This Week's Tip!

"Advertising during any economy produces customer loyalty and a long-term competitive advantage." Victoria Downing President of Remodelers Advantage

Purchasing Advertising for Your Business

How do you decide on the medium that is best to advertise your business?  Do you know which radio station or television program provides the best reach of your customers?  Do you know what newspaper or magazine is the best buy for your money?

Often, businesses make decisions about where to advertise based on which media sales representative contacts them or their own personal media preferences. This approach is not an effective way to make advertising decisions. Remember that your advertising dollars today need to be more targeted than ever in order to maximize their return on investment. Here are some tips on what you need to know before you sign any advertising contracts:

1. Who are your customers? Consider both demographics—age, income, family status, neighborhood, home value, education level, etc.—and psychographics that identify lifestyle features and behaviors. What radio stations do they listen to? Do they shop at Macy’s or WalMart? Do they follow sports on TV? Paint a complete picture of them. For example, one of our clients identifies his target audience as 40-something couples holding hands, high household income, with or without children, that have lived in their community for more than 10 years, etc. I bet he even knows what color the wife dyes her hair!

2. What media best reaches YOUR customers and at what costs? This is where things can get a little tricky, as most media sales reps believe whatever they are selling is “perfect” for you. When your ad dollars are limited, you have to be very selective about which media you use.  The lower your budget, the harder the decisions get. Optimally you want to select the media that reaches the highest number of your potential customers for the lowest cost. And, perhaps more importantly, you need to be able to reach them more than just once.

This last element, known as “frequency” in the ad world, is key. You will often hear ad folks refer to “reach and frequency.” This relationship is central to making ad buying decisions. If you cannot afford to run your ad multiple times over a period of time, it probably isn’t worth doing.

Why? There are many reasons, but the simplest to explain is that it takes multiple exposures to a message before people even register that they have seen it. It takes even more exposures for people to process the information. Lastly, even if they recognize and understand your message, they may not be ready to buy.

So, how do you narrow down the choices?  Well, you know your budget, and you know your customer. Now you have to identify how to reach them. This is when a knowledgeable media planner can help you, as they have the independent research tools to determine which media in your market best match your needs.

If you want to do it on your own, you can get this information directly from each advertising outlet. Buyer beware! Do your homework and make sure that you compare the information they provide against all other outlets.

There are many other criteria that affect your advertising decisions, such as your business cycle and other marketing efforts you may have in place. All of these things need to be balanced against your goals for your business. Remember, marketing and advertising isn’t discretionary spending! It is an investment that you make with a given return in mind.

As you can see, figuring out the best option can be complex and confusing and requires a lot of research. If you aren’t up to the task, ask for help from a media planner or buyer at a reputable marketing agency. They can provide you with an objective analysis of your options based on your budget and the market to give you the best possible options for how to spend your advertising dollars.

This PowerTip was provided by FusionSet, Inc. a Marketing Communications Company and partner in our Member Perks Program. Members of Remodelers Advantage receive 1 hour FREE consultation. For more information on becoming a member of Remodelers Advantage, click here.

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