| Advertising : The Basics |
| Introduction |
All businesses should advertise
regardless of their size. Even the smallest business
should consider the possible benefits of advertising
at a neighbourhood level.
Every business should ask themselves these questions:
- Would it help us to advertise locally?
- Would it help us to advertise nationally and internationally
in the trade and technical press?
- Would it help us to advertise in a national or international directory?
- Can we achieve any of our advertising aims with our own
website?
Advertising is an important potential component of your marketing
mix, along with direct marketing, PR, exhibitions
or a website.
This guide discusses how advertising could help you and
gives advice on where and how you can advertise. And,
if you decide to go ahead, it shows you how to manage
the process and make sure you get value for money.
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| How advertising can help your business |
Advertising can:
- Provide basic facts about the existence
of your business' address and contact details - as
well as any changes that take place.
- Increase sales by telling possible
customers about your product or service.
- Tell customers about changes to
your service, product launches and improvements.
- Back a sales campaign with a specific one-off message
- informing people of a special offer or
a particular benefit of your product.
- Prompt specific action - getting
customers to visit your premises or use, say, a gift
voucher by the end of a specific period of time.
- Increase general awareness of your
business, making it easier to sell in the long term.
- Remind existing customers about
your business.
- Change people's attitudes towards
your business.
Remember advertising isn't solely about sales and marketing.
You can also use it to:
- recruit staff - and remember a recruitment
advertisement can also say something about your business
- recruit suppliers and contractors
- this also helps to position you as active and expanding
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| Target your customers |
Decide whether your target
audience is local or regional, national or
international, or a mixture. Remember that a local
business might benefit from national trade press advertising
even if it's just selling to other businesses in its
area.
You can advertise in a wide range of different
media and you may wish to use more than one type. Advertising
can be anything from your shop sign or a postcard in the
post office to an advertisement in a trade magazine or
a 30-second radio slot.
Remember you have a duty to ensure your advertisements
are legal, decent, honest and truthful.
Local advertising
Even the smallest business should consider the benefits
of local advertising. For example:
- At neighbourhood level: a supermarket board or postcard
in a shop.
- Advertising space rented out at railway stations,
leisure centres or doctors' surgeries.
- Publications such as residents' association newsletters,
fete programmes and parish magazines.
It can all start right outside your own premises with
your sign, advertising board or even nameplate, provided
you conform to planning regulations. Check
the planning regulations for advertising through your
local authority.
Local and regional newspapers
Weekly, evening and morning, paid-for and free local
papers provide a variety of ways to advertise:
- Classified advertising.
- Display and semi-display; display advertisements
are bigger and more sophisticated, appear on editorial
pages and can use pictures and design devices.
- Display ads and listings in special supplements -
for instance, on local shops, health clubs or restaurants.
- Advertisement features - laid out like editorial
pages but just featuring you and your business - perhaps
your new premises; you pay for them and may also be
given advertisement space - your suppliers might advertise
as well and offset the cost.
- Loose inserts, supplied by yourself that are
placed inside the newspaper ie buying the paper's circulation
for your flyer.
Ask the advertisement department at the newspaper for
a media pack with readership breakdown and rates for
different types of advertisement. The quoted rate is
only a starting point - always try to pay less.
Local magazines
Many areas have a county or lifestyle magazine - useful
for certain types of upmarket consumer advertising.
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| Advertising in directories
and on the Internet |
Directories provide local and national
coverage, and are often backed up with online versions.
They can be a cost-effective way of getting your name,
product and service in front of both private and
business customers.
Popular directories include:
- Classified phone directories that offer basic entries
and display advertisements.
- Chambers
of Commerce and other organisations, that often
produce local business directories.
- National directories for business, industry and specialised
sectors in which you could place an entry - or advertisement.
Again, many of them have an Internet version.
- The Directory
and Database Publishers Association provides
information on its member firms.
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| Advertising on the
Internet |
Web advertising can be cost-effective
- and gives national and international coverage you may
otherwise not be able to afford.
There are three main types of Internet
advertising:
Your own website:
- Ensure you design and position your website for maximum
effect. You also need to know how to exploit search
engines.
Advertising on other people's websites:
- Use banner and pop-up advertising
to promote your business and link through to your own
website.
Getting into an online directory:
- You can get an online entry with directory companies
such as Oloja.Com, as well as getting
links from these online directories to your
own website.
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| Advertising
in the trade and technical press |
There are hundreds of trade, technical
and professional magazines read by your customers, suppliers
and businesses in the same sector as you.
If your business sells to other businesses,
advertisements in these publications - and editorial mentions
- can be a powerful way of gaining sales, product enquiries,
higher profile, trade partnerships and even potential investors.
You can also use them for recruitment and to source suppliers.
Trade magazines provide a variety of ways to advertise:
- Classified advertising - particularly for recruitment
and gaining suppliers.
- Display and semi-display; display advertisements
are bigger and more sophisticated, appear on editorial
pages and can use pictures and other design devices.
- Display ads and listings in special supplements on
particular sectors or activities - an engineering magazine
may be featuring actuators, a building magazine putting
the spotlight on fire safety.
- Advertisement features - they're laid out like editorial
pages but just feature you and your business - perhaps
your new product; you pay for them and may also be
given advertisement space - your suppliers might advertise
as well and offset the cost.
- Loose inserts that you supply yourself to the magzine
publisher for them to insert into the magazine - ie
you buy the publication's circulation for your flyer.
Ask the advertisement department at your chosen publication
for a media pack with a readership breakdown and rates
for different types and sizes of advertisement. The quoted
rate is only the starting point - always try to pay less.
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| Radio,
cinema, outdoor and national advertising |
If advertising on local
radio, you'll need to do research the market into
the type of audience and cost per listener - ask the
local station for details. Do you also need non-radio
back-up advertising, for example in the local press?
Your local station will often produce your commercial for
you. But radio advertising will probably be part of a marketing
mix and you may be using an advertising agency already.
Local cinemas may be right for your niche. Ask the cinema
for audience profiles and case studies of satisfied clients.
You can possibly advertise in the foyer as well as on screen.
Outdoor advertising
- Roadside - from phone kiosks to
large billboards and banners.
- Transport - railways, airports,
inside and outside buses and taxis, lorries.
- Retail - sites at shopping malls
and supermarkets, trolleys, posters.
- Non-traditional and ambient - shop
signs, leisure centres, washrooms, tickets, petrol
pumps, takeaway lids.
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| National papers,
magazines, TV and radio |
If you're considering advertising
through these outlets it is recommended to get professional
help from an advertising agency.
However, with some national classified advertising
- say holiday cottages - you may be able to arrange
your own advertising. Your local library's Willings Press
Guide gives details of national newspapers and consumer
magazines that you may wish to use.
Get a media pack with readership analysis
from the publication's advertisement department so you
know the advertising for your holiday cottages is reaching
the right audience.
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| Planning an advertising
campaign |
The best time to advertise is when
your target audience is most likely
to buy your product or service. Sometimes this can be
seasonal - a toy retailer, for example, will focus its
advertising efforts around the run-up to Christmas.
If you're selling to other businesses, it's worth identifying
when your customers and potential customers will have the budget to
spend. And remember that the summer holidays can often
be a slow time for business-to-business sales.
The reasons behind a campaign
Many businesses launch advertising campaigns simply to boost
sales.
The launch of a new product is often a
good time to step up your advertising.
New businesses may want to consider some form of advertising
just to let people know they exist. This might be as simple as taking out an
advertisement in a local paper. You could combine it with an introductory offer
to give people an incentive to visit or call.
Can you plan the campaign yourself?
You need to think carefully about what you want to achieve
and the message you want the reader, viewer or listener
to take away. Remember - advertising is only effective
if you reach people with a message that makes them want
to find out more.
You may be able to produce in-house a straightforward advertisement
for printed media
If you plan on spending more than, say, =N=1,000,000 or
your advertising needs are more demanding than an occasional,
low-priced local advertisement, it may be worth outsourcing
the campaign to an advertising agency.
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| Getting value for
money from your advertising |
Work out a maximum budget.
Identify which options give the best possible return.
An expensive advertisement may be worthwhile if you get
a good response, manage it and monitor the campaign.
If it's your first campaign, perhaps try a relatively inexpensive
advertisement first, thus reducing your risk.
Get information about the media you're considering - particularly
figures for the audience or readership and
how close they are to your target market.
Estimate how many people are likely to respond. You can
work out how much it costs to reach each one. If an advertisement
costs N2,000 and you expect to reach 20,000 people - 50
per cent of whom are potential customers - it is costing
20 Kobo to get your message to every potential customer.
Don't be afraid to negotiate
You may get a price reduction, a repeat that's free or
discounted, or a better position in the publication if
you:
- Mention your budget, but appear undecided about who
to spend it with.
- Mention rival media you're considering.
- Book last minute as trade publications often accept
low prices at the last minute if there's ad-space to
be filled. You may get a poor position, though, which
could cut responses.
If you're advertising to build your business, it's a
good idea to use advertisements several times.
You can get a discount for booking multiple
advertisements - but don't be persuaded to buy more than
you need.
Ensure your advertisement is in the best possible position.
For example:
- Right-hand pages catch the reader's eye most.
- An advertisement selling greenhouses should be on
a page devoted to gardening.
- The most effective page for a newspaper advertisement
is page three. Generally, the nearer the front, the
better - unless you sell sports goods.
- If your advertisement has a coupon - for readers
to cut out and send in - place it at the edge of the
(preferably right-hand) page.
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| Managing responses
and monitoring the campaign |
A good advertising campaign can
pull in the orders - but make sure you can deal with
the response.
Determine the expected response level and
check you have enough resources to meet it.
It may not be a good idea to plan a campaign at popular staff
holiday times. If this can't be avoided, consider
temporary cover to deal with responses.
You may need a system to ensure leads aren't missed. For
example, you could design a standard enquiry form to
be used by people fielding calls. The main aim is to find
out as much as possible about what the caller wants.
If they just want further details to be posted, the enquiry
can be dealt with straight away. If the query is passed
to a salesperson, give the customer an indication of when
they can expect a response.
Monitoring a campaign
Each time you take an enquiry or make a sale, ask how the
customer heard of you. This reveals whether any individual
strand of your advertising or other marketing campaigns
is particularly effective.
If you include vouchers in print advertisements, use a
different code for each publication they appear in. This
allows you to pinpoint where incoming
vouchers have come from.
You might find some advertisements generate many enquiries
but no actual sales. These cost most because they take
up staff time without generating revenue.
It's also worth looking at the kind of sales each advertisement
generates and whether they have a good profit margin.
Bear in mind that some advertisements may have delayed
results. One person may order the next day, another
might wait a few weeks.
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| Tips: writing
a print advertisement |
A good advertisement should have:
- an interesting headline
- clear design
- well-written copy
Headline:
- A good headline should catch the reader's attention
and make them want to read on. It might ask a question
or inspire curiosity. For example: a bed manufacturer
might ask if readers want to know the secret of a good
night's sleep.
- Don't overplay the actual message - people will feel
let down if they read on and their expectations are
not fulfilled.
- A headline will also encourage people to read on
if it offers a clear benefit - such as "buy one,
get one free".
Clear design:
- The way an advertisement looks plays a big part in
attracting and retaining the reader's interest.
- Avoid small or fancy typefaces that are difficult
to read. And don't mix too many typefaces in one advertisment.
- Don't clutter the layout - keep plenty of white space
in the advertisement - avoid the temptation to say
too much.
Well-written copy:
- The amount of text you include depends on the purpose
and size of the advert. Businesses that want to advertise
a sale might have a very limited amount of text accompanied
by a headline and a picture of some of the items on
offer.
- If you're writing a sizeable amount of text, it should
follow on logically from the headline, build a convincing
case and prompt a response from the reader. It's a
good idea to back up any claims with facts.
- All the reader wants to know is "What's in it
for me?"
Remember that businesses have a duty to ensure their
advertisements are legal, decent, honest and truthful.
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| Case
Study: Here's
how I increased my sales through advertising |
Michael Welch started his business,
Black Circles, in November 2001. The company, based in
Scotland, links more than 700 independent tyre fitters
across the UK. When contacted through its call centre
or website, it locates the customer's nearest and cheapest
tyre fitter. Here, Michael explains why advertising is
so important to his business
What I did Find the right media
We needed to start advertising from day one to attract
customers. I started by looking for places to advertise
which I thought would reach our target market, such as
car magazines like Revs and Max Power. The readers of these
types of magazines are a captive market - as fast-car enthusiasts
and owners, they need to buy tyres regularly.
I got the circulation figures and the demographics of the
people that were reading these magazines. This included
information such as their salary, age and the type of car
they drove. I then broke our potential customers down into
similar categories and decided which magazines would target
them best. With advertising, your approach should always
be targeted, never random.
Make the most of the budget
At the moment we spend around £25,000 to £30,000
a month on advertising and our turnover is £3 million.
We manage to convert about 70 per cent of our advertising
spend into sales.
After a few months of a particular campaign we analyse
how it is working and then either pull it or continue to
do more. Our sales team always ask each new customer how
they heard of us so we can tell which advertisements work.
When they start out, many businesses don't think they can
compete with larger firms when it comes to advertising,
but they can. As long as you're clear about the message
you want to get across and know which media is right to
reach your target market, a small business' advertising
can be as successful as anyone else's.
Write a good advertisement
We use an advertising agency but I oversee all of the work
they do. In the early days I thought that they were the
professionals and they would know best but ultimately you
need to have control of the advertising messages and your
brand image. In the beginning our unique selling point
(USP) was that we were cheap but we wouldn't sell at those
prices now. Our USPs now are excellent customer service
and value and all our marketing is designed to reflect
this.
Our strapline is "Think tyres, think Black Circles" and
all of our advertisements are black and white. We try to
keep it simple because in general the industry is synonymous
with being a bit of a rip-off. We did have some campaigns
that weren't as successful in the beginning because we
didn't have much experience. Now we have the luxury of
having the time, money and knowledge to be able to experiment
and find out what works. The key is not to bet too much
on one campaign but to build up slowly. I would definitely
like to do some radio and TV advertising in the future
because it will expose us to a much bigger market.
What I'd do differently
Perhaps I would have extended the magazine advertising
sooner and thought about brand development earlier. However,
the cost of advertising means that what you would do in
an ideal world isn't always possible in the beginning.
Michael Welch Black
Circles
Michael's top tips:
- Don't get carried away without analysing which media
people are responding to
- Focus on your customers' requirements
- Make sure you have good financial controls in place
to get the best value from your advertising spend
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