How does advertising work? Easily explained

Advertising is everywhere. This practical tip explains how advertising works from a marketing perspective and how you can earn money from advertising.

How does advertising work from a marketing perspective?

In business administration, advertising is understood as a marketing tool:

• For a company, the goal of advertising is always to make more profits.
• Romantic ideas that advertising puts a brand in the right light, deepen the bond between brand and buyer, entertain or even inform the customer are not the goal, but means that the advertising uses.
• What is important here, for example, is the ratio of how expensive the advertising is and how many customers will ultimately buy the advertised product.
• The relationship can be optimized by reaching as many people as possible through advertising, such as in print media with high circulation, television advertising with high quotas, or internet advertising on a much-clicked website.
• Another type of optimization is to place the advertisement where the primary target group can be found.
• Half-time advertising on the Superbowl may reach most people worldwide at the same time, but it also costs many millions of dollars.
• Good advertising remains in people's minds and spreads via word of mouth through word of mouth.
• Advertising agencies optimize advertising campaigns, i.e. advertising channels, placement and frequency, scope and concept. They know their way around or have relationships with experts in the creation of text, graphics, video and sound.
• Many companies advertise counter-cyclically. That is, the worse the company's current economic situation, the more money is put into advertising that is supposed to provide an upswing.
• If the advertising is cheeky enough, the media may even report on how CHIP caused a sensation when the Samsung advertising shot against Apple or the Katjes advertising caused a sensation.

How does advertising work for the advertising medium?

If you place advertising on your property, such as your website or your car, you can earn money with it. It works like this:

• If you are a celebrity, you can make money just by taking pictures with products for Snapchat. It also works with photos and product reviews on Instagram.
• Even if you are not that famous, you may be able to print advertisements on your car.
• When you post advertising images on Facebook, you often earn a few euros per thousand clicks.
• In the Amazon partner Net you can, for example, refer to Amazon products. If enough people click on the link, there are a few cents for it. If someone buys the product after the click, you usually get around five percent of the purchase price.
• You can also earn money with this principle by advertising on blogs. The more people click, the more money you get.
• One problem with internet advertising is that you get little or no money per click, and most of the time you only get commission if a purchase or at least registration was made after the click.
• But be careful: Many surfers vehemently suppress advertising with ad blockers. This makes it all the more difficult to earn money by advertising on your website.
• Sponsoring is another way that primarily well-known clubs and individuals earn money. The sponsor typically provides his products free of charge, and may also pay money if the product is well placed. In return, club members have to make themselves available for further advertising measures, for example.
• Most likely, nobody will pay anything for advertising posters and signs on your house wall if your house is not on a busy street with exactly the right target group.