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Contribution of Advertising/promotion in Overall Development of Business Like- Sales Growth, Brand Building Etc.

Essay by   •  August 29, 2019  •  Research Paper  •  789 Words (4 Pages)  •  535 Views

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Contribution of Advertising/promotion in overall development of business like- Sales growth, brand building etc.

From economic contribution to media and employment, advertising is a driver for a healthy and thriving society, globally. Advertising gives the opportunity to companies to differentiate themselves and highlight their unique selling points. This stimulates competition in the marketplace, which, in turn, means that companies need to keep improving their products’ value. For consumers this translates to higher quality and lower prices.

By helping companies succeed, advertising plays a key role in a dynamic global economy. Successful companies create more jobs, pay more tax and contribute directly to economic growth. A recent Deloitte study quantified that 1 euro invested in advertising generates 7 euros to EU GDP. All over the world, public service advertising has proven to be an effective way to increase AIDS awareness, promote energy saving, fight domestic violence, or reduce road deaths by encouraging the use of seat belts.

Sponsorship also plays an essential role in enabling sporting events such as the Olympic Games and the FIFA World Cup. In the arts, sponsorship subsidizes and pays for major exhibitions whether at the Museum of Modern Art or the Guggenheim or for performances at La Scala or the Opéra National de Paris. Worldwide, commercial communications fund a diverse, pluralistic media landscape. Without advertising, many of the world’s media as we know them would not exist, and with that would go direct access to news and culture.

Advertising fuels GDP

1 Euro of advertising spend generates 7 Euros for the economy, representing 4.6% of the overall EU GDP. This means that the EUR 92 billion spent on advertising in 2014 in the EU is estimated to have contributed EUR 643 billion to GDP.

Advertising creates jobs

Advertising is a major source of employment, providing millions of jobs.

Advertising funds media

Advertising ensures that EU citizens benefit from news and entertainment at a reduced cost or even for free. This could lead to more expensive TV-subscriptions, reduced newspapers and magazines’ plurality and independence, and radio stations would lack the ability to provide news and entertainment throughout the day.

New advancements in the advertising/promotion for specific industry

New communication technology --including social media, wearables, virtual reality -- is turning the advertising industry upside down.

Consumer behavior is shifting rapidly towards these new modes of communication -- and the advertising industry is following suit. In 2017, digital advertising is expected to overtake TV advertising for the first time ever, pulling in $202 billion dollars in the process -- a sure sign of the irrevocable transformation of the advertising industry. But as technological innovation continuously redefines the landscape of advertising, many advertisers are struggling to keep up. Modern advertisers are confronted with the daunting task of riding this massive wave of technological change in the ad industry without getting drowned by it.

Trend 1: Ads are becoming more dynamic and personalized

In the modern 'attention economy' where consumer attention is divided across more devices, applications and formats than ever before, only engaging and relevant ads will command consumer attention. Advertisers are creating content that engages their target audiences in ways that are most likely to command their attention -- in-feed videos in social media feeds, interactive banners in games in virtual reality headsets and native placements browsing popular apps. Across all of these formats, behavioral profiling technology allows advertisers to personalize these messages to their audience based on their browsing history, location, time of day and demographic profile.

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