Why do big companies still advertise?

This article will focus solely on why big companies still advertise on television, after discussing why advertising is integral for any brand to maintain its relevance.

Advertising is still one of the most effective methods to ensure that one’s brand remains relevant. Considering that global franchises like Coca-Cola and McDonald’s still rely on advertising to maintain their global dominance, it should prove that advertising is still the most effective way to keep one’s brand top of consumers’ minds.

The aforementioned highlights the governing principles of advertising, which are to inform, persuade, remind and strengthen. Firstly, an advertisement informs the audience of a new product and attempts to persuade the customer to try it out. Thereafter, for customers that have it, it sporadically reminds them to purchase the product again. Should a customer give in to the temptation, it strengthens the relationship with between the brand and the customer. However, if one has not tried the product, despite having seen the advertisement, then the advertisement acts as a reminder to try it out each time it airs.

Despite the growth of social media advertising, some big companies still prioritise television advertisements. Television advertisements still account for a big portion of the 360-campaign that most big companies often use. This refers to the marketing and advertising strategies that use various platforms to advertise product lines, including print media, radio and social media.

The reliance on television is still key, primarily due to the reach and the fact that it contextualises the rest of the collateral that will be used throughout the campaign. Forbes magazine published an article noting 13 reasons why big companies still use television as the primary source of advertising. According to the article, “It works, TV has a greater reach, it’s a captive/passive audience… They have different demographics.”