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Advertising Amanda Petrilli and Amanda Sobers. Do companies make more money if they spend more on advertising? Advertisement persuasiveness What the consumer.

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Presentation on theme: "Advertising Amanda Petrilli and Amanda Sobers. Do companies make more money if they spend more on advertising? Advertisement persuasiveness What the consumer."— Presentation transcript:

1 Advertising Amanda Petrilli and Amanda Sobers

2 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

3 Where did your data come from? Primary Data: Forty students from grades 9 to12 were surveyed and we 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

4 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.

5 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)

6 Are advertisements with celebrities more effective than ones without? Results were almost evenly distributed; 57% said yes, 43% said no. McDonald’s vs. Nike Advertising budget: $3.3 billion $2.5 billion Revenues: $22.8 billion $ 19.2 billion

7 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

8 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

9 Are infomercials effective or annoying?/ Do you or your parents buy products from infomercials? The majority agreed that infomercials are annoying and many do not buy products from Infomercials Infomercials are typically Loud Repetitive Long Misleading Have hidden costs

10 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’s Annual revenue: $23 billion Annual revenue: $22.8 billion Advertising expenditures: $6.29 billion Advertising expenditures: $3.3 billion Apple Inc. Nike Annual revenue: $32.5 billion Annual revenue: $19.2 billion Advertising expenditures: $500 million Advertising expenditures: $2.5 billion


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