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Advertising
GCSE Business Studies
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Revision Presentations 2004
What is Advertising?
An important part of the way a business promotes its
products and services to customers
Use of “media” to reach and communicate with potential
customers
Encourages customers to buy through information and/or
persuasion
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How is Advertising Used in the UK?
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Choice of Advertising Medium
Who does the medium reach?
 National or local audience?
 How many customers will see the advert?
Nature of product
 Media needs to reflect image of product
 E.g. a recruitment advert would be placed in a trade magazine or
newspaper but a lipstick advert would be shown on TV or
women’s magazines
Position in product life cycle
 Launch stage will need different advertising than adverts for a
product that is well established
Cost of medium
 Television is the most expensive; national advertising is more
expensive than local advertising
 May want to consider cost per head if reaching a larger audience
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Television Advertising
Advantages
 Use of pictures and sound very powerful combination
 Can reach a large audience
 Can target audience with different adverts going out with certain
programs (children’s TV and toys)
Disadvantages
 Very expensive – both the cost of making the adverts – and the
cost of buying the broadcasting time
 Need to get message across in very short space of time – e.g.
15-30 seconds
 Need to look good against some other very clever and attractive
advertising by other businesses and/or competitors
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Classified and Display Advertising
Classified advertising
 Normally put into a newspaper or magazine
 Expressed solely in words and numbers
 Less space – therefore lower cost
Display advertising
 Space also bought in newspapers or magazines
 Can be filled with words and/or pictures
 Takes up more space and is more expensive
 Often more effective in attracting attention of readers
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Persuasive and Informative Advertising
Persuasive advertising
 Aims to convince customers that they really like the
product or service
 Focuses on product benefits and features
 Aims to persuade customers to buy – i.e. increase
demand for the product or service
Informative advertising
 Provides customer information
 Mostly done by government (e.g. health campaigns, new
welfare benefits)
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Newspaper Advertising
Advantages
 Cheaper than TV advertising
 Market segments can be targeted better:
• National, regional and local newspapers
• Target different socio-economic groups – e.g. popular tabloids (Sun,
Mirror)
 Newspapers also have special sections, such as Homes, Travel
and Gardens where advertising will reach target audience
Disadvantages
 Newspaper readership is falling – adverts do not reach as many
people
 Still expensive – particularly for smaller businesses
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Advertising Agencies
Role
 Plan, organise and produce advertising campaigns
 Design and produce advertising material (e.g. posters, display
adverts, television commercials)
 Monitor and report on effectiveness of advertising
Advantages:
 Expertise a business may not have, e.g. copywriters, designers
and media buyers
 Specialise in particular markets (e.g. agencies
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Advertising and the Law
Advertising is covered by legislation (law)
 Trade Descriptions Act – goods advertised for sale must be as
they are described.
However, the advertising industry is largely “self-regulated”
 Advertising Standards Authority – regulates adverts that appear
in “non broadcast media” (e.g. newspapers, magazines, posters)
 Broadcasting regulator (OFCOM) regulates adverts on television
and radio
Misleading adverts can be referred to the Office of Fair
Trading
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“Above Line” and “Below Line”
Above the line
 Paid for communication in independent media
 E.g. advertising on TV or in newspapers
 All advertising done via advertising agencies is “above the line” –
because the agency is paid to arrange publication of the adverts
Below the line
 Promotional activities where business has direct control
 No payment made for the “advertising” itself
 E.g. direct mail, point of sale displays, giveaways
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