QUESTION 1
1.1 With the background of the theoretical foundation of advertising, discuss the purpose of
advertising.
Based on the theoretical foundation of advertising discussed in the study guide, the purpose of
advertising is multifaceted and goes beyond simple selling.
The main and most basic purpose of advertising is to persuade consumers to buy products and
services. However, the purpose is not limited to products and services only; it also includes selling
brands and ideas (COM2611, Study Guide, p. 25).
Advertising serves several key functions. It is a tool to identify a product, service, brand, or
organisation (COM2611, Study Guide, p. 27). Following this, it aims to inform consumers about
these offerings, after which the persuasion process begins to influence consumer choices on what to
spend their money on (COM2611, Study Guide, p. 27). Furthermore, advertising also serves to
remind consumers of a brand or product (COM2611, Study Guide, p. 28). Fundamentally,
advertising is a paid-for, persuasive, and informative communication disseminated through mass or
digital media to address consumer needs and wants (COM2611, Study Guide, p. 26).
In the context of the Eskom scenario, the purpose of advertising would be to:
Inform large electricity users (the target audience) about the existence and details of the new
Renewable Energy Offtake Programme.
Persuade these businesses to participate in the programme by procuring solar PV electricity
through the long-term Power Purchase Agreements (PPAs).
Remind stakeholders of Eskom's strategic shift towards a more diverse and sustainable energy
mix, thereby contributing to a more favourable corporate reputation.
1.2 Using the above scenario, explain what is meant by data-driven advertising and discuss any
one (1) type of data-driven advertisement that the Eskom Renewable Energy Offtake
Programme can use to understand their consumer data. Using the scenario, provide your own
practical example for each data-driven advertisement.
The new advertising context is data-driven, requiring advertisers and marketing communication
practitioners to use detailed consumer data to accurately target consumers who will be most
receptive to their advertising. This process is often referred to as "big data" (COM2611, Study Guide,
p. 28).
Using the Eskom scenario, data-driven advertising would involve Eskom collecting and analysing
data on large electricity users (their current consumption, industry type, sustainability goals, financial
capacity) to target them with highly relevant advertisements for the Renewable Energy Offtake
Programme.