Does advertising work?

Does advertising work? Of course it does... BT's vast marketing budget has helped it add 56% of broadbands net additions to the end of June 2011.

Market share –
BT – 29% with a customer base of 5.8m at 30 June 2011.
Virgin Media – 21.5%
Talk Talk – 21% (incl acquisitions)
Sky – 16% (March 2011) Broadband to 30 june 11
O2 – 3.5%
Orange – 3.6%
Others – 5.4%. 

Interestingly although Sky's broadband share is currently low, their share is all the more impressive as they have only been offering the service for the last few years - Sky's total marketing budget is £1,220 million, helped the broadband customers increase by 711%.

What percentage of budgets should be allocated to advertising? Should more money be spent on advertising than other promotions? Should advertising budgets be reduced? These are questions faced when business' and organisations develop their strategies - all more relevant with the advent of the Internet and social media marketing tools such as Facebook and Twitter. A key element in the decision to advertise is how effective advertising is in increasing sales.