07/ 02/ 2008
by Steve Strauss
Q: Steve – I once saw you give a speech on "Shoestring Marketing." What about shoestring advertising? I would like to advertise more, but, I have a limited budget—especially these days. Any ideas how I can get the word out?
- Zoe
A: I always say that being in business is like being alone in a dark room—you know you are there, but no one else does. So how do you turn on the light and let people (that is, new customers) know you are there? By advertising.
But you are right: Too many advertising choices are expensive—television, newspapers, radio and so on. The reason is because with those mediums you are reaching a lot of people—and you pay for that reach. The problem for many small businesses is that many of the folks you reach by mass media advertising have no interest in what you are selling.
Thus, reaching them is not only expensive, but is actually a waste of money.
For example, say you own a nice little shoe shop and decide to place an ad for a week in the local paper. That ad could cost you $1,500, and you might reach 200,000 people, but if most of those folks are not going to drive across town to frequent your business, reaching all of them is a waste of money. You would need to sell a lot of shoes to make a profit on a $1,500 a week ad.
That is why it is often better for small businesses to focus advertising more narrowly and try and reach only those people who are likely to buy its product. Here are two effective ways to do so:
1. E-newsletter advertising: Let's say you sell products for dog owners. You could advertise in an expensive pet magazine, but as indicated, the results may be uncertain, and they will be expensive, too.
Instead, research the most popular dog and pet Web sites. Find a few you like that also seem to target your desired demographic. Review their e-newsletters (many of the big sites offer more than one), and purchase ad space within one that best suits your target audience.
E-newsletters are highly targeted and you will thereby be reaching only those who are most likely to buy your product or service. Moreover, as the number of people you will be reaching will be far less than with a newspaper advertisement, you can expect to pay a fraction of the cost—and you’ll probably get better results!
E-newsletter advertising is affordable because you are selling only to a self-selected group interested in what you have to offer. These folks have requested to receive the newsletter, and probably look forward to receiving it. Plus, being associated with the Web site could earn you extra credibility.
2. Pay-per-click: We have all heard how great pay-per-click advertising is—after all, Google did not become Google for no reason. But have you tried it?
Pay-per-click works because the same concept is at work here as with an e-newsletter campaign, since you are paying to advertise only to people most likely to purchase what you are selling. That is, you’re advertising to people who put in your search terms and click on your ad. If they don't click, you don't pay.
And remember, Google isn't the only pay-per-click service available. Other online advertising networks to check out include:
- MSN AdCenter
- Yahoo Search Marketing
- MIVA
- Superpages
Although pay-per-click and e-newsletter advertising are inexpensive ways to get your name out there, the rewards can be tremendous.
