Advertising is different from general mass communication and publicity activities, mainly in:
- Advertising is a king of communication tools that transmits information about a commodity from the producer or operator of the commodity to a group of users and consumers(advertiser);
- Advertising requires payment;
- The communication activities we conducted is persuasive;
- Advertising is purposeful, planned, and continuous;
- Advertising is not only good for advertisers, but also good for the target audience, it can give users and consumers useful information.
Starting from the participants of the advertising activities, the advertising components are: advertisers, advertising companies, advertising media, advertising information, advertising ideas and techniques, advertising audience, advertising costs and advertising effects.
Taking the mass communication theory as the starting point, the advertising components in the process of advertising information dissemination mainly include: advertising source, advertising information, advertising media, advertising and other factors.
(1) Percentage method:
Calculate advertising expenses based on a certain percentage of sales or earnings balance over a certain period of time.
When sales are used as the standard, the average sales amount in the previous years or in the past few years can be calculated based on the total sales forecast for the next year. When the surplus balance is used as the standard, based on the average gross profit of the previous year or the past years, the calculation method is based on the predetermined profit for the year.
(2) Unit sales method:
Take one item of the product, or a box of the same kind of goods, to calculate the unit’s advertising fee and multiply it by the sales quantity.
- Target completion method:
At the beginning, we set up a certain of sales target to decide what advertising activities and the range are we need to reach this goal and according to this, calculating enough advertising expenditure.
Up to 2002, all kinds of the advertising companies has more than 8.9 thousands, the employees has 0.75 million, the total income can reach ten billion, it involves television advertising, magazine, newspaper and media advertising, the other advertising such as guideboard what has the Chinese characteristics also been developed constantly.
Now, advertising has been a accelerator to promote the China’s economic development, is also an important way to promote the international tread, increase the foreign exchange and expand the vision of target audience.