By Park Heung-soo
Professor of School of Business at Yonsei University


Advertisement is an act of delivering information on an idea, a product or a service to target consumers using media.

In times when the economy faces a dry spell, a company often considers reducing the budget for advertisements foremost. It is because for the business, advertisements do not bring immediate or numerical returns on the investment. However, advertisement is a channel through which a company can communicate with consumers, and it is a strategic measure with the ultimate purpose of increasing sales. 


Advertisement also serves various purposes in terms of social, cultural and marketing fronts, by introducing the products and encouraging purchases. It is therefore important to grasp at such various functions of advertisements and establish advertisement strategies accordingly.

Functions of advertisements

Advertisements have social impact. Advertisement can reflect various values in the society and work to strengthen or weaken it. Through such public campaigns as saving energy, anti-smoking and promoting childbirth, advertisements can induce positive behaviors. Through humorous advertisements, they can offer entertainment.

Advertisements also have cultural function. Advertisement is an important way to commercialize culture. AmorePacific’s Innisfree recently brought in Yoona, a singer and actress from popular girl group Girls’ Generation with a vast fan base in Asia, as its spokesperson to appeal not only to Korean consumers, but also Chinese, Japanese and Southeast Asian consumers.

Another cosmetics brand, PROYA, hired Song Joong-ki, one of the most sought-after actors upon the airing of his megahit Korean TV drama “Descendent of Sun,” to promote its products. Within a month upon the launch of its new product, PROYA raked in 34.6 billion won ($30.3 million) in sales.

Last but not least, the marketing capacity of an advertisement is the most fundamental and important role in providing information about a product to consumers.

For a product that requires knowledge, advertisements often work to explain the main components of the item with explanations of the product’s category. They also work to raise the products’ value and brand through imagery.

Advertisements serve such social and cultural purposes while serving as a crucial marketing tool to help consumers easily understand the concept of each product, thereby encouraging and expanding sales.

Businesses, therefore, should perceive their advertisement strategies on a long-term basis and utilize it as a major tool in competition with rivals. It is imperative to remember the power to move consumers and urge them to exercise their purchasing power lies in advertisements.