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Advertising
Amanda Petrilli and Amanda Sobers
![Page 2: Advertising Amanda Petrilli and Amanda Sobers. Do companies make more money if they spend more on advertising? Advertisement persuasiveness What the consumer](https://reader036.vdocuments.mx/reader036/viewer/2022070411/56649f4e5503460f94c6edf3/html5/thumbnails/2.jpg)
Do companies make more money if they spend more on advertising?
• Advertisement persuasiveness• What the consumer ends up spending their money on
• Most popular ads• Where ads are seen the most
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Where did your data come from?
Primary Data:
Forty students from grades
9 to12 were surveyed andwe wanted to find out:
• What advertisements were seen most
• Where advertisements are seen
• How frequently certain advertisements are viewed
• Effectiveness of different types of ads
• Where the majority of the survey taker spends their money
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Where did your data come from?
Secondary Data:
We researched companies in our four different
categories of ads; fast food, electronics, cosmetics and
clothing.
• McDonald’s• Apple Inc.
• L’Oréal• Nike
Researched in order to find out how much money the
companies spend on advertising and if increased
spending results in increased profits.
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Which advertisements do you hear/see the most?
Seen most: Fast food
Second: Electronics
Third: Cosmetics
Last: Clothing
McDonald’s
Annual Revenue: $22.8 billion
Annual advertising budget: 15% of revenue (roughly $3.3 billion)
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Are advertisements with celebrities more effective than ones without?
Results were almost evenly distributed; 57% said yes, 43% said no.
McDonald’s vs. NikeAdvertising budget: $3.3 billion $2.5 billionRevenues: $22.8 billion $ 19.2 billion
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Where do you see/hear the most advertisements?
• Majority see ads from television
• Internet ads are seen second most
• Magazine/billboard and Radio ads are tied for third
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Do you tend to pay attention to lower budget ads?
• As expected, the majority said no.• Lower budget ads have lower picture quality, mediocre actors• Possibly unreliable
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Are infomercials effective or annoying?/ Do you or your parents buy products from infomercials?
The majority agreed thatinfomercials are annoying andmany do not buy products fromInfomercials
Infomercials are typically• Loud• Repetitive• Long• Misleading• Have hidden costs
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Conclusion
• Advertisements play a major role in a company’s ability to make money
• Each researched company’s revenue in the billions, advertising about 10-15% of this
• More advertising does result in higher profits-------------------------------------------------------------------------------------------------Company Info:
L’Oréal McDonald’sAnnual revenue: $23 billion Annual revenue: $22.8 billionAdvertising expenditures: $6.29 billion Advertising expenditures: $3.3 billion
Apple Inc. Nike
Annual revenue: $32.5 billion Annual revenue: $19.2 billionAdvertising expenditures: $500 million Advertising expenditures: $2.5 billion