advertising amanda petrilli and amanda sobers. do companies make more money if they spend more on...
TRANSCRIPT
Advertising
Amanda Petrilli and Amanda Sobers
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
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
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.
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)
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
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
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
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
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