Why Advertising is Important For Your Business

Businesses exist to sell products and services to the public for a profit. If the public does not know that your business exists, finding customers to make enough purchases for your business to survive will be a failure without some additional help. It is an important factor in business because it gets the word out about your company and establishes a presence and a brand about what you are offering.

One of the best ways to advertise is by word of mouth, also known as referral marketing or referral advertising. When other people hear good things about your business or they have a positive experience shopping with your business, they become walking billboards for your business without you having to spend additional money on ads to create it.

Advertising locally through newspapers and fliers as well as billboards can be an effective source of it when your business is up-and-coming, but expanding your advertising sources becomes important as you grow. You can extend your advertising approach out to television commercials as well as radio in order to reach wider audiences, but the revenue from your business should be able to pay for it costs for these methods to bring you the value you are looking for.

Creating an assortment of advertising and marketing techniques will help you to reach many different customer bases. Identifying a target market to advertise your business to is also very valuable, because a target market of customers will be more interested in your business than trying to appeal to masses of people with varying interests. Making sure that enough people know that you exist who are naturally interested in your product as a target is a great way to bring in customers and increase the profit of your business.

Creating an impulse in potential customers to purchase your product is very important when it comes to advertising. It can be easy to create it that puts your customer in a mindset not to purchase your product, either by unintentionally avoiding the sale of your product by focusing on information or topics that draw attention away from your product. Be sure to study the needs of your target market to get the best results.

The Important Difference Between Marketing, Selling and Advertising

I’ve heard the same sentence from many small business owners: “I’ve tried that, it doesn’t work for my business”. The practice of advertising is a mystery to most small business owners. For them it’s hard enough trying to perfect the process of doing business with their clients; the acquisition of new clients is a whole other challenge. Most business owners aren’t fully aware of the difference between advertising and marketing.

Let’s take some of the mystery out of the practices.

One of the most misunderstood aspects of the process is the distinctions between: marketing, advertising and selling:

Marketing: is the overall collection of tools used to build your business. Marketing has one overall objective – to drive clients through the process of noticing your business, purchasing from your business, enjoying the products or services of your business successfully enough to tell their friends and family and come back for more if applicable.

Some of the tools of marketing include:

1. Advertising

2. Public Relations

3. Direct Mail

4. Personal Sales

5. Internet

6. Print Promotions

7. Education

Advertising: Advertising doesn’t sell to your audience, it is a tool similar to the male ostrich tail; its job is to get you noticed for the specific things you do well. Advertising promotes the distinguishing features, benefits and advantages of your offer to a wide market. The goal of advertising is to bring in valuable leads for the selling process to take place.

I’ve sold Yellow Page advertising to business owners who initially felt that Yellow Page ads brought a lot of callers who were just shopping around. They didn’t want to waste time with “looky loo’s”.

If someone takes the time to make a phone call or send you an email regarding your product or service, why treat them with disdain? These folks are looking for the right answers to their problems. Even more important, they each know about 250 other people personally. Each opportunity to make a connection or a sale should be treated as equally important.

Selling: Once advertising has attracted the potential buyer, the selling process takes over. This is done either by personal sales or the use of point of purchase materials (ie., a store display, video demonstration etc.). Selling should come into play after a prospect has been determined to be right for the product or service.

The mystery and confusion begins when a business owner must decide what tools to use in the process of client acquisition. To whom should you advertise? Where should you advertise and why? How do you advertise? What kind of return should I expect to make on my advertising program? When do I use the other tools of marketing to bolster my advertising program? What should my ratio be between advertising and selling?

To whom should you advertise? Let’s be very clear about this one. You should never put a single dollar into advertising until you know who you will eventually sell your product or service to. You should not even be in business if you have no clue who you want to do business with.

Marketing is used to identify your ideal market. Sure, you may not get 100% of your ideal market, but if you know who will most likely benefit from what you have to sell or service, you can get more of them.

For example, if you’re a chiropractor in a big city, your ideal market might be the couple in their late 40’s to early 60’s that’re health conscious and active. They are looking to stay fit and are open to CAM’s (Complimentary and alternative medicines.). They may have an unfavorable view of the current healthcare system and wish to take a proactive approach to health maintenance. So let’s say after determining your ideal market, you identify 15,000 of them in your market region. So now you have 15,000 likely prospects to reach on a regular basis.

Where should you advertise and why? If you wanted to find a 34 year old Buddhist from Cambodia where would you look for one? The question may seem a bit silly but you know that you wouldn’t start by going to all the mosques in the area.

Sometimes you do have to eliminate all the unlikely places to search until you get to the most likely ones.

You must, of course choose the targets of your ad programs based on how many of your intended prospects will likely see your message. If the local health club in your area has a demographic membership of over 3,000 45 to 65 year olds, you might want to advertise in their monthly newsletter. If they don’t have a newsletter, you may want to sponsor one for them.

Remember the “The best place to go fishing is where the fish are biting”. Take the time to know about your target audience and their buying habits.

How do you advertise? Imagine that your very expensive Mercedes breaks down and the mechanic says that it’s your fuel pump. He needs to change it so he’s going to take a blow torch and cut through your hood, crack open your engine block and then replace the fuel pump. Once he’s done, he’ll weld all the parts back together and get your vehicle back to you.

Would you give this guy the OK to go to work on your vehicle? Of course you wouldn’t. Once you determine what you need to do, you have to be careful about how you execute the solution.

Coming back to our chiropractor, if he finds that the best way to reach the 15,000 couples ages 45 to 65 in his area is through the Yellow Pages; then he needs to decide if it’s cost effective, timely and competitive.

The goal now is to figure out the best way to reach all or most of those 15,000 ideal prospects.

Will he get comparable results from the repeated exposure in the health club newsletter where he’ll have a captive audience and no competition?

There’s no reason not to use both the Yellow Pages and the health club newsletter if they pull their weight economically. The goal of advertising is to gain valuable leads for the selling process to take place.

What kind of return should I expect to make on my advertising program? My answer to my clients to this question is usually a shocker; the answer is a big fat zero (0). How can a business owner spend so much money on advertising and expect no money in return?

This is the basis of the confusion between marketing, advertising and selling. Advertising’s value in the marketing mix is in lead generation. When properly used as such, the measurement of its effectiveness is in how many leads are generated.

This is why it’s so important to distinguish between the various tools of marketing. If our chiropractor had 20 leads coming in each day from his ad campaign and the front desk had a lousy conversion ratio, I bet that he’d blame his ad for not pulling in more clients.

Gauge your response rate when quantifying advertising results. Measure the number of leads coming in and adjust the ad copy to test for better results.

When do I use the other tools of marketing to bolster my advertising program? Advertising should never be used alone. Please remember that the average adult has to deal with over 2700 messages a day from all types of media.

Marketing should be seen as a combined effort to reach the minds and hearts of your target market. You should be using at least five of the seven tools of marketing every week. Depending on the age of your business and your business plan, you should be budgeting 10 to 15% of your estimated annual revenues for marketing. If you just opened your doors in the last five years, crank that up to 20%. There’s a reason that Pepsi and Coke spend over 400 million a year each to satisfy their shareholders bottom-line.

What should my ratio be between advertising and selling? Think of the relationship between advertising and sales as a complimentary one. If your advertising is generating a large number of leads, tailor your sales strategy to convert at least 30% of your leads while capturing all your leads for systematic follow-ups.

Keep in mind that at any given time, 3% of your market is ready to commit to your product or service. The goal is first to convert the 3% of your leads. Then to work on selling to the ones who are on the fence. Whether through personal sales, direct marketing, or point of purchase sales, your ratio will be determined by several factors, the offer, the product or service and the immediate need of the prospects and of course, price.

Don’t get too anal about the ratios. The most important thing to remember is that marketing is an inexact science. You will have to keep testing and trying for better results as the market changes.

Determine the value of a new client and the life time value of your clients. Once you do that, be sure that your marketing efforts are bringing in enough new business to cover the cost of getting new clients and that your sales efforts cover the cost of keeping you in business.

Tweak the numbers and track consistently. If your estimated marketing budget is $37,500 for the year, and your estimated revenue is $250,000 then you have a standard starting point.

At the end of the year your numbers should add up. If you haven’t made the $250,000 don’t simply blame your advertising, look at your leads list and determine if you’ve converted the required number into sales.

If you don’t have a leads list then we need to re-evaluate your purpose for advertising.

Why Display Advertising Is Important In Business

In the early days, only a few business sectors were ruling the marketing world, but now many had started introducing individual or team businesses every day. This change will bring new and interesting products to us, but marketers may face many challenges and competition in business. To overcome the hurdles, you can choose online advertising to increase audience reachability and product awareness in people.

What is a banner and why to publish banners online?

A simple image that conveys the brand message of a company and their product information is called an ad banner. People use banners to advertise in public places, but on the internet, you can publish it as a digital or graphic image. When you compare online ads with the street ad, online is reachable because it offers user interaction and better conversion rate to people. An image with a few genuine words about your company or product will convey your concern to the people on the internet.

How to publish the banner on the internet?

A display ad server is used to create and distribute your banners on the internet and it is used to perform revenue sharing among the users. The publisher can sell their advertisement spaces to advertisers and the user can purchase it based on the requirement. The users can create the banner and distribute it on the website zones. The admin has the only privilege to share the income earned in each ad. The ad server has required ad formats for the banner creation, they are divided into the following.

Ad formats

• Image: It follows the standard size of the IAB and support JPG, PNG, and GIF file types.

• HTML: It uses third party tags to deliver the advertisements. It is used to create rich media ads.

• SWF banners or flash banner: It is an animated advertisement which is capable of producing sound and user interaction. It supports SWF file type.

• Text ads: It has a textual description of a product or service along with a hyperlink to the advertiser’s website.

• Custom ads: It is a user defined ad format where the advertiser can create it with any desired size. It supports GIF, PNG, and JPG file types.

Why display advertising?

• It requires less manual work.

• The banners can be created using simple tools available online.

• It may reach a wider audience when compared to street ads.

• Adding user interaction in the image may attract the customers.

• Adding innovation to your banner may reap success in business.

You may have big dreams for your business, but if you do not implement the dreams in your products it is difficult to sustain the market position. Though, you advertise frequently on the internet only your better products will reach the people. Ad banners will help only when your business truly impresses the people.