Does advertising actually work? Advertising has been a staple of marketing for decades, but the effectiveness of this practice remains hotly debated. Many people argue that advertising does not work at all. Others believe it works well when used properly. Still others believe that most ads are so poorly designed they can’t possibly be effective.
What happens in our brains when we see an ad? Why do some ads stick in our minds better than others? And how much do consumers really pay attention to the details in ads anyway? Where does all their money go if they don’t remember or even notice many ads on TV and online..
Freakonomics Radio explores these questions and more with its latest podcast episode called “Do Ads Work?” In this episode, host Stephen J Dubner talks to Don Marti, founder of GMB Fitness Consulting Group; Michael Norton Phd., Harvard Business School professor; Thomas Larrick Phd.,.
- 1 What is advertising?
- 2 How does advertising work?
- 3 The different types of advertising – TV, Radio, Print, Internet
- 4 Different ways people react to advertisements – do they buy the product or not
- 5 Types of products that are advertised using
- 6 Why do businesses need to advertise?
- 7 The benefits of advertising
- 8 The costs of advertising
- 9 Advertising tips for small business owners and entrepreneurs
- 10 When does advertising fail?
What is advertising?
It’s a question most of us probably don’t give much thought to. Most people seem to view advertising as something negative, a necessary evil or an inevitable part of modern life. Others see it as a way for companies and corporations to manipulate the average citizen into buying their products. There are many who even go so far as to claim that advertising is at best a waste of money, at worst destroying societies around the world by teaching people that happiness can be bought through purchasing goods they neither need nor want.
Is all this true? Has advertising really become little more than an endless stream of repetitive and pointless words and images designed only with one aim in mind: To convince you buy things you do not require? Is it making us unhappier while.
How does advertising work?
How can such a young industry (advertising is barely 150 years old) have such an enormous effect on our lives? The obvious answer would seem to be that companies and corporations use clever psychology to trick us into buying the wrong things, the wrong way. There’s certainly some truth to that idea, but it isn’t the complete story.
The Truth About Advertising From someone who worked in advertising for 5 years So what does make people buy products? Yes, people are influenced by advertising but what makes them do this? Well there are many elements involved. Some of these are simple things like images or colors , others are encouraged through subtle subliminal messages . These are all techniques used in traditional advertising campaigns.
The different types of advertising – TV, Radio, Print, Internet
Outdoor, Social Media. Then there is guerrilla advertising, political advertising , viral advertising and word of mouth . These types of adverts are a little harder to define but they all have one thing in common: Word of Mouth.
What Is A Word Of Mouth Ad? The answer is that it’s a new type of advert that uses the most influential social medium there has ever been: Humans talking to other humans. It might sound simple but when you think about it, what could be more powerful than trusting someone enough to tell them about your product or service? How many times have you passed on a tip or recommendation to a friend or even a stranger? Or asked for advice from someone you respect? Trust is incredibly powerful and if people trust you then.
Different ways people react to advertisements – do they buy the product or not
What Is The Business Case For Word Of Mouth Advertising? Here are some statistics to show just how powerful word of mouth is:
The Edelman Trust Barometer 2014 found that 78% of people trust recommendations from friends and family when considering brands . According to Nielsen , in 2013, 82% said they trusted social media recommendations. That’s up from 54% in 2009! To put it simply, people trust their friends more than they trust advertisements. So if you want your business to be successful, the best thing you can do is get other people talking about you 🙂
Types of word-of-mouth advertising – viral, buzz marketing etc.
Types of products that are advertised using
What are the Benefits Of Word-Of-Mouth Advertising? How can you really benefit from word of mouth advertising? And how do you spread this kind of influence anyway? There are many benefits to using word of mouth as an advertising tool.
Reduced Costs: Word of mouth is almost always free. You only have to pay for your product or service and anything else is usually covered by the promoters themselves. More Credibility : Trust is the single most important factor in any business relationship . If someone else recommends a product, then that increases its credibility to potential customers. Better Brand Fidelity: People are more likely to buy what they’ve heard about friends or other people they trust.
Why do businesses need to advertise?
How To Get Word-Of-Mouth Advertising : So, you want to get started with word of mouth advertising? It’s easier than you might think:
Start Promoting: Once you have a product or service people will start promoting themselves. Offer Discounts And Giveaways: Make sure that anyone who mentions your company gets some sort of reward and give discounts and giveaways where possible. Reach Out To Influencers: Make sure that the people talking about your brand are influential in their communities. Be Genuine: Always be honest and don’t make false claims about your product or service. That’s it! Using this method can get you noticed by thousands (or even millions!) of potential customers – all without having to spend a penny on traditional.
The benefits of advertising
How Does Word Of Mouth Advertising Work? The idea is simple: if someone you trust tells you about a company, then that’s more likely to influence your buying decision than any advertisement. I guess that’s why most people don’t like advertisements – they just know they aren’t true. That doesn’t mean word of mouth advertising is somehow less legitimate though. in fact, its far more useful when done properly! Instead of tricking people into believing false claims or advertising something unrealistic, word of mouth actually gives them real information about products and services they might like to buy in the future! As long as you’re careful with who you choose to talk about your brand (and who talks the most).
The costs of advertising
What are the Drawbacks Of Word-Of-Mouth Advertising ? Unfortunately, no system is perfect. There are some potential drawbacks to using word of mouth advertising, especially if you’re not careful about who you promote your brand to.
A Risk To Your Reputation : If people find out that you’ve been lying or being dishonest in order to get other people talking about your business then they might stop trusting what you say. This can be very dangerous for your company! Different People Have Different Opinions : Someone might love a product and tell everyone about it while someone else could hate it and warn their friends never to buy it.
Advertising tips for small business owners and entrepreneurs
How To Make Word-Of-Mouth Advertising Work For You : Making word of mouth advertising work for you might seem tricky, but it’s really not complicated. It just takes time and effort to get it right!
Choose The Right People: Who you choose has a huge impact on the success or failure of your word of mouth advertising campaign. The more influential people that recommend your brand – especially in social media – then the better things will go. Ensure communication is clear: Your customers need to know what to say about your business so make sure they understand what you want out of them. Reward activity: Promote your brand in different ways and give rewards when someone talks about it appropriately (whether online or offline). Check communication channels throughout the campaign: Keep a close eye on what people are saying so that you can spot any problems as soon as they happen.
When does advertising fail?
Failure to reach
Podcast host, Mallika Rao talks about how marketers should plan for the reach of their ads. They fail to do so at every stage: from planning a campaign’s budget in order not exceed audiences’ expectations before even creating an ad; all the way up until you know what it looks like but don’t have time or money left over after paying out your team because they’re too busy working on other projects!
The episode highlighted one company who was able break through this barrier by leveraging research tools such as Google Analytics – which gives advertisers invaluable insight into where viewers are coming from (geography) and whether someone clicked on something outside our site due maybe some external link within another website we’ve endorsed–to creatives with story-based content.
Failure to brand
The importance of branding cannot be overstated. The brand name anchors your ad in the right part or memory, without which any noticed advertisement will do little to help with ROI on advertising dollars; yet much paid for reach goes wasted because it failed get its hooks deeply enough into a consumer’s psyche through powerful creativity and distinctive assets like logos – not just their memorable jingle (or slogan). With so many channels vying for attention these days: social media profiles where posts go viral before anyone can react.
Failure to be buyable
The best advertising in the world doesn’t always result to sales. If a brand has no physical presence, they can never hope for their product or service being found and bought by potential customers who are scrolling through social media feeds on desktop computers at home – but those same people might find you if your ads show up while browsing clothing websites! It’s important not just have one promotional strategy that works across all channels; different types of targeting may produce better results depending upon what consumer goods these particular buyers wish advertise towards (clothing companies need more visibility when selling apparel).
It is difficult to measure the effectiveness of advertising because it’s not possible to control for all variables. However, there are many examples that demonstrate how much impact advertisements can have on people’s mindsets and behaviors. What do you think? Does Advertising Work? Share your thoughts in the comments below!