How do advertisements influence people? Why would big companies spend so much money on advertising each year?

This is a McDonald’s advertisement on the

pedestrian cross.

Each year big companies spend millions and millions of dollars only on advertising. McDonald’s spends more than US$2 billion dollars each year just on advertising; Coca-Cola spend about US$2.5 billion dollars; Microsoft spends more than US$11.5 billion; Starbucks spends US$95 million. However, do you ever think why these companies have to spend so much money on advertising? Don’t you think that it is a waste because they are so famous that nearly everyone knows their brand name; however, they are still making advertisement for their products? 

What is an Advertisement?

Advertising is a way to promote business, product or service. Advertisements introduce consumer to products and services that the advertisers want to show. It provides exposure, so that people will be aware of the company. Advertisement helps create flavour and preference and since most people buy products that are known rather than an obscure, advertisements increase this exposure.

Different kinds of advertisement

Print:

Advertisers use newspaper because people access them easily by either buying or reading them online.

There are many types of magazines, ranging from education to beauty, health and even art. Since magazines are aimed toward a certain type of people, advertisements in there also focus on that specific topic. When companies want to put their advertisements in the magazines, they can easily interest people who focus on a specific topic.

TV:

Television gives viewer visuals of products or services. Advertisers pay television companies to advertise their products as commercials. Since advertisements on television have visuals, it is easier for people to remember the advertisement.

Radio:

Radio advertising usually relies on popular slogans to promote products or service. Many people who listen to the radio will remember those special slogans.

Internet:

Internet advertising is special because advertisements in newspapers, radio, magazines and televisions are shown online too. Advertisements online are usually more focus because they usually ‘pop’ out from websites that people are reading which are on specific topics. Other forms of advertisement include direct mail, word of mouth.

Advertising methods

Different methods are used in the advertisements. Big companies use their company name, attractive slogans and words to put an image in people’s head. Hoping that they will think of their brand and choose it when they are in the store. Another method is to put their brand name on the products. The consumers then advertise their products while using them.

Reasons for doing it

Companies think that without advertising, they would not have earned as much money since no one will know about their products. Without advertisements, people will soon forget about them if they are not reminded. There is always competition and a company even big ones must starry in the game. Advertisements help spread their products to people so that they can double the money spent on advertising. Therefore, big companies usually want to make more advertisements to attract people to buy their products.

Is it worth it?

Some people say that advertisements from the big companies do make them want to buy their products since they are reminded the existence of the product and the feeling when they use, drink, or eat the product. For example, when people saw advertisements from Coca-Cola, they will think of the texture of the drink and their feeling when drinking coke and they find that they want to drink it. However, there are still some people who think that these advertisements are useless and these companies just spend money for nothing. They think that companies should only make new advertisements when they produce a new kind of product. For example, if Coca-Cola wants to produce a new kind of flavour of coke, they can produce advertisements for that; however, if they are just advertising for products that are well known, it is not useful in making more people to buy this product.

Conclusion

Advertising is the promotion of business, a product or a service. . Advertisements tell people about that the products and services that the company is advertising and are powerful tools to present products or services. With different media to present advertisements, companies can make people buy their products. Big companies know the power of advertisement and think that putting them up will increase their profit since more people will buy their products since they have a deep impression. Also, they think that if they do not have advertisements about their older products, people will forget them and not buy them anymore. When these companies have new products, they can advertise them and people will know about it. Advertisements are useful for companies because they can promote their products or service to people who watch them. Companies want to catch the attention of consumers with riveting images and memorable advertisements so that when they see the products in stores they will choose to buy them. 

Word count: 826