1. Advertising allows to reach target audience: The purpose of any advertising is to reach to target audience for the product of service for which the advertisement is being made. If advertising is able to reach to target audience and is able to deliver the message to them of the company, then it can be termed as good advertising that achieves its purpose.
2. Advertising allows to promote products and services: May it be product or service that is newly launched or an established product or service, advertising plays a crucial role in promoting them. An advertising has the power to make a product or service or it can destroy a product or service. Promotion through advertisement is the way each new product or service use to get far each into the market. Promotion related to the product or service starts sooner the Ad Campaign starts running and their target audience starts noticing about it.
3. Advertising build the brand and brand value: Brand is the name of the product or service that people like to follow. An advertising can create brand name and generate brand value for the product or service that people remember it for in their minds. A good brand has a larger fellowship as compared to the poor brand that has limited fellowship. It is brand that sells in the market. People in today’s age like to purchase branded product and services even if they have to pay little extra for it as compared to non-branded product and services.
4. Advertising improves sales and thus improve profit: Profit through sales is the ultimate goal of any company and advertising helps you achieve that goal. Once your Ad Campaign is running in the market and is delivering the desired message to the target audience – your sales will go up as your audience would be interested in your product or service and would like to purchase it. This will improve your sales numbers and that would eventually lead to growth in profit for you.
5. Advertising brings loyalty among customers: With advertisement your customers become loyal to your product or service. Once advertisement leaves an impact on the minds of customers they would use the product or service and would remember to use it in future too – since advertisement has an influence on them and product or service is good too for its use. Once they become loyal to your product or service they would recommend it to others as well and become your loyal ambassador.
6. Advertising keep you informed about latest trends: Advertisements are made after doing a rigours market research and trend analysis. This makes them near to what people are liking these days and where the trends are going. Once you plan your advertisement campaign based on your research your advertisement would fetch your great results.
7. Advertising presents global reach and local market capture: Advertisement can be done at local level or at global level by choosing the right media to publish your advertisement. It depends on which market you want to reach to and you can direct your resource towards that initiative. The type of company you are (impacting local customer or global customer) would allow you to decide the type of advertisement you like to publish. These days there are mediums that allows you to penetrate local market from a global level.
8. Advertising brings new and repeat customers: The more and more customers you have the more your business will grow. The advertising plays a huge role in wining new customers, retaining present customers and bringing repeat business. So, as your profit grows you can set aside a portion of profit towards advertising to bring in new customers and repeat business. The new customers helps your show quarterly growth of your business in terms of profit percentage and repeat business brings stability to your business.
9. Advertising improves business running and growth: These days businesses know that advertisement is essential part of their business operation to get new customers and retain the existing once. For this purpose they ensure enough budget is kept for advertising that support a healthy balance sheet of the company.
10. Advertising brings customer and market response: With well-directed advertisement companies know the response from market and customers about the trends and customer likings. This help them brings changes to their product and service and keep them current to market trends and customer likings.
11. Advertising improves market cap of the company: Advertisement allows the companies to have wider reach to the audience and market. If it is a good company then their stock would sell easily and thus lead to improvement in the market cap of the company. People would determine that buying a stock of that company would benefit them in future. A proper display of earnings and proper forecast about growth and presenting it in right media would help companies improve market cap of the company.
12. Advertising lead to goodwill for the company: A good advertisement lead to improvement in the goodwill of the company. If company already have an image in the market, then you should do good advertising to improve image of the company to the further level. If your company, product, or service is new to the market then you should do good advertising to build upon on the goodwill for the company, product, or service that should help you in the long run.