In recent weeks we have been giving advice to a couple of businesses that had high advertising costs, in one of these businesses, they were spending almost 7,000 dollars a month for a year to raise sales and when measuring sales, they were practically the same that if it had not been invested in advertising. My family is dedicated to the radio business, so we know how effective advertising is and how it should be implemented when marketing.
ADVANTAGES AND DISADVANTAGES OF ADVERTISING
First we must understand that not all advertising is the same nor all advertising has the same objectives and obviously not the same results. We are going to simplify this in general advertising and advertising with target. The general publicity will be everything that is openly shared with a certain number of people, but without having a specific interest segment. For example, give flyers, advertise on the radio, a magazine, advertising on television, etc. Although your ads may appear on a “channel” where there is “a certain population”, the reality is that it is not measurable and therefore we can not verify if it really reached the specific sector of the population that we wanted to reach.
The second type of advertising is with target and the best type of advertising for this is on the Internet, first in Google Adwords and second in Facebook Ads. Why? Because you can make personalized campaigns, segmenting the population by interests and going even further, you can locate your ideal market according to the keyword searches they do. This type of advertising is highly effective in certain types of businesses because you will only pay for someone who clicks on your ads, if nobody clicks, it does not matter if thousands of people saw it, you will not pay money.
(Radio, television, magazine, newspaper, billboards, banners, screens, flyers, etc.)
- You can reach masses of people from one day to the next, you do not need to wait for people to look for you, you can bomb a whole city or a whole country.
- You can make campaigns with slogans (phrases like: “LG, Life’s Good”) so that these slogans remain in the minds of people.
- The positioning of any brand depends on the amount of time followed that advertises.
- You can wear a specific logo, design or brand to give it social authority.
- You can influence the culture of people.
- You can create cost-sharing funds or divide campaign expenses by sponsors.
- In the case of television and radio, people associate your product or service with artists, music and things of their own interests.
- With the exception of the flyers and the newspaper (taking into account that flyers are practically useless), the rest is relatively expensive for a small or medium business.
- Few people respond immediately to an advertising campaign, it takes months and years of constant bombardment to position a brand, which implies great investment.
- People do not respond well to advertising because of the saturation there is and small businesses have no chance of competing with transnational companies.
- You do not really know where you are directing your advertising, maybe what is “calculated” is a segment, but it is not accurate.
- Sometimes you need contracts for months or years to be able to have a good place in that advertising, or pay more because it is not the same to appear at the peak hour of the radio, than at hours that almost nobody listens.
- You risk two things: you do not really know how many people listen to you and see you; Second, you also do not know how many people will buy, and it does not matter if you did not get 1 single customer of that advertising, you have to pay anyway.
ADVERTISING WITH TARGET OR SEGMENTED ADVERTISING
(Google Adwords, Facebook Ads, Permission Marketing and Newsletters)
- Advertising is highly segmented.
- You have unlimited possibilities to compete even if you are a small or medium business.
- The costs can range from 5 dollars a day to the amount you want, which allows small and medium businesses to invest.
- You can reduce costs in small and medium businesses up to 70% for advertising.
- Only advertising is sent to people who are interested or to people who are asking for that publicity (permission marketing), that makes people who see you have a much higher probability of responding.
- Campaigns are controllable from a phone to any type of computer.
- You have no borders, local, national or international, and the costs do not really vary much.
- You do not pay if someone saw your advertising (printing) and it did not interest you, you only pay for advertising that people access.
- You can be in a country where people are still not used to looking for things to buy online.
- If there are no keywords related to your product or service it is unlikely that you will sell something.
- It can be complicated to reach a specific sector that buys, the reactions of people on the Internet are very variable.
- It is complicated to learn to use all the tools and create an efficient platform to sell online.
- If your ads are not made in an appropriate structure, they will not appear.
- If your page is not satisfactory, you will lose rank.
- If you do not know how to connect people with your product or service, advertising will not help.
A small business has to choose between these forms of advertising, it is best to choose a budget and that this budget is distributed in a minimum of 6 months. The reason is simple, it is better to reach fewer people, but constantly, than to throw the whole bomb, but in a shorter period of time. That way you are more likely to find people who are constantly looking for the same themes. It has happened to me many times, that I see some publicity of a product or service, and I do not pay attention to it until after 3 or 4 times I look at it. As for large companies, it is another work structure and depends a lot on the objectives that you have as a company.