What is Comparative Advertising?
Comparative advertising is a way of presenting the advertiser’s products or services as superior to those of competitors. These ads may or may not point directly to a competitor, but customers can sometimes deduce who the opposing company is through product choices and calls.
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Comparative ads also offer potential customers a direct level of comparison between two companies, as they will be able to view merchandise and evaluate options at a glance, rather than having to search for information from multiple sources.
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All statements about the compared company must be objective since false statements are subject to complaints for unfair competition. The legal situation is regulated in Spain by Law 3/1991, of January 10, 1991, on Unfair Competition.
Advantages of comparative advertising
Increased brand awareness
If you compare your brand with a larger brand you can increase your popularity significantly. If you can provide compelling reasons that make your company a better choice than a better known one, you will gain many customers.
More information to customers
When a customer is used to buying the same product for years, he does not do more research. Thanks to comparative advertising you can demonstrate the shortcomings of your competitors. But, you must make it clear how you outperform these competitors in their shortcomings.
Disadvantages of comparative advertising
You can get in trouble with the law
This is the worst drawback, but any seller who feels attacked may confront you. To avoid legal disputes, prove every claim you make in your ad. Don’t mislead consumers and follow the rules.
You can damage your reputation
Comparing yourself to smaller companies and making excessive use of comparative advertising can damage your reputation. Your customers may get the wrong impression, so don’t go too far with your claims.
You may lose customers
In addition to losing potential customers, you may lose loyal ones by deeming your brand unworthy.
