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Internal advertising is performed by a company’s own advertising department, which can range from a single employee to a full team. It offers control and cost savings, but may lack outside perspective and professional contacts. Its effectiveness depends on the size of the business and its advertising needs.
Internal advertising is a product promotion scheme that is performed by members of that product’s company rather than an outside advertising agency. The extent of these internal advertising functions varies; some companies take care of every aspect of the advertising process, while others maintain a partial dependence on external agencies. Indoor advertising has both advantages and disadvantages. It allows companies to retain total creative control over how their products are marketed and can be cheaper than outdoor advertising services. On the other hand, the creative scope and visibility of advertisements may suffer without the outside perspective and professional contacts provided by an outside agency.
Companies that choose to market their products usually set up an in-house advertising department. Depending on the company’s size, budget, and advertising goals, this department can range from a single employee to a full team of market researchers, media buyers, and creative professionals. The duties of an in-house advertising department can also vary depending on the needs and capabilities of the business. Some conceive, execute and publish their ads completely independently. Others perform more limited functions; for example, some companies may design their own ads but rely on an outside agency to place them in the media.
The main benefits of internal advertising are the control it offers and the savings it can bring. Unlike companies that outsource their promotional needs, those that generate their own advertising retain sole authority over how their product is presented. Depending on the advertising department’s resources, this monitoring could include anything from a product’s packaging to where its advertisements are seen. Additionally, creating in-house ads can prove cost-effective, as it allows businesses to avoid the high fees typically charged by external agencies.
When planning a move to in-house advertising, however, businesses should consider its potential drawbacks. First of all, those who create their own advertisements may find it difficult to conceptualize their product and target consumer objectively. As a result, their ads may lack the insight that an outsider’s perspective can offer. Furthermore, reputable advertising agencies usually have established contacts through which they can secure highly visible advertising space. Without this resource, internal departments may struggle to reach the target customer.
Finally, businesses need to determine whether internal advertising will prove cost-effective. Often this question depends on the size of the business versus its advertising needs and the revenue its ads will generate. A small business may find it more costly to maintain an in-house department than simply pay the fees of an outside agency, while a large business may find the opposite to be true.
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