Advertising (SQA National 5 Business Management): Revision Note

Exam code: X810 75

Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

Updated on

Introduction to advertising

  • Advertising is a form of paid communication used to inform potential customers about a product or service, using mass media

Informative advertising

  • Advertising that gives factual details about a product or service so customers can make informed decisions

    • It focuses on features, price, product benefits or availability, rather than emotions

  • Examples of informative advertising include

    • A car advert showing fuel efficiency, safety ratings and warranty details

    • A supermarket promotion showing price comparisons or discounts

Persuasive advertising

  • Advertising that aims to influence customer attitudes or behaviour, encouraging them to choose or switch to a particular brand

    • It often appeals to emotions, lifestyle or image rather than just facts

  • Examples of persuasive advertising include

    • Coca-Cola adverts focusing on happiness and sharing

    • Perfume adverts linking the product to beauty or success

Online advertising

  • Online advertising involves using the internet to promote products or services through websites, search engines, social media, emails or video platforms, such as YouTube

Laptop displaying ads and email notifications with a cloud icon showing 17 messages, illustrating digital communication overload.
  • Businesses can target specific audiences and track the results in real time

    • E.g. Nike uses Instagram advertisements to promote new trainer releases to younger consumers

Evaluating the use of online advertising

Advantages

Disadvantages

  • It can reach a very large global audience almost instantly

  • It is cheaper than traditional forms of advertising such as TV or print

  • It allows businesses to target specific customers based on interests or search history

  • Results such as clicks and conversions can be measured accurately

  • Many users install ad-blockers, which prevent advertisements from being seen

  • Online advertisements can be ignored or scrolled past easily

  • Running effective campaigns requires technical knowledge and ongoing management

  • Some consumers worry about privacy and data use, which may harm the brand’s image

TV and radio advertising

  • Television advertising uses short, paid advertisements broadcast on TV channels to reach a large audience

  • These advertisements combine images, sound and storytelling to create emotional appeal and brand recognition

    • E.g. John Lewis releases a much-anticipated Christmas advert each year to build emotional connections with customers and strengthen its brand image

Evaluating the use of TV advertising

Advantages

Disadvantages

  • It reaches a wide audience very quickly across different age groups

  • It combines sound and visuals to create a strong emotional impact

  • It builds a strong and memorable brand image

  • Repetition of advertisements helps customers remember the brand

  • Producing and broadcasting adverts on television can be very expensive

  • It can be difficult to target a specific audience precisely

  • Viewers can skip or ignore adverts on streaming platforms

  • The short length limits the amount of detailed information shared

  • Radio advertising uses short audio messages broadcast on local or national radio stations to promote products or services

  • It often uses catchy slogans or jingles to capture attention

    • E.g. Parks Motor Group use radio advertisements to promote discounts and encourage test drives for its customers in Scotland

Evaluating the use of radio advertising

Advantages

Disadvantages

  • It is cheaper than television advertising and suitable for targeting customers in local markets

  • Radio reaches people while they are driving, working or commuting

  • Advertisements can be updated and repeated easily throughout the day

  • It helps small businesses raise awareness in their local area

  • It has no visual element, so it relies only on sound to attract attention

  • Listeners often treat radio as background noise and may not listen closely

  • It is less effective for products that rely on visual appeal

  • National radio campaigns reach smaller audiences than television or online platforms

  • Print advertising includes adverts in newspapers, magazines, leaflets and brochures

Illustration of three overlapping magazine covers: a business magazine with a suited man, a fashion magazine with a woman, and a generic news cover.
  • Print advertisements use written text and images to inform and persuade readers

    • E.g. VisitScotland places adverts in The Scotsman and The Herald newspapers to promote Scottish tourism destinations

Evaluating the use of print advertising

Advantages

Disadvantages

  • It can target particular audiences through local or specialist publications, such as The Scotsman for professionals or Scottish Farmer for agricultural readers

  • Readers can keep or cut out adverts for future reference

  • Adverts can include detailed information and high-quality images

  • Print readership is declining, so fewer people see the adverts

  • Printing and distribution costs can be high

  • It is difficult to measure how many people respond to a print advert

  • Readers may overlook adverts while reading the main content

Outdoor advertising

  • Outdoor advertising involves promoting products or services through posters, billboards and digital screens placed in public areas such as roadsides, shopping centres and on public transport

  • It aims to attract attention quickly and build brand awareness

    • E.g. The Scottish Government uses digital billboards to promote public health campaigns such as “Get Boosted Now” during the Covid-19 vaccination drive

Evaluating the use of outdoor advertising

Advantages

Disadvantages

  • Outdoor adverts are highly visible to thousands of people passing through busy urban areas

  • They build strong brand awareness through repeated views by both locals and tourists

  • They reach a wide audience, including commuters and shoppers

  • Outdoor adverts are memorable when linked to humour or culture

  • Prime billboard locations in cities can be expensive to rent

  • The short viewing time means only brief messages or simple images can be used

  • Poor weather can reduce visibility or damage posters

  • Businesses cannot precisely target who views the advert

Examiner Tips and Tricks

Many students think expensive adverts are always effective, but this is not necessarily true.

What matters is reaching the right audience, not the biggest spend. A small local ad can outperform a costly national one if it targets customers well

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Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Steve Vorster

Reviewer: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.