Advertising programs – Discover the right formula for business growth

Advertising programs – Discover the right formula for business growth

Many small business owners get nervous when committing to big ticket advertising. While Social Media is important, it does not replace traditional advertising, rather it supports it.

Building a business is like building a house. Think of your website and Social Media as the foundation of your house. The exterior of your home, landscape and gardening are the advertising inviting those passing by to come and take a look.

Without the advertising, many may not find you. Relying on your business coming up on Google alone is a dangerous proposition and here’s why. Someone who finds you on Google because they have typed in some keywords, may find you but will also find your competition who are also likely advertising in your keyword category.

If you are advertising both on Google and through conventional advertising like radio and television then you will see the best of both worlds; business through search engine searches and business through other advertising programs.

Many business owners have allocated more of their advertising dollars, in recent years to search engine advertising programs which can be more affordable but also highly competitive. This doesn’t work for all types of businesses, so how does one know if they should be doing both; search engine advertising and conventional advertising?

The most important things that should be considered when deciding if conventional advertising will work for your business is:

1. Assess your appetite for risk. Thomas Jefferson said that “The man who stops advertising to save money is like the man who stops the clock to save time”. If you are afraid to take risks, not advertising at all is not the answer. Explore advertising programs that will cost no greater than 4x the fee earned on one sale.

2. Look at your average value per/deal. If the average fee that you earn per/deal is $2,500, start out with a budget of $ 10,000 per/month.

3. Research, research, research. Define your niche market and ask advertising entities for data that supports who watches/listens to their medium to ensure that you choose a station that speaks to your niche in the marketplace.

The goal is to find an advertising program that will work. Throw all your money behind one well researched entity. So many businesses make the mistake of taking a decent advertising budget and spreading it around between several mediums. I like to follow the philosophy “own the station you are advertising on”. You will have more success placing the dollars in one place and having a good rotation (your Ad’s play frequently) than to spread your budget around (less frequency across more mediums).

Finally, don’t give up. It may take time and some investment to find the advertising formula that will work for your firm. Once you discover the right formula, you will enjoy business growth that will exceed your expectations.

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