Companies spend an average of 8% of their gross revenue on marketing and advertising. This to me is a lot of money.
Why are these companies willing to spend so much money on advertisements? Well, I will give you in detail all the reasons why they do it and why you should too.
If you’re finding it difficult to finance your company or you cannot stretch marks on your capital to spend on advertisements, there are financial institutions that offer loans to startups.
Now, here are all the importance of advertisements you need to know;
To your business
- To raise brand awareness
The simple definition of brand awareness is the recognition of a product or service to the customers. simply making the people aware of what you want to sell.
It doesn’t have to necessarily convert into a successful sale.
If you’re getting into a new market, you want to let the people know that there’s a new product you have launched.
The aim is to make the customer aware of your product and take a further initiative to purchase and compare it to your competitors.
- To persuade someone to buy
An advertisement is an invitation to buy or purchase what is being advertised.
You will want to flush out everything you can about your product on your advertisement to convince the buyer but your product is worth their money.
When trying to persuade someone to buy your product, do not falsify or mislead an advertisement because then you will drive away new customers and lose your loyal customers.
It will not only enjoy your customer reputation but also there are legal repercussions for falsifying advertisements.
Ensure your team conducts thorough research about your products so that they can live up to what you advertise them to be in order to prevent misleading or deceiving information to the public.
- To announce new products or services
Even mature companies with many loyal customers do spend money on advertising and marketing because it is a way to announce new products and services.
With such advertisements you want to focus on what is new and how is it different from your other similar line of products.
This type of advertisement also brings in new customers or helps retain loyal customers.
- To promote products or service
Advertisement is another way companies used to promote their products and services.
Whether it is something new coming to the market or an upgrade from the old version, customers are meant to know about this.
Promoting your products and services generally contributes to an increase in sales, if you do it the right way.
- Compare and be aware of the competitors’ advertisement strategy
Advertisement is a marketing strategy and every company has its own way of going about it.
You can use your product to appeal to your potential customers why they should purchase your product and not your competitors.
Through advertisements, you may also notice what your competitors are doing wrong and better your own.
Advertisements should also set the footing for your target market. If you’re having doubts about the type of people to advertise your products to, then you take notes from your competitors.
To the customer
- Inform the customer about the product
Even before looking at the product review, customers will see the general information about a product.
Through product advertisement, you get to tell your customers what your product is and what they should expect from it.
Customers need all the information they can possibly get to buy a product, and you need to give them that.
Give the correct information and present it in a manner that is engaging, eye-catching, or even entertaining for someone to be compelled to follow up.
- Help the customer compare
If the people you trying to reach out to have never heard of your product, they are just not going to be persuaded to buy it.
Use your phone need to advertise the product to them so that they are aware and can compare your products from others that is similar to it.
This is why you have to take them with your first impression. Do not just advertise your product but also make the product live up to the standards in the advertisement.
This is because if somebody is going to buy the product for comparison purposes, you want them to come back for more.