Why companies spend such a huge chunk of amount to buy ad slots?

Before jumping directly to the question. Let’s explore about advert first. What is advertisement?

Advertisement is the promotion of a product, brand or service to a viewership in order to attract interest, engagement and sales.

Do you consider advert an expense or investment?

One has its own way to view things. Form accounting perspective ad is considered expense. However, it appear as an investment because it helps company to generate new sales and create awareness of the brand. Further it creates loyalty among the customers. Especially we as consumers are more willing to buy stuff after we see strong and positive ads. After all we need validation from someone.

While watching IPL, you might have seen Facebook have been broadcasting TV ads. Does fb really need advert? It’s all about psychology. Probably, the company is trying to improve its brand image. Our minds start to believe a lie after listening for a thousand times.

When you buy something next time, try to observe why you choose one brand over another. Apart from quality and pricing, the ad makes us buy that particular brand. The ad creates an image in our mind unconsciously. We associate those ads with feelings. For instance, you might want to have a kitkat while having a break.

In today’s age attention is expensive and information is cheap.

Now consider advert from a different lens. It is not easy to get our brain’s attention. Our attention span is of just 8 seconds. Considering our attention as an asset. We are giving it freely to the advertisers, where nothing is free in this world, including clean air and water.

Google, and Fb don’t charge us for using their services. But they are not nonprofit companies. They make billions of dollars in profit every year. Most of it comes from advertisement. The more we use their products, the more they know us. The better they become in selling advert to us. The companies who buy ad slots make their money from consumers. Ironically, we are paying for the ad to sell thing to us. Since, the ad cost is included in the pricing of the final product.

Spend your attention asset wisely!

If you are seeing an ad in the article, please click here to know how to browse internet ad free.

If you enjoyed reading this post and found it helpful, feel free to share on Whatsapp with your loved ones by clicking here