How To Save Advertising Dollars For Small Businesses

Post on Jun 16th 2008

Businesses usually spend about 2 to 5% of their annual gross sales on advertisements. Some companies use the cash method yet others use the task method for determining their advertising budget. Cash method is when they use that 2 to 5% of gross sales for advertisements and task method is determined based on their past experiences.

It is imperative that small businesses do not waste the small amount of money they can afford on advertisements by using ineffective marketing and advertising strategies. They have to figure out how to save money yet not compromise on the quality and reach of their advertisements. They will have to do market research, be very clear who their target market is, develop a catchy yet inoffensive way of conveying the right message to the target market, focus on the product or service they sell, and list the benefits to the customers. They have to ensure that it is done within a budget and that money is not wasted. There should also be ROI, which can be determined by tracking and analyzing results.

Some Tips on How to Save Advertising Dollars for Small Businesses:

  • Make sure that frequent small advertisements are given instead of one large rare advertisement. This has the potential to reach and register with a larger audience, as repetition is a key to successful advertisements.

  • Target your existing customers, determine your target market and focus the advertisements on them. Instead of being vague and advertising generally, you can focus on your target customers You can do this by keeping a mailing list of all existing customers and sending them fliers and news about your service or product at least 6 to 8 time a year, making sure that they are constantly reminded of you.

  • You can start a newsletter asking people who visit your website to subscribe to it for free. This gives you a chance to generate new leads of potential customers that you can record and use to promote your wares. This is a terrific way of tracking and focusing on your target customers.

  • Permission-based email marketing is a very cost effective yet highly rewarding ROI.

  • Small businesses can wait till the end of the month and then contact magazines for advertising spots that are usually given with a discount.

  • Ask these magazines or the local radio or TV station if they would like to do a feature on your business.

  • Try using hoardings in a less expensive slot, but be sure that it can easily be viewed by a number of people.

  • Businesses usually try to trade or barter their products in exchange for featuring the advertisement.

    • These are just a few tips on how to save advertising dollars for small businesses. There are firms that offer services and products to help run a successful business easily.

    Alexander Gordon is a writer for http://www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.

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