The influence of advertising on business is most obvious when we see the enormous amount of public space, in the form of print, electronic, online, outdoor or ambient media being taken up by advertising. Today, it is unimaginable for a business to thrive and grow without the help of advertising, more so, if its mode of operation is B2C (Business to Consumer).

A B2C business spread across a wider geographical area, for instance, across more than one town or city, would simply have no way of surviving, let alone, growing, without advertising.

Only Small Businesses Without A Growth Focus Can Afford To Ignore Advertising

In the case of businesses involved in B2B (Business to Business) mode of activity, it is not a rule that they don’t need advertising to grow or survive. Of course, a small B2B operation engaged in selling electrical spares, or providing maintenance services to haulage firms within a small and specific geographical area, can do without advertising. However, such a company would have to forgo any ambition that it may have, of growing beyond its geographical limits.

In fact, this limitation applies in equal measure, to B2C businesses of the same denomination as well. Another way of looking at the influence of advertising on business, especially small retail businesses in a fixed geographical area is the ambience at these retail shops. Most of these shops sell a wide range of consumer products, both durable and non-durable, produced by an almost equally large number of producers.

These products are all branded, and enjoy huge advertising support from their owners. Such advertising includes POS (Point of Sale) communication through media like posters, stickers, buntings, danglers, and so forth which these retail shops happily display. Therefore, the influence of advertising on business, even small retail businesses that are not growth-oriented, can be seen, in an indirect way.

A producer, on the other hand, can’t afford to remain content with a limited market for the simple reason that the business of production works on a much higher scale. For such a business, the market transcends not just local and regional geographies but actually, covers the whole world, depending on how the said business perceives its growth potential. So, without advertising, no product can fulfill its growth potential, howsoever good it is.

Advertising Has Evolved In Relation To Technological Innovation

The influence of advertising on business is directly related to the explosion of innovations in product development. The speed at which new products scale up the target market is as amazing as the speed at which they become redundant and reappear in a newer and more sophisticated avatar. While technological innovation is responsible for this remarkable speed of product development, the cycle cannot be understood if we ignore the role of advertising or marketing communications in this phenomenon involving exchange of an enormous amount of information.

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As with product development, the influence of advertising on business has also scaled up across different levels of media. Newer and more innovative media evolved overtime and continues to emerge every now and then. They are all related to the development and emergence of newer products, services and delivery systems.

Advertising on ATM (Automated Teller Machines) screens or on shopping baskets in big retail stores are cases in point. Similarly, there are many other forms of advertising that evolved and survived over time. They will continue to impact and influence businesses, especially in how they communicate to their markets and try to stay ahead of the competition.

Photo Credit : Businessday.com.au