Tuesday, October 7, 2008

Corporate Advertising

Making a point


Football is a great sport. In my opinion, it is the true American past-time. With each passing season, however, the games become more and more difficult to watch. A player steps out of bounds. "Well, let's go to a commercial break." Football players are known as sixty-minute men. Perhaps if the amount of commercial breaks were cut in half, they could have a chance to live up to their billing. For instance, CBS charged $2.6 million for a thirty-second spot during the Super Bowl last year.

This cornucopia of advertising is welcomed by the NFL and the networks hosting the games. Millions of dollars are made each year on thirty-second spots for Edge shave gel and Geico Caveman ads. Corporate advertising is an integral part of successful organizations.

The Ways

There are two types of advertising, corporate and product. Corporate advertisements are paid for either by the corporate communication department or directly from the CEO's budget. These corporate ads are designed to enhance the company's image. A good example of such advertising is Chevron's latest initiative. Called "Energyville," the plan is to make consumers aware that Chevron is more than just another big oil company. "Energyville" is a game that lets its players choose different means of powering a city for twenty years. Players are encouraged to share their results and compete with others. This way, consumers are able to take part in a hands-on experiment as opposed to just reading or seeing a static advertisement that may or may not be true.

Product advertising comes from the marketing department. In this day and age, smart phones like the Blackberry and iPhone are all the rage. Therefore, many advertisements are geared towards these types of products. My company sells steel pipe and tube. The majority of our advertisements are of the product persuasion. While some skew the line a bit, they are more product than corporate. Here is a recent advertisement for a new, centrally located facility to make our customers' supply chains more effective:


I am in disagreement with my company's approach to advertising. We have a positive image and reputation in our industry, but we very much lack effective advertising. As a young gun in the marketing department, I realize the importance of a headstrong advertising initiative but the older-hat executives believe customer care and in-depth selling are the most vital keys to success. While they are certainly correct about the keys to our success, I feel we could do more to project our identity to some uninformed potential customers. Trade magazines abound and our failure to advertise in them could hurt our market share going into a recession.


Sending a message

Advertising has been known to effectively convey statements or messages that organizations may believe in. These "advocacy" advertisements could be Microsoft writing a letter to promote the necessity of computers in a classroom or a celebrity like George Clooney holding benefits to stop the genocide in Darfur. Messages of this nature must be fully embraced and explained by organizations as to not alienate their constituencies.

Organizations use advertising for a few reasons. The first, like my company and their product ads, to increase sales. Through the years, executives have focused more on seeing a return-on-investment from their advertising campaigns. This, I believe, is why my company tends to stray from advertising. Not to offend the accountants of the world, but while my organization is sales-based, it is known as an accounting firm (off the record of course) within the company. Without concrete numbers to bear example, they do not believe an in-depth advertising campaign is worth the cost.

Advertising can help to create and reinforce a company's reputation. In the case of the aforementioned Microsoft, their decision to advocate computer literacy to a young generation lets consumers know they [Microsoft] care about our country's future instead of just the millions in revenue.

A strong reputation goes a long way to assisting the next audience for advertising: new employees. The ability to advertise a solid reputation helps companies find and keep the best people and top performers in their respective industries. Employee turnover is a huge cost to organizations, so to build a strong and satisfied employee base leads to years of a successful enterprise.

In short, advertising is how companies display their image to the public. The various means are tailored to each particular industry, but there is no denying that effective advertising can help organizations succeed.

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