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Thursday, July 15, 2010

Why Advertising Doesn’t Work for (Most) Small Businesses

Article by Carolyn Higgins

Pick up a newspaper, magazine or advertising circular and look at the ads. What do you see? A whole bunch of the same thing: a list of services; a company name; a tagline; a pretty graphic; and maybe an offer.

Why advertising doesn't work fortune marketingMost businesses think of advertising in one of two ways: 1) Put your company name in front of enough people enough times so they’ll remember you when it’s time to buy. … or 2) Put an “amazing” offer out there and people will be compelled to respond (whether they’ve made the decision to buy or not).

The first scenario is called ”top of mind” advertising and unless you have a multi-million dollar marketing budget it’s very difficult to buy top of mind brand awareness. In the second example advertising sales people want their advertisers to see results (because results sell more advertising), so they recommend you put an offer in your ad: Get 10% off service, $5.00 of a product, buy one get one free, etc. And sure, that works - sometimes.

Let’s Analyze the “Compelling Offer” Approach:

Does putting an amazing offer in front of people influence them to buy even if they don’t have an immediate or compelling want or need? Does an amazing offer force someone to buy if they don’t have a budget? No, it doesn’t. So your ad gets completely ignored and you don’t get any response. (Ok to be fair – best case scenario – someone may clip it, stick it to the fridge where it will hang for a month or two before it ends up in a drawer or in the trash).

How an Ad Gets Seen….or Not.

Consider this scenario: I’m looking at an ad in the free local magazine that comes in the mail every month; it’s an ad for a $75 carpet, tile or grout cleaning. Well, my tile and grout happen to be pretty clean- well clean enough for me right now. So I’m not interested in spending $75 to get it cleaned, even if it is a great deal. I ignore the ad and move on.

Now let’s think about this… I am a tile owner. At some point in my life I may need tile cleaning services. However, did I notice the name of the business offering the deal? NO. Do I know how they are different from every other steam cleaning company out there? NO. Has this ad given me a reason to remember them when I am ready to get my tile and grout clean? NO. Has this ad engaged me in any way? NO.

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