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Firstly, we may find a first division of advertising, that is, word-of-mouth advertising and paid advertising. While the first is voluntarily induced (since it relies on the communication of people and their opinions), the second is “monetary” induced. What I mean by that is that advertisers get paid to advertise a particular company. Secondly, we may find a subdivision depending on the goal to be achieved, that is to say, selling products or creating a better reputation of the company. Advertising pursuing to build up a good reputation for a specific business is mainly carried out by institutions.
I want to mention that although large companies could hire their own advertisers, they would rather contact an advertising agency, which offers more credibility due to its access to a bigger number of resources and its wider knowledge in the field.
Once the company has contacted an agency, this latter starts the process of advertising. This process begins with the creation of advertisements (aka ads) and a scheme of what sources of the media are going to be the target of these. Sometimes, agencies develop a process of testing the media to find out which mean will be more adequate for the circumstances. The final decision derives from taking into consideration different aspects, such as the OTS, the threshold effect and, of course, the costs involved.
The core difficulty of advertising for a company is deciding the money to be spent in it. Finding the perfect amount to be spent is almost impossible. That is why we can see many companies going bankrupt after spending millions of dollars in advertising and getting low revenue, and other companies going bankrupt after not spending enough dollars in advertising and having no sales of its products or services.

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