: Not every organization advertises the product/service with the
same intent. The reason for using advertising differs from one organization to another.
Advertising can be used for increasing sales, improving brand image, build good relation
 with the public, creating a ready market for a new product, surviving competition or to
educate people.

Nature of advertising
Advertising is the prominent element of the promotion mix. Advertising has a huge reach and
is pervasive in nature. Here‘s more about what an advertising message should have:
 Attention seeker
The term ‗advertising‗ is derived from the Latin word ‗advertere‘ that means ‗to turn the
attention‘. Every piece of advertising attempts to seek the attention of your audience towards
a product or service.
 Has a unique selling proposition
Often, the advertiser need to have a unique selling proposition (USP). This unique selling
proposition makes the product or service stand out of the crowd. Advertising attempts to
persuade and influence the audience through the different kinds of appeal.
 Visually attractive
The visual and non-verbal elements play a dominant role in advertising. An eye-catching
advertisement uses crisp information and focuses on the visual treatment to convey the
message. The visual elements used in the advertisements not only convey the information,
but also tell a story.
 Consumer oriented
Advertising broadens the knowledge of the consumers. With this nature of advertising,
consumers can have the know how of the products, brands or services that exist in the market.
In fact, every product or service is designed in a way to keep the consumers satisfied.
 Uses various media
Apart from print platforms like newspapers and magazines, its presence can now also be seen
in audiovisual platforms like, films, hoardings, banners and many such promotional
campaigns.

Benefits of advertising
Advertising is a huge industry. It has created opportunities for various domains. The
benefits of advertising include:
 Launch of a new product:
Advertising plays very significant role in the introduction of a new product in the market. It
stimulates the people to buy or know about a product.
 Increases markets:
It helps the manufacturers to expand their markets. It opens the horizons for new markets for
the product or service.
 Mass sales:
Advertising facilitates mass production to goods that ultimately results in a raised volume of
sales.
 Keeps the competitive spirit alive:
Advertising helps in keeping the competition and the competitors at bay. It keeps a regular
check on the performance of your brand or product.
 Creates goodwill:
Advertising builds goodwill of a brand. Advertising is a crucial source through which the
 audience gets to know about a brand or product. If a company is spending on advertisement,
it means they care to make their consumers aware. This increases the goodwill of a brand.
 Creative minds:
Every place has a rich pool of strategic and creative minds, media and professionals. And
every advertising organization possesses such talents.
 Consumer awareness:
Advertising is educational and dynamic in nature. It educates the customers about the new
products and their diversifications.
 Direct link:
Advertising aims at establishing a direct link between the manufacturer and the consumer.
This rules out the possibility for a middlemen to be involved in between.
 Creates employment:
Advertising provides and creates more employment opportunities for many talented people in
the industry.
The experience of the advanced nations shows that advertising is greatly responsible for
raising the living standards of the people. In the words of Winston Churchill ―advertising
nourishes the consuming power of men and creates wants for a better standard of
living.‖ By bringing to the knowledge of the consumers, the choices available to
them, advertising has transformed the world.

Role and Importance of Advertising

1.) Spreading Awareness

2.) Popularizing a Brand

3.) Increasing Demand

4.) Increased Profit

5.) Maintains the existing market

6.) It acts as salesman

7.) Reduces his burden of job

8.) It is a driving-force in decision-making

1.) Spreading Awareness

Advertisements aware people about new or existing products and services in the market that
will accomplish their needs or solve their problems. A typical advertisement will tell you
what the service or product is, where it can be bought, for how much, by whom, why it
should be bought so on.

2.) Popularizing a Brand

Think about all the famous manufacturers you recognize, which includes coca-cola or
McDonald's. These manufacturers come out of the group and make their name a brand
because they applied the phenomenon of advertising nicely.
3.) Increasing Demand

The target Customer of advertisements is typically big, whether you‘re advertising in

Newspapers, magazines, BillBoards, radio, or television. A well-maid or delivered
advertisement will satisfy the public that they should buy the product or try it at once.

4.) Increased Profit

Advertisements are displayed too large groups of people at the same time. This means, even
with a low conversion rate, many people will end up buying your products eventually. If you
execute your advertisement well, you will get a good conversion rate and great sales.
Increased sales, of course, mean increased profits.

5.) Maintains the existing market

A forward-looking company or a going concern always has its eyes on future business
prospects that it cannot be going to lose a place in the current position. A company‘s success
is shown not only in creating a market but also in its maintaining and expansion as per the
changing environment.

6.) It acts as salesman

Sometimes Advertising has been rightly described as salesmanship. What a traveling

salesman does, he sells goods and services at the doorstep by convincing the customer. That
is why most retail organizations do not employ a large army of the traveling salesman, as
they advertiser their products to their customers.

7.) Reduces his burden of job

In case the salesman alone is asked to accept the challenge of selling, it goes very difficult. In
the absence of advertising, he is forced to play a double role. One role is advertising another
is selling.

Advertising produces public interest, wins confidence, and promotes strong faith. With such a
ready background, the salesman can perform his task easily.

8.) It is a driving-force in decision-making

In the present day, products and services are complex. There is a large number of products
and services available in the market. The largest possible varieties of products to such an
extent that the consumers are confused to decide which product will be better for them.
Further, each producer claims that his products are the best.
Scope of Advertising
1.) Message

2.) Media

3.) Organization or Advertiser

4.) Product

5.) Advertising agencies

6.) Competitor

7.) Art as well as science

8.) Activities

1.) Message

Advertising carries a message of the product. The message may be visual or oral or written. It
is designed in a systematic and psychological manner to influence the prospective customer.

2.) Media

A large number of advertising media, with their respective advantage, disadvantage, cost, and
benefit are available. The selection of media should be made based on the type of customer to
be approached and the capacity of the organization to bear the cost.

3.) Organization or Advertiser

It is who, which need advertisement to sell this product or services. Because advertisements
create demand, provide messages or information, Influence the prospective customer, and
that all helps a company to sell its product or service.

4.) Product

Advertising covers the attributes of the product & services. Product and services to be sold
have its advantage and disadvantage. The advertiser should show the attributes of the product
and avoid the criticism of a similar product of the competitors.

5.) Advertising agencies

Advertising agency plays an important role because the advertising agency makes an
effective and innovative advertisement which attracts customers and customers to get that
product. Advertising agencies help people in understanding the merits and demerits of a
company product or service. An advertising agency is one which makes awareness about the
company‘s product through advertisements. He has to be very cautious in selecting his
advertising message and method. This can influence people negatively.

6.) Competitor

A company's product or service is shown as better when compared to a competitor's. A

comparative advertising campaign may involve marketing a side-by-side comparison of the
features of a company's products next to those of its competitor. It may also feature
comparison based on price or Quality.

7.) Art as well as science

Advertising is considered to be an art as well as a science because it has some of the

characteristics of both. It is an art because of the advertiser employs his creative abilities. It is
a science because of no. of media, technology, method, the technique used to create an
advertisement.

8.) Activities

It is a continuous activity. Activities included under advertising and Mass Communication

carrying message developing Impressions and image building and so on. These activities are
performed by the advertiser economically, effectively and regularly.

Disadvantages of Advertising

 Increases The Costs: Advertising is an expense to the business and is added to the
cost of the product. This cost is eventually borne by the end consumer.
 Confuses The Buyer: Too many advertisements with similar claims often confuse
the buyer about what to buy and whether they should buy the product or not.
 Is Sometimes Misleading: Some advertisements use smart strategies to mislead the
customers.
 Only For Big Businesses: Advertising is costly, and only big businesses can afford it.
This puts small businesses out of competition with big businesses that get to enjoy
a monopoly in the market.
 Encourages The Sale Of Inferior Products: Effective advertisements even lead to
the sale of inferior products which aren‘t good for the consumers.

Types of Advertising and Major Differences

As you already aware that advertising is form of marketing communication using the various
strategies to impact consumers‘ thoughts, feelings and actions. Advertising can be broadly
categorized into two types, which are;
  Online Advertising: It is a form of marketing which uses the internet to deliver the
promotional marketing messages. There are 7 types of online advertising that are
leading the advertising domain nowadays and you can read it this article.

 Offline Advertising: This is a mass advertising which uses newspaper, hoarding,

flyers, movable objects like vehicles, shelters, etc. This is also most appealing way of
advertising to promote the business.

Here‘s a flow chart highlighting the major types of advertising that are ruling the advertising
world today.

Major Differences of Advertising:

There are many differences between online and offline advertising, but they have a similarity
between them is to know the desired audience to plan the advertising campaigns effectively.
 Here‘s a flow chart highlighting the major types of advertising that are ruling the advertising
world today.

# Offline Advertising Online Advertising

1 Type of communication is physical Type of communication is through internet

2 The approach to the customer is very slow The approach to the customer is quick and effortless

3 There isn‘t any success metrics to measure the success Success of the ad campaign can be measured and optimize at any time during the campaign

4 Each and every action is a manual approach All the actions can be automated using the technology

5 Difficulties to manage and need lots of human efforts It is comparatively easy to manage the online and required no human effort to manage

6 Offline advertising reaches all types of audience Online advertising reaches to the users who have internet and required devices

7 There isn‘t any option to interact with the customer There are many options to interact and engage with the targeted audience

8 There isn‘t any way to know the targeted audience There are many ways to know the targeted audience using technology

The isn‘t any guarantee that advertiser can retarget the

9 This are many ways to retarget the customers and convert them quickly and effectively
users

There isn‘t any source to know how many users watched

10 There are multiple ways to see how many users watched the ad
the ad
11 There isn‘t any option to target the relevant audience Online ads are targeted to most relevant audience

Users remember the promotional message as it is a physical

12 Users tent to forget the ads while browsing the websites
mode

14 different Types of advertising

Companies can use various advertisements to reach their target consumers or to inform the
public. Here are 14 types of advertising and examples:

1. Print advertising

Print advertising refers to printed advertisements, often seen in newspapers and magazines.
However, this category also includes other printed materials, such as brochures, directories
and flyers. Companies can place advertisements in local newspapers–whether throughout the
paper or within the classifieds section—to target consumers within a geographic location.

For a more targeted audience, companies may seek advertising opportunities in magazines.
Specialty magazines can help a company reach a specific group or type of people. For
example, a company that sells golf equipment would place ads in magazines for golf
enthusiasts because they know that audience is more likely to appreciate their product.
Magazine advertising can also offer a better visual experience for consumers, as the full-page
opportunities allow for more color and high-production images than newspaper
advertisements.

2. Direct mail advertising

Direct mail is a type of print advertising that sends advertisements to customers through the
mail. Examples include brochures, catalogs, newsletters and flyers. This approach enables
companies to identify an even more targeted market than other print advertising formats
because it distributes ads via a direct mailing list.

For example, someone who opens a hair salon can create a flyer that announces their grand
opening. They can then send that flyer to a list of residents located within five miles of the
salon. To attract new customers, the owner can also include a discount coupon with the
mailer.

3. Television advertising
Television advertising is a type of broadcast advertising where companies advertise their
products or services through 20-, 30- or 60-second TV commercials. It can be costly but
enables companies to repeat their advertisements regularly. The costs to air television
commercials can vary due to the following factors:

 The ad length
 The time of day
 The television show
 Frequency of airing
 The geographic reach
 The number of networks

For example, it is much more costly to air a commercial during a widely watched event, such
as the Super Bowl. While consumers now have the ability to skip advertisements on their
televisions, it still serves as an effective method of reaching a large audience. Repeating
advertisements help build recognition and brand awareness, and even if consumers are not
watching the ads, they may still be listening to them.

4. Radio advertising

Radio is another form of broadcast advertising that plays ads during programming breaks.
Customers can listen to radio advertisements while conducting other activities, such as
driving or doing household chores. Like television, radio enables the repetition of
advertisements, which can give companies more recognition with consumers.

Companies can research what radio stations are popular with their target customers. They can
also learn what times of day these customers listen to the radio most. For example, they may
try to advertise during a morning time slot when they know many of their customers will be
driving to work.

5. Podcast advertising

In podcast advertising, companies can sponsor podcasts or have advertisements for their
products or services played during the episodes. Typically, podcasts play ads at the
beginning, middle and end of episodes. Similar to radio advertising, companies can research
which podcasts are most popular with their target audience.

Some podcast hosts read from a script provided by the company or create their own, which
can be an entertaining way for listeners to consume advertising content. Often, companies
will offer a discount code available to listeners of a podcast. Besides attracting new
customers, this code can help companies assess how well this advertising strategy works
based on its use.

6. Mobile advertising

Mobile advertising reaches consumers through any mobile device with internet connectivity,
such as a cellphone or tablet. These advertisements may appear to consumers through social
media, on web pages or within apps. For example, a customer playing a mobile game may
receive ads for similar games between gameplay rounds. The benefit is that these
advertisements can reach consumers no matter where they are. If individuals enable location
settings, companies may even be able to target them via geographic location.

Another way companies conduct mobile advertising is by combining it with print

advertisements using QR codes. When consumers see a QR code in a magazine, they can
scan it using their mobile device. It could then take them to the brand's website or offer them
a coupon.

7. Social media advertising

Companies use social media advertising to promote their products or services on various
platforms. Social media advertising, like other digital advertising, enables companies to target
specific audiences. They may focus on reaching customers based on their geographic
location, age group or buying habits. They can either pay for the platforms to promote their
advertisements, or they can use more organic methods.

For example, a small business can use organic social media advertising by asking its
followers to like and re-share one of their posts. They then may pick a participant at random
to receive a discount or gift. Today's businesses also utilize online influencers, bloggers or
celebrities to create posts promoting their brands or products. Rather than full advertising
campaigns, these methods may serve as more cost-effective techniques that enable the
business to spread awareness of their brand.

8. Paid search advertising

Paid search is a type of online advertising, sometimes referred to as pay-per-click (PPC)

advertising. Companies that use PPC advertising only pay a fee when users click on their ad.
They bid on specific keywords, usually related to their business, along with the placement of
their ad on the search engine. For example, a company that sells folding bicycles includes the
keyword "foldable bikes" in its bid. When users search that phrase, the company's products
appear as an ad within the search results—typically at the top of the page.

9. Native advertising

Native advertising is a type of digital advertising in which ads look similar to the rest of the
page content. Pay-per-click advertisements can serve as a form of native advertising because
the advertised product often blends in with the other results. Businesses enjoy using this
format because it does not interrupt the user experience, unlike display advertising.

For example, a website that publishes articles about professional development may also
include sponsored articles. These look the same as the articles published by the site's writers
and editors but came from a business looking to promote its products or services. A reader
may find an article about time management tips and realize later that it is a sponsored post
from a company that sells time-tracking software. In this scenario, the company also would
likely mention or advertise its software within the article's content.
10. Display advertising

Display advertising is a type of digital advertising that uses identifiable ads. These may
include banner ads at the tops or sides of web pages and pop-up ads. Another example would
be the video ads that appear before or during streaming video content. Display advertising
encourages users to click on them to move to the company's website, often to make a
purchase. These advertisements are very prevalent online, though sometimes that can make
them easy for consumers to ignore.

One method used in display advertising is remarketing or retargeting. When users visit a
brand's website, they often accept browser cookies that allow the site to track their journey. If
the user decides not to purchase anything on the site, the brand may target that customer and
place ads for their products on other websites to remind them to return and buy the item.

11. Outdoor advertising

Outdoor advertising refers to advertisements that consumers see outside their homes. As a
result, this type of advertising is sometimes called out-of-home advertising. Examples include
billboards and advertisements seen in public places or transit vehicles, such as on the sides of
buses or inside subway cars.

Outdoor advertising aims to catch the attention of a large population. Usually, these ads help
businesses build their brand awareness within a geographic location. The space allotted to
outdoor advertisements may be limited, as can the amount of time a consumer takes to view
the advertisements. Typically, these ads use bold images and fewer words so that the content
is easily understood.

12. Guerrilla advertising

Guerrilla advertising refers to less conventional methods that are generally low-cost and
employ creative techniques to draw attention. A common strategy in this category is ambient
advertising, in which a company places ads in public places but uses an unconventional
manner. For example, rather than advertising on a bus stop, a company may paint a mural on
the sidewalk advertising their services.

Guerrilla marketing sometimes invites public interaction or participation. For example, the
advertisement may encourage individuals to take a photo with the ad and post it on social
media using a hashtag. That is why companies using guerilla advertising aim for eye-catching
ads — to entice consumers to interact with their content. Advertising via word-of-mouth can
serve as an effective and less costly way for companies to build brand awareness.

13. Product placement advertising

In product placement advertising, a company pays to have their product embedded in media
content, such as a television show or movie. The content sometimes does not explicitly
mention the product, but it is viewable by the audience. This method can help companies
reach targeted groups more discreetly.

For example, a soda brand may want to target teenagers. They can pay to have their
beverages advertised via product placement in a popular teen film franchise. Characters in the
film who drink soda will drink that company's beverage, and the label will be visible. The
characters may mention the beverage brand, but not necessarily.

14. Public service advertising

Public service advertising refers to advertisements that promote a cause or initiative rather
than a product. Often called public service announcements (PSAs), these ads aim to inform
the public about a topic in a way that benefits them or others. Organizations can use public
service advertising in various formats, such as television, radio or online video advertising.
Providers will donate airtime to these ads, though they must meet particular requirements to
qualify as a PSA.

This type of advertising often is used by government agencies or charitable organizations to

educate consumers on health and safety topics. For example, the Centers for Disease Control
airs PSAs to inform citizens of the necessity to take health screenings or prepare for natural
disasters.

Factors Affecting The Selection of Advertising Media

Factors affecting the selection of advertisement media – every advertising media has a
significant and separate role in the promotion of a business and its products and services.

It is important to select or choose the right media for advertising, when inappropriate
advertising media is selected it directly reduces the chances of achieving advertising
objectives or wrong messages are delivered to the target market.

The advertising media such as press, print, audio, radio, visual, display, web, etc. have
different roles and can be used as per different necessities as they have unique effectiveness.
However, the selection of best advertising media generally depends upon the following
factors,

 Nature of product
 Nature of potential market
 Advertising objective
 Availability of budget
 Availability of media
 Type of selling message
 Distribution strategy
 Extent of coverage
 The level of competition
Nature of Product

The nature of the product itself is one of the major factors that affect the selection of
advertising media to great extent. The products usually are of two consumers and industrial
products.
Such as if the product‘s durability is short it may not need expensive advertisings while more
life expectancy products may need. Similarly, products like movies, vehicles, hotels, resorts,
etc. need advertising on television.
Nature of Potential Market
The nature of the potential market also determines the choices of the advertising media,
demographics of consumer groups such as age group, income level, religion, status, spending
habit, literacy level, development areas, etc.
 Television and movies advertising may be suitable for young people,
 Newspapers and magazines may be appropriate for educated people,
 Radio advertising may be suitable for rural people.

Advertising Objective
The objective of the company and advertising is also an unforgettable factor that affects the
selection of advertising media. The objectives of advertising may just inform the people
about the prodcut or service, persuade them to buy, to remind them, and so on.
Depending upon the objective the choices of advertising media differ,
 If the primary objective the advertising is to communicate or persuade all the people
of the country, the mass advertising media like newspapers, radio, TV, may be
effective,
 If the objective is to cover the local market only, posters and direct communication
may be more effective,
 If the marketers want immediate response from the people, direct and specialty
advertising may be the best fit,
 If the marketers want to build up company or product goodwill, mass advertising
media especially newspapers and magazines may be appropriate.

Availability of Budget
Since advertising is any paid form of promotion, it needs a certain amount of budget. If the
firm has an adequate amount of budget classified for the advertising – the firm can choose
any media or more than one media to promote its products and services.
But if the firm has limited funds for advertising and wants to continue the advertising of its
products, then for the firm it is better to use cheap media such as newspapers, display, and
direct communication, door-to-door advertising, etc.

Availability of Media
In general, all the advertising media in all the markets may not be available. Sometimes, for a
marketer, the desired media may not be available in the market, in such a situation, the
marketer has to use the media which is available in the market because he has no other
choice.
But, in the market, if there are a variety of advertising media and agencies, the marketer can
select the best and most suitable media that best fits his budget and objectives.

Type of Selling Message

The selection of media is often based on the message that an organization wants to
communicate to the target market. The message like,
i. If the advertiser wants to communicate with people with attractive colors or pictures and
verbal or non-verbal messages, he must use television or film advertising.
ii. If advertise wants to communicate people only with verbal messages, radio advertising
may be suitable.
 Advertising Budget
An advertising budget is an amount set aside by a company planned for the promotion of its
goods and services. Promotional activities include conducting a market survey, getting
advertisement creatives made and printed, promotion by way of print media, digital media,
and social media, running ad campaigns, etc.

Advertising Budget Basis

The advertising budget of a company is based on the following factors:

 Type of advertising campaign that it intends to run

 Selection of target audience
 Type of advertising media
 Company‘s objective of advertising

Process of Creating Advertising Budget

The following steps are followed to set up this budget –

 Setting advertising goals based on the company‘s objectives.

 Determine the activities that are required to be done.
 Preparing the components of the advertising budget;
 Getting the budget approved by management;
 Allocation of funds for activities proposed under the advertisement plan;
 Periodically monitoring the expenses being incurred during the advertising process;

Advertising Budget Methods

The most common methods are discussed as follows:

 Percentage of Sales: Under this method, the advertising budget is set as a percentage of
either the past sale or expected future sales. Small businesses usually use this method.
 Competitive Parity: This method advocates that a company sets an advertising budget
similar to the one set up by its competitor to yield similar results.
 Objective and Task: This method is based on the advertising objectives of this method.
Once the objectives are decided, the cost is estimated to complete those objectives, and
accordingly, a marketing budget is set.
 Market Share: In this method, the advertising budget is based on a company‘s market share.
For a higher market share, less marketing budget is set.
 All available Funds: This is a very aggressive method under which all available profits are
allocated towards advertising activities. This method can be used by start-up businesses that
need advertisements to attract customers.
 Unit Sales: Under this method, the advertisement cost per article is calculated and based on
the total number of articles, it is set.
 Affordable: As the name suggests, the company sets its budget based on how much it can
afford.

Factors Affecting Advertising Budget

 Existing Market Share: A company with a lower market share will be required to spend
more on its promotional activities. On the other hand, companies with larger market shares
can spend less on their promotional activities.
 The competition level in the industry: If there is a high competition level in the industry in
which the company operates, the advertising budget would be required to be set on a higher
side to get noticed by audiences. In case a monopoly exists or where there is the least level of
competition involved, the company will need to invest less in marketing.
 Stage of the Product Life Cycle: It is a well-known fact that in the initial introduction and
growth stages of a product or service, more amounts would be required for advertising. While
in the later stages of the product life cycle, the need for advertising will decline.
 Decided frequency of Advertisement: The advertising budget will also depend on how
frequently a company wants to run its ads. Frequent ads will call for a greater budget.
 Strategies

 Social Media Marketing: One can start by making profiles of the businesses on social media
 platforms like Facebook and Instagram, which can help reach out to larger audiences cost-
effectively.
 Referral Benefits: In this strategy, you ask your customers to refer your business pages to
their friends and family. This way, your customers do the marketing for you. You provide
referral benefits and points when such referrals are buying the products.
 Content Marketing: Start a blog and update interesting content that attracts your audiences.
This strategy, combined with other strategies, will benefit the business.
 Email Marketing: This strategy will depend on your database‘s strength and relevance.
 Pay per click ad: In this strategy, you pay per ad you run on social media platforms. Based
on your selected target audience, the ad is run and reaches the audience.

Advantages.
 It helps to understand the advertising requirements and allocate the budget toward each
necessary activity.
 The company‘s overall advertisement expense remains monitored, ensuring that actual
expense remains within a prescribed limit.
 When the budget is followed, it is ensured that the advertisement activities are done as per
advertisement goals only, and no unnecessary expense is incurred.
 Each advertisement activity is kept under supervision and remains controlled well within
budget.
Media Decision

Media decision-making in advertising is a multifaceted process that demands a

comprehensive understanding of the target audience, budget limitations, product nature,
timing, and geographic considerations.
It requires advertisers to stay informed about emerging media consumption trends and to
adapt their strategies accordingly.
Media planning includes all such decisions like selecting appropriate media, appropriate
media mix and deciding the scheduling of advertisement. All these decisions help the
organization in achieving advertising objectives, i.e. to communicate the message to target
audience and thus to promote sales.

Factors that Affecting Media Decision in Advertising

Advertising is a vital component of any marketing strategy, allowing businesses to connect
with their target audiences and promote their products or services. In today‘s digital age, the
media landscape has evolved dramatically, offering a plethora of platforms for advertisers to
reach consumers. However, making effective media decisions is crucial to ensure that
advertising efforts yield the desired results.
Media decision is an important decision upon which the effectiveness of the advertising
campaign depends.
There are wide varieties of media available for advertisers. However, each media has its own
features, advantages, and disadvantages.
Therefore, all media are not suitable for all kinds of advertising.
Following are the factors that influence media decision-making in advertising, exploring the
complexities and considerations that advertisers must take into account to optimize their
campaigns.
1. Objective of Advertising
The objective of advertising is an important factor affecting media decisions.
There may be a number of objectives of advertising such as to introduce a new product, to
expand the market, to remind, to counter competitor‘s advertising campaign, and to remove
misunderstanding.
If the objective of advertising is to build an image, it can be advertised in a Prestigious
magazine. In case, a message is to be given to the customers immediately, it would be better
to use a newspaper or radio.

2. Target Audience
One of the primary determinants of media decision-making in advertising is the target
audience.
Understanding the demographics, interests, behaviors, and preferences of the audience is
essential to identify the most relevant and suitable media channels.
For instance, if the target audience is predominantly young adults, digital platforms like
social media, YouTube, or mobile applications might be preferred, whereas television or print
media could be more appropriate for reaching an older demographic.

3. Budget Constraints
The available budget significantly influences media decisions. Different media channels
come with varying costs, and advertisers must strike a balance between the reach and impact
of their campaigns and the allocated budget.
TV ads during primetime slots and full-page print ads in major publications may yield greater
exposure but might be cost-prohibitive for smaller businesses.
On the other hand, digital and social media advertising often offer more cost-effective
options.

4. Nature of the Market

The nature of the market also affects the media of advertisement.
If the advertising is confined to local markets, advertisements may be given in local
newspapers, cinema slides, or by outdoor advertising.
On the other hand, if advertising is extended to the entire country, newspapers, magazines of
national circulation, and televisions will be selected.

5. Nature of the Product and Service

The nature of products determines the choice of advertising media.
Consumer goods can be advertised in newspapers, magazines, radio, and television, and
through outdoor displays, Industrial Products could be advertised through technical and
professional journals.

6. Reach and Frequency

The reach and frequency of media channels are essential considerations.
Reach refers to the number of unique individuals or households exposed to an advertisement,
while frequency represents how often they are exposed to it.
High-reach media, like television or online platforms, can quickly disseminate the message to
a broad audience, while print media may offer better frequency by reaching the same
audience multiple times.
Striking the right balance between reach and frequency is vital for optimal brand exposure
and message retention.
7. Nature of Message
It is essential to consider the nature of the message to be given in the advertisement
while selecting advertising media.
Messages can be of different types like long messages, short messages, urgent messages, the
message with pictures and sketches. Accordingly, media may also differ.

8. Characteristics of Buyers
If the message is to be conveyed to the illiterate or less literate people, radio, television, and
cinema will serve the purpose in a better way. Magazines, newspapers or direct mail may be
used to convey the message to more educated people.
Since different languages are spoken in different regions, advertisements in different
languages may be given to popularize the product.
Similarly, age, sex, social status, the standard of living, and the economic condition of the
prospective buyer may also affect the media decision.

9. Media Cost
It is also essential to consider the cost of media.
The media cost would be depending upon its coverage and circulation. The cost to be
incurred will be affected by the paying capacity of the advertiser.
Economically viable media should be selected. The availability of funds with the advertisers
may dictate the choice of media.

10. Seasonality and Timing

Seasonality and timing can significantly affect advertising media decisions.
Advertisers must consider the timing of their campaigns to align with peak buying seasons,
holidays, or events.
For instance, a sunscreen brand may opt for extensive outdoor advertising during the
summer months, while a toy company may focus on TV and online ads leading up to the
holiday season.

11. Geographical Considerations

The geographic location of the target audience and the advertiser‘s distribution reach are
essential factors when making media decisions.
Local businesses may prefer regional newspapers, radio, or targeted digital ads to reach their
specific markets, while global brands may utilize international TV networks, online
platforms, or magazines with a broader readership.

12. Image of the Media

The Prestige of media will be depending upon the number of viewers/readers/audience.
Advertisers may also consider media creditability, which also depends upon the type of
products being advertised as well as the support of prestigious advertisers to that media.

13. Media Used by the Competitors

The choice of media also depends upon the advertising strategies of competitors.
The advertiser cannot afford to dismiss outrightly the media selected by competitors. Media
chosen by the competitors are prepared to counter their advertising strategy.
14. Media Availability
The question of media availability is quite relevant when considering media because all
media is not available all the time to advertisers.
Desired space may not be available in the prestigious newspaper or magazine at a particular
time/date. Similarly, on TV, Primetime is always in high demand.

15. Size and Nature of Business Enterprise

The size and nature of business enterprises also play an important role in making a choice of
advertising media.
Different media will suit departmental stores, small shops, manufacturers and producers, etc.
A big business enterprise may advertise through television, radio, or newspaper having
national coverage whereas a small business unit may prefer local newspapers, Cinemas
slides, etc.

16. Branding and Image

The image and reputation of the media platforms themselves play a vital role in media
decision-making.
Advertisers may align their brand with media outlets that share similar values or target the
desired image.
For example, luxury brands often prefer premium magazines or high-end digital platforms to
maintain an upscale image, while socially conscious brands may choose media outlets known
for promoting environmental or social causes.

17. Media Consumption Trends

The rapidly changing landscape of media consumption trends also affects advertising
decisions.
With the rise of digital media and the decline of traditional channels, advertisers must stay
up-to-date with evolving consumer behaviors.
The increased use of mobile devices has driven a shift towards mobile advertising, while the
popularity of streaming services has impacted traditional TV advertising.

18. Distribution Strategy

The advertising media should be compatible with the distribution strategy of the company.
For example, if the company is selling through wholesalers and retailers then Outdoor Media
duly supported by television, radio, and newspaper may be helpful, in case, if the company
wants to sell direct, mail advertising will be more useful.

19. Market Requirements

While selecting advertising media, the company‘s market requirements should be considered.
For example, specialized High Fashion colored magazines would be the most suitable media
for consumers with high-income groups and sophisticated tastes.
Similarly, Outdoor Media would be appropriate when consumer action is to be induced at the
point of purchase.

20. Life of the Advertisement

The life of the advertisement varies from media to the Media.
What are the factors to be considered in advertising media selection?
Outdoor displays, magazines, and direct mail have a longer life but the life of radio,
television, and newspaper advertisement is very short unless the advertisements are repeated
regularly.
Therefore, the advertiser should take into consideration the duration for which he wants to
create an impression in the minds of the prospective customers.

21. Media Circulation

The company should take into account the circulation of advertising media.
If the media has a greater circulation, the message of the advertiser will reach a larger number
of people.
It may be mentioned that newspapers have the widest circulation but other media have
limited and services circulation.

22. Measurability and Analytics

Digital advertising offers valuable data and analytics that enable advertisers to measure
campaign performance in real time.
Metrics like click-through rates (CTR), impressions, conversion rates, and return on
investment (ROI) can help fine-tune media decisions and optimize future campaigns.

23. Regulations and Ethics

Advertisers must be mindful of ethical considerations and adhere to relevant regulations.
Misleading or offensive content can lead to a negative brand image and legal repercussions.
Understanding the guidelines governing advertising in different media channels is crucial to
making responsible decisions.

24. Emerging Trends and Technology

The media landscape is constantly evolving with the advent of new technologies and
platforms.
Staying abreast of emerging trends, such as augmented reality, virtual reality, or influencer
marketing, can provide a competitive edge.
However, it is crucial to assess the relevance and effectiveness of these trends in the context
of the target audience and campaign objectives.

25. Comparative Study of Different Media

The characteristics, advantages, and limitations of each media should be studied before taking
a final decision on a particular media of advertising.
That media should be selected which could reach the maximum number of prospects, could
gain the attention of the maximum number of readers, and have wide coverage at a low cost.
 If the primary objective the advertising is to communicate or persuade all the people
of the country, the mass advertising media like newspapers, radio, TV, may be
effective,
 If the objective is to cover the local market only, posters and direct communication
may be more effective,
 If the marketers want immediate response from the people, direct and specialty
advertising may be the best fit,
 If the marketers want to build up company or product goodwill, mass advertising
media especially newspapers and magazines may be appropriate.