In the previous article, we have learnt about the different types and objectives of advertising. In this article, we will be looking further into the various advantages and disadvantages of advertising.
Before we look into the different advantages and disadvantages of advertising, let us look into a simple definition of advertising.
Advertising can be defined as a form of communication, which is usually paid for and can be specifically intended to influence and inform one or more people.
It is simply a paid form of non-personal presentation and involves the promotion of ideas, goods and services with the help of an identified sponsor.
Advertising is crucial and the three main objectives of advertising are to inform, persuade and remind as well!
So, now let us take a closer look into the various advantages and disadvantages of advertising.
What are the Advantages of Advertising?
- Reduces the per-unit cost:
Advertising has a mass appeal, as it increases the overall demand for a product which can benefit the organization for capitalizing on the various economies of scale.
- Helps in building the brand:
Some of the advertisements can work effectively in brand building and those brands are preferred compared to those, which do not work.
- Launching the new product:
When a certain product or service is backed by an advertisement, the overall launch becomes significantly easier as well.
- Boosts confidence in the brand:
Advertisements can help to boost the existing customer’s confidence in the brand and followers of your brand will get a feeling of pride when they see an advertisement for your product or service.
- Helps in reducing the turnover by customer:
There are many strategic advertisements with new offers and can help to offer better service, by reducing the overall customer turnover.
What are the Major Disadvantages of Advertising?
- More increased costs:
Advertising is simply an expense to the business and can be added to the cost of the product and the cost is eventually paid by the customer.
- Confuses the buyer:
Many advertisements have similar claims, which confuses the buyer on what to buy and whether they should buy the product or not.
- Maybe misleading:
Sometimes advertisements may use smart strategies which can be used to mislead customers as well.
- Suited for big businesses:
Advertising is an expensive ordeal and is usually employed by big businesses who can afford it. Small businesses are blown out of the competition compared to big businesses that have a monopoly in the market.
In conclusion, these are the various advantages and disadvantages of advertising. We hope you found this article informative, in understanding the different aspects of advertising. Thanks for reading!