Advertising plays a crucial role in companies’ investment and development. With the rise of Internet and social media, companies today have more advertising channels and strategies to choose from. However, not all advertising leads to success. Companies need to make wise investment in advertising to achieve the best outcome. This article will analyze some real-world examples of effective and ineffective advertising strategies of major companies, and provide suggestions on how companies can make sensible investment in advertising.
Big budget advertising sometimes ineffective
Some companies spend heavily on big budget advertising, believing it will directly lead to business success. For example, in 2013, Microsoft paid NFL $400 million to become the official tablet supplier. But it didn’t help boost Surface sales as expected. Consumers make purchase decisions based on product quality and reputation, not ads alone. Lavish spending on advertising cannot make up for product defects. Companies need to focus more on product R&D and quality control when making investment plans.
Viral low-cost advertising more effective sometimes
Contrary to big budget advertising, viral low-cost advertising on social media can be very effective if done right. For example, in 2017, Wendy’s created a meme-inspired tweet to respond to a customer complaint that went viral. The funny tweet earned Wendy’s massive positive exposure. It only cost Wendy’s the time to come up with a creative tweet. Viral social media advertising is affordable and can quickly grab public attention if companies can leverage trends and user-generated content properly.
Advertising investment should match brand identity
Companies need to make advertising investment that aligns with their brand identity and target market. For example, Coca Cola invests heavily in branding and sports sponsorship ads which resonate with its young and energetic brand image. But such flashy advertising may not work well for luxury and high-end brands like Rolls Royce, whose target customers look for exclusivity and prestige. Companies should know who they want to reach and make sensible advertising investment tailored to their brand positioning.
In conclusion, lavish advertising investment does not guarantee business success. Companies need to choose cost-effective advertising strategies fitting their brand and make product quality the top investment priority.