Walmart, Amazon, Shell, Apple, Facebook… How about Netflix, Tropicana, Starbucks, Microsoft, and, for good measure, Google… Ten companies you are guaranteed to have heard of, and ten companies listed in the higher ranks of global turnover, and, despite that, they are ten companies, offering different products, that share one very simple idea. They all advertise. In fact, they are also in the higher rankings when if comes to global ad spend.
So, if the biggest companies in the world also have the biggest ad spend, the question of “why should I advertise my business?” should actually be blatantly obvious, and should perhaps actually be, “why am I NOT advertising my business?”
One of the problems for all businesses, however big or small, is that you need to make money. In order to achieve that, you need clients, or customers. It’s that simple. The only way to get clients or customers, is if they have heard of you or can find you, and preferably, before your competition.
Now, before we get into the top reasons why you should advertise, there are many more things we can say on the subject, but time is precious, so let’s get on with it as briefly as we can.
Advertising makes money!
We have already said that as a business, we have to make money, and that is precisely what advertising does. The figure varies amongst experts, but as a generalisation, it is said that between 5% as 12% of your turnover should be put aside for advertising and marketing (different concepts, but they work hand in hand). When we invest that budget into advertising and marketing, of course we want a return on that investment, and that is easily possible if we do it right.
The whole point of effective advertising is to attract clients or customers to your business and, ultimately, increases sales. Strong and positive adverts result in consumers who are more willing to buy and ready to choose YOUR business.
Advertising keeps consumers updated
Have you seen the latest fax machine to hit the market in 2023? No, of course not, because fax machines are no longer relevant to today’s market. Other technologies are though. Have you seen adverts for smart speakers, or the latest mobile phone? What about that new plant-based meat substitute that’s doing the rounds?
Advertising keeps consumers up to date, so they are already aware of what’s available in the market, without having to do too much research themselves.
Advertising raises awareness of your brand
How many plumbers operate in your local area? What about electricians? Flower shops? Rhetorical question, but the reality is that for most of the time consumers are not looking for your product or service at the exact time that they see or hear your advert.
But, advertising sows the seeds, so that when a consumer does need your product or service, like a plumber, your company is already embedded in their mind, and so, even though there are no doubt many plumbers in you area, your name is already out there.
Advertising boosts positivity
Advertising tells both your clients and your competitors that you are open for business. Dynamic and positive advertising can entice consumers to you, regardless of the economy and competition, and boosts the overall positive message of your business.
Advertising increases traffic
In order to secure sales, whatever our business model, we first need leads. Those leads come from the traffic we generate, whether that traffic be in actual footfall to our door, or in our virtual world, without getting the people to us in the first place, we cannot possibly convert.
A survey conducted by an ad agency in Georgia, although there are many more examples we could quote, revealed that of more than 3,000 companies surveyed, advertisers who maintained or expanded advertising over a five-year period saw their sales increase an average of 100 percent, and companies that cut advertising grew at a less than half the rate of those who advertised steadily.
Advertising leads to new business
If nobody knows you exist, how is anybody going to employ your services, or purchase your products? You need to tell people who you are, what you do, where to find you, or you are quite literally lost in a world of others who do.
Not only that, we need to be aware that the world around us is constantly changing and new consumers are moving in and out of your area all the time. New consumers mean a new target audience that your advertisements will reach. Advertising shows consumers that are new to the market that your business should be the first one they choose.
On top of the movement of people, their needs and desires constantly change. So although they might not need that new washing machine today, they might tomorrow.
Advertising leads to continual business
We have already said that the chances of a consumer needing your product or service at the exact time they see or hear your advert is slim, but everyday there will always be a new consumer ready to buy. Advertising makes sure that the consumer knows that when they are in need it, your business will be there to help them.
Advertising means repeat business
Did you even remember that fax machines existed before we mentioned them? They would not have been forefront in your mind. Perfectly normal, because we all forget things as time goes by. How many times have you had conversations like, “where did we buy this from?”, “What was that plumber called who fixed the washing machine last time?”, etc, often prompting searches through your phone contacts, emails, receipts, that box where we put all the business cards we are given!
Advertising reminds people of you and your business, why they chose you in the first place, and why they should choose you in the future.
Advertising creates brand loyalty
Advertising can lead to companies forming long-lasting connections with their clients. Brand awareness through advertising instils familiarity and trust within the consumer, ensuring that they remain loyal to your business.
During the festive season of Christmas, for example, how many people wait with eager anticipation for the seasonal adverts to appear for “well known” chains or brands? Well known because they have built that trust and loyalty through their adverts.
Get ahead of the competition
Why should a customer or client choose you over your competitors? Well, firstly, if they haven’t heard of the competition, that helps, but secondly, advertising builds awareness, longevity builds trust, advertising effectively puts you ahead of the competition.
If your message is in front of your clients first, you are the business those clients will turn to first.