"How do I know the correct mix of advertising media? How do I allocate my budget?"
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How much of your ad budget should you spend in print? TV? Online?
Dealing with ad budgets can be a real thorn in the side. How much to allocate? Once you've got a budget, where does it go?
Once that's answered, many more questions come into play, including:
How do I advertise to increase brand recognition and sales? Have I given my current media enough time to see if its effective? Have I given it too much time to the point it's become stagnant? How much time/money should I give new ventures to see if they work? Why is print media giving way to online media? Should I abandon the magazines and jump right in?
Before we get ahead of ourselves, lets make a clear statement: The types of media available are constantly increasing, so even experienced marketers have to get back into the learning curve. It's humbling, yes, but definitely not unmanageable.
I'll also make it clear that the below is my strong opinion, but should not be seen as absolute. However, it is based on my personal experience and that of many of my customers.
How do I start the process of changing ad media?
Don't do it all at the same time
If you're thinking about rocking the boat and pulling completely out of one type of advertising to try another, it can have both incredibly good or devastating results. Looking at trends, its just too much of a gamble and could get you fired!
Remaining stagnant and not keeping up with the new trends can also leave your company behind, so what to do?
Allocate a responsible amount of your budget for new ventures, and give them enough time to work!
Advertising is still just branding, building brand recognition and brand familiarity...and hopefully in front of your target audience.
Once you know you've got a good target audience, your brand will need to brew in their midst until it's firmly planted in their minds, suddenly they "notice" your name has been around quite a bit, and they investigate.
Sometimes, you will get the consumer who sees your ad for the first time, but most of the time, it's repetition that drives the brand.
People have short attention spans, especially when it comes to shopping, so it's important to cater to the consumers need need for constant stimuli.
How much do I allocate for online advertising?
Naturally, it will be different for each company, but I've seen a trend of 20%, meaning that many automotive manufacturers are now allocating 20% +/- of their budget strictly to targeted online advertising.
Some companies, such as performance shops and online stores, may want to spend a larger percentage of their ad budgets online, since they have smaller budgets and need their best bang for the buck.
Is print media dead?
That's a good one! I hardly think so.
Many people still like that magazine in their hand, and to pull completely out of magazine advertising would be suicide for many companies.
However, its important to realize that the number of people reading the magazines is going down.
Print media circulation is down, and online traffic is up.
Did anyone notice that Primedia has sold out of their enthusiast side for $1.2 billion? (I'll blog on this soon)
Why Online?
This one is plain and simple: Todays shopper is internet savvy, and many people are now making their buying decisions online (this is where the sales conversion 1-2 punch comes with online advertising).
People are entrenched in the forums, directories and other "performance" websites containing banners, links and user generated video.
If you can find a front that provides all of these, and be assured you are able to choose the audience you want, its definitely worth giving a whirl.
When you've got a consumer at their computer (where they make buying decisions) and they have a means of going directly to your website (again, where they make their buying decisions) and has a direct-link means of contacting you (so you can convert to a sale), it's a win-win situation, and print media can't do this.
It's not interactive, it has no video, no sound, and no navigation.
This is why online advertising is becoming so popular. With modern technology, videos load immediately, and with modern software these web gurus are using, you can choose EXACTLY what kinds of cars the consumers drive who see your commercial. You can see exactly how many times your video was viewed. This gives you an arsenal of PROOF to place on your CEO's desk to prove you have spent your ad budget wisely.
How long do I give it before trying something else?
Many people feel comfortable with a year, but it will depend on your degree of exposure in the new ad media.
For instance, if you're a performance manufacturer, and you have your catalog listed in The DDD Aftermarket Performance Directory with banners, hundreds of inbound links, and video, a year should be long enough to get a good indication of how it's working for you.
Most of these websites have built in ad tracking and video tracking, so you'll be able to tell how much your ad views increase as the year progresses.
As an example, I've got one particular client who received over 20,000 plays this month on their online TV commercial, another received over 12,000....all on one website.
If you know the people viewing these ads are your customers, those are some darn good numbers!
Summary
Don't be afraid to dive in and embrace new media technology, and if you need some advice, I can refer you to some top notch ad agencies that can help you make your decisions and allocate your ad budget while integrating online media with your current media mix.
If you'd like to know more about online advertising, or would like to post a topic for discussion, please feel free to reply to this blog or email me at: jimferraro@dddracing.com
Sincerely,
Jim Ferraro
About the Author
Jim Ferraro Director of Operations The DDD Aftermarket Performance Directory 888-443-4634 jimferraro@dddracing.com
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