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6 Biggest Benefits of Advertising (Not Just for Merchants)

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By Sam Nguyen

CEO Avada Commerce

Drive 20-40% of your revenue with Avada
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As markets are becoming increasingly expanded and competitions between players offering homogeneous products are more intense than ever before, raising brand awareness towards the general public is essential. To this end, merchants have widely utilized advertisements to boost sales and improve brand image.

But do you know promotional campaigns do affect not only the merchant but also influence a great deal of demography? Retailers, wholesalers, manufacturers, salesmen, consumers, you name it, are also within the perimeters of impacts created by advertisements produced by the merchants.

In this article, we will find out what is advertising? To which demographic segmentation will advertising benefit the most? What are the real values of advertising? Why advertisements have been gaining so much popularity to the point that it is ubiquitous nowadays?

What is Advertising?

Advertisements are the paid communication methods or messages in marketing and promotional initiatives that can raise recognition, pique curiosity, and stimulate demand for promoted goods or services from prospective consumers when used successfully.

Many forms of “advertisements” such as TV & radio commercials, roadside signage, classified advertorials in newspapers or magazines, and automated internet advertisements on social media platforms and search engines relevant to various promotional campaigns are displayed to “potential and existing clients” on a daily basis, serving multiple objectives and gaining countless benefits for all types of brands: small, medium-sized firms and prominent ones.

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Who is benefited from Advertising?

From the point of view of the various types of people concerned, the common economic and social gains from advertising can be divided into some separate groups. There are: Retailer, Wholesaler, Manufacturer, Salesmen, Consumer

What is Advertising?
What is Advertising?

1. Advertising for Retailers

Many merits accrue to retailers when it comes to advertising. Needless to say, advertisements decrease retailers’ promotional activities and marketing costs, as customers are generally aware of the nature and specifications of the branded goods, which will dramatically boost the stock turnover rate of distributors. Besides, advertisements greatly contribute to stabilizing costs and saving retailers from any damages that arise from volatility in the markets. When the product gets good promotional campaigns and is generally loved by the public, the credibility of that product is also shared by the retailers, in other words, for the retailers, advertisements help to build reputation and brand awareness.

2. Advertising for Wholesalers

Wholesalers can also derive the aforementioned benefits of advertising. Advertising facilitates the goods’ fast selling process since the supply and the goods’ unique qualities have already been conveyed by the seller to the customer using advertising methods. In short, it lowers the wholesalers’ marketing activities, and promotion prices improve the wholesalers’ stock turnover rate. Wholesalers can also gain more popularity for exclusively selling a product currently promoted in the market, generating more revenues along the way.

3. Advertising for Manufacturers

With manufacturers, the merits of advertising are even more palpable. Undoubtedly, advertisements increase the demand for new goods launched by manufacturers in the industry, which allows retailers to retain the current competition for their products and widen the demand for their products. Advertising allows manufacturers to sustain a stable market for their commodities while preventing seasonal demand fluctuations. In other words, it stabilizes the number of revenues.

Truthfully speaking, without advertisements, manufacturers would have to rely on go-betweens to promote and sell the products. Advertisements, therefore, give rise to autonomy and prevent manufacturers from excessive dependency on intermediaries. The suppliers of commonly sold products should not be pressurized by intermediaries over the terms and conditions of purchases. It also helps manufacturers to directly engage the public without needing any middlemen, allowing manufacturers to reduce their marketing prices to a certain degree.

4. Advertising for Salesmen

For salesmen, advertising provides preparation for the groundwork. That is when much of their work has already been carried out for them by advertisements, which eliminate unnecessary work for the salesmen. Promotional campaigns facilitate the process of finding the right segmentation and demography for the salesmen, saving a great deal of time and money. Advertisements also contribute to expanding the salesmen’ network, which is attributable to the fact that contacts and impressions formed with customers is made permanent by advertisements. Besides, by familiarizing with the value of the goods to more individuals using advertisements, salesmen can obtain higher profits and brand awareness.

5. Advertising for Consumer

Advertising’s influential sphere does not stop at the sellers, it also reaches out to the buyers, to a great extent. An advertising campaign takes the latest items to the consumer’s attention and allows them to meet their needs, saving customers’ time, commitment, and resources when seeking appropriate information for their needed products. Also, advertising increases the consumer’s living standard by enhancing their appetite for a selection of high-quality goods, since branded items generally have to be subjected to a rigorous quality check before making its way to the market. This gives consumers defense from fraud and helps buyers stay assured that the items are tested by the authority.

By promoting increased purchases and production, advertisement leads to a decline in the retail costs of products to customers. Advertising allows the consumption of intelligent transactions by offering details on the relative value of the different items offered on the market. Consumers are now in the know regarding the cost of branded products thanks to advertising. As such, at the advertised selling rates, buyers may get the merchandise at a reasonable price and safeguard themselves from the inflated costs.

6. Advertising for Society

Advertising also by and large affect our whole society. Advertisement increases people’s living standards by enhancing their appetite for a selection of new goods. It creates job opportunities for artists, journalists, photographers, encouraging creativity and talent. By generating revenues from advertisements, publishers can lower their cost of newspapers and magazines, making it more suitable for the general public. In short, advertisements change the whole culture of a country.

6 Biggest Benefits of Advertising

The catchy phrases and storylines from famous marketing campaigns have become classics of the pop-cultural English language and landscape. As part of an integrated campaign strategy, your own promotional campaigns will yield results for your business that can empower you to step beyond rivals to the “top of mind” level of consumer recognition and brand awareness. It does not necessarily have to be massive-dollar budgets for nationwide TV spots or magazine advertisements, but rather via strategically chosen advertising and promotions, you can give the company a great market boost to step out of the crowd.

Biggest Benefits of Advertising
Biggest Benefits of Advertising

1. Increase Sales

Advertisements will also do the most challenging job by approaching current and future customers who are one step away from finishing targeted transactions, generating more profits for the company, and increasing return on investment “ROI”.

Learn more What is a Good Conversion Rate for Shopify?

Offline promotional strategies will raise public awareness and demands for your marketed products, while digital advertising technologies such as search engine advertisements, social media conversion-optimized advertisements, and conversion tracking ads will reach out to active consumers that have demonstrated engagement in what your company is trying to provide. With the latter method, you will only be charged when buyers click on your ads.

Cost-effective online advertisements will drive traffic with the lowest cost possible to achieve the optimum profit on your conversion-optimized and retargeting “ Cross-Selling & Upselling ”marketing strategies.

By expanding your target range with outlets or entering new regions and markets, or acquiring new partnerships, reaching the optimal amount of investment returns (ROI) would generate even more room for growth and expansion.

In this stage, the advertisement would also be of use by using global offline promotional solutions such as newspapers, magazines, and TV & radio networks to enter new audiences or use regional targeting options available in digital advertising solutions to hit specific potential customers personalized advertisement.

2. Introduce a new product

The launch of a new product without giving its debut an opportunity to draw publicity resembles an age-old stereotype that a telephone rings in a vacant house. If no one answers your business launch “phone call,” your sales do not improve, and your product does not succeed in the marketplace.

There are infinite choices when it comes to marketing a new product or service for your company. At first, it can be hard to find out where to get started and which marketing strategies will yield the best outcomes for your company. The fact is, there are many low-cost ways to advertise your business, and what works can rely on your industry, goods, and audience.

You can try giving your loyal customers a sneak-peak. Irrefutably, a vital part of your way of promoting your product is your faithful buyers, and they are most likely to purchase it and market it to their networks. These exclusive sneak-peaks can come in the form of a private pre-launch gathering, in-person or virtual: an online tour, demonstration, or demo. Or, it may also be a special invitation to try it out at-hand and give their feedbacks. These special deals to existing customers highlight how much you respect them and help preserve their allegiance.

Introduce a new product
Introduce a new product

Or, you may want to use a special introductory offer to your customers. You may make it accessible as part of an exclusive promotion package, rather than simply unveiling a new product in the market. This offer will come in multiple types, including discounted price, reduced-rate bundle or kit, joint sale with an external organization, voucher or coupon, buy one get one free deal, doubling the points if you have a member card, complimentary gift for each referral, etc. Whatever the promotion is, make sure to stress that it is not going to last forever. Customers will feel more pressured, knowing that their discounted time is running out.

Contests on social media are another great way to introduce your brand-new product. Social networking promotions are a friendly, simple way for the company to connect with customers and draw in more supporters/followers and potential. Facebook competitions draw an average of 34% of new clients per program, which is a perfect way to counteract the site’s poor organic scope. You can set rules such as contesters participating in the competition must share the post publicly, tag 3 or more friends, and like your page, etc.

The enhanced interaction with your social media platform would undoubtedly bring more traffic to your website, place your company in front of potential clients, and provide an enjoyable way to interact with your customers, in addition to creating more interest and prospects for your latest product.

Next, Email is a perfect medium to get the news out about your new product/service. First of all, it is a huge opportunity to get a new subscription. You may run an email marketing campaign using tools like MailerLite and Sendgrid directly about this latest offering — perhaps even as a sequence of emails leading up to the day of delivery. To reach out to the most audience possible, make sure you have concentrated on the ultimate benefits that your new products bring to the users rather than its features. Also, do not forget to highlight the exclusive offers or discounts in your subject line and use the preheader to boost open rates.

If you use all of the above strategies to advertise a new product or service, make sure to spread the news of sales and discounts across your social media pages. This is a convenient way to meet your audience, and you can quickly share your post with your fans on their own pages. Another advantage is that in the comments section, customers/ potential ones can raise questions about the product. Their questions will act as an organic FAQ for your page.

In your promotional message, you might want to use a custom hashtag if you have a small following of devoted fans. This would not only broaden the scope of your campaigns but can also encourage users to use the customized hashtag to upload content and photos on their accounts. User-generated content can then be used to testify for your new service or product, reaching out to even more individuals!

The optimal way to promote your new product or service will vary depending on what channels your audience frequents and what their online behaviors are. You can use different platforms and multiple promotion tactics. However, the more coherent and reliable your content is, the more interaction you can foresee, and the more the audience knows about it.

3. Market Expansion

Whatever you do, make sure that you are helping to improve the exposure of the name of your business or the goods you sell. It can be anything from executing your promotional strategy through social media engagement, pay-per-click internet advertisement, newspapers, and other print outlets, television placements to in-store retail promotions.

Some of these promotional resources come from continuous engagement, both interactive and virtual or online and offline, in communities. Engaging with individuals who are leaning towards your brand increases your sales and organic recommendations. You may find that social media lets you improve the potential to create a true following, a die-hard fanbase for the brand, not just to make a few sales from a few buyers.

4. Improve Brand Image

Many homogenous products are created every day, looking and functioning almost the same as what your company sells. This intensive rivalry level demands creative marketing and advertisement methods to stand out from the competition.

In this situation, successfully targeted ads can be beneficial by reflecting on your goods’ strategic advantages, the unique added value to consumers, how acceptable your offers are for their budgets and anticipated added value, and the degree of quality of accessible after-sales service and support solutions.

Effective market branding can be accomplished by generating powerful ads for promotional campaigns to build a favorable image of your brand or improve your current negative publicity to place your brand as the best alternative for similar goods or services.

This type of marketing should concentrate on your company values, your product efficiency, your rational selling policy, how trustworthy your company customer service solutions are, and that the happiness of your clients should always be your first and foremost priority.

For branding advertising, multimedia commercials such as video ads are a suitable option since they improve the commercial brand mark for a longer duration and gain immediate recall right after the target audience is introduced to something relevant to the brand.

Educate Customers
Educate Customers

5. Attract Customers

Advertisements will play another role after the awareness stage in motivating targeted consumers to take more actions towards your marketing funnel by enticing existing and future customers to connect with your company.

First, you can try increasing traffic to shops or branches by showcasing the information to your company locations in your commercials and spreading the message about launching a new store or branch. To this end, you can try creating more leads by personalized promotional strategies such as Facebook ads and LinkedIn ads. Or, you can increase visitors to your company website or your business smartphone app via pay per click “PPC advertising” available in marketing solutions for search engines such as Google Search ads or relevant social media ads.

Make sure that you use relevant styles of advertisements to boost interaction and engagement with Facebook, LinkedIn, Twitter, Instagram advertisement strategies for targeted customers’ messenger advertisements.

It is also of help if you try to expand subscriber lists and regularly take advantage of email sending to promote your marketed products. When involved clients of promotional campaigns share their experiences of your company of friends and family, do not forget to utilize these “word of mouth” exposure to boost your credibility and customer satisfaction.

6. Educate Customers

What motivates consumers to make a transaction is to be 100 percent sure regarding which good or service is sufficient to meet their needs. Advertisements can be used to inform your clients regarding the use of your goods or services and how they can focus on what you give to address future consumers’ relevant personal or company problems.

Promoted insightful content linked to specific consumers’ concerns and issues can reflect market leadership or industry-leading for your company and improve confidence in choosing your company over rivals.

Video advertisements such as YouTube ads or TV ads may also be used to instruct the clients about how to use the products “ex: product guides or how-to lessons” to meet their needs.

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Nowadays advertising permeates virtually everything we watch or listen to. YouTube videos are intermittently interrupted by promotions, TV shows are frequently hijacked by commercial breaks, and videos of newspapers and magazines have been decrying advertorial spreads taking over to a portion of print publications. It just seems impossible to encounter ads-free content in this day and age, which may seem like a nuisance

Having said that, it is undeniable that advertisements bring about very great impacts on both individuals and society as a whole. It generates incomes, expands one’s company, reaches out to a new demographic segmentation, raises public awareness; and educates customers. Without advertising, we would be leading a slow-paced, tedious, repetitive day-to-day life.

Sam Nguyen is the CEO and founder of Avada Commerce, an e-commerce solution provider headquartered in Singapore. He is an expert on the Shopify e-commerce platform for online stores and retail point-of-sale systems. Sam loves talking about e-commerce and he aims to help over a million online businesses grow and thrive.