Effect of Advertisement on Sales

Running head: EFFECT OF ADVERTISEMENT ON SALES
EFFECT OF ADVERTISEMENT ON SALES
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1EFFECT OF ADVERTISEMENT ON SALES
Effect of advertisement on sale
Advertising can have both short term as well as long term effects on the sales volume of
an organization and it solely depends on the objective of the same. According to Scott (2014),
shot term sales promotions are more likely to lead to a higher sales volume whereas when it
comes to long term brand management; it has the potential to produce higher sales as well as
profits over time. When it comes to sales volume, it is typically measured with the help of either
total amount of financial revenue gained or the number of units sold. While higher sales volume
lead to the perception that the organization is getting higher profit margin, lower sales volume
points out the loss in business. In this era of high competition between the competitors,
organizations are investing a good amount of their investment cost on both online as well as
offline advertising. In this era of technological advancement, online advertising is gaining more
and more priority from the marketers. One of the most effective way that are used by marketers
in order to promote their products includes advertising through popular social media platforms
like Facebook, Twitter, Instagram and others. This type of online advertising imposes a highly
negative impact on the product or service awareness as well as revenue of the consumers. First of
all, considering the fact that almost 79.3 percent of the overall population of the world is precent
in popular social media platforms, advertising through the same helps the marketers to reach
both local as well as global consumers within a very limited amount of time (Alhaddad, 2015).
Secondly, advertising through social media platforms are highly inexpensive. Hence, the
organizations will be able to save a good amount of financial resources that they can spend on
effective content development. Thirdly, advertising through social media platforms will enable
the management of the organizations to establish direct communication with the potential
consumers through the comment section. While potential consumers will be able to know about

2EFFECT OF ADVERTISEMENT ON SALES
the different type of products or services offered to them by the organization, the management
will be able to understand the specific needs of the consumers and thus can develop products on
the basis of their needs. Finally, social media platforms help in establishment of an effective
consumer- management relationship and this in turn results in enhancement in customer base as
well as loyalty of the consumers (Makasi, Govender & Rukweza, 2014).
According to Karbasi and Rad (2014), display advertisement is also considered as one of
the most effective online advertising tools. The original form of online advertising includes
visual advertisement that appears on the third party websites. Some of the major forms of display
advertisement include strategic images, texts, floating banner, wallpapers and popup
advertisements. Strategic advertisements are defined as the basic banners which appear around
the content and floating banners includes online banners that move across the screen or float
above the regular content of the websites. According to Crespo-Almendros and Del Barrio-
García (2014), amongst the different types of display advertisement, popup ads are found to be
obtained more response. One of the chief beneficial effects of the mentioned online
advertisement technique on the sales of the organization is that it is highly affordable and enables
the organization to target specific audiences.
When it comes to offline advertising techniques, two major advertising tools that are used
by organizations includes Newspaper, Poster and fliers. Considering the fact that both the
techniques have the potential to target local market, offline marketing has the potential to impose
positive impact on organizations. Both news paper and fliers are a conventional method of
utilising print media as promotional tool. According to Lepkowska-White, Parsons and Ceylan
(2014), though the print media based promotion is costly, it is still equally popular way of
promotion in this digital age. Apart from these print media based promotion event sponsorship