.png)
.png)
What lies beneath every advertisement we see, every message that resonates, and every brand that captivates us? Advertising is far more than mere commercials; it's the art of connecting, persuading, and leaving a lasting impression on the consumer's mind. In this blog post, we'll turn upside down its various theories and how they shape our perceptions and choices. From dissecting how advertising functions to exploring the short and long-term impacts of campaigns, and understanding the nuances between brand building and sales activation in driving sales uplift, join us on this exploration of the captivating realm of advertising.
What advertising is and how it works in 5 simple ideas?
1. Communication & Awareness: advertising serves as a tool to communicate messages about products, services, or brands to potential consumers. It's about making people aware of what's available in the market, introducing new offerings, or reminding them of existing ones. By showcasing the unique features, benefits, or solutions a product provides, advertising aims to grab attention and stick in the audience's memory.
2. Persuasion for Action: beyond just informing, advertising aims to persuade consumers to take action. Whether it's making a purchase, signing up for a service, or engaging with a brand, advertisements often employ persuasive techniques such as compelling storytelling, persuasive language, or limited-time offers to encourage immediate or future action.
3. Targeted Reach: effective advertising involves understanding the target audience thoroughly and tailoring messages accordingly. By using demographic data, consumer behavior analysis, or psychographic information, advertisers can optimize their campaigns to reach specific groups more likely to be interested in what's being offered. This targeted approach ensures efficient use of resources and maximizes impact.
4. Brand Image & Connection: advertising plays a crucial role in shaping how consumers perceive a brand. Beyond just selling a product, it works towards establishing an emotional connection. Ads often evoke feelings, associations, or narratives that resonate with the audience, aiming to create a positive perception of the brand. Building trust and loyalty through consistent messaging and brand image is a key goal.
5. Measuring Impact: to evaluate the effectiveness of advertising efforts, various metrics are used. These metrics can include sales figures, customer engagement, brand recall, click-through rates (for digital ads), surveys, and social media interactions. Measuring these parameters helps advertisers understand what's working and what needs improvement, allowing for better-informed decisions in future campaigns.
A post shared by Marc Binkley, VP Strategy & Digital Marketing, delineates two fundamental advertising theories. The strong theory asserts that advertising possesses the power to shape attitudes and drive consumer behavior directly. Conversely, the weak theory suggests that advertising primarily serves as a reinforcement, influencing those already inclined towards a particular brand or product.
However, where does the largest concentration of consumers we aim to impact reside? Understanding their location and behavior is pivotal in targeting our advertising efforts effectively. According to The B2B Institute, a crucial distinction exists between current buyers (in market) and future buyers (out market). Current buyers are actively engaged in the market, displaying immediate purchase intent and actively seeking solutions or products. On the other hand, future buyers might not currently exhibit explicit purchase intent but represent potential leads or prospects. Understanding this distinction enables businesses to tailor strategies: targeting current buyers demands direct sales approaches, while out-market strategies focus on nurturing future buyers through brand awareness and education to convert them into active purchasers in the future.
.png)
Looking at this graph, it's easy to fall into the trap of assuming that the major opportunities for our business lie outside the market. Grace Kite, in her article "The wrong and the real of marketing effectiveness" points out that the real world doesn't align with what's depicted in the most famous theoretical illustration of advertising's functionality.
She adds, "the chart is a model that sets out to educate, not describe. Its message is that there is a limit to what sales activation can do for growth, and beyond that limit, you need brand-building."
There are additional insights to consider and Grace shares in her article 3 main findings. Let’s have a look at them:
Discovery 1: Contemporary brands frequently achieve growth by amplifying their efforts in sales activation strategies. Marketers that traverse this route to growth have an eye not only on the benefits of advertising but also the costs. Analytical tools focused on managing search, ads, shelf and promo online enable a clear estimation of the advertising expense tied to each sale. Based on these calculations, they conclude that prioritizing sales activation is a more financially rewarding approach for achieving growth compared to emphasizing brand-building.
Discovery 2: In practical terms, engaging in brand-building endeavors involves uncertainty and poses inherent risks. These risks entail increased costs. However, not all advertisers possess sufficient resources to afford ongoing experimentation until discovering a successful formula.
Discovery 3: Numerous brands indeed undergo the patterns described in Les Binet and Peter Field’s chart, which depicts the balance between long-term brand building and short-term sales activation in driving growth for businesses. This chart emphasizes the importance of both strategies for sustainable success in marketing campaigns.
The ultimate outcome aligns with Les and Peter's perspective—sustained growth necessitates brand-building. However, the depiction varies significantly. Hence, Tom Roach and Grace devised the contemporary steps chart mentioned earlier, aiming for it to serve as a valuable supplement to Les and Peter's model:
Harmonizing Short-Term with Long-Term Brand Strategies
Short and long campaigns work synergistically in an advertising strategy by addressing immediate objectives while nurturing long-term goals. Short-term campaigns, often focused on quick wins or immediate sales, create spikes in consumer engagement and drive immediate actions, like product launches or seasonal promotions. These campaigns generate urgency and responsiveness in consumers.
In contrast, long-term campaigns prioritize brand building, aiming to establish a brand identity, loyalty, and sustained relationships with consumers over time. They reinforce brand values, create a lasting impact, and contribute to building trust and recognition in the market.
When integrated strategically, short-term campaigns leverage the momentum of quick results, benefiting from immediate sales or engagement spikes. Long-term campaigns then step in to maintain brand visibility, reinforce the brand narrative, and solidify consumer relationships beyond the short-term fluctuations.
The synergy between short and long campaigns is crucial for a balanced marketing approach. Short-term initiatives capitalize on immediate opportunities, while long-term strategies ensure consistent brand presence and loyalty, fostering sustained growth and lasting consumer connections.
Conclusion
It's evident that advertising transcends mere commercials; it's the art of crafting connections, influencing perceptions, and fostering enduring relationships. While contrasting theories and perspectives exist regarding the influence and strategies in advertising, a crucial revelation lies in the essential blend of brand-building and targeted activation for sustainable growth. The acknowledgment of uncertainties in brand-building alongside the allure of strategic activations underscores the complexity and nuances of navigating the advertising landscape. In essence, advertising remains a dynamic field, evolving with consumer behaviors, technology, and market dynamics, perpetually shaping our choices, perceptions, and the narratives of brands.
