Advertising has often been associated with high-budget events, visible and loud television and radio commercials and such. When one mentions about advertising, it seems to be by default that it will cost a lot of money.
Should Advertising campaigns be always expensive?
So does that mean that if you do not have a lot of budget, then advertising is not for you? The answer is a resounding no. Advertising is an important part of any business. It is something that must be done in order to have your products and services known to your target market.
How to ensure low-cost campaigns?
First things first, you must be very much aware that advertising is not an expenditure. It is an investment. This means that you would have to plan a certain part of your budget for advertising. However, not every business will have the luxury of having millions allocated for marketing and advertising and if your company falls under this category, what should you do then?
The rule of thumb is that advertising is something you do when you need business. But if your business is up and running where you have a steady stream of customers, it is time to advertise more.
Under most situations, the cost of advertising should be around 1 to 5% of your gross revenue but that is a very generic figure. This varies according to the business and industry that you are in. Some businesses do not require much advertising like law firms, which are not allowed to advertise under certain laws. Some businesses require constant and rigorous advertising like used-car dealers.
Tips to get it right
If you do not have a lot of budget, you would have to make-do with what you’ve got.
- In radio and television advertising, maybe you can advertise at the non-peak hours or spots. You can and do actually reach your target market although the peak hours are surely more effective.
- Don’t go for a one-time big campaign if you cannot afford it.
- Where possible, try to even out the cost. Use 1-300 numbers which means that customers would pay for the calls to get more information.
- There are a lot of media out there who are receptive of barter trade programmes. You can think about the products you can offer in exchange for ad space with the media owner.
- Another option is to use piggyback advertising where you can discuss with people who send out bills and split the cost between the both of you.
- Another aspect that can be worked on is by reducing the size of the print ads and shortening the length of your commercials which will help you to save in a lot of areas.