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Advertising is a powerful tool for increasing brand awareness and informing customers about the benefits of your product or service. Creating focused advertising campaigns can assist businesses in increasing demand for their products and services. However, if an advertising campaign fails, it might lower demand for the items or services. It’s critical to understand how advertising works and how it might influence demand for your goods.

Advertising is a critical component of marketing. It entails paying for advertising space in order to persuade customers to buy a product or service. Advertising has numerous aims, which vary depending on where the advertisement is placed and who it is aimed at.

Advertising, like most promotional vehicles, is most effective when it targets a specific segment of an audience. Businesses can segment their audiences using demographic factors such as age, gender, and income, as well as behavioral factors such as shopping history and social causes.

In order to successfully reach their audience segment, it’s important to pick an advertising location that consumers will see. Advertising vehicles include TV, radio, magazines, newspapers, billboards, websites and more. It’s critical to establish goals for the advertising campaign and to pick the medium accordingly. For example, if a business wants to build brand awareness, then TV or radio advertising might work best as it reaches a large, varied audience. If promoting a specific product sale, advertising in niche magazines or websites might be the right option.

Understanding Consumer Demand

Demand is an economic principle that involves a consumer’s readiness to pay a certain price for a specific product of service. Aside from price, there are many factors that affect demand, such as weather, consumer confidence, brand popularity and supply or inventory.

For example, the weather or season plays a role in creating demand for certain types of products. In the summer, there is a greater demand for bathing suits than in the winter. During Christmas, there is a greater demand for Christmas trees than in the summer.

Supply is closely connected to demand, as well. Demand usually increases when there is limited supply for a particular product or service. The exclusivity of a product can entice consumers to want it more. In some cases, the increase in price for a product actually increases the demand, such as for luxury cars or high-end jewelry. In most cases, however, lowering the price of a product increases demand.

Effects of Advertising on Consumer Demand

Advertising plays an important role in increasing and decreasing demand for a product or service. It’s a way to engage consumers and educate them about the business, product or service and results. If the advertising is targeting the audience segment correctly, then the effects on demand will likely be positive. However, if the advertising misses the mark, the effects on the business can be devastating. Advertising can affect both the demand for a particular product or service and the demand within a particular audience segment.

Increasing Demand for a Product or Service

In order to increase demand for a particular product of service, it’s important to create messaging that outlines the problem consumers are facing and offers the product as the solution. This kind of persuasive advertising influences demand by setting the product apart from competitors and educating consumers about the results they will achieve.

For example, if a small business is selling children’s backpacks, the best time to increase demand for the product may be in the late summer before schools reopen. Parents and children are likely shopping for school supplies during this time, so they are more likely to pay attention to school-related messages.

To increase demand, the business needs to show consumers why their backpacks are better than any other backpacks on the market. If they are more durable, for example, this may be a key selling point for parents who do not want to have to purchase multiple backpacks if one rips. The small business can increase demand for their product by carefully selecting the timing and venue for advertising, and setting themselves apart from the competition.

Increasing Demand Within an Audience Segment

Another way to increase demand is to target a particular audience segment through advertising. The effects of advertisement on consumer demand are linked to brand awareness and brand loyalty. If an audience segment doesn’t know about the product or service, they have no way of affecting the demand. That’s why it’s important for businesses to understand their consumers and target them effectively.

Advertising aimed at creating consumer awareness for a product needs to carefully consider who the audience segments are. There are often multiple audience segments for a specific product. Those different segments may have different needs and problems, but the same product may fill those needs and solve those problems.

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For example, while the main target audience for the small business that sells backpacks are parents and their school-aged kids, they may also have a secondary audience of new moms who use the backpacks as diaper bags. To increase demand for that particular audience segment, the small business could advertise in local online mommy groups or hand out flyers at mom-and-tot activity classes. This way, they can raise brand awareness and build demand in a new audience segment.

Decreasing Demand for a Product or Service

If an advertising campaign is unsuccessful, it can decrease demand for a product or service. For example, if the ad misrepresents the product or sets unrealistic expectations, the campaign can have negative results on the business. It’s critical for advertising to be truthful about what kinds of benefits the product or service provides. This helps to build trust and loyalty with consumers, which can increase demand.

If a small business provides hair-dressing and make-up services, and misrepresents the results in their advertising, they may have a slew of unhappy customers. For example, if the advertisement talks about the high-quality products they use and the skills of their aestheticians, the consumers will assume that the service will give them the kind of look they are after.

However, if the quality of make-up is poor and the artist is inexperienced, the consumer may be upset by the end result. She may post negative reviews about the business online, which can then lead to a decrease in demand for that service.

Decreasing Demand Within an Audience Segment

A successful advertising campaign would likely raise demand within a specific audience segment. However, if the business doesn’t correctly target the market, then the campaign can fail. This is why it’s imperative for businesses to thoroughly research their audience. Through market research and competitor research, businesses can learn more about who they serve. They need to know their demographic and behavioral attributes to know how to appeal to them through advertising.

If the small business that provides hairdressing and make-up services decides to target new mothers with a beauty package, they need to fully understand what that market is looking for. The advertisement needs to be sensitive to emotions new mothers may be feeling about their post-partum bodies, for example. That may not be all the new mothers are considering when making a purchase for aesthetic services. For example, new mothers in that region may be more environmentally minded, and conscious about not using products that have been tested on animals.

If the business fails to fully understand its audience segment’s needs, the business will see reduced demand in that segment. The business needs to address a number of aspects in its advertisement for this audience segment, otherwise, the campaign may have poor sales.

What is The Effects of Advertising on Consumer Behavior

Consumer behavior is the way a customer interacts with your brand before or after making a purchase decision. Consumer behavior refers to how a person acts or feels after seeing an advertisement.

Although different client demographics respond differently to commercials, they all react the same way to the brand after seeing the advertisement. It is mostly determined by the structure, message, and branding employed by a firm in its commercial. It is vital to understand how consumers buy. You can develop adverts based on the information provided by their behavior.

Advertisements have an impact on consumers as you promote your products and services to them. Your marketing materials may pique their interest when they come across them, depending on the topic or structure you choose. Here are some typical consumer reactions or activities in response to an advertisement.

Entertainment – While advertising’s main objective is to inform the public about your business, depending on how well it is presented, it can also amuse the audience. Like in TV shows and movies, they captivate viewers and get them invested in your work. The entertainment value of TV shows is enhanced by advertising, which either makes the viewers laugh or feel something.

The same is true for online advertisements, which are so fascinating that internet users may mistakenly believe they are not adverts. Some advertisements even become viral because they amuse the audience. They will share your advertisements if they find them to be particularly interesting to watch.

According to 60% of study participants from Statista, TV commercials are the most entertaining type of advertising. Internet commercials are the least enjoyable, excluding those on social media. Only 38% of individuals who were polled think they’re pleasant. This demonstrates that advertisements may entertain viewers even though they are aware that the firm is only using them to advertise their goods.

Brand Familiarity – Consumers become more familiar with a brand with regular exposure through advertisements. A consumer will typically recognize a brand from an advertisement they have seen. With commercials that help them reach their target consumers, new brands can compete against more established ones.

Existing brands, meanwhile, regularly run advertisements to keep their products relevant to consumers. Once a consumer watches an advertisement, they’ll link it to a particular brand. This will pique their interest in the good or service the company has to offer.

To determine if search advertising helps build brand awareness, Google and Ipsos Media CT conducted a joint experiment. A test brand was associated with a certain keyword by 14.8% of the 800 U.S. consumers who saw the advertisement. Only 8.2% of people who weren’t exposed to the search advertisement were able to remember the brand. A brand’s top-of-mind awareness increased by an average of 80% as a result of the search ads, as seen by the difference between the two groups.

Build Trust And Confidence – can convince folks to test your product by using advertising. It may increase their faith that the good or service would ease their problems. Advertisements are used by new products to win over customers for whom they have not yet demonstrated their value. When advertisements highlight new product offerings or varieties, they can also restore consumer faith in the brand.

To increase consumer trust in a brand, other advertisements include customer testimonials. It’s a common technique in medical products, including marketing for pharmaceuticals. Pharmaceutical companies must persuade customers of the value of their offerings. Thus, the a demand for testimonial advertisements.

Consumers worldwide are trusted by 66% of advertisers, according to a Nielsen survey. The same level of confidence is offered by editorial advertisements, such as those seen in newspaper stories. Regarding ad forms, offline advertisements are more trustworthy than online advertisements. Only 48% of respondents believe in online video ads, compared to 63% who trust TV commercials.

Social Perception- The advertisements that consumers see are what turn a thing into a status symbol. They are more likely to adopt the style when a well-known person supports the product. Customers are persuaded to want the goods that the celebrity advertises by the accompanying social imaging.

According to research from the Wisconsin School of Business, print advertisements disproportionately portray middle- and upper-class demographics, giving the false impression that lower-income consumers also belong to the same socioeconomic level. Furthermore, 16% of Internet users found a brand through a celebrity. And these expensive celebrity-endorsed advertisements are worthwhile because they raise sales by an average of 4%.

Clearly Define the Product Benefits- Complex new-to-market goods and services advertise the advantages of their offerings in their advertisements. For instance, advertisements from startups whose solutions address a particular issue detail how their solution might streamline a challenging procedure. Advertisements simplify the benefits that a product will provide to its target audience.

67% of food product buyers want to know what ingredients are used in the food they purchase. Before buying, parents conduct product research. And 68% of these parents think that in order to get the most out of their purchase, they wish advertisements would teach them something new.

Motivate them to Buy- Businesses produce advertisements to entice more customers to purchase their goods. To pique the interest of potential customers to visit the closest store and purchase what they have to offer, companies make costly advertising investments.

They seek to benefit from a product’s brief window of reduced price availability. Additionally, advertisements that highlight how they resolve a customer’s issue persuade them to give it a try.

According to a Statista study, 44% of American consumers claim to have bought a product as a result of viewing an online advertisement. When it comes to conventional out-of-home advertisements, 60% of consumers are more inclined to purchase a product after viewing an advertisement during a routine shopping excursion.

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