Advertising is an art used to familiarize public with the product by informing of its description uses, its superiority over other brands, sources of its availability and price (Telser, 2009). It implies the promotion of goods, services, companies and ideas with the primary objective of creating /enhancing the demand for the product being advertised. Advertising is not only merely propaganda but it is a paid form of communication. The advertisers have to pay for the space and time used to communicate the message to their (prospective) customers (Berndt, 2011). Despite of the role played by advertisement programs in enhancing company performance in terms of profit and sale volume increases, majority of the private and public companies fails to implement proper advertisement programs, consequently this affect company’s performance (Berndt, 2011).
Advertising is frequently used as an independent variable in explaining changes in sales and overall company performance (Armour and Teece, 2003). Field and Abelson, (2007) believe that advertising effectiveness has to be captured by the additional sales of a product over and above those that would have happened in absence of any advertising or promotion. Although advertising managers have long believed that advertising’s impact on company performance can persist longer than the current period, the tendency to assume that advertising’s effect on company’s performance is short-term is yet prevalent (Lenz, 2011). Therefore, the study will intend to assess the impact of advertising and challenges that adheres the advertising operations.
