What are the Three Different Types of Advertising?
March 7, 2011
There Are Only Three Different Types of Advertising.
Direct Sales Advertising
Relationship Building Advertising
Each one has a specific function and can provide an exceptionally high Return on Investment (ROI) when used correctly. Used incorrectly they just burn money.
So here is a quick breakdown of the difference between the three types of advertising.
Brand Advertising …
is all about creating awareness of the brand. It is used by companies like Coca Cola, Nike and other large brands. For example in the UK Coca Cola uses TV advertising to raise brand awareness most years just before Christmas. The result isn’t an instant sale; rather they want you to recall the brand when shopping or buying later.
Direct Sales Advertising …
is the typical ad that says we have product X, buy it now. Direct sale advertising gives you one shot at the sale and no more. If people respond by picking up the phone, visiting your outlet or going to your website then you have a potential sale. But once they leave the ad you have lost them totally. This means Direct Sales Ads are often expensive and quite ineffective.
Relationship Building Advertising …
is just what it says. The aim is to build a relationship NOT to make an immediate sale. So you might give a free sample in return for their email address or physical address. Then you can keep in touch with them and build the relationship. Using this form of promotion we’ve experience response rates of over 20% and it is very cost effective with measurable ROIs.
These three types of advertising can be used in hard copy or online.
Understanding the difference between the three types of advertising is the key to making a great ROI or your ads .. the alternative is to burn your money.
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Three Other Types of Advertising
Interestingly, Seth Godin, also lists three types of advertising. He uses slightly different terminology to me but essentially agrees with my list.
His three types of ad include Direct Response Ads, Trust Ads and Demand Enhancement Ads.
Direct Response Ads
These are what I call Direct Sale Ads. Their purpose is to elicit a response that ends in a sale. They tend be be paid for interruption ads. So they appear online in places such as Facebook and LinkedIn where we didn’t go there to buy but will if the right ad grabs our attention. Direct Sales Ads have the advantage of also gathering data on the response of those that see them. We can see things like CTR (Click Through Rate) and the cost of a response is available. They give a certain amount of predictability to our advertising as, provided we make no changes, the CTR will remain reasonably predictable provided external factors don’t change. We can also split test our ads and find better ads that cost less or give a better CTR. This way we can improve the ROI of our ads.
These equate to what I call Brand Ads. These are extremely hard to measure and they are designed to create brand awareness. Brand awareness can be measured over time but can rarely be attributed to a particular advert. I described Brand ads previously with mention of Coca Cola. But Brand Ads can go much further than this. They can be used to tell a story about the business, product or service that generates a positive glow in which the business can bathe,
An example of a positive glow type ad for a UK business is the Iceland Orangutan ad run in Nov 2018. The ad was to emphasise the no Palm Oil stance of the business and used a Greenpeace video to do this. It attracted the attention of the Advertising Standard Authority who banned. This generated more column inches that the ad was ever likely to score and the company must have been delighted with the added exposure. Iceland then decided to unleash a life-size animatronic orangutan on the streets of the UK. this will undoubtedly increase their brand awareness and campaign even further.
Demand Enhancement Ads
These are the ads that encourage us to buy ice cream or beer on hot days. They are also used to get us to book into hotels or stop at a pub for lunch. They can be as simple as an ad on a busy road that says Cold Drinks Next Exit. And if the ad includes the name of the pub that sells cold drinks even more people respond.
Demand Enhancement Ads provoke, nudge and tantalise us with images that get us salivating or wanting to fulfill a basic need.
Another Three Types of Advertising Perspective
There is a another perspective on the three types of ads. Some say that the three types of advertising are informative, persuasive, and reminder.
You take your pick.
For my French Friends I translate the three types of advertising below
Trois types de Publicité
Publicité de marque
Publicité sur les ventes directes
Publicité sur les relations
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