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Advantages and Disadvantages of Advertising

By Madhuri ThakurMadhuri Thakur

Advertisements

Advertising is a marketing strategy that aims to promote a specific product, cause, or service. The term “advertising” comes from the Latin word “adventure,” which means to turn someone’s attention towards something. Through advertising, a business, company, or organization tries to reach a large audience. Print media, digital campaigns, and social media are used for advertising today. Though advertisement has its advantages at the same time, it also has its disadvantages. This article aims to cover the advantages and disadvantages of advertising.

Advantages and Disadvantages of Advertising

Top 5 Advantages of Advertising

With advertising, a business or an organization creates the need for a new product. It is the best method for communicating any information to old as well as new prospective customers. Here are the top 5 advantages of advertising:

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#1 Market Expansion
The main objective that a manufacturer or a company achieves through advertising is market expansion. With advertising, a manufacturer or company sustains its position in existing markets and expands its business in new ones. Advertising is one of the best mediums to create a new customer base and keep the old ones engaged.

#2 Increases Revenue
One of the significant positive characteristics of advertising is that it can lead to an increase in sales and revenue. Furthermore, advertising can help businesses reach new markets, which in turn can help to boost their existing sales. In fact, advertising is a powerful tool for attracting new prospective customers, thereby helping to increase a company’s sales.

#3 Increases Competition
In today’s world of cut-throat competition, advertising is a well-tested method of staying ahead of competitors. Correct product positioning and advertising campaigns are bound to produce favorable results for the business. They bring in new customers and help increase the company’s revenues.

#4 Builds Consumer Trust
When any manufacturer or company advertises their product, cause, or service, they ask customers to impose their faith in the company. Constant advertising pushes the company to build better-quality products and helps establish goodwill among the company’s customers.

#5 Build Salesmanship
Advertising is one of the best methods to promote and build salesmanship. When a prospective customer is attracted to any product or service, the onus of convincing the customer to buy that specific product or service lies with the salesman. Correct product campaigning adds value to the words of the salesman.

Top 5 Disadvantages of Advertising

As mentioned earlier, there are advantages and disadvantages of advertising. Since you’ve already looked at the edges, let’s take a look at the advertising penalties:

#1 Never Guarantees Sale
Advertising is a way of promoting new products and services in the market, but it does not guarantee an increase in sales or the creation of a new customer base. Maximum advertising can create hype around a specific product, but it cannot do wonders until the product or service is beneficial and of good quality.

#2 Can Lead to Negative Publicity
Creating new products with new, coming-of-age technology is necessary for today’s competitive environment. Companies work very hard to stay ahead of their competitors. Advertising can make a negative impact on consumers. If a product ends up looking similar in design or specifications to rival products, this only adds confusion in the minds of consumers, which hurts both companies and the product.

#3 Increases the Cost of Marketing
Companies and manufacturers invest much of their revenues and profits in advertising. There are times when the campaign produces a favorable result, thus bringing good cash flow, and at the same time, if the results are not so favorable, it can end up increasing the marketing cost for the company.

#4 Creates Monopoly
Advertising also creates a monopolistic situation. Companies with considerable brand value and unlimited resources spend billions and billions of dollars on advertising, while companies with limited and restrictive resources end up with losses. Big companies tend to create their monopoly over markets, thus affecting consumers and other small players.

#5 Distortion of Facts
Not everything that glitters is gold. However, advertising today tells a very different story. Companies often sell their products and services by misrepresenting and distorting the facts. They create successful advertising campaigns and portray their products as superior. This attracts consumers, and they end up buying a mediocre product with mediocre specifications. This provides enormous revenues for the companies, but consumers feel cheated.

Conclusion

Advertising is a great weapon to stay ahead of your competitors and also helps in the creation of monopolies over products and services, but at the same time, there is no set of rules that can tell if an advertisement will work or not. Thus, advertising is a risk that companies and manufacturers have to take if they want to stay relevant in this competitive market. Thus, there are advantages and disadvantages of advertising.

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