In: Economics
Based on the textbook Essentials of Marketing, discuss why measuring advertising effectiveness is NOT Easy.
Ans ) It is not easy to measures the effectiveness of advertising as there are many factors Like making the brand image,increasing sales,making people informed,introducing new products which demonstrate the effectiveness of advertisement.Some companies with low budget attain success on the other hand big budget advertisement does not meet the objectives.As the objectives of advertising are very broad here we can understand by taking an example of a soft drink company which wants to increase its market share that is increase its sales it perform the advertising activities that is a means of communication with the user of products and services .So it is tough for the company to measure its effectiveness as there can be a short term increase in revenue but that might be a chance that the brand image which is a long term benifit might not be affected that much or some times it can be difficult to know the information level of user of the products as there is a great difficulty to know it.Also calculating return on investment is not easy as not all objectives of advertisement can be monetary as consumer satisfaction.