Tag: budget

  • Radio Advertising Facts & Figures

    Radio Advertising Facts & Figures

    Even though competitors like to portray radio as an aging technology, the reality is radio advertising remains an effective tool for reaching consumers in today’s fragmented media landscape. Extensive research by the Radio Advertising Bureau reveals a robust weekly audience of radio listeners.

    Who’s Listening?
    Over 92 percent of Americans age 12 and up listen to radio each week, creating an audience of over 235 million listeners. Among 12- to 17-year-olds, who are perceived as not listening to the radio, nearly 90 percent listen weekly.

    Where Do They Listen?
    The majority of radio listening occurs in cars, with 73 percent of adults age 18 and up listening while driving on a typical weekday. The second most popular location for listening is at home. The number of people listening to commercial radio online now includes nearly 20 percent of the people who listen each week.

    What Are They Listening To?
    There are over 10,000 commercial radio stations in the United States. There are more country music stations in America than any other type with over 2,000 outlets. News/talk is second with 1,375 stations.

    Who’s Advertising?
    Major brands such as Verizon, Home Depot, Walt Disney and Burger King are among the top 20 largest radio advertisers. The largest advertising categories for radio include retail, automotive, insurance, restaurants and financial institutions.

    How Much Do They Spend?
    Radio advertising revenue exceeded $19 billion in 2008, and over $13 billion came from local businesses.

    Article written by Mike Stern.

  • Radio Advertising Tips

    Radio Advertising Tips

    Here are some concepts to keep in mind as you plan your Radio advertising:

    • Feature one item, or a limited number, per commercial to insure listener remembrance. You can’t sell ten items in thirty seconds.
    • If you must use price, use one or a few only. This way you won’t confuse the listener.
    • Is a phone number necessary? If it can’t get an order or sell a customer, and if you can’t make it the centerpiece of the ad, don’t use it.
    • Spend a reasonable amount of money. Don’t expect good results unless you invest appropriately.
    • Use saturation for hard-hitting impact. You can’t get the job done with one spot. Repetition – frequency – is one of radio’s biggest persuaders.
    • Distinction is an effective tool for attracting people. That sound effect, theme music or “sound signature” will help your ads make an impression.
    • Don’t select radio programs or formats for your own personal likes or dislikes, but rather for the audience you want to reach.
    • The best use of radio advertising is day in, day out, seven days a week, 52 weeks a year. The results from radio advertising build over time, and they are lasting results.
    • Don’t try to reach too many people all at once. It is better to reach 10% of your prospects 100% of the way than to reach 100% of your prospects only 10% of the way.
  • How to Budget Advertising Costs

    How to Budget Advertising Costs

    Build it and they will come… a motto which is the downfall of many new, small businesses.

    The problem is, “they” often don’t know you exist! Ideally, you have figured out that you will need to advertise your business in order to attract customers.

    That leads to the question, how much money should be spent on advertising?

    The U.S. Small Business Administration has a lot of wonderful resources for the small business. There is a very helpful section on their website that addresses this:  Click here.

    In creating an advertising and marketing budget, the SBA says: “Because marketing needs and costs vary widely, there are no simple rules for determining what you marketing budget should be. A popular method with small business owners is to allocate a small percentage of gross sales for the most recent year. This usually amounts to about two percent for an existing business. However, if you are planning on launching a new product or business, you may want to increase your marketing budget figure, to as much as 10 percent of your expected gross sales. Another method used by small business owners is to analyze and estimate the competition’s budget and either match or exceed it.”

    That information is also available from the SBA: Click here.

    So how much will advertising cost you? Perhaps a better question to ask yourself; “How much is NOT advertising costing you?”

  • 12 Causes of Advertising Failure

    12 Causes of Advertising Failure

    1) The desire for instant gratification. The ad which creates sufficient urgency to cause people to respond immediately is also the ad most likely to be forgotten immediately following the “expiration” of the offer. Such ads are of little use in establishing an identity for the advertiser in the mind of the consumer.

    2)  Attempting to reach more people than the budget will allow. For a “media mix” to be effective, each element in the mix must have sufficient repetition to establish “retention” in the mind of the prospect. Too often, however, the result of a media mix is too much reach, not enough frequency. Will you reach 100% of the people and convince them 10% of the way? Or will you reach 10% of the people and convince them 100% of the way? The cost is the same.

    3)  Assuming the business owner knows best. The business owner is uniquely unqualified to see his company or his product objectively. He is on the inside, looking out, trying to describe himself to a person on the outside looking in. It’s hard to read the label when you’re inside the bottle. Too much product knowledge causes the business owner to answer questions that no one is asking. This makes for extremely ineffective advertising.

    4)  Unsubstantiated claims such as, “Highest quality at the lowest price. Advertisers will often have what the customer wants, but fail to offer any evidence. A cliché is nothing less than as unsubstantiated claim to the public is tired of hearing. You must prove what you say in every ad. The prospect will not make a new decision about your product until you have given him new information and a new perspective. Do your ads supply new information? Do they provide a new perspective? If not, prepare to be disappointed with the results.

    5)  Improper use of passive media. Non-intrusive media, such as newspaper and yellow pages, require the use of a reticular activator (such as a photo or illustration) because passive media tends to reach only those buyers who are actively in the market for the product. Passive media is very poor at reaching prospects prior to their need, which means it is extremely difficult for passive media to create a predisposition toward your company. With patience, the consistent use of intrusive media (such as radio and television) will win the heart of the customer before he is in the market for the product.

    6)  Creating ads instead of campaigns.  It is foolish to believe a single ad can ever tell the entire story.  The most effective, persuasive and memorable ads are those most like a rhinoceros. They will each make a single point very powerfully.  An advertiser with seventeen different things to say should commit to a campaign of at least seventeen different ads, with each ad being given sufficient repetition to accomplish retention in the mind of the prospect.

    7)  Obedience to unwritten rules.   For some insane reason, advertisers want their ads to look and sound like ads.  Why is this?

    8)  Late week schedules.  Advertisers justify their unreasonable focus on Thursday and Friday advertising with the statement, “We need to reach the customer just before he goes shopping.” Why do these advertisers choose to compete for the prospect’s attention each Thursday and Friday when they can have a nice, quiet chat all alone with the prospect each Sunday, Monday and Tuesday?

    9)  Overconfidence in qualitative targeting.  The importance of qualitative data has been grossly overestimated by many advertisers and media professionals.  In reality, Saying The Wrong Thing has killed far more ad campaigns than Reaching The Wrong People.  It is amazing how many people become “the right people,” when you are saying the right thing.

    10)  Event driven marketing.  A special event should be judged only by its ability to help you more clearly define your market position and substantiate your claims.  If one percent of the people who hear your ad for a special event actually choose to come, you will be in desperate need of a traffic cop and a bus to shuttle people from remote parking lots.  Yet your real investment will be in the 99% who did not come to the event!  What did your ad say to them?

    11)  Great production without great copy.  Too many ads today are creative without being persuasive.  “Slick, clever, funny, creative, and different”, are poor substitutes for, “informative, believable, memorable and persuasive.”

    12)  Confusing “response” with “results.”   The goal of advertising is to create a clear awareness of your company and its Unique Selling Proposition.   Unfortunately, most advertisers evaluate their ads by the comments they hear from the people around them.  The slickest, clearest, funniest, most creative and most different ads are the ones most likely to generate these comments.  See the problem?  When we confuse “response” with “results” we create “attention getting ads” which say absolutely nothing.

    Article Compliments of Roy H. Williams Marketing in Austin, Texas.