competitive advertising

Competitive Advertising: Working, Types, Strategies, and More

Advertising 7 Mins Read October 28, 2024 Posted by Soumava Goswami

Competitive advertising happens when you attract the customers of your market competitors. In fact, there are multiple techniques to do it. Generally, competition is good for both businesses and the market. Moreover, with the rise of various digital advertising solutions, you can give your established competitors a good fight. 

This article, will teach you about competitive advertising and how it works. Apart from that, you can also explore the types of competitive advertising necessary for marketing. Moreover, this article also explains the benefits of this advertising method. Finally, you will learn some strategies to compete in the marketplace. 

What Is Competitive Advertising? 

Competitive advertising is a marketing strategy where you present your business?s product/service in a superior way to your competitor. Generally, the price and quality are the same in both cases. However, due to better advertising techniques, one competitor comes out on top. 

When you launch a competitive advertising campaign, you must print a side-by-side comparison of both the company?s products. For example, the comparison might feature the value, cost, impact, etc., of both costs. Generally, the business that performs this advertising shows its competitor?s product disparagingly. 

Basically, with this advertising technique, you try to persuade your target consumers to buy your products/services. Here, you compare the quality, features, price, value, etc., of your products with that of your competitor. 

Here, the process requires you to highlight the major advantages of your product over your competitors. For example, you can highlight lower prices, more features, better performance and value, etc. Basically, your job is to sway your competitor?s customers into choosing your product. This way, your business will grow in size. 

How Does Competitive Advertising Work? 

With competitive advertising, advertisers compare their products/services directly or indirectly. Also, the tone that advertisers use can be positive or negative. However, nowadays, advertisers use the negative tone more often as people buy more into this. Moreover, the comparison factors can be over a single attribute or multiple attributes. 

On the other hand, competitive advertising is not only common for product/service promotions. It has also become common in political advertisements. Moreover, when any new company releases its new products, it focuses on how its products are better than those of similar products in the market. 

A big example of competitive advertising is the rivalry between two soft drink brands – Pepsi and Coca-Cola. Here, both companies directly compare the benefits and tastes with those of the other.  

For instance, Pepsi has run the Pepsi Challenge (since 1975). Here, it lets passers-by taste both Pepsi and Coca-Cola on the street. Then, they ask them to vote on which one tastes better. Here, the brand mentions the aspects and tastes of both companies. 

Types of Competitive Advertising in Marketing

Types of Competitive Advertising in Marketing 

Basically, the goal of competitive advertising is to highlight aspects of your products/services that are better than those of your competitor. The following are the major types of competitive advertising techniques that you must know about: 

1. Comparative Ads 

Here, you have to directly compare your products/services with your competitor(s). In this case, you intend to highlight the advantages of what you are offering. Basically, your goal is to convince your target consumers that they will be better off with your product/service. 

2. Attack Ads 

This is an aggressive form of advertising that is common among direct competitors. Here, a brand directly attacks or criticizes its competitor or product. In most cases, the former brand highlights the latter?s weaknesses, drawbacks, and failures. 

One advantage of attack advertisements is that you can grab a lot of attention. However, on the downside, you might face legal challenges and negative perceptions in the market. 

3. Imitative Ads 

In this case, as an advertiser, you must imitate or emulate messaging, style, features, and characteristics of your competitor?s advertising campaigns. Basically, you use similar messages, content, visuals, themes, etc., so that consumers associate your brand with your competitors. 

Here, your goal is to benefit from your competitor?s brand, which has a positive perception in the market. 

4. Positioning 

Here, you do not need to mention your competitor or imitate it in any way directly. However, you create a unique and positive image for your brand and products/services. In this case, you highlight your products specific features, values, and benefits. 

Also, you highlight what sets your products apart from others in the market. Here, your goal is to let your target audience perceive you as a unique brand. This is a really good technique to use if you are performing local advertising

5. Price Comparisons 

As the name suggests, this advertisement technique requires you to compare the prices of your products/services with those of your competitors. This is a common advertising technique in those industries where price is a major consideration during consumers? purchasing decisions. 

Here, you aim to showcase how your product offers the same features at a lower price. This way, you can attract more consumers. 

What are the Benefits of Competitive Advertising?

The following are the major benefits of competitive advertising that you must consider: 

  • You can stand out in the marketplace by differentiating your products and services from those of your competitors. Here, you highlight what sets your products apart. 
  • If you are effective with your competitive advertising, you can receive higher sales and a bigger market share. This will also result in consumers perceiving your products as superior. 
  • You can educate your consumers about the advantages and benefits of your products and services. 
  • You are building consumer confidence and trust by providing evidence and essential information. This will help you to retain your customers in the long run. 
  • With competitive advertising, you are preparing your company for the longer term. Once you constantly message about your superiority, you can establish a strong and enduring brand image. 

Drawbacks of Competitive Advertising 

Here are the major drawbacks of competitive advertising you must be aware of: 

  • If you fail to execute your advertisements correctly, you will generate negative perceptions among your target audience. 
  • Misleading comparisons or inaccurate information will welcome legal problems to your business. Moreover, you can also face legal scrutiny. Hence, it is important to stay legally secure before you start competitive advertising. 
  • Your brand?s USP can face dilution in the market. This is because you are shifting consumer focus from your brand?s strengths. 

Competitive Advertising Strategies for Effective Marketing

Competitive Advertising Strategies for Effective Marketing 

To differentiate your brand from others in the market, use the following competitive advertising strategies with your products/services: 

1. Focus on Your USP 

First, you must find out what factors make your product/service different from those of your competitor. Apart from that, determine the major features and benefits that consumers prefer to look at. This is your Unique Selling Proposition (USP). 

Once you have a good idea of your USP, you can position your product correctly. As a result, your consumers can consider it the best choice in the market. 

2. Perform Direct Comparison 

You can compare the features and benefits of your products and services with that of your competitor?s products and services. This will give clarity to your target consumer?s minds. On the other hand, you can make general claims about your product/service.  

Here, you can highlight how your product is better for customers. To highlight major aspects, you can even consider inflatable advertising

3. Use Reviews and Testimonials 

If you satisfy your customers and if experts endorse your products, you can use them to your advantage to get new customers. As a result, your target customers will choose your product when they see other customers and experts recommending your products/services. 

4. Use Fun and Humor in Your Advertisements 

People remember fun and humorous situations. Hence, use it mildly in your advertisements. This way, you can receive good responses from your target consumers. Apart from that, you can also make your advertisements funny and heartwarming for better appeal. 

5. Perform Careful Targeting 

The most important aspect of advertising (no matter what technique you use) is finding out your target audience. Apart from that, you also need to understand their needs, preferences, and demands. Basically, you can do that by analyzing behavioral patterns, demographics, consumption patterns, online presence, etc. 

Before You Start Advertising

In the United States, you cannot engage in competitive advertising unless you can back up your claim to produce a better product. Basically, the Federal Trade Commission (since 1979) wants you to prove your assertion of better quality, value, popularity, etc.  

Also, as per the mandate, you must not engage in false imagery and statements to disparage your direct competitors. Hence, consider these factors before you start implementing those competitive advertising strategies. 

Do you have more suggestions for competing with a new product on the market? Please share your ideas and opinions in the comments section below.

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Inspired by The Social Network, Soumava loves to find ways to make small businesses successful – he spends most of his time analyzing case studies of successful small businesses. With 5+ years of experience in flourishing with a small MarTech company, he knows countless tricks that work in favor of small businesses. His keen interest in finance is what fuels his passion for giving the best advice for small business operations. He loves to invest his time familiarizing himself with the latest business trends and brainstorming ways to apply them. From handling customer feedback to making the right business decisions, you’ll find all the answers with him!

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