Want to know what advertising is and the different types of advertising which you can use to market your product or services? Perfect! Let’s jump into this advertising guide.
What is Advertising?
Advertising is a key component of promotion and one of the most visible elements of an integrated marketing communications program. Advertising is paid and nonpersonal communication transmitted through various media channels. For example, television, radio, magazines, newspapers, direct mail, outdoor displays, internet, and mobile devices. Most online ad revenue comes from search advertising, classifieds, and banner ads. Using rich media advertising, including animations and audio/video combinations, you will continue to grow. Because broadband internet access becomes more widely available both in the home and via mobile connections.
Importance of Advertising
Advertising is the perfect strategy to target potential audiences. Targeting potential customers by coordinating the message with their lifestyles is an important strategy. Advertising can be a cost-efficient element of an IMC program. When you use it to reach many people via television, magazines, outdoor displays, or outdoor ads. The initial expenses for advertising are quite high, which is a major drawback of advertising. However, online advertising provides an opportunity to reach highly specialized markets at a relatively low cost. With advertising, you can promote all products, including goods, services, ideas, issues, and anything else that you want to communicate with potential customers.
Types of Advertising
Here are the major types of advertising:
1 Institutional Advertising
Promotes your firm’s image, ideas, and culture, with the goal of creating or maintaining an overall corporate image. Aimed at various stakeholders, including shareholders, consumer advocacy groups, government regulators, and the public. Institutional advertising can create a positive view of the organization.
2. Advocacy Advertising
It often promotes socially approved behavior, such as Recycling, the responsible use of alcoholic beverages, Support for the arts, and firm support for cultural diversity.
3. Product Advertising
It promotes the image, features, uses, benefits, and attributes of your products. Following are the different product advertising types:
4. Pioneer Advertising
Stimulates demand for a product category rather than any specific brand. The goal is to increase customer interest and awareness in the product category in order to increase the size of the entire market. Ex. got milk.
5. Competitive Advertising
Attempts to stimulate demand for a specific brand by promoting the brand’s image, features, uses, and benefits. This is the type of advertising that you see most often in the media. The most successful slogans and ad campaigns are those that are combined with other promotional elements in an integrated marketing effort.
6. Reminder Advertising
Other types of product advertising include reminder advertising to let customers know your brand is available.
7. Reinforcement advertising
To assure current customers that they made the right choice in buying and consuming your product.
8. Comparative Advertising
Occurs when your firm compares your product with one or more competitive products on specific features or benefits. It is very common in soft drinks, automobiles, and computers. Read more about comparative advertising
To run a successful advertising campaign, you face two major challenges that include what should your advertising budget be and how you determine the effectiveness. In the next section of this guide, we will discuss how you can overcome these challenges.
8. Audio Advertising
Audio advertising is a dynamic marketing approach that utilizes sound to convey messages and promote products or services. Whether through radio commercials, podcasts, or streaming platforms, audio advertising captivates audiences with compelling narratives, catchy jingles, or impactful messages. It’s a versatile medium that engages listeners, creating a unique and memorable brand experience through the power of sound.
Determining the Budget For Different Types of Advertising
The total amount of money a firm allocates to advertising activities for a specific time period is difficult to determine because the effects of advertising are difficult to measure. Determinants include the geographic size of the market, the distribution or density of customers, the advertising products, sales volume relative to the competition, and the firm’s own historical advertising budget. Here are the top ways which you can use to determine an appropriate advertising budget:
- Percentage of Sales Approach: It is the most widely used method for determining the advertising budget. The approach is straightforward and based on what your firm traditionally spends on advertising. The flaw of this is its implied assumption that sales create advertising. Reduced advertising is not the best strategy.
- Objectives and Task Approach: It requires that your firm layout your goals for the advertising campaign and then list the tasks required to accomplish specific advertising objectives. The major drawback is that the level of effort needed to accomplish advertising objectives is difficult to know with certainty.
- Competitive Matching Approach – Compare your advertising budget with your competitors’ advertising expenditures in absolute dollars. The problem with this approach is that all firms are different, so competitors are likely to have different advertising objectives and different resources to devote to advertising.
- Arbitrary Approach – Your intuition and personal experience set the advertising budget under this approach. The arbitrary approach can lead to mistakes in budgeting because it is not necessarily scientific or logical.
Evaluating Advertising Effectiveness
Methods for evaluating the achievement of advertising objectives include assessing the effectiveness of advertising copy, illustrations, and layouts, and evaluating the effectiveness of various media. To pretest advertisements, firms often use a panel of actual or potential buyers who judge one or more aspects of an advertisement. During an ad campaign, the company typically measures effectiveness by looking at actual customer behavior patterns, such as purchases, responses to toll-free telephone numbers, the rate of coupon redemption, page visits to the firm’s website, or even personal communications. You can also use customer surveys, panels, or experiments to evaluate your campaign based on communication objectives. You can also use performance outcomes such as sales or market share changes to determine campaign effectiveness.
Final Thoughts On Types of Advertising
Advertising helps you to market your product and services in front of your target audience and this is how advertising helps businesses to grow in a short span of time. You can advertise for your own business or hire professionals with proven media buying experience. At GSMM, we have extensive experience in Google ads and YouTube ads. We’re running successful ad campaigns for our own business and clients as well. Are you struggling to get fruitful results from advertising? Perfect! We’re here to help you. Let’s book a free consultation call with our CEO to discuss this further. You can also find media buying agencies that specialize in other platforms, like Facebook, LinkedIn, Bing, and more, by visiting DesignRush. Design Rush is a marketplace platform to connect you with experienced B2B Agencies for a variety of advertising and marketing services. Whatever you decide, know that there are a variety of paths that lead to advertising success!