ABSTRACT
The main purpose of this study was to investigate the influence of advertising on profitability of Zenith bank Benin, Edo State. The broad objective of this study was to investigate the impact of advertising on profitability of deposit money banks in Nigeria. The impact of the use of celebrity in advertising on profitability of deposit money banks in Nigeria and impact of convincing message from advertising on profitability of deposit money banks in Nigeria.
The study adopted a survey research instrument through the administration of questionnaires to one hundred (100) staffs of Zenith bank, out of which eighty-nine (89) was retrieved and subsequently analyzed. Descriptive statistics, spearman rank correlation and regression analysis was used to analyze the data retrieved from respondents.
The study revealed that advertising expenditure and profitability were positively and significantly related, celebrity in advertising and profitability were positively and significantly related and convincing message and profitability were positively and significantly related.
The study therefore recommends that deposit money bank management must not disregard setting an annual advertising budget, else it will forego market growth opportunities. It is necessary to put effective cost management strategies for a high revenue resulting from strong advertising to translate to high profitability. Also, deposit money banks should consolidate on other persuading marketing options rather than depending absolutely on hiring brand celebrity who consequently add up to the general prices of their products. In addition, deposit money banks should look internally, by raising high profile staff and enhancing good public image of such staff that can influence consumer buying behaviors rather than hiring brand ambassadors externally. If this is done, deposit money banks will pay less, cut cost and optimize profit.
