Why B2B Companies Like IBM Invest in TV Advertisements

The question is quite intriguing, especially when considering companies like IBM or Kirloskar, which don't directly sell to the general public. These behemoth enterprises often run TV advertisements, reinforcing the concept that businesses invest in such marketing strategies for a myriad of strategic reasons.

Brand Awareness and Corporate Image

One major reason for B2B companies to invest in TV advertisements is the enhancement of their corporate image. For instance, IBM, a giant in the tech sector, runs TV commercials not just to directly market their products but also to project a positive image. These advertisements often highlight corporate social responsibility (CSR) initiatives, technological advancements, or innovative solutions, which can significantly bolster their brand recognition and reputation in the market.

The Decision Makers

Another critical aspect is the impact on decision-makers within other companies. TV advertisements serve as a powerful tool to reach potential clients, even if they don't directly sell to consumers. For companies like IBM, the viewers include a variety of decision-makers who may be considering a technological upgrade or sourcing solutions from IBM. By maintaining a visible presence through advertisements, IBM ensures that their offerings are at the forefront of their clients' minds.

Trust and Long-Term Benefits

The decision-making process for large contracts often involves multiple rounds of evaluation and vetting. Advertising plays a crucial role in building and maintaining trust. It helps corporate brands like IBM to be seen as honest and reliable partners. This trust is invaluable when the stakes are high. For instance, a client choosing a business intelligence system might consider the brand's reputation and past track record, making brand exposure through ads a strategic asset.

Targeting Business Owners and Employees

Even if the direct target is not the consumer, business owners and their employees can also be reached through these advertisements. Many small to medium-sized businesses are run by individuals who formerly worked in corporate environments, and they often take their lessons and preferences with them. Advertisements can also influence the opinions of employees within existing businesses who may one day become clients.

Example of Successful B2B Advertisements

Consider the advertisement by Boeing that highlights their hiring of retired veterans or BNSF railroad supporting public television. These ad campaigns are not just promotional; they are also designed to build strong, positive relationships with the audience. The same applies to IBM and Kirloskar. IBM, for instance, might feature case studies of successful client partnerships, showcasing the benefits of working with the brand.

Reaching a Broader Audience

Not to be overlooked is the fact that many business owners and employees watch the same shows as the general public. This means that even those who are currently not in a purchasing position might be influenced by advertisements. Moreover, the concept of grooming potential clients is another significant benefit. Many employees have the authority to recommend solutions during company meetings, making it advantageous for B2B companies like IBM to be on their radar.

For instance, when a software recommendation is made, it often gets serious consideration even if the software isn't needed immediately. Therefore, reaching the employees of other businesses via advertisements can be more impactful than it might seem at first glance. Not only does it expose the brand to a broader audience, but it also ensures that when the time comes for a decision, the brand is top of mind.

Conclusion

In conclusion, while it might seem counterintuitive for B2B companies like IBM to run TV advertisements, these strategies are essential for building a strong brand presence, establishing trust, and ensuring long-term business relationships. By maintaining a consistent and positive image, B2B companies can stay relevant and competitive in a crowded market.