Fashion Paul Resor  

How Important is Advertising to a Business?

Advertising is everywhere. When you think of advertising, what comes to mind? Pop-ups on the internet, catchy jingles from TV commercials, or the huge billboards in New York City’s Times Square. According to Investopedia, it costs between $1.1 million and $4 million to advertise in a prominent position in Times Square. Such a high cost must come with a significant benefit to the businesses that choose to advertise there. The storied history of advertising goes back to Ancient Egypt, around the year 3000 BC. A piece of papyrus advertised  “The shop of the weaver Hapù, where the most beautiful canvases in all of Thebes are woven, according to everyone’s taste.” 

For five thousand years advertising has been a crucial part of business, from Coca Cola in Times Square to an e-commerce business run from home in your spare time.

Is Advertising Important?

The primary function of a business is to sell products and make a profit. No matter what the product is, advertising gets the word out about what it is you are selling, as well as helping to compete with other sellers. Sunglasses are a great example and a popular product to sell, according to wholesale sunglasses supplier Olympic Eyewear out of SLC, UT, a company that offer a range of wholesale authentic designer sunglasses. Most forms of advertising cost money, so choosing the right supplier is also important. With this in consideration, there are many benefits to advertising on whatever scale you feel your business can afford. 

Given the size of the world of business as well as the countless companies operating therein, it may be hard to stand out, especially as a smaller business. Advertising keeps a company in the minds of the wider customer base and ensures they remain aware of a business. With regards to smaller businesses, there are several cost-effective ways to advertise:

  • Social media is a giant of modern advertising. It is free to set up a Facebook, Instagram, or Twitter account. Given that 70% of adults in the United States have a Facebook account, there is no better way to reach such a large number of people.
  • Pay per click advertising (PPC) opportunities can be found all over the internet. For each click that the advertisement gets, the advertiser pays a small fee. This ensures that any outlay for advertising is worth the money, as a user is only charged if the ad is clicked on; an important thing to consider if margins are tight.
  • Print advertising may be diminishing in favor of online ads. However, if your business is local or aimed at a certain demographic, one in which print is still popular, it is worthwhile taking out an ad in a newspaper or magazine. Direct mail advertising in the form of mail or pamphlets delivered through the door of potential customers also falls under this umbrella.

How Effective is Advertising?

Using these methods of advertising as a small business can make the difference between success and failure. In 2018, it was estimated that for every $1 a business spent on advertising, it made $2 in revenue. Once a target audience has been decided, it is crucial to advertise in a way that will reach them. Going back to the earlier example of sunglasses, there is a huge target market, and as such multiple methods of advertising can, and should, be used. Advertising on different platforms will help win new customers as well as maintaining existing customers. Inspiring brand loyalty creates a positive image of a company, all through advertising. Most importantly of all, advertising will drive sales and make a business money.