Advertised Price

DEFINITION of 'Advertised Price'

The price of a product or service as displayed or announced in an advertisement or radio/TV commercial. If the advertised price is well below the normal price of a product, it is likely to be a loss-leader that is priced to entice customers into the retail store in the hopes that they will make additional purchases.


A company may offer a price-matching guarantee to its customers, based on the advertised price for a specific product. If a rival offers the same product for a lower advertised price, the company will either match the lower price or refund the difference if the customer has already purchased the product from it.

BREAKING DOWN 'Advertised Price'

There are strict laws in North America against false or misleading selling price representations, such as sales made above an advertised price. Stiff fines are payable by a company that sells a product above its advertised price, except in cases where the advertised price was a mistake that was rectified promptly.

RELATED TERMS
  1. Flighting

    An advertising scheduling strategy in which a business alternates ...
  2. Comparative Advertising

    A marketing strategy in which a company shows how its product ...
  3. Below The Line Advertising

    In general, an advertising strategy in which a product is promoted ...
  4. Advertising Association Of The ...

    A regional advertising group based on the American West Coast ...
  5. Direct Marketing

    A form of advertising in which physical marketing materials are ...
  6. Advertising Costs

    A category included in financial accounting to represent expenses ...
Related Articles
  1. Personal Finance

    7 Companies With Big Advertising Budgets

    Here's what the corporations with some of the biggest advertising budgets in the U.S. spend their money on.
  2. Investing

    Advertising From TV To Internet: An Industry History

    Changes in television consumption habits have forced advertising to target audiences through new means, namely Internet advertising.
  3. Personal Finance

    Where Are Advertisers Spending Their Money?

    We list five outlets where advertisers are spending their money, and how these trends developed.
  4. Personal Finance

    6 Common Advertising Phrases To Be Wary Of

    Things are rarely as they appear, especially in the marketing and advertising world.
  5. Stock Analysis

    Why Facebook Is Free to Use (FB)

    Learn why Facebook is free to users, and understand how the company makes more money by charging advertisers than it would if it charged users.
  6. Investing

    The (High) Cost of Advertising in Times Square

    Advertising on a Times Square billboard costs more per impression than similar forms of advertising, but that doesn't mean it's not worth it.
  7. Stock Analysis

    Online Advertising Takes The Lead

    Advertisers are now spending more on online ads than ever before. For investors, that means the time could be right to bet on digital advertising players.
  8. Investing

    Digital Advertising Is The Future, But Why? (ZNGA, GOOG)

    Digital advertising has outgrown the internet.
  9. Fundamental Analysis

    Twitter's Self-Service Ad Platform Improving Global Engagement (TWTR)

    Find out how small- and medium-sized businesses around the world use Twitter to gain new business. Twitter now offers its advertising platform in 200 countries.
  10. Investing

    The Company Stealing Google's Market Share

    "Google" and the phrase "internet search" have become virtually synonymous. Google, Inc.'s (Nasdaq:GOOG) overwhelmingly dominant market share of web searches has helped the company to become ...
RELATED FAQS
  1. How important is advertising revenue in the Internet sector?

    Learn about the importance of advertising revenue in the Internet industry. Find out how much Internet firms rely on advertising ... Read Answer >>
  2. What is the "bait & switch" technique?

    The bait and switch is a advertising technique which can be considered illegal, but in most cases is merely looked upon as ... Read Answer >>
  3. What does it mean when advertisers say that "financing is available"? Should I trust ...

    When an advertisement says "financing", it means that the seller is going to give you a loan on an item that you purchase. ... Read Answer >>
  4. What is the difference between cost and price?

    Consider how cost affects a product's price. Corporate expenses and the current cost of living both impact the final sticker ... Read Answer >>
  5. What are some of the benefits of positive brand equity?

    Learn how having positive brand equity enables companies to make a higher margin on sales and spend less money on marketing ... Read Answer >>
  6. According to the U.S., prohibited conduct of an investment advisor is defined as:

    I. Fraudulent investment advice.II. Distribution of unregulated advertising materials.III. Misleading filings.IV. Making ... Read Answer >>
Hot Definitions
  1. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  2. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  3. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  4. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  5. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  6. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
Trading Center