What Is Institutional Advertising and Why Is It Important?

Async Labs
  • Date Published
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Advertising is the backbone of every business. If done right, it can benefit the company in many ways.

Can you remember the ad that doesn’t feel like it’s trying to sell you anything? Or do you sometimes catch yourself singing the song from a commercial?

There are different kinds of advertising, but in this article, we will focus on institutional advertising. Let’s see what institutional ad means and why it is essential for the company.

What is institutional advertising?

“The idea behind Institutional Advertising is to promote a product so that people have a positive opinion of it, rather than the advertising of a particular product or service.” — Cambridge Dictionary

Unlike a product advertisement, institutional advertising is focused on advertising the company, institution, or organization as a whole. The focus is on creating a positive image, reputation, and brand identity rather than just selling the product.

Different types of institutional advertising are TV, radio, print, digital media, and non-traditional media in public places, like ads in a cinema, scoreboards in a sports stadium, signage on buses, trains, etc.).

The primary goals of institutional ads are:

  • Promoting the company’s visions, beliefs, ideas, and goals.
  • Boosting and improving a company’s image and reputation
  • Encouraging positive qualities such as dependability, customer care, or low price.

The difference between the product and institutional advertising

A product or service advertisement is a tool for promoting a specific product or brand. It focuses more on the product’s brand image, its features and attributes, and how they impact a decision to buy a particular product.

Institutional advertising promotes the company as a whole. It is more branded and emotional, connects more with an audience, and helps them identify with the brand.

It can also include sponsorship of non-profit organizations, charity events, and on-building signage that can be seen on the front of restaurants, retails, etc.

Institutional ads don’t have the immediate goal of selling a service or a product. It informs the audience about the company’s contribution to society and its benefits to the community. These topics include health, quality of life, employment, humanitarian activities, etc.

Although sometimes the product is visible in an institutional ad, it is always more about the overall feeling and emotions that we get from a brand rather than product-specific features and attributes. The best examples are Coca-Cola ads.

Techniques in institutional advertising

Many companies today use institutional advertising campaigns to inform the public of their contributions to society and problem-solving in the community.

For example, a tobacco company can make anti-smoking commercials, and warn consumers of the dangers of its products.

Different techniques used in institutional ads:

  1. Image advertising
  2. Event sponsorships
  3. Advocacy advertising
  4. Cause-related advertising

Image advertising promotes the organizations’ overall image, and it aims to create a position for a company and generate resources.

Example: McDonald’s hiring ad talks about how the company helps pay for tuition for their employees.

Event sponsorship is a type of advertising technique where a company develops a relationship with a specific event. It can be a significant event where the brand’s name is tied to, for example, a football bowl game.

Advocacy advertising is advertising in which a company fully stands behind a business, ethical or social issue.

Remember the Budweiser ad “Don’t drink and drive”, focused on the social issues of public importance?

Cause-related advertising is when a company links with non-profit organizations or charities as contributing sponsors.

An example is Adidas’s campaign about plastic waste that portrays the company as an environmentally conscious company and motivates its audience to purchase new Adidas products made of natural materials.

It is the best indicator of how institutional advertising can improve public relations and brand image.

Ads that activate emotions

In institutional ads, the issue becomes the first most important thing and companies become the second most important thing.

Everything is more about establishing a better reputation and positive brand identity, connecting with the audience deeper, and provoking their emotions.

Institutional advertising is designed to promote the company by:

  • Enhancing the image of a brand or a company
  • Assuming a position on an environmental, social, or business cause
  • Diversifying from competition
  • Establishing an overall corporate identity

More and more companies recognize the benefits of more effective and intelligent institutional ads, which will play a decisive role in the future. So be prepared and start implementing these techniques and strategies today.

Want to know more about the advantages and disadvantages of institutional advertising? Check out the complete article and find out much more about Institutional Advertising.

If you want to start building your digital strategy and exceed your marketing goals, contact us today! With numerous successful marketing campaigns behind us, Async Labs is the right choice for achieving success.