What is advertising, and how does it actually work?

A plain explanation for business owners and students: what advertising is, why it works when it does, and how to plan it so the money is not wasted.

The definition

Advertising is paid communication, where a business pays to put a message in front of a chosen audience to get them to know, consider or buy something. The key words are paid and chosen. You pay for the space or the attention, and you decide who should see it.

How advertising works

People rarely go from never hearing of you to buying in one step. Advertising moves them along a path, and different ads suit different points on it.

StageWhat the person is thinkingWhat advertising can do
AwarenessI have not heard of thisMake your name and what you do familiar
ConsiderationMaybe this could help meShow why you are a good choice and give proof
DecisionI need to pick oneMake acting easy: a call, a booking, a purchase
LoyaltyWas it worth it?Remind and reward people who already bought

What makes advertising succeed

The main kinds

Advertising appears in print, on radio and television, on signs and mail, and online through search, social, video and display ads. Each suits a different goal. See types of online ads explained, and the glossary for any term you do not know.

Advertising plan builder

Answer three questions and get a starting outline. It is a simple guide, not a substitute for a full plan. Nothing leaves your browser.

Guides

Advertising vs marketing

Advertising is one tool inside marketing. Here is how the two fit together.

Plan a campaign in six steps

Goal, audience, channel, budget, message and measurement: a six-step method.

A short history of advertising

From painted signs to search ads: how each new medium changed what advertisers could do.

Want help planning yours?

We review advertising plans, accounts and websites for small businesses at no cost. Ask for a free review or call (510) 857-7838.