Confused about advertisement and the effects of its quality

Guest · Post by **Guest** » 26.02.2007, 10:33

Hi there. I really don't understand the advertisements. From what I understand, it is used for buildings like gas stations, drugstore etc right? And that advertisements help you sell your items faster.

What I am confused at is the advertisement quality levels. What does it do?

Also, does it mean that if I sell a product with q3, my advertisements need to be q3?

Thank you for reading and I'm sorry if this has been asked before..

Guest · Post by **Guest** » 26.02.2007, 10:57

Hi the advertising works such that each unit adds permanantly to the stores advertising bar:

Advertising Q0 = +1 to store advertising level
Advertising Q1 = +2
Advertising Q2 = +3
Advertising Qx = x+1

etc.

So in the same way that if your quality bar is large and/or your price bar is large in the store screen, then you sell the item faster at the desired price.

However it seems you need to buy a lot of advertising to make any effect on your items sales, I have a store with 200 advertising which has moved the bar just slightly, but still says only 1 out of 100 people have heard of your store and as such probably has little to no effect on my sales.

Imho you're better off spending the money expanding the store at this early stage in the game than advertising. Alternativly wait for people to tech up in advertising so you can buy some very high quality units and maximise the effect.

Guest · Post by **Guest** » 26.02.2007, 11:03

u need advertisement-points for your store. Every store needs 40.000 points for most effecivity. It doesn't matter, what you want to sell there.

advertisements q0 = 1 Point
advertisements q1 = 2 Points
advertisements q2 = 3 Points
advertisements qn = 1+n Points

Cat

Guest · Post by **Guest** » 26.02.2007, 11:18

Oh I see. Thank you very much for your replies. I agree, I think I will be expanding more right now because the advertisements are really expensive in the market right now.

Thank you.

Guest · Post by **Guest** » 26.02.2007, 11:41

how much do you think advertisements q2 will really sell for?

the cost for me to make each ad is 282.4 including the power costs which i make myself but this is not even counting the cost of researching to q4.

Guest · Post by **Guest** » 26.02.2007, 12:41

Advertising is a tough business. Its unlike any other product, beacuse of the effect quality has.

If you look at the advertising market, in order to compete you have to sell at or lower than the best offers out there.

Currently media solutions has quality 8 ads on the market for 750. This means that anyone who buys and uses them gains 9 points of advertising for their store.

So 750/9 = 83.3 per unit

Your q2 advertising gives 3 units, therefore to remain competative you need to sell at:

83.3 x 3 = 250 per unit

If you factor in the commission you'd pay to put it to market:

250 * 0.9 = 225 actually recieved by you for something that cost you 282.4.

In other words in order to suceed in advertising you'll need to tech up in advertisments to a significant level before you can sell them at a profit. This will take a lot of time and money and in the meantime its unlikely your competitors will have been idle.

Honestly i'd advise you to sell your advertising facilities and invest the money in something else (Its what i did!). Its only going to be the top 10 teched up people who will likely make a profit out of advertising and for the rest of us, advertising will slowly become more viable and option as we get more for our money.

The other possability is at some point someone may well sell their high advertising tech, or if you researched a high level someone may buy it from you.

Guest · Post by **Guest** » 26.02.2007, 12:59

Richbay wrote: However it seems you need to buy a lot of advertising to make any effect on your items sales, I have a store with 200 advertising which has moved the bar just slightly, but still says only 1 out of 100 people have heard of your store and as such probably has little to no effect on my sales.

U didt say what quality ure 200 adverts are, at q0 you get 200 ad. points.

The maximum is 40,000 advert points and using the scale of 1 in 100 to 100 in 100, u need 400 advert points to increae 1 person in 100

(based on theory as im yet to purchase adverts)

Guest · Post by **Guest** » 26.02.2007, 13:04

Phoenix Oil wrote:
Richbay wrote: However it seems you need to buy a lot of advertising to make any effect on your items sales, I have a store with 200 advertising which has moved the bar just slightly, but still says only 1 out of 100 people have heard of your store and as such probably has little to no effect on my sales.
U didt say what quality ure 200 adverts are, at q0 you get 200 ad. points.

The maximum is 40,000 advert points and using the scale of 1 in 100 to 100 in 100, u need 400 advert points to increae 1 person in 100

(based on theory as im yet to purchase adverts)

That is 200 advertising in total, so the equivalent of 200 q0 adverts. Really not cost effective (yet) cosidering the money spent buying them.

Guest · Post by **Guest** » 26.02.2007, 13:58

Which is highly practical if you are the user who don't mind waiting like me, to produce your own ads or just buy them (the high quality ads though)?

Because I am thinking of making my own TV station, but then research I know will take a very long time especially since I am not really planning to expand my Media RC because of the high costs of materials right now..

Guest · Post by **Guest** » 26.02.2007, 16:40

ShatteredPixie wrote:Which is highly practical if you are the user who don't mind waiting like me, to produce your own ads or just buy them (the high quality ads though)?

Because I am thinking of making my own TV station, but then research I know will take a very long time especially since I am not really planning to expand my Media RC because of the high costs of materials right now..

SP, I built a TV station in green, and a Media RC, and have not expanded either. My objective was not to sell ads, but produce my own for the stores I have. So far, I have researched to Q6, and I produce about 100 ads per day for my stores. To me, this is more practical than trying to buy ads from the market, and I think I may be saving a little money too.

I've tried to sell ads, but there is very little profit. I actually did better selling Q0 ads, than the higher quality. Whether this was because people are new and dumb and don't fully understand how ad Q's work, I am not sure. In any event, I don't recommend advertising as a product.

Guest · Post by **Guest** » 26.02.2007, 17:13

Yes, I have just built a TV station in green and a Media RC in red. I didn't expand both, so I am having the research slow but i guess its fine since I am just planning on just using it on my own stores.

Also I figured it would be much cheaper because I also have a power plant in green which I can use to supplement the needed power to make the advertisement.

I'm so stingy.

Guest · Post by **Guest** » 26.02.2007, 18:12

Richbay wrote:
Phoenix Oil wrote:
Richbay wrote: However it seems you need to buy a lot of advertising to make any effect on your items sales, I have a store with 200 advertising which has moved the bar just slightly, but still says only 1 out of 100 people have heard of your store and as such probably has little to no effect on my sales.
U didt say what quality ure 200 adverts are, at q0 you get 200 ad. points.

The maximum is 40,000 advert points and using the scale of 1 in 100 to 100 in 100, u need 400 advert points to increae 1 person in 100

(based on theory as im yet to purchase adverts)
That is 200 advertising in total, so the equivalent of 200 q0 adverts. Really not cost effective (yet) cosidering the money spent buying them.

this is explains it then. You need 400 points to increase it by one person, you have 200!

So u increased it by 0.5 people

But because the system doesnt count half people (dont know why

) it registered as 0

btw you do realsie that adverts arn't worth having unitll ure shop is 200 qm, right?

Guest · Post by **Guest** » 26.02.2007, 18:27

btw you do realsie that adverts arn't worth having unitll ure shop is 200 qm, right?

There is very little effect with ads at lower qm, this is true. As a matter of fact, because of the supply and demand calculations, I have actually added adverts to a store, and watched the remaining time for sale increase! (always put your ads in when the store is empty)

Something to also remember, advertising is an investment in the future. It might not be effecting anything now, but later, it will have been worth it to invest in some advertisements earlier, as you go. It shouldn't be your main priority to increase store ads right now, because you are correct, there isn't much return on that investment at this point, but it doesn't hurt to put a few ads in here and there, so later you won't have to.

Guest · Post by **Guest** » 26.02.2007, 18:36

I don't want to wait to produce my ads after I finally get to 200sqm either so I'd rather do them now so that when I reach 200sqm, I have a good amount of ads to supplement my expanded store. I can use the time I have right now to produce ads especially since i don't plan on expanding my TV station which means really slow productions, so hopefully by the time I do get to 200sqm, my ads are in place.