As DETAILED as possible, please explain how ADVERTISING works?pls read the details...?

say you hav a tv station,and that's advertising commercials for adidas.


TELL me..who's putting the money in here...


and how does this benefit BOTH parties..?





2.companies make loads of money from advertising...so aside from the sales of products,how else is the money coming in for them??thanks..





MOST IMPORTANTLY...


3.oh and..if a minimizes the amount of adverts they have on tv,radio...just anywhere right now...are they guaranteed that they would still be generating as much money from the sales of products?


REALLY APPRECIATE THE HELP!thanks! :)

As DETAILED as possible, please explain how ADVERTISING works?pls read the details...?
This is a typical homework question.


Advertising has noly ONE main principal - to get you to buy the product. That's it.


Your getting product endorsments into the mix now. These are another form of advertising. You see the star wearing the product and you buy the product.





The adversiting is paid for but the manufacturer of the item or to a advertising company who will make commercials for print, radio, TV, sporting events and concert events.





The stations or stadiums make revenue from advertising. So it benifits them to have as many sponsors on as they can. Which is why you hear the same advertising over and over again.





The only way to minimize the amount of advertising is to make each add cost more. However, the companies will be under pressure to put more adds in more places. This ends up negating out any benefits you would have gotten as a consumer by having less advertising on a station but more advertising in more places (like at work)