Economics of Advertising Essay Example | Topics and Well Written Essays - 2250 words

Economics of Advertising - Essay ExampleNo company can hazard economic growth without this strong tool called advertisement. Even non-profit organizations and public authorities to promote national programmes such as health campaign, anti drug campaign, literacy drive, ethnic mission etc use this vehicle to reach their people. Some organizations which frequently spend large sums of money on advert but do not rigorously contend a product or service to the public, include political parties, interest groups, religion-supporting organizations, and militaries looking for new recruits. Additionally, some non-profit organizations are not typical denote clients and affirm upon free channels, such as public service announcements. The publicize industry is large and growing. In the United States alone in 2005, spending on advertising reached $144.32 billion, reported TNS Media Intelligence. That same year, according to a report titled Global Entertainment and Media Outlook 2006-2010 iss ued by ball-shaped accounting firm PricewaterhouseCoopers, universal advertising spending was $385 billion. The accounting firms report projected worldwide advertisement spending to exceed half-a-trillion dollars by 2010. Nowadays, advertisement has become the common medium of commercialised interaction in competitive bids. Advertising has gone through five major stages of development domestic, export, international, multi-national, and global. For global advertisers, there are four, potentially competing, business objectives that mustiness be balanced when developing worldwide advertising.... me organizations which frequently spend large sums of money on advertising but do not strictly sell a product or service to the public, include political parties, interest groups, religion-supporting organizations, and militaries looking for new recruits. Additionally, some non-profit organizations are not typical advertising clients and rely upon free channels, such as public service anno uncements. The advertising industry is large and growing. In the United States alone in 2005, spending on advertising reached $144.32 billion, reported TNS Media Intelligence. That same year, according to a report titled Global Entertainment and Media Outlook 2006-2010 issued by global accounting firm PricewaterhouseCoopers, worldwide advertising spending was $385 billion. The accounting firms report projected worldwide advertisement spending to exceed half-a-trillion dollars by 2010. Nowadays, advertisement has become the common medium of commercial interaction in competitive bids. Advertising has gone through five major stages of development domestic, export, international, multi-national, and global. For global advertisers, there are four, potentially competing, business objectives that must be balanced when developing worldwide advertising building a brand while speaking with one voice, developing economies of scale in the creative process, maximizing local effectiveness of ads, and increasing the companys speed of implementation. Born from the evolutionary stages of global marketing are the three primary and fundamentally different approaches to the development of global advertising executions exporting executions, producing local executions, and importing ideas that travel. (Global marketing Management, 2004, pg 13-18)MERITS OF ADVERTISEMENTSIf a vehicle runs with an