Advertising: Do you think you spend too much?
Advertising: How much is enough?
Here is a little something to be aware of if you are concerned about how much your FB or other ads are costing your company. Are you aware of the cost that you incur when you are doing your ads? Do you cringe every time you have to write a check for your promotion?
Maybe it’s time to rethink what you are really doing with your advertising.
It’s not about cost…but on RETURN (ROI). It’s time to STOP looking at the raw numbers and it’s time to start thinking in a different way. If you are not looking at how much return you are getting for your advertising dollars, then you missing the whole concept of advertising.
You don’t advertise to make money for the advertising agency…you do it to make money for YOUR business. Yes, they make money too..but that’s totally irrelevant when it comes to your budget.
So you think you spend a lot on advertising…think again.
This data is from RESPONSE magazine and you will find these stats staggering.
Dollars spent in 3rd quarter of 2016…..
My Pillow….$67 M
Yes…that’s in a quarter year…and that’s in MILLIONS.
I was totally blown away. There must be a lot of money in pillows, fat and pimples! I can’t image the necessary ROI to get a return on those ad numbers for pillows, weight loss and pimples. But obviously they must be, or at least I would hope they would be…
So what’s the lesson?
It’s time for you to reevaluate your advertising budget. Look at what really counts…your ROI (return on investment) for each dollar spent. And have the level of detail to fully understand what ads produce the return and what ads just burn up your dollars.
Here’s my advertising newsletter story.
Here is a little example. A while back I started a newsletter for one of my businesses. Not a cheap newsletter on a piece of 8×11 photocopy paper. Nope. I did it right. A beautiful fully professional appearing 4 page glossy professional quality newsletter. Its something I was (and still) am very proud of. And I sent it out to over 1700 current, past and potential clients. And I did it for nearly 18 months…every month. And it did cost real dollars. And although there was good will generated, and a level of logo/name recognition, the bottom line was that it really wasn’t giving me any reasonable ROI.
And you know what? When I stopped publishing it, only a few of my closest clients even mentioned it. I don’t know why it produced such poor return, but it did. It may have been the audience (i.e. non-receptive), the content (didn’t get their interest) or maybe we just didn’t leverage it well enough in the other aspects of our promotional program. Regardless, it didn’t do its job. And I killed it.
So it’s important to be sure that you spend your advertising dollars wisely, and have them work for you. Any dollar you spend to promote your business should work successfully…or you should fire it. And the only way of knowing if it’s working is to measure the success…in real dollars.
What’s your advertising success? What’s your advertising failures? Share below.