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Competitive Advertising | Definition, Types And Examples

Competitive Advertising | Definition, Types And Examples
Competitive advertising is a type of advertising that involves a company creating a visual illustration directly or indirectly showing a contrast between its product and a similar product offered by its competitors.
This is for the purpose of influencing the consumer's buying choice, while hoping to obtain a larger market share.
The different types of competitive advertising include:

• Comparative Advertising

This is an attempt by a company to compare its product with that of a competitor. A good example is when a bank uses the results of an independent test to show why it is more popular than other banks.

• High quality product

You'd easily understand the concept of competitive advertising when you picture a a two-competitor market. For example, if there are two popular noodles in the market, you'd notice that the prices of the products will be similar.
When one of the brands wants compete with the other, it might create an advert showing how it's noodles is is of a better taste (or higher quality).

• Market-wide ranking

In a country like the United States, a brand needs to show the superiority of its product over competitor products in order to influence consumer choice.
It might set up a campaign showing potential customers how its product was ranked nationally in the market by an independent publication or firm.

• Negative advertising

Negative advertising is when a brand skips the comparison, and instead talks on how a competitor does not represent the right choice for the consumer.
In some instances, the advertiser might offer its own product as an alternative without commenting on why it represents a better choice for the consumer.

Examples of Competitive Advertising

Some practical examples of competitive advertising in real life include:

• Auto manufacturers

An auto manufacturer can talk about how its product is the most fuel efficient in its class. A good example of competitive advertising among vehicle brands was the event that took place during the 2019 Halloween when BMW released an ad that read, “Now every car can dress up as its favourite superhero.” featuring a Mercedes with a BMW cover over it. 
The add was very hilarious, and became even more when Daimler AG replied with a tweet saying; “Nice one, @BMWUSA. That’s a really scary costume! Especially that radiator grille…” 
The moral of the story is that you should be careful on whom you launch competitive ads against. Your competitor might stil be able to use the ads against you.

• Phone brands

Huawei Gives Free Powerbank To People Queuing For IPhonesSometime ago, Huawei gave out free powerbanks to people queuing to purchase the newly released iPhone XS Max. According to the news, the packaged power banks had a message: "Here's a power bank, You'll need it."
This wasn't the first time the Android community will be dissing Apple for the iPhone's unsatisfactory battery life despite the high prices of their products.

Samsung has also in the past, launched campaigns criticising Apple for creating smartphones without features like microSD card slot and on-screen multitasking. They also targeted the iPhone notch in some of their ads.

Earlier entries criticised the iPhone’s the lack of a fast charger, need for a headphone dongle and a camera that gets lower test scores than the Galaxy S9.

• Web hosting companies

A web hosting company can talk on how competitor brands fail in protecting their customers from hackers or how they make customers pay for an SSL certificate which they offer free.
A brand can find out popular negative reviews from customers for use in advertising their own brands.

• Political advertising

In a political advertising, you'd see a candidate publishing an ad describing the negative voting record of an opponent and then say "Vote for me" at the end of the ad.
If the other candidate fails to address the issue very well, you'd see the consumers (voters) casting their votes in favour of the first candidate.

• Banks

Even financial institutions launch competitive adverts against each other. Take a look at the photo below:
Competitive Advertising
It is an ad that was created by Sterling Bank in 2018.
It clearly represented the other bank's symbols with Sterling Bank heading towards the moon.
First Bank was symbolised with an elephant
GTBank was symbolised with their orange background logo
Union bank was symbolised with the horse
Access Bank symbol was also represented in the image, with some other banks.

FCMB, First Bank, Access Bank and Union Bank all reacted to the diss while GTB took the matter up.

Befoere you leave, also check out the 7 types of advertising every business owner should know.
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