02/ 27/ 2008
According to emarketer.com, U.S. businesses spent $19.5 billion on online advertisements in 2007. Many businesses are drawn to advertising online because it can be a useful way of targeting specific customers and is often less expensive than traditional marketing.
This is not to say that online marketing is replacing traditional methods. Rather, it is becoming a viable option alongside print, television and radio. Many businesses with large budgets utilize all of these methods. You, however, probably have to make a choice. When you're starting out and you have a limited advertising budget, it's important to consider what medium will best serve you. Ask yourself the following questions to figure out if an online or traditional marketing campaign will be best for your business.
Who is your target demographic?
Consider the average age, income and lifestyle of your customers. Although everyone from 8 to 80 year olds use the Internet, online advertising on the whole is thought to attract younger customers, while traditional media reaches more mature audiences. With this in mind, if you're selling luxury items to people with established incomes, traditional media may be the way to go.
Also consider the nature of your business and what that says about the lifestyles of your customers. If you run rafting tours, it may be safe to assume that your customers would rather spend their free time in the great outdoors than tied to a laptop, and they'd be more likely to catch your ad on their car radio. If, however, you run a comic book and hobby shop, Web sites geared towards your customer base might be a more effective place to advertise than a newspaper or radio station.
Do you serve a niche or general market?
Though it's possible to somewhat target your audience through traditional media outlets, one of the Internet's advantages is its ability to reach specialty customers. So think about the market you serve. Do your products and services appeal to a wide range of people or do you need the business of a special few?
If you fall into the latter category, there are many ways to reach your niche online. You could buy ad space on specific Web sites that would appeal to your target audience, for example, or use a search engine service such as Google Adwords. With these types of services, your ad will be seen by people using search phrases that match your keywords. One benefit to this type of advertising is that you usually only pay when someone actually clicks on your link.
All this is not to say that online marketing is only good for reaching highly specific audiences. News and general interest Web sites can serve just as diverse an audience as traditional sources. However, the more visitors a site has, the more it will cost to place your ads there. So don't assume that online advertising will automatically be cheaper traditional methods—shop around between mediums to ensure you get the best deal.
Are your customers local or long distance?
If you have a storefront business and your main goal is to get your community members in the door, your local paper and radio stations will be great sources for spreading the word about your business. If you operate out of your home or can perform services for long distance customers, then the nature of Internet advertising may work better for you. After all, banner ads and search engine ads will be seen by visitors from all over the world.
With a little forethought it becomes quite easy to figure out which medium is best for your business. And as your business and budget grow, you may decide to establish a presence in both online and traditional marketing, as each offers unique ways to reach potential customers.
