Why Do Companies Advertise?
The main reason that companies advertise is to make consumers aware of the products or services offered. Advertising can be used to draw in new customers or to make current and former customers aware of new products or sales.
Another benefit of advertising is that it can help a company establish its identity and increase its brand awareness. Companies want their products to be the first thing a consumer thinks of when a need arises. Consistent advertising helps do this by ensuring that the company’s name stays in front of potential customers, even when they may not be ready to buy at that point.
Over time, advertising can help increase a company’s sales and ultimately increase its earnings year over year. This can also help attract new investors or partners, especially if a company has opportunity for expansion. Companies generally have control over their advertising and can change the message in ads to best suit their needs at a specific time.
However, results of advertising are not always immediate, especially if the main focus is branding or name recognition. An immediate increase in sales can happen if there is a promotion or discount, but keeping these customers coming back is something that will need to be focused on going forward.
