In an institutional advertisement, there is no specific call to action on the part of the reader or viewer. A worst-case example is the series of absolutely bizarre television commercials for the Infiniti automobile. The screen never even shows a car. It s assumed that over a period of time, with a great deal of repetition, the expenditures for these advertisements will pay off in the form of increased sales. But the advertiser has no way of knowing whether the marketing is working, or whether there might be a more effective means to reach sales goals.
Most major corporations fall prey to institutional advertising.
They have deep pockets, and the advertising typically is developed by large advertising agencies that are not directly responsible for the outcome of their efforts. It is virtually impossible to test the effectiveness of these kinds of ads in any scientific way. Most businesses simply can t afford the luxury of guessing how well a particular promotion is paying back. A team of engineers might continually refine a machine to improve performance, integrate new features, and reduce manufacturing costs, all while maintaining a quality product. Likewise, the direct marketer is able to constantly test and adjust, modify, or entirely scrap different marketing elements.