Globalization's Impact in Advertising

Globalization has increased dramatically in the early 21st century. More companies have expanded beyond domestic borders in the race for new customers, new money and new sources of capital. Globalization in business significantly affects a company's advertising strategy and the way it delivers messages to customers.

One constant affect on companies with globalization is increased costs. First, just producing and buying time and space for ads in multiple countries costs more than domestic advertising alone. Additionally, global advertising is more challenging, requires more time and effort in strategy and administration, which costs money. Global companies also commonly employ advertising professionals or contact agencies in each country of operation.

Developing and implementing an advertising strategy is a massive undertaking for global companies. A major strategic dilemma is whether to use a global, universal messaging approach or to customize advertising to each individual market. More companies use a multi-domestic or international approach since few products have truly universal use and message context. Media buying processes and availability of media also vary greatly by country.

One reason for increased strategic requirements with globalization is the impact of language and culture. A number of message faux pas have resulted when ad messages get lost in translation. This is why companies often use local talent in each market who speak the language. Cultural familiarity is also an issue. To persuade people with advertising, you must understand the culture and values. A prominent example is widely varying levels of acceptance for the use of sexuality in advertising around the world.

Closely tied to your strategy is consideration of branding. This is the use of promotions to project an image for your company and products. Globalization forces companies to decide whether it is feasible to build a consistent, global brand, or to develop different brand images for each country. A global brand can have synergy as customers around the world interact with it. However, brands tailored to specific market interests can have more success in distinct markets.