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Business banking > Guidance > Business guides > Sales and marketing > Advertising – getting more for your money 

Advertising – getting more for your money

There are many promotional techniques available to businesses, and you normally need a mix of several of them. So advertising should only be a part of your overall strategy. It can and does work, but it is possible to spend a lot of money for little payback. The key to getting value for money is making sure you get your message to the right people, in a way that engages their interest and encourages them to act on it.

Why advertise?

To begin with, consider why you are advertising. Advertising can do a range of things but one advertisement may not be able to do everything. To be effective, it must be designed for a particular purpose. For example, an advertisement may aim to:

  • Inform potential customers of something new (a product or a product change, perhaps).
  • Increase the frequency of purchase.
  • Increase the quantity purchased.
  • Increase the period of potential purchase (for example, lengthen a season).
  • Increase the use of the product.
  • Present a promotional offer.
  • Change or build the image of a particular product or your business as a whole.
  • Support retail activity (or that of any other intermediary such as a distributor).
  • Maintain or increase customer loyalty.
  • Stimulate enquiries.
  • Provide or reinforce information.

Advertising may aim to do several of these things at once, but overreaching is a danger – you could end up meeting none of your objectives well.

When you start, set yourself clear and specific objectives. For instance, 'This advertisement is to persuade existing customers to buy again and give them reasons for doing so more often,' rather than, 'This advertisement is to tell everyone all about us.'

Also link your advertising to realistic financial targets: 'In the month following this campaign we aim for sales to rise by eight percent.' This advertisement may not be the only reason for change, of course, but this should not stop you setting targets and measuring results.

Who to target

Most markets are segmented and you may sell to several kinds of people. You need to know who these are. For example, among other things, you need to know:

  • Whether they are consumers or business people.
  • How old they are.
  • What gender they are.
  • Where they are located.
  • How affluent they are.
  • How much they usually spend on products and services of this kind.
  • How much they know about you already.

With this sort of information, you can link the objectives of your advertising with your target(s). Ask yourself:

  • Are your objectives the same for everybody?
  • Is the same message right for all types of people?
  • Are these types of people different? For example, do you need to advertise to retail purchasing managers to persuade them to stock something, and separately to consumers to persuade them to go in and buy it?

Link this sort of thinking to the next area – deciding which is the best place to communicate with your chosen groups. This is because you must direct your advertising at clearly defined groups of people. Trying to make an advertisement all things to all people is likely to be a mistake.

Where to advertise

To be successful, advertising must be placed in appropriate media if it is to reach the target audience cost-effectively. You are unlikely to reach many teenagers in Saga Magazine, or consumers in a trade journal. These examples are extreme, but fine differences are important too. You might have to decide between advertising in the local Chamber of Commerce magazine or the business supplement of a local paper.

The problem here is compounded by the multitude of media. These include the press (local and national newspapers, colour supplements, magazines, local and national radio and television, email newsletters and websites); posters; the cinema; and many more: from books of matches to litter bins, from freesheets to footballers’ shirts. There are few places that do not have advertising potential.

Think about where to place your advertisements in conjunction with your objectives. Saying, 'Let’s try posters!' is not precise enough. However, a few strategically placed posters (for instance, where people come out of a cinema to direct them to your pizza bar) might be a better decision.

Select media that precisely fit your target audience. Every other consideration is irrelevant, even cost. It doesn’t matter how much – or little – you spend on your advertising campaign; if none of your potential audience sees it, it will be worthless.

There are three further points to consider:

  • Location – Mass markets demand mass media and massive budgets. As a smaller business, you need to find exactly the right medium and exploit it effectively. But be careful – below a certain exposure level, your advertising effectively becomes invisible. It is often better to place fewer advertisements that are well located and noticeable, rather than many that are not. Remember that those selling space want your order. Check what they say, and then negotiate hard if you want value for money. The way you book space, the size, the position within the newspaper and even on the page, the timing – all these are negotiable and can form part of a package that gives you what you want, saves you money and maximises value.
  • Continuity – People’s memories are very short and there are thousands of other messages constantly directed at them. A one-off blitz can be useful (to launch something new for instance), but a regular ongoing lower-key message may pay better dividends. You need to look at advertising as a continuum, rather than a series of one-off spurts to be fitted in as and when.
  • Measurement – Although measurement is difficult it must be done, or you will never know which advertisement or medium was most effective. Train your people to ask every single customer: 'How did you hear of us?' If possible, use advertisements that allow measurement – for example, a coded coupon to cut out and return, a code to quote over the phone or a specific action to take, such as, 'Bring this leaflet to XYZ Shop for your 20 percent discount.'

The ideal advertisement

There is no one formula guaranteed to create a perfect advertisement. Some things are essential however. Most good advertisements:

  • Provide information – This may be detailed, technical, or just a word or a name.
  • Aim to persuade – You need to focus on the needs or desires of the customer and sell.
  • Differentiate the company from the other suppliers in the field – Usually with a unique selling benefit.
  • Reinforce – They are designed to add to people’s understanding and perceptions rather than start from scratch.

The format of an advertisement is not fixed. One might be a three-part serial on television (like the Gold Blend coffee advertisements), while another is a full page packed with text, or a picture with one line or even one word beneath it.

However, the aim is always to engage the reader in four different ways: first, grab their attention, then generate interest, then create desire, and finally, show them how to take action.

  • Attention – Use a strong headline, or a picture with a headline. Your business’s name or the name of the product is not a good headline – it simply does not attract attention. Instead, incorporate your strongest benefit into the headline and make it exciting.
  • Interest – Give people some information about the features and benefits of your product or service. Tell people how your offer affects them, make a promise, offer solutions, communicate quality (or value, or both). The key is to involve people’s emotions and desires.
  • Desire – You want your audience to say, 'Yes, I want that now!' Reinforce and personalise interest. Show how your product or service is specifically right for them, enthusing, adding credibility (for example, by using testimonials), reassuring them (for example, by making a limited offer) and building the case whilst remaining clear, simple and believable. Focus on benefits or image, not features.
  • Action – Tell people precisely what to do next. Sometimes this is implied – it is clear that action takes place later, say, next time they visit a supermarket. Sometimes it is direct – return a coupon or make a telephone call now.

An advertisement may do all this in a great variety of ways. Much of it may be visual (or, in the case of radio, an evocative picture may be painted). It may provide all the details, or highlight one or more in a way that differentiates a product from its competitors. And with many consumer products, it may include an exciting image around the product – sometimes with image being more important than the product! The audience must want to be associated with that image and all it implies.

When you advertise, convey a clear message, but do it creatively to make it interesting and memorable. If clarity and cleverness are in opposition, clarity is always more important – people will not buy what they do not understand and you have only seconds to make your point.

Creating the copy

There is no reason why you cannot write a good advertisement yourself. Many people do so very successfully. The skill lies in not being introspective. Much small company advertising reads like a catalogue: 'We are… we do… we have…' all put over in a relentless way, often replete with jargon. If one thing characterises great copy writing it is a focus on the customer, their needs and desires. So start thinking along the lines of what’s in it for the customer.

People buy something because of what it does for them (the benefits), not because of what it is (the features). What they get may be tangible or intangible, but it is for them. For example, employers do not want a recruitment service. Instead, they want a short list of perfect candidates, saving them time on interviewing and enabling them to appoint the right person quickly and certainly. So a recruitment agency advertisement would emphasise the hassle employers normally face and the effect on productivity of making a rapid appointment. If you just tell them how the service works, you may lose them. However, tell them what these details mean to them and they will pay attention.

Essentially, such principles are simple and common sense. The technique is in combining them creatively so that your advertising does a good job. Think carefully about what you put in your advertisements – ideally share ideas in a group – and they will be relevant and attractive.

Advertising as part of the promotional mix 

Advertising is just one of many promotional mechanisms. This mix includes: press and public relations, direct marketing (which is a specialised form of advertising including direct mail, email and SMS), online media; sales promotion (including competitions and special offers), sponsorship, merchandising and display, and a range of simple devices, from leaflets and newsletters to promotional events and exhibitions. It all depends on what you are selling and to whom, because some methods are not right for some businesses. Three things are important, though, whatever your strategy:

  • The mix must be well-balanced, with the right things included and the amount of each appropriately judged.
  • Everything must be effectively conceived and implemented (from the simplest brochure to the big overall campaign) to maximise its impact. Woolly marketing is worse than none.
  • The range of activities must be well co-ordinated so that each part adds to the rest and there are no conflicting messages.

If you can find approaches that combine something informative, memorable and attractive all at once, you will have something very effective. This applies equally to a whole campaign and to any one element.

Your advertising checklist

  • All print advertisements need a headline, body copy and a response mechanism.
  • The four responses your must elicit are attention, interest, desire and action.
  • Stress what is unique about your product and service.
  • Lead with benefits. Use the bulk of your body copy to tell the reader what’s in it for them, and answer possible objections, concerns or worries about the product.
  • Be credible, Sticking to the facts is both a legal and a practical requirement. Keep your promises believable.
  • Keep the style simple. Make every word count. Use bulleted copy as a way of highlighting benefits.
  • Keep your copy chatty, avoid pomposity and speak directly to the reader. This is more compelling than using the third person.
  • If you want a direct response, make it easy.

Advertising in practice

Take a look at the lineage advertisement in the next paragraph. At just 50 words, it’s succinct and grammatically correct. It’s not bad – but it’s not nearly as powerful as it might be.

Starry Windows at staff prices. Are you concerned about heat loss, cold draughts, condensation, maintenance, security and noise nuisance? Starry Windows is one of the country’s largest and longest established window companies. With no obligation, ask Starry Windows to quote for the best in windows for your house. Tel 0800 XXXXXXX

People don’t really care that the company is called Starry Windows. And ‘staff prices’ is non-specific and doesn’t tell anyone much. However, most people might have stopped to read a headline that read ‘Save 10% on heating bills – NOW!’ This is punchier, still factually correct and includes a benefit: it tells the reader immediately what’s in it for them.

The main body of the copy is a prime candidate for bullet copy. For example:

  • Heating bills sky high?
  • Condensation rotting your windows?
  • Harassed by noisy neighbours?

All to the point and made more effective with emotive words.

Next, we need to establish desire by reiterating the original promise. Now is the time to say who you are and why you are the best. How about, 'Starry Windows has been solving thousands of homeowners’ problems for 27 years. Call now for a 35 percent discount on normal prices whilst stocks last!'

Lastly, make it easy for the customer to act, 'For a free quote call 0800 XXXXXXX'.

Save 10% on heating bills – NOW!

  • Heating bills sky high?
  • Condensation rotting your windows?
  • Harassed by noisy neighbours?

Starry Windows has been solving thousands of homeowners’ problems for 27 years. Call now for a 25% discount on normal prices whilst stocks last! For a free quote call 0800 XXXXXXX.

Just a few changes here and there, but it is now a much more persuasive advertisement in the same number of words.

This is just one suggestion and you might need several versions for different media. For example, the company’s research showed that women were less concerned about maintenance because they see that as 'the man’s department'. A typical comment from women was that windows 'make the house feel as though it wraps around you'. Each publication has a typical reader profile, which you can only gauge by reading a couple of copies. You need to match your benefit to the desires of the likely readers. So if this company were advertising in women’s magazines, it might bring out the emotional and aesthetic aspects instead.

Preparation

It may sound obvious but do make sure you can actually fulfil the promise of your advertisements. Don’t run more advertisements offering free consultancy until you have responded to the leads from the last campaign. If you announce a great offer and a number to call, make sure you have the capacity to answer the expected number of calls. Make sure your team is properly briefed and with diaries clear on the day the advertisement appears. Make sure you have (or can quickly obtain) sufficient stock to satisfy all the new customers you hope to attract. It is a complete waste of your money and effort if you are not prepared at all levels to meet the demand you hope for. These considerations are especially true of online advertising, which can be accessed globally 24/7.

Useful contacts

  • Advertising Standards Authority

    The ASA publishes a series of guides and codes of practice, relating to all media, on its website.

    Mid City Place,
    71 High Holborn,
    London,
    WC1V 6QT

    T: 020 7492 2222
    F: 020 7242 8159
    W: www.asa.org.uk
  • Mail Order Protection Scheme (MOPS)

    MOPS acts as a guarantor for advertisers. It protects consumers buying by mail order if an advertiser covered by the scheme collapses. However, MOPS only covers cash-off-the-page advertising in national daily newspapers.

    18a King Street,
    Maidenhead,
    SL6 1EF

    T: 01628 641930
    F: 01628 637112
    W: www.mops.org.uk
 

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