Importance of Advertising
Spending on advertising is huge. One often quoted statistic by market research firm ZenithOptimedia estimates that worldwide spending on advertising exceeds (US) $400 billion. This level of spending supports thousands of companies and millions of jobs. In fact, in many countries most media outlets, such as television, radio and newspapers, would not be in business without revenue generated through the sale of advertising.
While worldwide advertising is an important contributor to economic growth, individual marketing organizations differ on the role advertising plays. For some organizations little advertising may be done, instead promotional money is spent on other promotion options such a personal selling through a sales team. For some smaller companies advertising may consist of occasional advertisement and on a very small scale, such as placing small ads in the classified section of a local newspaper.
But most organizations, large and small, that rely on marketing to create customer interest are engaged in consistent use of advertising to help meet marketing objectives. This includes regularly developing advertising campaigns, which involve a series of decisions for planning, creating, delivering and evaluating an advertising effort. We will cover advertising campaigns in greater detail in our next tutorial.
Latest Marketing Stories
- Disney Bets $1 Billion on Technology to Track Theme-Park Visitors (high-tech and customer tracking) BusinessWeek
- Who Has The Biggest Marketing Budgets? (survey of marketing spending) Forbes
- Retailers Are Using Mobile Apps to Drive Up Sales (building store traffic with apps) Los Angeles Times
- Worst Product Flops of All Time (10 big product failures) 24/7 Wall St.
- The Price Of A Pizza In 237 U.S. Neighborhoods (stats on how pizza prices vary within cities) NPR
- Hey, We Want More $$$ Too! More Theme Parks Jack Up Ticket Prices (competitors see market leader's price increase as reason to raise their price) Time
- With ‘Drone to Home’ Service, Netflix Uses Satire Against Amazon (comical approach to competitive advertising) New York Times
Latest Blog Posts
- Is Disney’s New Customer Tracking Technology Big Marketing or Big Brother?
- This Research Asks Top Marketers How Things Are Going
- The Big Failures That Rest in the Marketing Boneyard
- Another Example of Beer and the Product Life Cycle
- The Effectiveness of Comparative Promotion Often Depends On What Customers Know