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Advertising is how a company encourages people to buy their products, services or ideas. Advertising is one element of marketing, which also includes design, research and data mining.
An advertisement (or "ad" for short) is anything that draws good attention towards these things. It is usually designed by an advertising agency for a sponsor or brand and made public by various media. Ads appear on television, radio, newspapers, magazines and billboards in streets and cities. Advertisers use methods that attract attention.