Introduction
Advertising is everywhere in the modern world - it penetrates our lives in novel ways, and while much of it is designed to be informative, reflective or entertaining, it is primarily focused on generating sales. This demonstrates why advertising decision-making is such a careful, critical and important part of business management.
What is Advertising Decision-Making?
Advertising decision making is the formalized approach used by businesses in considering and selecting the most effective advertising methods for a given context and situation. It is not exclusively about selecting the most appropriate medium for advertising, though that is a fundamental part of it, as there are multiple variables, including audience segmentation, relevancy and media choices, which come into play. All of these variables and decisions must be consolidated and clarified to ensure that the business optimizes its advertising budget and reaches its desired end goal.
Advertising Objectives
A vital component to advertising decision-making is the setting of priorities in terms of what the intended outcomes of the advertising objective are. Businesses set these objectives to help evaluate potential advertising methods and select the most suitable choice. Typical objectives that firms pursue when formulating and making their advertising decisions include:
Increasing sales — this is the primary driver for many advertising efforts and is vital to consider as it will be used to measure the success of the advertising campaign
Creating brand awareness — this is much harder to evaluate than increased sales, but is still often a focus for marketing, especially in building new revenue streams
Engaging with customers — businesses need to establish and maintain strong customer relationships, and engaging through advertising is a great way to do so
Selecting an Appropriate Medium
Once the advertising decision-making process has begun, the next step is to select an appropriate medium. This could be anything from radio and TV advertising to print media and social media. Each of these has its own strengths and weaknesses, so it is important to consider all of them when deciding which medium is best for the business.
One major strength of traditional forms of advertising such as radio and TV is that they have been around for a long time, so businesses can gain access to large audiences and have their messages heard in new and familiar ways. Print media is also great at communicating details and creating strong visuals to hook a viewer in, while social media provides the direct access to potential customers that was not available before.
The Cost of Advertising Decision-Making
Unfortunately, advertising decision-making is not free. Businesses will have to consider the cost of selecting the appropriate medium and reaching the desired target audiences when making their decisions. Many businesses underestimate these costs, which can result in an excessively large advertising budget and an inefficient use of resources.
Conclusion
Advertising decision-making is a critical component of business management and requires careful consideration of objectives, audience segmentation, media choices and budgets. By understanding the strengths and weaknesses of each medium, businesses can develop an optimal advertising strategy and optimize their budget to get maximum results. Through this process, they can establish a strong brand presence and connect with customers, leading to increased sales and profit.
