8 things to know before spending a penny on advertising
Much of the money spent on advertising is wasted. Most of it is the wrong message, sent to the wrong people, in the wrong media. So, here are eight things to know about advertising before you spend a penny.
1) What is advertising anyway? “Advertising is creative bragging” – that’s it! Many companies think they have an advertising problem when, in fact, what they really have is a fundamental value problem. They aren’t doing anything worth bragging about.
2) Get good…then brag! Don’t brag and then try to figure out how you’re going to pull it off! This will end badly. Do the work to ‘get good’.
3) Advertising only works if what you say about yourself is congruent with what ‘others’ are saying about you. If you’re bragging that you’re the best while customers, the media or respected ‘influencers’ are saying that you’re not, you’re wasting your money.
When you’re delivering compelling functional, emotional and/or financial value to well understood target customers, creating compelling advertising is easy. If you don’t know for sure who your target customers are, what they really value, what media they engage with and trust and what your compelling message will be…you’re not ready to advertise. Save your money.
4) Don’t lie! People aren’t stupid. Much of what is said in ads today is lies, or very close to it. Play it straight. Build trust…create fans.
For almost a year there was a big backlit ad in the Toronto Airport for a chain of mediocre hotels that said, “You won’t find any nicer hotels in Canada.” This was a lie and everyone who has ever stayed in one of their hotels knew it.
5) Stop making your ads all about price, unless your sustainable marketing strategy is to be the clear low-price leader. For most businesses, competing only on price is deadly and destructive. It’s often a sign of laziness, or a bankrupt imagination.
When customers come to you for price alone, they’ll leave you for a lower price. And there will always be a lower price. Price is important, but there are so many other value and experience factors. Do the work to find the right mix of extraordinary service, quality, selection and price, and then advertise in a way that makes the sale, and builds your brand.
6) Advertising is so expensive that it only makes economic sense when you’re good enough to achieve ‘leverage’. Leverage occurs when the experience you actually deliver is so compelling that every new customer your advertising attracts, enthusiastically recommends you to at least four other people! If you’re not good enough to achieve ‘leverage’ you can’t afford to advertise!
The most powerful and cost-effective advertising is the enthusiastic recommendation of delighted customers! You don’t have to pay for it. But you do have to earn it. People love telling others when they find a wonderful product, service, restaurant, hair stylist, etc. It makes them a ‘big shot’ with their friends. Plant the seed by asking delighted customers to recommend you. Tell them, “You’ll be a hero and your friends will love you!”
7) The internet is your friend. Create a customer database and use it creatively and responsibly to advertise and promote to the people who already know you, trust you and love you. It’s free, but don’t overdo it. When I bought a few items from Canada’s leading menswear store a few years ago, they immediately bombarded me with promotional emails once or twice a week. So I deleted myself. They overdid it, so I walked.
Building and using a large database of loyal customers not only grows your business today, but also makes the business much more valuable when you go to sell it someday.
8) Create a world-class website and embrace social media. Research shows 81% of consumers and 94% of B2B buyers do online searches before making a purchase. So, for many businesses, their web site is the single most important part of their total marketing effort. Here are four simple but important tips on how to improve your web site.
Tip #1: Be the ‘caring coach’. Offer lots of free information and ‘coaching’ tips on how to wisely choose and effective use what you sell. What do people need to know about you and what you sell? Help them make wise choices. Does your web site deliver information in a simple and interesting way? If not, fix it.
Tip #2: ‘Up your video’. Your web site should have lots of video clips. A web site without lots of quality video is way out of date. Most of us have become ‘lazy learners’. We’d far rather watch a video than read a long article. Video gets attention and video ‘sells’.
Tip #3: Make sure your web site and the information it carries is current. I’ve just visited a client’s web site and under ‘events’ they list two events from 2013, three from early 2014 – and nothing since then. The clear impression is nothing new and exciting has happened in this business for the last 3½ years. That’s bad for business.
Tip #4: Check for typos, bad grammar and amateurishly written text. In my work I see so many web sites that are riddled with typos, bad grammar and badly written text that make them look unprofessional. Everything we do, or don’t do makes an impression. How we tell our story matters. If you’re not a whiz at spelling or grammar, hire a local high school English teacher to check out your web site. Writing great copy is an art. Don’t have it done by amateurs.
So, there you have it. Eight things to know before you spend a penny on advertising. Are you ready to spend money to promote your business, or do you have some work to do first?