Amy

A: Advertising more right now makes intuitive sense to me, but does it make actual real business sense?  Maybe, but maybe not.

Intuitively, one thing that is clear right now is that people are looking for a bargain;  customer loyalty is a bit of any oxymoron as customers are generally more interested in saving money than patronizing their favorite businesses. As such,  advertising can put your business in front of these potential customers.  That is my intuitive take.

But a really interesting new book calls into question that very premise (which is actually also the premise of the question above) as well as other sacred cows of conventional business wisdom.  The book is called Duck and (Re)Cover by Steven S. Little (Note: Steve is an associate of mine as this book is published by John Wiley & Sons, who also publishes my Small Business Bible).

In the book, Little points out that this piece of conventional wisdom – that advertising more in a recession leads to increased sales growth – is essentially an urban myth.

The book explains that if you Google the terms “recession” “advertising” “study” and “sales growth” – you end up with millions of pages that essentially say something like “The results of a study indicate that businesses that maintained or increased their advertising expenditures during the 1981-1982 recession averaged significantly higher sales growth.”

The book notes that the study is then cited ad-nauseum by anyone who wants to get you to advertise more right now, for example:

• The radio station that cites the report to explain why people need to advertise on its station now more than ever
• The PR firm, saying that marketing with them in a downturn is critical
• The freelance copywriter who is looking for clients

So Little decided to find out what this study actually says. It turns out that all of these sites are talking about the “McGraw Hill Research Laboratory of Advertising Performance Report #5262.” Little discovered that what report #5262 actually says and what the millions of sites citing it think it says are not nearly the same thing.

In fact, Little found that report #5262 expressly states that there is no “causality” between advertising in a recession and sales growth, that the study only looked at public companies, that these companies had sales more than $1 billion a year, and that the study took place in 1985.

So, as Little concludes, the McGraw-Hill study and its ‘advertise more’ conclusion only tangentially relates to you if you own “a relatively large industrial company with a business-to-business advertising bent” and you think a study that is more than 20 years old can help you in the 21st century (P.11).

Little’s point, and the point of the book, is that you need to examine closely your business beliefs, especially those relating to how to deal with “the choppy waters of a recession.” Yes, advertising more may make sense for you, but if it does, it is not because of some old study that is oft misquoted, it is because that is what your business today, properly analyzed, requires.

And that is what this book does. It helps business owners analyze the state of their business accurately and then it prescribes various ways to see and seize the opportunities that are out there. It is, as the subtitle suggests, “the embattled business owner’s guide to survival and growth.”

As Little told me last week, “in a time like this, opportunities will become available – but you have to get yourself ready for them. That is what the book is designed do” The trick, he says, is not to over-compensate, or do nothing, or to do what you have always done (because the market has changed now) but to use logic to make smart choices.
This is a really good book. I say check it out.

Today’s tip: Another piece of conventional wisdom given to small business owners is to ‘get a board of advisors.’ But where do you find them? Where do you find business mentors, other business owners, entrepreneurs to commiserate with, etc.?

Here’s a resource you may not know about: PartnerUp.com is a great site that offers entrepreneurs the chance to meet and partner up with other entrepreneurs, find mentors, network, and more.

Linda

A: There’s an old maxim about advertising and dogs which that is pretty true, and I once I had the dog to prove it. Her name was Gert. Like most dogs, Gert hated it when she had to swallow a pill. She would spit that pill out as fast as she could.

I learned that the only way to get Gert to swallow a pill was to wrap it in something she loved. I usually stuck it in a hunk of cheese. She would gobble the cheese up, pill and all.

Well, your mass media advertising is not unlike that pill. Customers don’t really like ads. They try and to avoid them and figuratively spit them out by turning the page or changing the station or zapping through them.

So what do you do?

You need to wrap your ads in some tasty metaphorical cheese of course. Your cheese may be a great benefit, or humor, a giveaway, or maybe a catchy jingle.

Whatever it is, the first lesson of mass media advertising is that creativity works.

But let’s drill down a bit more.

Radio: If you want to succeed in your radio campaign, here are three rules to follow:

Rule # 1. Pick the right station: It does not matter how great your ad is or how clever it is, if you pick the wrong station, the ad is a waste of money. The people who need to hear it, who might buy what it is you are selling, will never hear it. So be sure to pick the station with the right demographic.

Rule # 2:. Have a creative ad: Right, the cheese. First, make sure you have a “headline” that catch’s their attention! After that, the key is to be engaging and creative. Radio is a medium that takes place between the ears; people must use their imaginations to make it work. Whether that means telling a story or using wacky sound effects is up to you.

Rule # 3:. Buy as much frequency as you can afford: Radio requires frequency. It is said people have to hear an ad six times before they really hear it. In addition, listeners change stations, tune out ads out, and talk on the phone while listening, so you have to repeat the same message again and again to get it heard. How many ads do you need to buy? As a general rule of thumb, on any given station, no less fewer than 15 is preferable for during a week, and 25 or more is desirable.

And remember, no matter how clever it is, you ad must answer one basic question the listener is asking: “What’s in it for me?”

Television: TV is the 800- pound gorilla of traditional advertising because it works. That said, it most certainly is not for everyone.

The challenge and opportunity of television has to do with its reach. Because you will be reaching a large audience, you will pay accordingly.

How much? One 30-second spot in the afternoon may cost $250 (depending on the station and city, of course.). That same ad during the evening news may cost $750 or more. During prime time, it may be double that. Overnight, it could drop to $50.

So the first thing to consider is whether you even need to reach that many people. Ask yourself:

·        Do I have a business that has regional appeal?

·        Can I afford to advertise often enough to get people to notice, remember, and act on my ad?

·        Is there a better, more cost-effective, use of for my advertising dollar?

·        If my ad works, can I handle the increased traffic that will result?

Like radio, frequency is one an important element to of successful television advertising. You simply must air your ad a lot to get people to act on it. This is even more difficult in this age of the DVR, where when people zap ads.

Another option is cable television, where the rates are far less expensive because the audience is much smaller. If you decide to advertise on cable, the same rules apply (creativity, etc.) but be sure that you specifically choose what which stations and shows you will be on. Ending up on the “broad rotator” schedule, though cheaper, means that your ads will be placed anywhere, anytime.

Also consider also overnight and weekend ads.

Mass media advertising can indeed work, if you make it “cheesy.”

Today’s tip: One key to a successful TV or radio ad is to repeat vital information: “Head On: Apply Directly to the Forehead! Head On: Apply Directly to the Forehead! Head On: Apply Directly to the Forehead!” Annoying, yes, but memorable, too.

More importantly: Be sure to repeatedly repeat your phone number and URL.

Here’s a list of do’s and don’ts when developing your campaign:

Keeping it Clean

Do use simple ideas: Focus your campaign on one image, slogan, or concept.
Don’t have 4-5 images vying for attention: your ad will likely confuse readers into just turning the page.

Do keep it short: Give them 2-3 benefits and enough interest to make them want to find out more.
Don’t clutter the page with too much information: Again, don’t confuse people with information overload. Save all the extraneous information for your brochure, catalog, or advertorial piece.

Do keep it relevant: Think of your target audience and give them only the offers or benefits relevant to them. You’ll get a much better response rate.
Don’t just throw everything you have out there: If you have several different product lines, you don’t want to talk about all of them in one ad. Relevance is key!

It’s All in the Headline

Do make your headline short and impactful: a website has less than 10 seconds to grab your attention when you land on it. An advertisement has even less, so you need to grab your intended audience from the word “Go!” This means that your headline needs to be snappy, sharp and effective.
Don’t have a long-winded headline: The more your audience has to read, the more bored they’ll become. Get to the point!

Do compare where necessary: consumers want to know why they should buy from you and not your competitors – give them benefits.
Don’t go on too much about your company: you’ll just put your audience off altogether. Offer them something instead – anything that shows what’s in it for them.

Stand Out Visually

Do grab attention with your logo or a graphic: Think about the slogan for clothes designer FCUK – at first glance, you have to look twice to make sure you haven’t misread. This is the kind of attention you want – a catchy slogan and one that stays in your mind after you’ve seen it. If you can afford to, have a professional designer come up with some examples for you.
Don’t be too clever: The last thing you want is for your ad to be so clever that your audience has to think too long to get it. Remember, 10 seconds…

One of the biggest problems online marketers face is grabbing the attention of surfers. The second is building instant trust between the surfer and the website. The latter sounds practically impossible but new technology has once again prevailed and brought us one step closer to the goal.

Perhaps you’ve seen it and perhaps you haven’t. Regardless, it’s making a splash in the online advertising/marketing community. What is it? (drum roll please…)

Moving media.

The principle is to place a "live host" on your website that will greet your customers and personally introduce your site and company. The humanized video makes for a far more personalized feel to your site and establishes a sense of trust worthiness and credibility. Many large companies are jumping on the bandwagon and from everything I’ve heard, people seem to think it’s a pretty cool thing.

Two companies appear to have the market cornered on creating and delivering this service. Rovion and Webouts offer the same things essentially however, Webouts appears to be different in that their video person can enter from any direction on your website while Rovion’s are apparently stationary.

The companies allow you to produce your own creative but also have their own teams that can work with you to produce the desired result. The clips can be up to 30 seconds long and Rovion’s starting price for a small campaign is $2,500.

Check out Rovion and Webouts for examples and more information.

Now check out this one from 2003:

So as you can see, McDonalds has changed their approach from a more childlike appeal in the first commercial to actually trying to appeal to many different types of people and lifestyles. This certainly reflects the size of the company at each moment in time as well as the different markets they are trying to reach.

If you are considering rebranding here are the top mistakes marketers make according to Jessica Seid of CNNMoney.com :

1. Clinging to history. Successful rebranding means staying relevant. Remember that assumptions made when the brand was established may no longer hold true. Explore various opportunities for brand expansion, such as online advertising.

2. Thinking the brand is limited to the logo, stationery and corporate colors. Brands encompass everything from customer perception and experience to quality, look and feel, customer care, retail and web environments, the tone and voice of communications, and more.

3. Navigating without a plan. Effective rebrands rely on a creative brief to keep everyone focused as the project progresses. Include sections for an analysis, objectives, target markets, budget, timeframe, point person and methods for assessing results.

4. Not leveraging existing brand equity and goodwill. Dismissing brand equity when rebranding alienates established customers, while unnecessary overhauls can irreparably damage a brand’s perception. Consider the needs and mindset of the target market carefully before diving into the process.

5. Not walking in your customer’s shoes. Simply calling your own 800-number or receptionist may reveal challenges customers face and inform your rebranding strategy. Take the time to navigate your own website, buy your products and return something. Better yet, ask a friend or family member to do so and learn from their experiences.

6. Believing rebranding costs too much. Good thinking doesn’t have to come with a multi-million dollar payout. You can get good thinking and solid strategy from small and talented branding agencies, consultants and in-house talent. Consider university students or small firms for cost-effective results.

7. Bypassing the basics. The value of perfecting your physical environment, marketing materials, website, etc., is decreased if your customers languish on hold for inordinate amounts of time. If your invoices and contracts are written in seven-point legal jargon, the brand experience declines. Keep all customer touchpoints in mind when rebranding.

I’m sure you’ve seen those cheesy commercials that crowd your late night television viewing. You know the ones promising extraordinary results and benefits that basically scream in your ear to BUY IT! Well, I suppose those work to some degree because otherwise they would have fizzled out long ago. But the average business owner needs a different approach. A very different approach.

Be conscientious of what your copy sounds like. If it sounds like one of those late night "razzle-dazzle" quick-sell commercials, you’re on the wrong track. Here are some ways to figure out if it falls into that category (from Marketingprofs.com ):

Exclamation points. Use them judiciously—if at all—and only when a statement truly merits the added excitement.

Numbers. Headlines like "10 Powerful Secrets for [Fill in the Blank]" will undoubtedly pique a potential customer’s interest; but they also sound like copy that will lead to an impulse buy, not a long-term business relationship.

Hyperbolic claims. Does an image-conscious company really offer something extra for acting now, or suggest that the big secret will be revealed for the low, low price of $199.99?

The idea is not only to sell your product but to form a lasting relationship with the customer so they will keep coming back time and time again. Read more about how to build your brand here .

I was introduced to PlentyofFish.com today. It’s an online dating service that was started by one guy in Canada 5 years ago. It is now the third most popular online dating service and pulls in an annual revenue of 5 million+ from Google advertising. You know how many people run it now?

Just 1.

Yes it’s true, the same guy that started it still runs the site out of his apartment in Vancouver and is sitting quite pretty with his "little" venture. The difference between his site and the others out there? Well, #1 it’s absolutely free (people love free stuff right?) and #2 his success is based solely on word-of-mouth marketing. Kind of amazing isn’t it?

So now you might be wondering "why does it work?" In a word: trust. People naturally trust the recommendations of their friends, neighbors, family and peers over that of an anonymous marketer. Seems obvious but to employ this tactic isn’t as easy as it sounds.

Anyone attempting to use word of mouth marketing tactics must be very careful not to fool anyone about the source of the recommendation. Being straightforward is key. If you are from the company you are recommending, tell people you are. Because if you lie and people find out, the trust is broken, and word of mouth will work twice as fast but negatively against you.

Things you can do to start getting the word out:

• Create publicity (contests, event sponsorship, polls/surveys, organize a speech/talk, invent then present an aware, etc.)
• Viral marketing/advertising ( video clips, e-books, images, text messages, etc.)
• Choose influencers to spread the word (these will be individuals who are trusted already and can carry your message to their contacts)

If you have any other thoughts or comments regarding word of mouth marketing please share!

The difference here is that instead of aggressively “forcing” your advertisement onto consumers and customers, your business should now adopt a softer approach that will actually make them more likely to buy from you. This is because they won’t see you as trying to make them buy your product – instead, you will appear to be trying to help them with their requirements.

Soft Selling in Action
If you’re still unsure of why your business should be using a soft sell approach to both your marketing and advertising campaigns, then the Dove “Real Beauty” campaign is a perfect example. Instead of using super-thin models to promote their products, the advertising campaign for Dove’s beauty products uses real women of all shapes and sizes. The message is that Dove knows that not all women are magazine perfect, and they’re celebrating this by using real women with real body shapes.

The success of this approach has seen sales of Dove products increase massively – despite Dove products often costing more than their counterparts. This is testament to how their advertising campaign has clicked with women everywhere, and has also resulted in their competitors using similar tactics.

Soft Selling and Your Business
Once you realize the benefits of soft selling, it’s time to see how it can work for your company. Depending on the market you’re in, you will have to take a different approach to ensure you target the customers you want. However, no matter which industry you’re in, the key to a successful soft selling campaign is to make sure that you’re using it effectively. To do this, you need to come across as offering a solution without actually trying to sell that service or product.

Another good example is the current campaign by Apple, showing why Mac’s are better than PC’s. The adverts don’t attack the PC, or say that it’s an inferior product – instead, they show what a Mac can do, and that it can actually do everything a PC can do and more. Because Apple isn’t deriding the PC industry, potential customers see Apple as a friendly company who doesn’t have to stoop to low-end advertising tricks, and as such Apple Mac sales have increased exponentially.

Let your business take the same approach – instead of calling out your competitors, let your advertising show that your product offers a solution to everyday needs. Slogans like “We understand…” or “Let’s talk about…” offer a softer and friendlier approach, and should see your sales and customer base increase accordingly.

A recent survey conducted by Harris Interactive and Dr. Alan F. Westin Professor of Public Law and Government Emeritus at Columbia University showed that the majority (59%) of U.S. adults are uncomfortable with customized ads directed at them based on their web surfing habits. It doesn’t really surprise me either.

After all, have you ever been reading your GMail and glanced over at the ads down the side and noticed that the ads have been determined by scanning the content in your email? I’ll admit that when I first noticed that going on, it weirded me out a bit. It made me feel as though someone must be looking at my private emails! Apparently I’m not alone.

The survey goes on to report that more people would be slightly more comfortable with the practice if they were presented with a privacy policy first but not by a huge margin. From a consumers standpoint it does tend to send up some privacy red flags.

But as an advertiser, this type of focused strategy is enormously beneficial. It makes sure that the ads are far more targeted on the individual which saves the time and money of both the advertising business and the consumer. However, if the uneasiness remains, don’t be surprised if you see some battles ensue.

The question for business owners and advertisers (also being consumers themselves) will be: which side of the fence will you come down on?

I remember the days when cell phones were exciting because they were cordless AND you could use them past your front porch without it crackling and buzzing you deaf. Then came the ringtones. And the cameras. And the text messages, email, internet, music and video. I can’t afford the latest and greatest (mine simply allows for phone calls and a few texts) but when they add a "Makes You Breakfast in Bed" feature I’ll seriously consider upgrading.

But as is, I, along with countless others, still possess the capability of participating in text shopping, the latest service offered by Amazon.com called TextBuyIt. Here’s how it works (courtesy detnews.com ):

"It lets people text the name of a product, its description or its UPC or ISBN to 262966 (that’s "Amazon" on the keypad) from anywhere their cell phones work — including from inside physical stores.

If Amazon stocks matching items, the service returns two results at a time. Shoppers can immediately buy one of the first two the selections by texting back the number "1" or "2," or they can ask for more by texting the letter "M."

New TextBuyIt customers will be prompted to enter the e-mail address associated with their existing Amazon account plus a shipping zip code. The service then calls them and walks through the checkout process using an automated voice system. Shoppers get confirmation by text message and e-mail.

From there, the customers can check on order status on Amazon’s Website."

First I just have to say that I think this is pretty awesome–as a consumer that is. I keep thinking that there is no way things can get easier and lo and behold, someone finds a way. I’m not so sure I would use this personally (remember, I’m too cheap to upgrade to a cooler cell phone so I’m not exactly a ’shopping on demand’ kind of person) but I do know that this service will likely be widely accepted by shoppers and replicated and perfected in different forms by Amazon’s top competitors.

So what kind of effect do you think this will have on brick and mortar stores? Or small businesses for that matter that do not possess the capabilities of offering such a service in order to compete with Amazon?