There are no simple answers...
The how much to spend on advertising and where to spend it
questions have no easy answers.
Depending on your type of business, many people suggest that the how much
should be equal to anywhere from 4% to 10% of your gross receipts.
The quandary is that a business cannot survive without a fresh flow of incoming
customers. But, a business can seldom generate a fresh stream of customers
without spending money to get the word out about their business.
The Challenge of Developing Effective Advertising
Have you ever paid for advertising and sat back to await the fresh flow of
customers, only to find yourself sitting and sitting and then sitting some
more?
Dont feel bad about that. It has happened to many of us before.
See, knowing where to spend the advertising money is not enough to get the job
done.
Where to spend the money only begins to highlight the other issues connected
with advertising:
Marketing Plan
Advertising Strategy
Headlines, Ad Copy and Visual Presentation
Tracking the Success of Your Advertising Campaigns
The Marketing Plan
The Marketing Plan is used primarily to identify your own products and services,
costs, strengths, weaknesses and the strengths and weaknesses of your
competitors.
To learn more about constructing your own marketing plan, visit the
Small Business Administration website for a comprehensive study of the
elements of a Marketing Plan.
Advertising Strategy
It is important to understand what you expect to gain from your advertising.
Do you simply wish to get your name known so that when your customer will need
you, they will think of you first? Or, do you wish to get your customers in
your front door on Saturday?
Do you want your customers to come in and take a look around to discover the
next object that they cannot live without? Or, do you want them to come in and
buy a specific widget?
Do you hope that enough people will come in to buy enough products or services
to pay for your single ad? Or, do you expect to gain a lifelong customer who
will help pay for your advertising over the course of several years?
When you know what you want, then you will better understand just how to do it.
Headlines, Ad Copy And Visual Presentation |
You might be surprised how many business owners put out advertising without
regard for the quality of the sales pitch or presentation. The quality of your
distribution outlet or the amount of money you spent to get there will do
little for you if the advertising vehicle is a Junker.
Test all of your advertising materials in smaller markets before blowing your
advertising bank roll on it. You must absolutely know the value of your
advertising before putting large sums of money behind it.
Tracking The Success Of Your Advertising Campaigns
Tell your customers to save another 10% when they tell you they heard or saw
your ad in such-and-such location. Suggest that they can register to win a free
widget if they fill out a form and have them to tell you how they heard of your
business. Advertise a specific widget in your ad and track the sales of that
widget.
It does not matter how you track your advertising --- just make sure you do it!
In Conclusion
The ideal way to spend your advertising budget is to buy a rifle with a
high-powered scope and to only shoot your targets in the light of day.
If you are not tracking your advertising, then you are shooting a pellet gun
without an attached scope, with blinders on, and shooting in the dead darkness
of night.
Even with a bigger gun, the blinders in the dark constitute the single largest
mistake made by advertisers. If you are unable to track your advertising to
learn what is working well, what is working somewhat, and what is a money pit,
then you are condemned to repeat your mistakes over and again.
By relying only on gut instinct, you may be choosing to spend more money in the
money pit and to lose all of your money in the process.
When you get down to the nuts and bolts of making money from your advertising,
you should plan, prepare, track and study your results. You must have factual
information on which to base your advertising decisions. When you are making
the right advertising decisions, then making money from your business might
just come easy.
