Why do businesses advertise?
Advertising is an important strategy in marketing. Businesses use advertising to persuade people and make people aware of the company and its products/services. It doesn’t always turn a profit directly in straight sales, but it widens the base of people who know about the business, which often multiplies the profitability of the rest of their business model. No business can survive if too few people know about it.
There are many reasons businesses advertise their products:
#1 For improving brand loyalty.
#2 Advertising, if done properly, offers a high ROI
#3 Advertising improves the image of a business, its products, and services
#4 It helps in adding new customers
#5 It helps in getting a strong edge over competitors
#6 To influence the customers throughout the buying cycle
#7 To drive more in-store and online sales
#8 With modern forms of advertising, it is possible to focus only on the targeted customers, which improves the success rate of a business more quickly and at lower cost.
#9 Advertising adds credibility to the message a business intends to send to its potential customers.
#10 It raises the morale of employees and customers alike.
This is all assuming the ads are done well, by the way. A bad ad could achieve the opposite of these things.
The above points are self-explanatory, so I didn’t get into too much depth. From these points, it is clear that advertising is pivotal for every kind of business. A mentor of mine once said if you’re not ready to advertise your business, you don’t have a business. I think that’s largely accurate.
In the context of our discussion, I have an interesting post to share which discusses the importance of advertisements in a different way. In my post: Welcome to a World Without Advertising, I have discussed a hypothetical situation of a world with literally no advertising. You can read that post through the link.
In conclusion, every online business (and the majority of local ones) must advertise. But, at the same time, it has to be done correctly, and the expense of advertising should be pre-planned and used as a guide for judging success or failure.
Please feel free to reply to me if you need any clarification.