Role of Advertising in Business Growth

31 Mar 2023
6 min read

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Advertising plays a vital role in business, serving multiple purposes such as creating brand awareness, promoting sales, providing information, building trust with customers, differentiating a business from competitors, and supporting other marketing efforts. By effectively utilizing advertising, businesses can achieve their marketing objectives and establish themselves as industry leaders.

Nowadays, the world of business is very competitive, and advertising is being used to get ahead of these competitors. Advertising plays an important role in starting a business, building a brand, and positioning a company, product, or service against the competition. Advertising is an important part of a business growth strategy. Many advertising mediums are used for marketing a product or brand. In this article, we will tell you how to use advertising for your business growth. keep reading. 


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Advertising is a crucial aspect of modern business that plays a significant role in generating sales, building brand awareness, and reaching target audiences. It involves communicating a message to potential customers through various mediums to persuade them to purchase a product or service. Advertising is an essential tool for businesses that want to grow their customer base, increase revenue, and establish themselves as industry leaders. In this response, we will explore the various roles that advertising plays in business and how it can help businesses achieve their marketing objectives.

Definition Of Advertisement

The meaning of adverting is simple; a form of communication whose purpose is to attract viewers, readers, or listeners to your brand, product, or service or to provide product information. Today, there are many big companies that are working in the field of advertising, and advertisements are one of the most essential business growth strategies. Let us tell you that there are two main mediums of advertising. The first is the traditional medium such as television, radio, newspapers, banners, and posters, while the second is the digital medium such as email, Facebook, Instagram, and other social media platforms. Companies use advertising to increase the popularity of their brand and product among their customer base. It increases their reach to more and more people, as a result of which they get profits in the business.

At What Stage of Growth is a Business Profitable?

It takes at least 2 to 3 years for a business to become profitable, and for a fully stable business, an organization needs to give its business 7-8 years. Advertisement plays an important role to help an organization reach the stage of profitability.

Role of Advertising in Business Growth

Today, advertising is an integral part of economic and social life and one of the best techniques to promote sales. We know the role of advertising by four different parameters, namely manufacturers, middlemen, society, and customers.

  • Manufacturers: A manufacturer who has to make a good profit by selling his goods, takes full advantage of advertising for the commercialization of his products and services. The primary importance of advertising is to increase the sales of the product. If people don't know about the product, how do you expect it to sell? To achieve the same objective there is a need to advertise the product dedicatedly. It also helps in retaining existing customers and creating new ones. With the help of advertisements, manufacturers can promote sales of the product.

  • Middlemen: The middleman is the essential link between a producer and a consumer. Through advertising, the middleman helps in selling more of the product at the least cost.

  • Customers: Products and services are created to meet the needs of the customer, and advertising is used to spread awareness about the products. Advertising creates a good image of a product in the minds of the target customers.

  • Society: Advertisement is beneficial to society as well as the producer, middleman, and customer. Through advertising, accurate information about all products reaches the people.

The major effect of advertisements on business is that advertising influences buyers' decisions and promotes the sales of the product. In addition, advertising spreads awareness about a product or service.

How can Advertising Help in Business Growth?

Advertising in any business attracts new customers and this also helps in retaining existing customers. Advertising helps in changing outdated or negative perceptions of your business. Advertising promotes your industry and creates a good image of your business. Also, advertising helps in expanding the business.

Advertising plays a crucial role in business in terms of generating sales, building brand awareness, and reaching a target audience. It is a form of communication that aims to persuade potential customers to buy or use a product or service. In this response, we will explore the various role of advertising in modern business:

1. Creating brand awareness:

Advertising is one of the most effective ways to create brand awareness. By using various advertising mediums, businesses can make their products or services known to a wider audience. This is especially important for new businesses or those that are entering a new market. By building brand recognition through advertising, businesses can establish themselves in the minds of their target audience, leading to increased sales and customer loyalty.

Also Read: Why You Need To Understand The Psychology Of Advertising

2. Promoting sales:

Advertising is also an effective way to promote sales. By highlighting the features and benefits of a product or service, advertising can persuade potential customers to make a purchase. This is particularly important for businesses that offer seasonal or limited-time offers. By advertising these promotions, businesses can create a sense of urgency that motivates customers to buy.

3. Providing information:

Advertising can also be used to provide customers with information about a product or service. This is especially important for businesses that offer complex products or services that require explanation. By providing clear and concise information through advertising, businesses can help customers understand the benefits of their products or services and make informed purchasing decisions.

4. Building trust:

Advertising can also help businesses build trust with their target audience. By presenting their products or services in a positive and professional manner, businesses can establish credibility and reliability. This can lead to increased customer loyalty and repeat business.

5. Differentiating from competitors:

Advertising can also help businesses differentiate themselves from their competitors. By highlighting unique features or benefits, businesses can set themselves apart from others in the market. This can lead to increased sales and customer loyalty.

6. Supporting other marketing efforts:

Advertising can also support other marketing efforts, such as public relations or sales promotions. By using advertising to reinforce other marketing messages, businesses can create a unified and consistent brand image that resonates with their target audience.

7. To Attract or Engage New Customers:

People get information about your business or product through advertisements in newspapers, magazines, television, and radio, which attract new people to your business or product.

8. For New Opportunities:

For B2-B businesses, advertising increases your sales and increases the brand value of your business in the market. This lets you know the trends of your customers, which in turn creates opportunities for new prospects for you.

For any business, advertising is needed to spread the information about their new product to the public after it is launched. Advertising provides information about the product among the people, which helps in business growth.

9. To Get Traffic to a Web Page:

Ads can attract people to your website or portal, where you can convert visitors or visitors into customers.

10. To Deliver an Ongoing Product Offer or a Specific Message:

If you want to provide information to the people about the offers going on your business or product so that the sales of your product increase, then you can reach this news to the people through advertisement.

11. To Increase Online Sales:

For e-commerce businesses, pay-per-click ads can drive online sales almost instantly. PPC ads can prompt buyers to take action as soon as they see your ad and click on the ad to reach your product directly.

12. To Create a Positive Brand Image:

For industries suffering from chronically poor perception, advertising can change people's poor perception of your business by creating a more favorable impression. For example, advertising can make people aware of the expanded capabilities of your business or a good image of your product.

13. To Maintain a Positive Industry Profile:

If you're a consultant or run a tech company and want to become famous for your expertise, advertising can help. Native ads can promote your content that showcases your expertise. Also, advertising helps in attracting industry partners.

Types of Advertising

1. Newspaper Advertising:

Newspaper is a very old medium of advertising. Many big brands do advertise in newspapers to promote their products. Advertisements in the newspaper reach the information about your product to the people, and people are attracted to your product.

2. Magazine Advertising:

Magazine advertising is also an old medium of advertising. You can give information about your product to a specific or target audience through an ad in the magazine. Women, men or children, in whatever age group people read a particular magazine, a product made for that age group should be given in that magazine.

3. Radio Advertising: 

In today's time, many people listen to the radio, so the radio audience is given advertisements on the radio for their products. However, the art of ad writing is also different for each advertising medium.

4. Television Advertising:

Be it children or youth, women or men. Nowadays, all the programs on television are promoted by the advertisements that come between the programs and the products and brands. Television ads are also a traditional medium of advertising.

5. Outdoor Advertising:

Out-of-home or outdoor advertising is the promotion of a brand or product and service through banners, posters, or hoardings. Many brands use outdoor advertising to enhance their brand value.

6. Direct Mail:

Direct mail means giving information about your product or service directly to the consumer, this medium of advertising is not very old. But most companies nowadays are using this format or medium of advertisement.

7. Digital Advertising: 

In the last few years, the craze of online media has increased more among the people. Everyone is using online platforms like Facebook, WhatsApp, Instagram, Twitter, LinkedIn (Facebook, WhatsApp, Instagram, Twitter, LinkedIn), etc. In such a situation, digital advertising is being used more. Through online mediums, information about your brand reaches more and more people, and the value of your brand also increases.

Also Read: Building Brand Credibility in a Crowded Market: Leveraging the Power of Reviews for Startups and Businesses

Some Famous Advertisements

With the launch of Doordarshan on 15th September 1959, a huge opportunity started for all the big brands in India. The journey of advertising in the television world also started with Doordarshan. All the big brands started using new and catchy tag lines and slogans to stay ahead of the competition. Even today, there are some old products whose slogans are still in our minds. Apart from this, there are many brands that were immersed in the competition of the market, but the magic of advertising has again established them with a new identity in the market.

The first television ad was launched by Coca-Cola on January 1, 1976. After this, other brands like SurfExel, Britannia, Colgate, etc, also started promoting their products through advertising. After the launch of color television in India, a new revolution came in the advertising sector. There are many such products in India that became famous through their tagline.

In today's era, every brand, party, company, and product has its own distinct tagline or slogan. Let us take a look at some such famous tag lines and its brand -

  • Apple- Think Different

  • OnePlus- Never settle

  • Kitkat- Have a break, have a KitKat 

  • Nike- Just Do It

  • Five Star (5 stars)- Eat Five Star, Do Nothing

  • L.G.- Life’s Good

  • Samsung- Better Normal For All

IBM- Think

In today's time, there are many famous advertising agencies that are doing great work in the field of advertising. Famous advertising agencies:

Let's know the names of India's top advertising agencies

Rank Advertising Agency Name Revenue (USD billions)
1 WPP plc 17.34
2 Omnicom Group 15.29
3 Publicis 11.39
4 The Interpublic Group of Companies 9.71
5 Dentsu 9.6
6 Hakuhodo 3.06
7 Havas 1.71
8 Dentsu Aegis Network 1.48
9 MDC Partners 1.33
10 Publicis Sapient 1.31

Advertising plays a major role in the growth of any business. If you want to make a business successful, you have to take the help of advertising.


In conclusion, advertising plays a crucial role in business by generating sales, building brand awareness, providing information, building trust, differentiating from competitors, and supporting other marketing efforts. By utilizing advertising effectively, businesses can achieve their marketing objectives and establish themselves as industry leaders.advertising supports other marketing efforts such as public relations or sales promotions, creating a unified and consistent brand image. By utilizing advertising effectively, businesses can achieve their marketing objectives and establish themselves as industry leaders.

TWN Special