“If you think advertising a waste of money, consider the millions of Americans who now think that yogurt tastes good.” Joe L. Whitley
Should you advertise? Yes! But, unlike other products and services you buy, the results and benefits are not easy to measure. As you will find out, it is easy to waste money on “poor” or ineffective advertising during the start-up days of your new venture.
Be cautious of advertising “advice.” Don’t be a pioneer unless you have deep pockets. Advertising salespersons may know about media costs, frequency of ad discounts, half tones, etc.; but do they know anything about your business? Do they know who your customers are? Where they are? And what to say to them? If not, put your checkbook away.
As you will discover there are many types of advertising media – some good, some not so good. With a limited amount of money to spend promoting your business, deciding the most beneficial advertising program will not be easy. Just as you shop carefully for your insurance, your equipment and whatever else your business may require, you must be analytical and critical with every ad dollar you plan to spend. Unlike a product, ads do not carry a warranty and cannot be returned or exchanged.
Be cautious of spending your money on a one-time ad splash. Although great for your ego, it is a quick way to deplete your checking account. Full-page ads in a major publication such as the New York Times are impressive if you can afford it. If your ad budget is substantial and you are a household name or intent on becoming one, perhaps a “splash” is reasonable. But as a start-up business marketing strategy, it may be foolish.
Take the case of Tony, a self-styled real estate developer who lacked an understanding of marketing and promotion. He constructed- with loans- two model homes and went on to announce his plans to the world.
He made a deal with a local real estate broker (who displayed little understanding of advertising beyond the classified columns) to promote and sell the development. They ran the usual “open house” with balloons and fanfare and attracted many local “lookers.” Tony, who I suspect was on an ego trip, signed on with a major newspaper (statewide circulation) to run a full-page ad for two consecutive Sundays. That was the end of his ad money. Following his “big splash” the remainder of his advertising and promotional approach was “the pits.”
In front of one of the models was a ridiculous looking washtub propping up a sign, announcing the hours the model supposedly was open for viewing (which it seldom was). The project fell into financial ruin and Tony went to work as a contractor’s helper.
With the right approach, the project could have been successful. The models were attractive and reasonably priced with wonderful lakeside views. Nevertheless, the mismanagement of the advertising and sales promotion activities killed it. Pure stupidity.
As the development was ideal for retirees looking to spend the summer in the cool Northeast, it was suggested to Tony, without success, that he run a series of small ads in senior publications such as The Magazine, published by AARP, and the widely distributed retirement real estate brochures. In my opinion, it was the reverse approach of selling Florida real estate to northern snowbirds.
Don’t be like Tony. Assuming you have a limited amount of money to spend on advertising and promoting your new business, be careful how you spend it – don’t blow it on one or two ads. As any successful advertising executive will tell you, it is important to get your message to as many potential customers as often as you can. Realize that a large one-page ad, or major one-time television ad, is costly and gives you only one opportunity to get a potential customer’s attention. It is like placing all your money on one turn of the cards.
As you will find, name recognition in business develops slowly. You can nurture it with advertising, but only if you have ample money to spend on a big advertising campaign spread over time can you force it.
Many small ads can be more effective and cheaper! If it is print media, think of the impression on the readership. Small frequent ads can send a message of stability. If you can routinely place your business or product before your customers, public name recognition may develop. A splash is fine for a movie or book that has a short life; but not for you. You will need more than a grand opening to stay in business.
Article – Copyright 2001 Dr. Paul E. Adams. Syndicated by Paradigm News, Inc.
