The Inside Story of Advertisement Industry

Do all the advertisements we see every day for the products or services they are given, work the way they should? What I mean by my question here is do they have any positive effects on consumers’ purchasing behaviour or brand choice? Well according to the various researches only about half of all commercials actually work. Besides this, a minor share of ads seems to have adverse effects on sales. Don’t you think the advertising agencies want to produce marvellous Ads? And what about the clients then, don’t they want good advertising? Well obviously the answer to that is ‘Yes’ but they have to face obstacles as well. Different from most of the business world, which is governed by abundant feedback circles, the advertising industry gets a less reliable feedback on its advertising.Infact if we look at this industry, as a whole, its quality-assurance systems are a bit set back and the ads and commercials which are produced turns out the most unpredictable product compared to any industry in the world.

If we particularly talk about few obstacles, self-delusion is the one of it in the way of better advertising. Most of us think that we know what good advertising is and that there is no need for any kind of sovereign, objective evaluation. Agencies and clients alike frequently feel that they know how to produce and judge good advertising. Besides, once agencies and clients start to fall in love with the new creative, they swiftly lose concentration in any objective assessment. Then for them there is no need for testing the advertisement, which marks the end of the case. It seems that none is smart enough to see advertising through the eyes of the target audience, based purely on our own judgment.

Another obstacle to smart advertising is connected to sales performance. It is the faith that sales performance will go high if the advertising is working. Unless the sales response to the advertising is instant and awesome, it is almost unfeasible to use sales data to judge the efficiency of the advertising. So many variables are out our control, as noted, that it’s impossible to separate the effects of media advertising alone. Furthermore, some advertising works in a less time, while other advertising might take more time to show positive effects, and this late response can stun the efforts to read the sales data . Also , advertising often has short-term effects that sales data might imitate, and long-term effects that most of us might easily fail to notice in successive sales data . Because of the se boundaries, sales data tends to be puzzling and untrustworthy as a sign of advertising efficiency.

Refined marketing mix model is one way to compute these advertising effects on sales, but it often takes millions of dollars and years of attempt, and requires the building of perfect databases of sales information along with all of the marketing input variables. Only some companies have the budget, the tolerance, the exact databases, and the scientific knowledge essential to succeed at marketing mix model. Even so, it does not help us evaluate the contribution of a single commercial but rather the increasing effects of many different commercials over a long period of time. Also, it does not tell us why the advertising worked, or failed to do so. Was it message, or media weight, or media mix that made the advertising efficient? Generally, marketing mix model cannot respond to these types of questions. So, again, sales data is of partial importance when you make significant decisions about your advertising.

Creative ego can also be proved as an obstacle in way of effective advertising. The conviction that only the “creative people” in the agency can make advertising—and the confidence that imagination is their private sphere—comprise a main hurdle. Great advertising tends to develop over time, with lots of hard work, fine-tuning, and tinkering—based on objective feedback from target consumers. Big creative egos tend to oppose such evolutionary improvements. We have seen great campaigns deserted because agencies would not agree to small tweaks to the advertising. To be fair, big egos are not limited to advertising agencies. Big client egos can also be a obstacle to good advertising. Research firm egos are yet another difficulty. Big egos create barriers because sentiment is driving advertising decision making instead of logic, reason, and consumer reaction. Ultimately big egos lead to bad advertising.

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