http://www.bizmove.com/marketing/m2j4.htm
Source: Managing a Small Business
A wise man once said, "The person who saves money by
not advertising is like the man who stops the clock to save time." In
today's fast-paced, high-tech age, businesses have to use some form of
advertising to make prospects aware of their products and services.
Even a famous company like Coca-Cola continually spends
money on advertising to support recognition of their products. Last year
Coca-Cola spent more than $150 million to keep its name in the forefront of the
public's eye. So the question isn't whether or not you can afford to advertise,
you simply must if you want your business to succeed.
Some questions you should consider before buying ads are:
1. What media is the best to use?
2. How important is creativity?
3. Is there a way to buy space and time that will stretch my
advertising budget?
When it comes to advertising, a lot of people really don't
know what they want, where to get it or what to do with it after they have it.
This guide will help you learn to determine what type of advertising media is
best for you, and learn to identify guidelines you can use to obtain the
advertising exposure you need. It will help you identify ways to make your
advertising more cost efficient.
Advertising is an investment in your business's future. And
like any investment, it's important to find out as much as you can before you
make a decision. You'll be able to use this guide as a reliable reference tool
often in the months and years to come.
NEWSPAPER ADVERTISING
Every advertising medium has characteristics that give it
natural advantages and limitations. As you look through your newspaper(s),
you'll notice some businesses that advertise regularly. Observe who they are
and how they advertise their products and services. More than likely, their
advertising investment is working if it's selling!
Some Advantages in Newspaper Advertising
Almost every home receives a newspaper, either by newsstand
or home delivery. Reading the newspaper is a habit for most families. And,
there is something for everybody: sports, comics, crosswords, news,
classifieds, etc. You can reach certain types of people by placing your ad in
different sections of the paper. People expect advertising in the newspaper. In
fact, many people buy the paper just to read the ads from the supermarket,
movies or department stores.
Unlike advertising on TV and radio, advertising in the
newspaper can be examined at your leisure. A newspaper ad can contain details,
such as prices and telephone numbers or coupons.
There are many advantages to advertising in the newspaper.
From the advertiser's point-of-view, newspaper advertising can be convenient
because production changes can be made quickly, if necessary, and you can often
insert a new advertisement on short notice. Another advantage is the large
variety of ad sizes newspaper advertising offers. Even though you may not have
a lot of money in your budget, you can still place a series of small ads,
without making a sacrifice.
Some Disadvantages with Newspaper Advertising
Advertising in the newspaper offers many advantages, but it
is not without its inherent disadvantages, such as:
How Should I Work with my Newspaper Representative?
Every newspaper has its own sales staff, and you're normally
appointed your personal newspaper "Sales Representative." A newspaper
sales rep can be very helpful. He or she can keep you posted on special
sections or promotions that may apply to your business, but always keep in mind
it is the sales rep's job to sell you advertising.
Your sales rep might say that the newspaper can layout any
of your ads, pre-prepared or not. But these ads are assembly line products and
are not often very creative or eye-catching. Consider using an artist or agency
for your ads.
In addition, your sales rep can sometimes be instrumental in
making sure your story or upcoming announcement "finds" the right
reporter because the relationship between the advertising and editorial staff
is chummier than most people think, even though they claim total anonymity.
Buying Newspaper Advertising Space
Advertising is sold by column and inch. You can determine
the size ad you want just by looking in the newspaper in which you want to
advertise. If you can't locate an ad that's the size you want, just measure the
columns across and the inches down. For example, an ad that measures 3 columns
across and 7 inches down would be a 21 inch ad. If the inch rate is $45.67,
your ad would cost $959.07. In case your newspaper is still on the line rate
system, remember there are 14 lines to an inch. So, if the line rate is $3.75,
multiply it by 14 and you will have the cost of an inch rate. (the rate would
be $45.50 an inch.)
Here are some other things to remember:
Other important tips to remember are:
Always make sure you are satisfied with what your
advertising says and how it looks before it goes to print.
MAGAZINE ADVERTISING
Many of the same "print" type principles which
apply to newspaper advertising also apply to magazine advertising. The biggest
differences are:
The general rule that you can run the same ad 3-5 times
within a campaign period before its appeal lessens applies to magazine
advertising as well, even with a monthly publication. So it makes sense to
spend extra time and money to prepare a worthwhile ad that can be successfully
repeated. Over long terms such as these, however, be aware that the client
(you) often tire of the ad before the audience does.
Because ads in magazines are not immediate, they take more
planning. Often, an ad for a monthly magazine must be prepared at least a month
in advance of publication, so ads detailing prices and items have to be
carefully crafted to insure accuracy.
Since the quality of the magazines are superior, the
advertising that you generate must be superior as well. Negatives are usually
required instead of prints or "PMTs" (photo-mechanical transfers).
Consider getting assistance from a graphic artist or an advertising agency.
There are two categories of magazines: trade magazines and
consumer magazines. Trade magazines are publications that go to certain types
of businesses, services and industries. Consumer magazines are generally the
kind you find on the average news stand. Investigate which type would do your
business the most good.
An agency can also purchase the magazine space for you,
often at no charge, because the magazine pays the agency a commission directly.
If you wish to purchase the advertising yourself, contact the magazine directly
and ask for an "Ad Kit" or "Media Package." They will send
you a folder that includes demographic information, reach information, a
current rate card and a sample of the publication.
Although most magazines are national in nature, many have
regional advertising sections that allow your business to look like it
purchased a national ad when it only went to a certain geographical area. This
can be especially useful if your product or service is regional in nature as
well and could not benefit from the magazine’s complete
readership. Each magazine does this differently, so contact the one(s) you are
interested in and ask them about their geographic editions. Some sophisticated
magazines even have demographic editions available, which might also be
advantageous.
RADIO ADVERTISING
Since its inception, radio has become an integral part of our
culture. In some way, it touches the lives of almost everyone, every day.
Radio, as a medium, offers a form of entertainment that attracts listeners
while they are working, traveling, relaxing or doing almost anything. A farmer,
for example, may listen to the radio while he is having breakfast or plowing
his field. People driving to work often listen to the radio. Radio offers
information such as: news, weather reports, traffic conditions, advertising and
music for your listening pleasure.
What Are Some of the Good Things About Radio?
Radio is a relatively inexpensive way of reaching people. It
has often been called the "theater of the mind" because voices or
sounds can be used to create moods or images that if crested by visual effects
would be impossible to afford.
You can also negotiate rates for your commercials, or even
barter. Stations are often looking for prizes they can give away to listeners,
so it's possible to get full commercial credit for the product or service you
offer.
Advantages to radio advertising include:
What are Some Limitations to Radio Advertising?
Radio advertising is not without its disadvantages too, such
as:
One of the most popular times to reach people is during
Drive Times (from 6 a.m. to 10 a.m. and 3 p.m. to 7 p.m.) It's called that
because most people are going to or from work during this period, and because
most people listen to their radio when they drive. Unfortunately, radio
stations know that this is a favorite time to advertise, so commercial costs
are much higher during this time.
How Should I Buy Time on the Radio?
Like a newspaper, each radio station has its own advertising
staff. Each wants you to believe that their station is the absolute best buy
for your money...and many will go to great lengths to prove it. But if you've done
your research, or you are using an advertising agency, you probably have a good
idea of the station you want to buy time on and when. If you don't know which
stations you want to use, ask each station for its own research, that is, the
type of programming, musical format, geographic reach, number of listeners and
station ratings.
By getting the station ratings and the number of people it
reaches, you can figure out the cost-per-thousand people (CPM) by simply
dividing the cost of a commercial by the thousands of people you are reaching.
Example: Cost of commercial = $35.00, Audience reached =
45,000 people.
Cost of commercial per 1000 people = 35/45 = $0.78 per 1000
Without getting complicated, here are two cardinal rules for
radio advertising:
1. It's better to advertise when people are listening than
when they are not.
2. It's better to bunch your commercials together than to
spread them apart.
A lot of radio sales reps will try to talk you out of
advertising during specific times. They'll offer you a reduced rate called TAP
(Total Audience Plan) that splits your advertising time into 1/3 drive, 1/3
mid-day and 1/3 night. This may sound like a good deal, but airing commercials
during times when your audience isn't listening is bad advertising. If however,
you are sponsoring a show such as Paul Harvey or the Morning Farm Report, it
makes sense to advertise once or twice a day on a regular basis, since those
programs have regular listenership. Frequency is a vital element for effective
radio advertising.
Since you can't automatically recall the radio commercial
and hear it again, you may have to hear the same commercial two, four, or maybe
six times before the message sinks in. If you missed the address the first time,
you consciously or subconsciously are hoping the commercial will be aired again
so you can get the information you need. That's the way radio advertising
works. And that's also the way you buy it.
Most of the time, radio advertising should be bought in
chunks. High frequency over a short period of time is much more effective than
low frequency over a longer period of time. It's important for your audience to
hear your spot again to get more information out of it. For example, if you
wanted to advertise a two week campaign and you could afford 42 radio
commercials, the following buy would serve you well: On Tuesdays, Wednesdays
and Thursdays, place three spots between 7-9 a.m. and four spots between 3-6
p.m. for two weeks. Notice that both day and hour periods are concentrated.
By advertising in concentrated areas in tight day groups,
you seem larger than you really are. And people hearing your concentrated
campaign for two or three days will think you're on all the time. The radio
sales reps may try to sell you three spots everyday on the station for 14 days
(a total of 42 spots). But your campaign won't be nearly as effective.
Here are a few tips to help you plan your commercials:
If you decide to write your own radio scripts, remember
these basic copy writing rules:
TELEVISION ADVERTISING
Television is often called "king" of the
advertising media, since a majority of people spend more hours watching TV per
day than any other medium. It combines the use of sight, color, sound and motion...and
it works. TV has proven its persuasive power in influencing human behavior time
and time again. But it's also the "king" of advertising costs.
Advantages in Television Advertising
Television reaches very large audiences-audiences that are usually
larger than the audience your city's newspaper reaches. The area that a
television station's broadcast signal covers is called A.D.I., which stands for
"Area of Dominant Influence."
Some advantages of television advertising include the
following:
Disadvantages in Television Advertising
Because TV has such a larger A.D.I., the stations can charge
more for commercials based on the larger number of viewers reached.
The cost of television commercial time is based on two variables:
1. The number of viewers who watch the program.
2. The time during the day the program airs.
One 30 second television commercial during prime time
viewing (8 p.m. to 11 p.m.) can cost 10 to 30 times more than one radio spot
during drive time (which is considered prime listening time).
While the newspaper may cover the city's general
metropolitan area, TV may cover a good portion of the state where you live. If
such a coverage blankets most of your sales territory, TV advertising may be
the best advertising alternative for your business.
Producing a commercial is also an important variable to
consider. On the whole, television audiences have become more sophisticated and
have come to expect quality commercials. A poorly produced commercial could
severely limit the effectiveness of your message, and may even create a bad
image in your customer's mind.
Advertising agencies or TV commercial production facilities
are the best organizations for creating a commercial that will be effective for
the goods or service you are offering. But the cost of a well-produced
commercial is often more expensive than people think. Some TV stations will
claim they can put together commercials for "almost nothing." Before
agreeing to this, find out what "almost nothing" means. Then,
determine if the commercial quality and content they are proposing will
represent your firm's image.
Many companies use the station's commercial production
facilities for creating "tag lines" on pre-produced commercials.
Often, the station will help you personalize the spot for little or no
cost...if you advertise with them. Remember, more than anything else, when it
comes to making a TV commercial, you get what you pay for. And when you're
buying commercial time, it makes sense to have the best sales presentation
possible.
Remember, like radio, the message comes and goes...and
that's it. The viewer doesn't see your commercial again unless you buy more
placements.
Creativity: A Vital Element
When you advertise on TV, your commercial is not only
competing with other commercials, it's also competing with the other elements
in the viewer's environment as well.
The viewer may choose to get a snack during the commercial
break, go to the bathroom or have a conversation about what they just saw on
the show they were viewing. Even if your commercial is being aired, viewers may
never see it unless it is creative enough to capture their attention. That's
why it's so important to consider the kind of commercial you are going to
create...and how you want your audience to be affected. Spending money on a
good commercial in the beginning will pay dividends in the end.
Don't Use TV Unless Your Budget Allows
Attempting to use TV advertising by using a poorly-produced
commercial; buying inexpensive late night commercial time that few people
watch; or just placing your commercial a couple times on the air will guarantee
disappointing results. To obtain positive results from TV advertising you must
have enough money in your budget to:
1. Pay for the cost of producing a good TV commercial.
2. Pay for effective commercial time that will reach your
viewer at least 5-7 times.
Properly done, television advertising is the most effective
medium there is. But it is big league advertising...and you shouldn't attempt
it unless you have enough money in your budget to do it right.
If you're still attracted to TV, it's a good idea to call in
an advertising agency for production and media buying estimates. Then, figure out
what sales results you can expect. With such data, you should be able to reach
a logical advertising decision.
Buying Television Advertising Time
There are many things to know and consider before buying a
TV programming schedule. That's why, in most cases, using an advertising agency
or a media buying service is recommended when advertising on TV. If these
services are unavailable, find a TV representative that you can trust. Your
agency or representative can help you select the programs you should advertise
on in order to reach your market. Also, ask about "fringe" time,
adjacencies and package plans.
When you are engineering your schedule, remember that
repetition (or frequency) is a very important ingredient to use. Make sure your
audience sees your commercial with the context of the programs you're buying.
Ask for a commercial affidavit. Normally, it doesn't cost any more and the
station will provide you with a list of the exact times your commercial was
run.
Other Considerations
For an effective and inexpensive way to get your message on
the TV screen, consider using pre-prepared TV commercials that may be available
to you through a manufacture or distributor you deal with. You can add your
name and logo to the end of the commercial
for little or no cost. Look at cooperative advertising too.
Many companies offer prepared advertising materials you can use and at the same
time may pay for a portion of the advertising schedule.
CABLE ADVERTISING
Cable advertising is a lower cost alternative to advertising
on broadcast television. It has many of the same qualities as broadcast
television, and in fact, since it offers more programming, it's even easier to
reach a designated audience.
The trouble with cable is it doesn't reach everyone in the
market area, since the signal has to be wired instead of broadcast, and also
because not everyone subscribes to cable.
If cable does reach a large part of your market, have an
advertising agency investigate its cost or call the cable company's advertising
sales department. Chances are the commercial time will be 10 to 20 percent of
the costs of regular broadcast time.
YELLOW PAGES
Telephone book advertising is another way to reach your
market area. It allows you to place your business listing or ad in selected
classifications within the book, with the theory being that when people need
your product or service, they look up the classification and contact you.
Much of the "sell" copy for a product or service,
therefore, does not have to be in your ad content, since the people who have
looked up your classification are already in the market to buy. The thing to be
aware of when you write the ad is the other firms' ads within your
classification. In other words, why should the reader select your firm over
your competition? That is the crucial question -- and your ad should provide
the answer.
Telephone Yellow Pages salespeople often employ the
technique of selling as large of ad as they can to one company, then showing
the other companies in the same classification what the one company is doing so
that they can match it or beat it. This is not the best criteria for
determining ad size, but is definitely good for the ad salesperson.
To determine the size you should use, consider the
following:
Advantages of Yellow Pages Advertising
Disadvantages of Yellow Pages Advertising
If you require more than one classification, your Yellow
Pages representative often has packages and programs that can save you some
money. In addition, the same is often true if you need to be advertising in
more than one city or market.
Yellow Pages advertising is an important medium to consider
in our fast-paced, information-hungry society. People really do let their
"fingers do the walking" instead of driving around blindly. Make sure
your Yellow Pages ad is attractive and informative enough to be the one or two
businesses the prospect actually does select to call. And then make sure you
have the resources to deal with the inquiry. After all, there is nothing more
annoying than being put "on-hold" by a busy checker or being served
by an uninterested or unknowledgeable employee.
OUTDOOR ADVERTISING
When people think of Outdoor Advertising, they usually think
of the colorful billboards along our streets and highways. Included in the
"outdoor" classification, however, are benches, posters, signs and
transit advertising (the advertising on buses, subways, taxicabs and trains).
They are all share similar advertising rules and methods.
Outdoor advertising reaches its audience as an element of
the environment. Unlike newspaper, radio or TV, it doesn't have to be invited
into the home. And it doesn't provide entertainment to sustain its audience.
Some Outdoor Advantages
Some Outdoor Disadvantages
When you buy outdoor advertising, remember that location is
everything. High traffic areas are ideal. A billboard in an undesirable area
will do you little good. Keep your message concise (use only five to seven
words) and make it creatively appealing to attract readership. Few words, large
illustrations (or photos), bold colors and simple backgrounds will create the
most effective outdoor advertising messages.
DIRECT MAIL
What makes "direct" mail different than regular
mail? Nothing. It's just a way the advertising world describes a promotional
message that circumvents traditional media (newspaper, radio, TV) and appeals
directly to an individual consumer. Usually through the mail, but other
carriers also participate.
Direct mail may be used more than you think. Studies
indicate that it is the third largest media expenditure behind television and
newspaper.
Rules to Remember
The blessing (or curse) of direct mail is that there are no
set rules for form or content. The task of deciding what your mailing should
have as content, its design and its message(s) is up to you. However, remember
to attract the reader's attention with color and creativity. Use clear,
comfortable writing and make your appeal easy to respond.
And of course, coordinate the mailing with other advertising
media if you are also using them in the same campaign. It can significantly
increase the potential return.
SPECIALTY ADVERTISING
"Giveaways" -- the pencils, pens, buttons, calendars
and refrigerator magnets you see everyday -- are called "Specialty
Advertising" in the advertising business.
Chances are, you have some specialty advertising items right
at your desk. Businesses imprint their name on items and give them away (or sometimes
sell them at very low cost) in order that:
These are both long-term advertising investments that can
take months or years to turn into actual sales.
First, select the best item that would tell your story most
effectively. While an accountant can give away an inexpensive calculator, the
same item may not be ideal for a hairdresser. A comb or brush might be more
appropriate in that case.
Second, decide what you are going to say on the item. A
company slogan? Address directions? Since you have a relatively small area, you
must be very concise and direct.
Third, figure out your method of distribution. Are you going
to send them to each customer through the mail? If so, how much will that cost?
Will you have them in a big bowl that says "take one"? Distribution
is just as important to consider as buying the item.
Just as there are many reputable specialty advertising
professionals in your area, the industry is notorious with a lot of
high-pressure telephone and mail solicitors who often give specialty
advertising a bad name. Don't buy specialty advertising through the mail
without checking the quality and prices with trusted local representatives
first. And, buying specialty advertising over the telephone is not recommended
at all.
Specialty advertising is a unique way to generate goodwill
and put your name on items that people remember. But don't do it unless you
have an item and distribution plan that will benefit your business.
CONCLUSION
There is no one sure-fire best way to advertise your product
or service. It is important to explore the various advertising media and select
those which will most effectively convey your message to your customers in a
cost-efficient manner.
Always remember, advertising is an investment in the future
of your business.
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