Buy essay on Advertising and its Economic and Cost Effectiveness

Today, advertisement has become a powerful tool with the help of which companies promote their brands and attempt to create a positive brand image. In such a way, advertisement becomes an integral part of the marketing strategy of modern companies.
Companies spend millions on their promotional campaigns and advertising to promote and maintain their brands. Therefore, the return on investments in advertising should exceed the costs of advertising. In such a context, it is important to understand that modern advertising is not an ordinary tool of promotion of goods and services. In fact, the advertisement has been recognized as a tool of establishing the brand image.　 Advertising is economically justified and it has brought substantial benefits to companies. The advertisement is one of the most important components of a company’s success since it can increase its profits if the advertisement in specific media reaches the target customers.
Research question:
Today, advertising is a well-developed industry, which accumulates billions of dollars annually. Hence, the question of advertising effectiveness naturally arises. The study should focus on the effectiveness of advertising and comparison of different media to be used for advertising. In addition, it is important to reveal whether there is any interdependence between media and the effectiveness of advertising.

Literature
Definitions
Advertisement – is a form of communication intended to persuade its viewers, readers or listeners to take some action.
Cost effectiveness – ability to generate sufficient value to offset an activity’s cost. The value can be interpreted as revenue in the case of a business.
Literature review
The effectiveness of the advertisement can be assessed in different ways. On the one hand, it is possible to use quantitative methods and assess the cost effectiveness of advertisement. On the other hand, it is possible to analyze the quality of the advertisement and its qualitative effectiveness. In this respect, it is necessary to dwell upon the impact of the advertisement on customers, which are the target group of any advertisement. At the same time, it is important to take into consideration the impact of mass media on customers because it is by means of mass media goods and services as well as brands of companies are advertised and promoted.
First of all, it should be said that the modern mass media are closely intertwined with advertising industry because it is due to advertising modern mass media can obtain a considerable share of their annual revenues. Moreover, today, the normal development of mass media is hardly possible without revenues mass media obtain from advertising. As a result, mass media are interested in advertising as much as advertisers and companies advertising their products and services are interested in mass media.
On the one hand, advertisers and companies advertising their products and services need media to reach the target customer group. For this purpose they use specific media which, in their turn, aim at a particular customer group. For instance, electronic media are mainly oriented on younger generation since young people use electronic media, especially Internet more extensively than older generation. Instead, elderly people often prefer print media, which they get accustomed to and they are unwilling to use en mass Internet and new mass media, which elderly people are not accustomed to use (Blanchard, K. & Bowles, 1993). The use of new media, such as Internet, implies the necessity of learning how to use them that elderly people are not always willing to do, viewing conventional media as more reliable than new ones. In such a way, by means of various media, companies can easily reach the mass audience and, therefore, can promote its products and services as well as brands to customers.
On the other hand, mass media need advertisers which bring them a considerable part of their revenues. In such a situation, mass media are dependent in a way on advertisers because they can increase their revenues. At the same time, the popularity of mass media in the audience is an essential condition of a higher revenues from advertising because the larger the audience is the more expansive advertising becomes. Therefore, mass media can earn more, while companies advertising their products and services will spend more on advertising, though the return on such advertising is higher due to the large audience of the mass media.
In such a situation, the question arises: whether mass media and advertising are influential enough to make people buying products or services advertised in mass media. On answering this question, it is important to lay emphasis on the fact that modern mass media has increased substantially their impact on the audience. Today, the development of new technologies, especially in the field of telecommunications, made mass media widely spread. In fact, it is only in the second half of the 20th century and especially in the 21st century media became oriented on the large masses of people. The audience of modern mass media may comprise millions of people worldwide, while some events, such as the Olympic Games, which are broadcasted by means of television, can have the audience which reaches over 1,5 billion people or even more. As a result, many companies, especially those operating in the field of sport goods production, attempt to use such special events and mass media to promote their brands as well as their products and services. In recent years, large companies become more and more oriented on the advertising of their brands rather than on the advertising of some particular products or services. In such a context, it is obvious that the large audience of mass media can make the advertising highly effective.