12 Advantages and Disadvantages of Advertising


Concept of Advertising

Advertising is a means of creating awareness and promoting a product or service in the market. It is a paid form of communication to inform the public about an idea, good or service. Advertising is a market communication intended to influence people’s actions and persuading them to buy or try the product.

This is one of the effective promotional tool of an organization for promoting its product among the target audience. It spreads the promotional message containing full details about the product among the customers. Advertising is a one-way communication by which organizations communicate with people by paying charges to an advertising company.

Advertising is of different kinds depending upon the type of medium used for communication such as print advertising, social advertising, outside advertising, broadcasting advertising, etc. There are three main motives of advertising: informing potential customers about brand, persuading people for buying brand products and reminding customers from time to time about brand message and vision.

Advantages of Advertising

advantages of Advertising
advantages of Advertising

Introduces product

Advertising is a medium through which companies introduce and create awareness regarding their products in the market. It explains the features and uses of new products to customers.

Increase Sales

Advertising helps the business in increasing its sales volumes. It attracts more and more people toward the company’s products and persuades them for purchasing it.

Widens Market

It enables businesses in exploring new markets and reaching out to a wide number of peoples. Advertising creates wide awareness regarding brand products among the public.

Fights Competition

Advertising is an effective tool for businesses to face competitive forces in the market. It provides detailed information regarding products that helps in differentiating it from competitor’s products and acquiring a competitive advantage.

Eliminates Middlemen

It serves as the direct connecting link between manufacturers and consumers. Advertising eliminates the role of all intermediaries between producer and customers which increases the profit margin of producers and reduces the overall cost to customers.

Stabilizes Sales Volume

Advertising helps in stabilizing the sales volumes for business. It helps in retaining more and more customers for a longer time period and develops more loyal customers.

Educates Consumers

It serves as the mean through which companies communicates all details regarding their products among customers. Advertising informs customers about the uses and utility of the product. 

Disadvantages of Advertising

Disadvantages of Advertising
Disadvantages of Advertising

Increases Cost

Advertising raises the cost of products offered by the business for sale in the market. The business incurs huge expenditure on advertisement activities which they recover by charging high prices for their products.

Mislead People

Advertising often leads to misleading and fraud customers by presenting false facts about goods. Many times it makes exaggerated and unfair claims regarding products. 


It is an impersonal and one-way means of communication between the manufacturer and customers. Customers sometimes are confused by the message communicated through advertisements by the company and are not able to resolve their queries.

Discourages Small Business

Advertisement programs require huge funds to gain popularity and goodwill in the market. It is beyond the scope of small businesses as they cannot afford huge advertisements like big companies.

Encourage Monopoly

Big corporations through wide advertisement programs create their monopolies in the market. They are able to create a permanent place for them among customers and restricts the entry of new competitors.