What Is the Difference Between Marketing and Advertising? Let's Find Out.
Okay, so what's the "Difference Between Marketing and Advertising" if you don't know the Answer to this question Then please stop what you're doing right now and read This full artical oh and by the way if you think these words are interchangeable And mean the exact same thing Then you too should stop what you're doing right now And read this full artical.
If you don't know the Difference Between Marketing And advertising then It's highly unlikely That you're doing either very well and In my experience with working with Thousands Of small businesses over the last decade I've learned that many people I talk to Don't know the fundamental difference Between marketing And advertising.
They just say I want Sales Or I want leads or I need a three times Return on my investment Or my personal favorite which is can you Guarantee me sales With your marketing program.
While these Are valid ambitions for any business The precise journey you must embark on To accomplish these results Are often not very well understood.
Hi, my name is Ahmed with life Marketing a digital marketing agency That helps small businesses.
Grow today I'm going to fully break down The differences between marketing and Advertising and not just that I'm also going to help you understand Which approach Is best for your business.
So the marketing industry loves to Complicate the meaning of terms like Marketing and advertising and because The internet has completely Revolutionized The entire marketing industry the true Meaning of marketing And advertising has become a little Fuzzy over the recent years.
So to provide you with the best answer To your question on The difference between marketing and Advertising I'm going to give you a huge favor I'm going to give you both The textbook answer Like literally the textbook answer that I learned in my marketing course in College That by the way, I got a plus in.
And Then I'm going to give you the industry Answers that I have found To be true regarding marketing Advertising And the best route for your business.
What Is Advertising?
All Right so let's begin with advertising Starting from the basics what is Advertising.
advertising is the process of buying advertisements to promote your business two big words here.
Advertisements and promotion you Must buy advertisers on media outlets To promote your business once you stop Buying those advertisements then your Business virtually disappears From existence.
In other words when you Advertise you are making a transaction In hopes of gaining a larger transaction In return Which is sales revenue.
Now fortunately Effective advertising can allow you to Be very successful At growing your business revenue if you offer a great product or service You can grow your sales revenue with the Right ad strategy Sales funnel and compelling offers and With the internet Many low-cost avenues have become available that you can exploit Right now before digital advertising Gets too expensive.
For example, you can run Facebook ads Right now And pay just ten dollars to reach over One thousand people With the right campaign the internet has provided an opportunity For small businesses especially to find Underpriced attention To grow their business.
And if you're interested in learning more About how to find underpriced attention For your business Then be sure to check out my video on Small business advertising.
What Is the Downside of Advertising?
Cool so let's talk about the downsides Of advertising Like I said earlier the moment you stop Buying Those advertisements then your business Virtually disappears From existence and if your business.
Relies solely On an advertisement to acquire customers Then your entire business Is at mercy of the media outlets it Advertises on.
So if the media platform you advertised On went out of business Or people just stopped using it you Would need to constantly adapt your Advertising strategy To that of other platforms in addition Media prices for Advertising rise based on competition And bid as more competitors advertise on A single media outlet Their prices for ad placements will Generally rise over time.
It's kind of like a car auction where You have a desirable car the more Desirable the car is The more people who are going to be willing to buy it but you only have one Car So because that car is in such high Demand you Offer it to the highest bidder.
This is basically the same thing In advertising in the whole advertising Business model in a nutshell.
To give you a real-world example once Upon a time a single click On google ads costed as little as a few Cents per click Now costs for google ads can get as high As 800 For one click.
Now I'm not bashing Google Ads at all Because it's a very effective way to advertise your business even today And despite it being expensive there are Still loopholes And ways to use it effectively to grow Your business.
However, the biggest thing you need to Know is this critical fact.
If you rely solely on advertising alone To grow your business your business Success is at the mercy Of the media platforms you advertise on.
For example - If you grow your business to 10 million A year in revenue By using only google ads while costs Were low then what would you do As their costs continue to skyrocket over the years.
Initially, you might decide to increase Your prices to be able to afford it But eventually, that will not be an option if your prices become Higher than what people are willing to Pay for.
Or you could take fewer profits in your Business but That would only work temporarily Eventually the businesses with the Largest advertising budgets are going to win in the long haul Once the big giant corporations really Catch on And start spending billions of dollars In digital advertising Costs will likely spiral out of control For small businesses.
Therefore the best advertising strategy For small businesses Would be to find low-cost advertising Channels that are not saturated with Competition Ultimately when it comes to advertising It can be very effective In the short term.
But it should not be viewed as a permanent solution To growing any business.
What Are Advertising and Marketing?
All right so now That that's out of the way Let's discuss the differences between Advertising and marketing.
So if advertising is the process of Buying Advertisements to promote your business.
What in The World Is Marketing?
Well, marketing is that and more Marketing Is all about finding out what people want and giving it to them.
Specifically, you need to find out what Product people want Not what product you think they want you need to find out the price They are willing to pay not the price You Want to charge to increase your profits.
You need to find out where They are and position your company in front of them And finally, once you do this you can Promote your business Through content or advertising.
But wait A minute you're probably Still wondering What exactly is the difference between Marketing and advertising so let me go ahead and give you the Textbook answer and then the industry Answer as of today.
According to the textbook advertising is Simply a Subset of marketing.
Now four Building blocks make up marketing In a nutshell product pricing promotion And placement.
Advertising is simply promotional Activities That fall within your marketing mix Which means that Marketing is broader and addresses All facets That must be in alignment to Acquire customers.
So that's the Textbook answer But here's what the marketing industry Typically refers to As the difference between marketing and Advertising.
Then I'll connect the two dots for you Today advertising is Not an effective long-term plan to grow Your business But other marketing activities are Here's what I mean Earlier I define marketing as activities To find out what people want In giving that to them.
Well currently People want Value and quite honestly people are Becoming more and more Numb to the advertisements they Encounter daily.
The average person sees at least 5 000 Advertisements per day 5 000 And also the level of creativity needed To successfully advertise your business Is rising by the day.
For example, now is Almost expected to see some type of Professional video Or photography to run effective ads On Facebook if you don't stand out your Ads will have no impact on the eyes that are seeing it.
People are getting better and better at Tuning as out Because of this advertising in the Traditional sense Has become less and less effective ads That are not stellar Just don't work anymore and simply Running ads And telling people to buy it now just Doesn't work anymore either So instead marketers have moved away From relying Only on advertising and coin the best Long-term promotion activities as Marketing.
Now specifically they're referring to Inbound marketing In outbound marketing in which in these Cases Advertising dollars is not the main Catalyst of your success.
Inbound marketing is all about Attracting people to Your business for example if you're a single woman that's eager to find your Soul mate You may decide that it is your best bet To attract them To you.
Nine times out of ten you will Find out where men are Dress nicely wear perfume smell good And so on to increase your odds of Attracting people To talk to you.
Translating this into Marketing You can attract your customers to you Through things Like content marketing and SEO content Marketing is All about adding value to your customers You can create content that your Customers desperately Want or needs which ultimately leads to Them Buying your products.
Or services content Is the way That you attract customers to your business not to sell them But to simply attract their eyes and Engage them Seo on the other hand is how you get Found Similar to the dating example if you're Attractive But no one sees you then you probably Won't score a date.
Likewise, if you create great content and No one finds it Then you're not going to get any Customers therefore SEO Which is the process of improving your Website's organic search position Can help you find relevant people who Are most likely To be interested in dating your business.
Or becoming a customer in short content Provides Answers to their biggest questions and Solutions To their biggest problems SEO helps them Find These answers and solutions.
Ultimately Both of these activities will help you Accomplish The goal of marketing which all boils Down to Finding out what people want and giving That to them.
Now on the other hand you Can do outbound marketing Which involves you being the person to Initiate that conversation For example if you're a single man Looking for a woman Then instead of passively waiting on Your soul mate to contact you You may decide to find women that you're interested in In talking to them directly.
Now Translating this to Outbound marketing you may decide to Prospect your ideal customer Find out where they are and try to make contact to see if you can impress Or engage them you know that if you can make a positive impression on them Then you'll have a good chance at Scoring a date or A chance to present your product and What you have to offer.
So there you have it inbound marketing And outbound marketing Has risen in popularity to promote your Business As traditional advertising becomes less And less Reliable.
Which Is Best For Your Business?
All right so let's go ahead and Settle the debate for good Which is best for you marketing or Advertising.
The answer ultimately depends on your goals and your risk tolerance Marketing is the most effective way to Grow your business Revenue, in the long run, it is also more Affordable So instead of spending dollars on Advertising you can spend your time Or spend money to buy other people's Time who are good At advertising.
However, the downside to Marketing Is that it can take 6 to 12 months for It to start Working and if your business cannot Afford A six-month marketing campaign without Financial stress Then advertising suddenly becomes your Only option.
Advertising on the other hand works Quickly the moment you launch An advertising campaign you get exposure Immediately.
And with the right strategy advertising Can generate Sales for you Profitably and Consistently.
However, despite the speed, your risk is Much Higher with advertising once you've spent thousands of dollars in Advertisements You will either have a ton of sales to Show for it or nothing at all.
With marketing the content and assets You develop along the way Will have a much longer shelf life and Deliver more value Over the long term with advertising you Get short-term rewards But it's more risk involved especially For startup businesses With very little data.
So ultimately this Is what I recommend If money is not an issue then do both You can build towards a promising future And use advertising to gain faster Momentum.
Now if money is an issue then go the Distance with marketing try to build a System That will pay dividends for years to Come rather than using your Only coins on advertising campaigns that May Or may not work.
Now if you cannot go the Distance Then use advertising this means you Likely go out of business Before the effects of a long-term Marketing campaign Starts to work.
Therefore running an Effective advertising campaign Becomes the only option to gain business Momentum Regardless of the route you choose to Take choose a qualified professional Or agency to help you run effective Campaigns.
Without the right people or tools, Nothing will work Alrighty so that's the full rundown on Marketing versus advertising Here are the major things that we Discussed that you need to keep in mind As you proceed here.
First and foremost We talked about What is advertising is the Process Of buying advertisements to promote your Business.
Compared to marketing, on the Other hand, is finding out what people Want And giving it to them and which is best For your business well both would be Best but if not Then long-term marketing will always be More cost-effective Than short-term advertising.
As the great Say, Today is the enemy of tomorrow by taking A Long-term approach to your marketing you Give your business The best chance to succeed alrighty That's it for today's episode if this Article helped you in any way shape or form as always I do accept tips.
Thanks for reading don't miss out on future content that can help you grow your business I'll talk to you soon you.
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