All advertising mediums work if you use them the right way. Businesses and agencies get caught up in the price-CPP-CPM-Ect. The only thing that matters is the return on investment (ROI). If a TV commercial brings you $10,000 in revenue, why do you care if it cost $5,000 to produce and air? Put that same $5,000 in a money market account (the only way to really have it be”risk -free”) and in a year you will have about $5,050 in your account. Advertising involves risk, but isn’t risk what made your company successful in the first place?
When you advertise you hit a target audience. Your target audience has about 150 friends and relatives they talk to. (More when you factor in social media). If you get just get a few people in the door and treat them right, you will get a tremendous amount of positive word of mouth. So what is a brand new customer really worth to you for future business?
Of course I’m a radio guy so I believe strongly in my medium, but it doesn’t matter where you invest as long as it gets results. I don’t care what advertising medium you use, if you do it properly, your investment will get an ROI. The only way to really monitor results is by how much is in the cash register after the campaign.
Read everything you can on advertising, and find a sales representative that you trust. Follow the four keys. (1)-Reach. (2)-Frequency. (3)-Consistency. (4)- Creative (the message).
I included a chart below to show the strengths and weaknesses of the most popular ways to market your business. Advertising is an investment, not an expense. Know there is always some risk, but there is a far better risk/reward ratio than investing in the hottest IPO or shoving it under your mattress.
2 thoughts on “The Hard Part Isn’t Making Money–It’s Investing It Wisely”
Radio doesn’t have the reach it once had anymore. As an advertising medium, it now sucks. Social media is probably the best way to advertise in this day and age, it’s very targeted!
Hey Fadi–Thx for the post—- I agree, social media is very targeted and should be part of a marketing campaign..But radio is still an effective, inexpensive way to brand. Netflix started (and continues) to use radio as its main branding vehicle…93% of Americans still tune into radio at some point during the week–We have a lot more choices, but live, local radio still is alive and well–I love Pandora, but I also love local Dj banter-Just because I enjoy pizza doesn’t mean I like burgers any less.
If I have a Dj offer free t-shirts for the next ten people who stop by the radio station, I’ll have 50 people show up in the course of 15 minutes–And radio is also getting very good at connecting with listeners through the use of social media…It is now one big connected world, and good content will survive no matter how its delivered.
Have a great day