Easy question: how does a store get profit? It needs consumers, people who hear about the store and go buy there. The same goes for every other business. Every company needs to have clients to be successful, they need orders or visitants or buyers or whatever. So, every business needs to spread their word out there to attract those clients. This is advertising.
So how does advertising work?
There are lots of ways for a person to advertise their business, from billboards to virtual ads on TV or on websites. In fact, if you look carefully, you’ll see that there’s hardly any street without some sort of ad. That’s because ads are everywhere, you’ll see them while walking your dog down the street, you’ll see them before your favorite TV show is on, you’ll see them all over your mural on Facebook! The world is overloading with publicity.
Take the example of Times Square in New York. Crazy!
Or look at a photo of Piccadilly in London, I visited it in May of 2015 and I was absolutely overwhelmed.
Incredible how the world is now. In fact, big companies spend a huge amount of their profits on publicity, which gives us a pretty great idea of the importance of advertising. For example, in 2014 Disney spent more than $2 billion in advertising, especially on marketing their movie Frozen long after the opening in 2013.
But with all this, isn’t advertising losing its value a little bit? It depends on the platform of the ad, and a company should analyze every possibility.
Billboards are a classic way to advertise your business, and they can go from a small poster to a huge board over a highway, so its prices can vary a lot. However, almost every known company has some posters spread out there. It’s something that could better work for promoting an event or to maintain just some vague presence on the customers heads.
2. Animated images outdoors
This works just as billboards, but this kind of advertising is more interactive and modern, although it has a higher cost.
3. TV commercials
TV commercials are probably the most common way of advertising something, it guarantees lots of viewers and it can be really persuasive and interactive. Although it is probably the most expensive way of advertising, it shore is worth it, especially for big companies.
4. Website ads
Website ads are much more cheaper, so they are great for small business owners who cannot spend much money on advertising. The Entrepreneur’s Log is available for renting space for advertising at probably the lowest prices on the market, just Contact Us if you’re interested!
5. Referrals and payed referrals
Referrals are a way to monitor the visitors that enter your site through your ad, and tons of big successful companies have their own affiliate program. It is actually a great way for bloggers to earn some money, by referring some specific products, for example a book on Amazon. Boom!, now you know more about the world of advertising.