Why Advertising is important in Business

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Advertising in Business- Benefits

Advertising is considered as important for businesses as it fulfills many objectives. Advertising is mainly done for the promotion of products and services that are offered by a business house.

Apart from increasing the sales of a business, which is the major objective for hiring an advertising agency or undertaking advertising functions, businesses are also able to develop a brand identity. In present times, when competition among businesses has become fierce, advertising has become inevitable.

Whenever there are any changes in products and services, these are communicated through different advertising platforms to the customers. Similarly, whenever a new product is launched, its success or failure depends upon the magnitude of advertise to large extent. This is the reason why businesses and companies are spending thousands of dollars on advertising for launching new products.

There are different types of advertising mediums available and a business can use any of them as per utility and applicability. Print advertising is the most common form of advertising. Magazines and newspapers are commonest mediums for print advertising. Businesses are also using fliers, brochures, pamphlets, etc for promotion. This type of advertising is also one of cheapest mediums available.

Other popular medium of advertising is broadcasting. In this type of advertising, various mediums used are radio, T.V, internet etc. Cost of broadcasting advertising depends upon many factors. Some important ones are duration of advertisement, time when it would be broadcasted, level of popularity of channel used etc. Now a day, radio is not liked very much as is television and internet for advertising.

One of costliest but effective medium of advertising is celebrity. Companies are hiring celebrities like movie stars, sportsperson etc for advertising and promoting their products and services. However, signing up or contract prices of celebrities run in millions of dollars. This type of advertising is resorted to by big companies only.

Outdoor activities like trade-shows or kiosks etc are also held by companies for promoting their products and services. Through kiosks, billboards etc, people are attracted for promoting products. They are told about all the essential features and utilities of products. This type of advertising does not require large amount of money and thus, can easily be undertaken by small and medium enterprises.

There are some other ways of advertising too, apart from above. For example, a business can advertise its products by inclusion in movies or leading entertainment channels. In cases, where products have been banned by law, like alcohol, cigarettes etc, businesses are coming up with alternative products with similar names and then, advertising them. This is called as surrogate advertising.