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Connecting St. Louis - Understanding the Purpose of Advertising

A guide to understanding the purpose of various forms of advertising.

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THE PURPOSE OF
ADVERTISING
Jonathan F. Williams
Understanding the Purpose of Advertising
Page 1
Connecting St. Louis
Introduction
When asked what the purpose of advertising is, the likely answer you will get
is that it's meant to sell more of your product or gain more business.
While this answer is certainly correct, advertising isn't always about
IMMEDIATE sales.
The end goal is always to further your business, which in more cases than not,
is more sales down the road. But different types of advertising can increase
the possibility of you getting you a sale.
If you're not in marketing, you might not realize this. You might subliminally
know that there are different types of ads, and you've undoubtedly seen the
different kinds. But you've likely never really thought about what they mean
and how they can bene t your business.
So to start, we're going to break down the different main types of ads.
Different Types Of Advertising
The different types of ads we’re going to focus on in this article very much
mirror a typical sales funnel.
Understanding the Purpose of Advertising
Page 2
Connecting St. Louis
Sometimes these messages are about how a company is helping out with
XYZ issues that impact a local community or their target audience.
Most times, these ads don't have a sales call to action. Or, if it does, it might
be a very “soft” call to action to nd out more information by visiting a
website.
So at the very top of the funnel is branding and awareness. Now, these ads
are more often than not a very high level that just informs the viewer about
your company and helps them start building positive feelings about your
company.
1) Branding & Awareness Ads
Companies do this either when they're in a crisis, when they're trying to get
their name out there, or just want to highlight something that they're doing to
make people build a positive association with their brand.
There are a couple of great examples of these, such as SeaWorld park to
Planet Video: https://www.facebook.com/watch/?v=10156151255552565
Or some of the more recent Chick- l-a ads that are just talking about positive
stories of their company.
Understanding the Purpose of Advertising
Page 3
Connecting St. Louis
Chick- l-a: "Mobile Order"
https://www.youtube.com/watch?v=b41hxNCQQKE
Chick- l-a: "Adoption"
https://www.youtube.com/watch?v=GFDlzG9y0HE
Understanding the Purpose of Advertising
Page 4
Connecting St. Louis
The next type of ad and the next step down in the sales funnel: lead ads.
Now, these ads aren't necessarily asking you to buy something. Still, they’re
also not just giving you information like a branding and awareness ad. These
ads typically have a call to action that has a much lower bar for entry, such as
“sign up with your email today to get a 10% discount next time you order” or to
get a free ebook. These ads offer you some sort of bene t in exchange for
giving your email, phone number, address, or some identi able piece of
information to the organization that costs the user nothing.
2) Lead Ads
The most common lead (especially from a digital ad) would be an email
address. A lot of times, email marketing is a great way that these ads can put
a potential customer in your funnel. Whenever a business  gets a potential
customer’s contact information, that lead has raised their hand to show the
business that they are interested enough in the product to want more
information or to get something in return..
And for a marketer, that is a very valuable signal, because now they know
who they can target to get a potential sale. After all, the barrier of entry will be
much lower for a person already familiar and has shown interest in your
brand. That person who has given their information is now familiar with the
company and will theoretically be primed to potentially take that next step.
These are all bene cial and show why you, as a customer could potentially
want to use that brand. And all of them don't necessarily have that strong call
to action of “visit us today” or “buy something now” type messages.
Understanding the Purpose of Advertising
Page 5
Connecting St. Louis
1) Analyze your goals.
The third type of ad is the sales ad. These ads are the ones you most likely
think about when you think about advertising. They are the ones that say, go
to this store/website to buy this product now, call this number today, click
here to purchase this item, etc. Any ad with a call to action of buying or
exchanging money for some sort of product is going to be pure sales. This is
the bottom of the funnel, and this is what most ads are that you see.
First, analyze your goals. This is an excellent point to go back and look at what
you wrote down in your business branding course. If you've completed that,
you will have written down all your goals for your business.
Now, there are additional things you can do for advertising to people that
already buy from you if it's more of a subscription model. And this is a
somewhat branding and awareness type ad after the sale, which is more to
help maintain your audience and your customers to keep them coming back.
So this is kind of a continual funnel which keeps bringing people back.
Steps To Determine Your
Advertising Purpose
Alright, now that you know the different types of ads. We're going to show you
how you can better understand the purpose of advertisements. And to do this
you need to rst know what you're trying to accomplish. Before you run any
advertising campaign, you need to gure out what you're going to accomplish
and what the end goal is. Therefore you need to follow these next steps.
3) Sales Ads

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Connecting St. Louis - Understanding the Purpose of Advertising

  • 2. Understanding the Purpose of Advertising Page 1 Connecting St. Louis Introduction When asked what the purpose of advertising is, the likely answer you will get is that it's meant to sell more of your product or gain more business. While this answer is certainly correct, advertising isn't always about IMMEDIATE sales. The end goal is always to further your business, which in more cases than not, is more sales down the road. But different types of advertising can increase the possibility of you getting you a sale. If you're not in marketing, you might not realize this. You might subliminally know that there are different types of ads, and you've undoubtedly seen the different kinds. But you've likely never really thought about what they mean and how they can bene t your business. So to start, we're going to break down the different main types of ads. Different Types Of Advertising The different types of ads we’re going to focus on in this article very much mirror a typical sales funnel.
  • 3. Understanding the Purpose of Advertising Page 2 Connecting St. Louis Sometimes these messages are about how a company is helping out with XYZ issues that impact a local community or their target audience. Most times, these ads don't have a sales call to action. Or, if it does, it might be a very “soft” call to action to nd out more information by visiting a website. So at the very top of the funnel is branding and awareness. Now, these ads are more often than not a very high level that just informs the viewer about your company and helps them start building positive feelings about your company. 1) Branding & Awareness Ads Companies do this either when they're in a crisis, when they're trying to get their name out there, or just want to highlight something that they're doing to make people build a positive association with their brand. There are a couple of great examples of these, such as SeaWorld park to Planet Video: https://www.facebook.com/watch/?v=10156151255552565 Or some of the more recent Chick- l-a ads that are just talking about positive stories of their company.
  • 4. Understanding the Purpose of Advertising Page 3 Connecting St. Louis Chick- l-a: "Mobile Order" https://www.youtube.com/watch?v=b41hxNCQQKE Chick- l-a: "Adoption" https://www.youtube.com/watch?v=GFDlzG9y0HE
  • 5. Understanding the Purpose of Advertising Page 4 Connecting St. Louis The next type of ad and the next step down in the sales funnel: lead ads. Now, these ads aren't necessarily asking you to buy something. Still, they’re also not just giving you information like a branding and awareness ad. These ads typically have a call to action that has a much lower bar for entry, such as “sign up with your email today to get a 10% discount next time you order” or to get a free ebook. These ads offer you some sort of bene t in exchange for giving your email, phone number, address, or some identi able piece of information to the organization that costs the user nothing. 2) Lead Ads The most common lead (especially from a digital ad) would be an email address. A lot of times, email marketing is a great way that these ads can put a potential customer in your funnel. Whenever a business  gets a potential customer’s contact information, that lead has raised their hand to show the business that they are interested enough in the product to want more information or to get something in return.. And for a marketer, that is a very valuable signal, because now they know who they can target to get a potential sale. After all, the barrier of entry will be much lower for a person already familiar and has shown interest in your brand. That person who has given their information is now familiar with the company and will theoretically be primed to potentially take that next step. These are all bene cial and show why you, as a customer could potentially want to use that brand. And all of them don't necessarily have that strong call to action of “visit us today” or “buy something now” type messages.
  • 6. Understanding the Purpose of Advertising Page 5 Connecting St. Louis 1) Analyze your goals. The third type of ad is the sales ad. These ads are the ones you most likely think about when you think about advertising. They are the ones that say, go to this store/website to buy this product now, call this number today, click here to purchase this item, etc. Any ad with a call to action of buying or exchanging money for some sort of product is going to be pure sales. This is the bottom of the funnel, and this is what most ads are that you see. First, analyze your goals. This is an excellent point to go back and look at what you wrote down in your business branding course. If you've completed that, you will have written down all your goals for your business. Now, there are additional things you can do for advertising to people that already buy from you if it's more of a subscription model. And this is a somewhat branding and awareness type ad after the sale, which is more to help maintain your audience and your customers to keep them coming back. So this is kind of a continual funnel which keeps bringing people back. Steps To Determine Your Advertising Purpose Alright, now that you know the different types of ads. We're going to show you how you can better understand the purpose of advertisements. And to do this you need to rst know what you're trying to accomplish. Before you run any advertising campaign, you need to gure out what you're going to accomplish and what the end goal is. Therefore you need to follow these next steps. 3) Sales Ads
  • 7. Understanding the Purpose of Advertising Page 6 Connecting St. Louis After you know your goals, determine your audience. Advertising nowadays can be very niched down to the speci c audience you want. Going back to the answers you wrote down in your business branding course, you should have your ideal client personas listed. These ideal client personas should be the audiences you are targeting with your business. This is a great starting point to gure out what people you should target. 3) Determine your call to action. Whenever you run an advertising campaign, you need to make sure your advertising goals match your business goals. If your business goals don't match your advertising goals, one of them needs to change so that they're in line with one another.  Because running ads that don't accomplish your goals is not going to help move your business forward. 2) Determine your audience. After you know your goals and know your audience, you need to determine what action you want them to take. Again, this is very much linked to your goals. If your goal is to sell 1000 different units, you need to gure out what action they need to take to make these sales. And this goes back to thinking about the three different types of ads that you can run. If your audience has never heard from you before, you might want to start by running some awareness ads to get people aware of who you are. As you begin to get some leads into that same audience group, you can then start making some sales ads.
  • 8. Understanding the Purpose of Advertising Page 7 Connecting St. Louis 4) Determine who you can reach with ads. So different advertising platforms and mediums will have different abilities to reach your audience. Some of them are more shotgun approaches, like traditional cable television, where you just have a broad, non-speci c type of audience watching the different channels and there’s going to be a lot of overlap. But others you can target down to speci c ages locations, and interests. On these digital platforms, you target individuals who have the particular features or traits you want with your product or service. You may want to start with ads that rst butter them up, get some people interested in your product and services by generating leads from this group, and then start to sell to those leads who would give you their information. Going out rst with a hard sales message, unless it's an incredible sales message, often won't work with people. Unless it's absolutely something people need, they won’t be willing to purchase at rst. So keep this in mind. 5) Understand and determine your sales funnel. So again, going back to the type of ads. Where will these leads go into your funnel? Are they going to immediately go into leads, or will they go into a type of a brand awareness bucket? And how is that going to work? Wherever your ads appear, are your leads immediately going to be taken to your websites? How can you build upon that?
  • 9. Understanding the Purpose of Advertising Page 8 Connecting St. Louis 6) Ensure you have tracking in place. Nowadays, there's almost no reason why any of your ads should not have the ability to track people who are engaging with them. Even if you're doing a TV ad, you should be able to set up a call to action with “Call this number” or “Visit this website” that can be unique to that ad, so that you know where these people are coming from. If you're showing an ad on multiple channels, set up a separate website landing page for each channel. And with each website, you can track who is coming in from where so you can know which ad placements are the most successful. You've probably seen this on various infomercials where they'll have, “visit website.com/wow5” or something similar to that. This is so that they can track and know who is coming to the website and what ad drove them there. Now for these TV or radio ads or anything where your target audience is not physically clicking a link, it's not always going to work. Some people are just going to type in your main website and not the speci c landing page. But you should be able to on any digital platform where the call to action is “click to do XYZ,” set up tracking either with a dedicated landing page or at least with where you can drive tra c. And even if you don't want to have a different landing page per source, you can use UTM codes that will be customized per ad group. You will then know where this tra c is coming from when you connect it with Google Analytics on your website.
  • 10. Understanding the Purpose of Advertising Page 9 Connecting St. Louis Because again, you need to understand what you're doing and who you've been attracting. So once you're tracking them and have this going, you can then gure out if these ads are doing what you need them to do. You can evaluate if the purpose and the objectives are being accomplished, and then move forward to build your business.