How to Use Your Advertising Dollars Wisely

Your ads need to speak to your target consumer.

Advertising your products and services is a necessary evil, and one that can make or break your brand. "Bloomberg Businessweek" reports that many new companies spend more time and money on customer retention instead of winning new customers, and that can be a fatal mistake. When money is tight, learn how to get the most out of your advertising dollars rather than cutting back on budgets.

Instructions

1. Know your target demographic and advertise where they shop, work and play. If your brand appeals to a young audience, you will waste money advertising with organizations like AARP, no matter how cheap it is to advertise with them. Don't discount older consumers, however. "Market Watch" reports that some businesses ignore the 65-and-over set, a powerful consumer base that makes up roughly 12 percent of the population.

2. Review your historical advertising campaigns to see what worked and what did not for your brand in the past. Ensure that you have a complete understanding as to whether your audience responds better to print or electronic media, and whether national advertising has more of an impact than local or regional advertising.

3. Investigate all advertising venues. While it is easy to to place an ad in a magazine or newspaper, there are many creative ways to advertise your brand that may be more cost-effective. "Advertising Age" reported a shift in advertising that started in 2010 when 52 percent of advertising and marketing agencies surveyed reported that they were shifting their ad focus to online venues, and that online video was usurping television as the visual media of choice.

4. Monitor ongoing advertising campaigns and know when to pull the plug. If a campaign is not seeing expected results in a reasonable period of time, record the results, cut your losses and move onto another campaign.

5. Buddy up with complementary brands to share advertising spend. In the early 2000s, drinks giant Diageo noticed a close correlation between the Smirnoff vodka and Baileys consumers, prompting the two brand groups to pool advertising dollars on some joint campaigns. If you only have one brand to sell, branch out to other companies and industries. A bread company, for instance, might be able to forge a deal with a company that produces gourmet peanut butter.

6. Defer to the professionals, especially if you are a small business. While it might be tempting to pursue a do-it-yourself approach to advertising, credibility with your audience is key. If your campaign seems amateurish, you may do more harm than good. The business coaching network The Hive also says that hiring a good advertising agency also gives you access to their media purchasing power and pool of creative talent. If you do not have the budget for an advertising agency, ensure that you hire professionals for any visuals that the consumer will see, such as video and artwork.

Tips & Warnings

• Ensure that you state goals and that you know what metrics you will use to measure success. If your campaign is designed to build brand awareness, for example, how many consumers you reach would be more important than immediate sales.

References

• "Market Watch"; Older Americans Are a Powerful Consumer Group; Marshall Loeb; February 2011
• Ad Age Digital; Study: Marketers Shifting Online Budgets to Content Sites; Edmund Lee; April 2010
• The Hive: Advertising --- Ad Agencies --- Should You Use an Ad Agency
• "Bloomberg BusinessWeek"; What Should You Spend on Advertising?; Steve McKee; February 2009

Resources

• "Inc."; How To Select an Ad Agency; September 2000
• NFIB: How To Set an Advertising Budget