“One million invested in effective advertising sells more than ten million invested in ineffective advertising …” David Ogilvy
In fact, the advertising budget is a well-controlled quantity that can be calculated. It is only important to always maintain a balance between the goal and the means for its implementation, and at the same time remember one simple rule: there is no point in spending more than you can really afford.
Here are 5 simple rules to help you save on advertising costs and budget:
1. Ask for an explanation of the cost of advertising
Don’t be afraid to ask for a price justification for particular ad placement and say the phrase “Why is it so expensive?” If the manager is a professional, he will make a good and reasonable explanation, and you will understand where you are investing your money and why. Also, there is a great possibility that the price will be lower than the first one.
2. Plan your budget for the year ahead
This allows, firstly, to correctly correlate advertising costs with the planned financial activities; secondly, to get the best conditions for advertising both offline (TV, radio, press, billboards) and online (banner/article placement on various Internet portals).
Analyse the effectiveness of your ad and adjust the media plan according to the results. Let your employees find out from customers how they found out about you. To do this, instruct a specialist in the marketing and advertising department to develop a special survey form that will represent all the media in which you advertise. Such a report will help you avoid unnecessary advertising costs and identify the most effective promotion methods for you. However, you should not forget about the spontaneous effectiveness of advertising and the postponement of its action — today, advertising that did not work can give a result tomorrow.
4. Use cross-marketing
This is a tool that helps in the joint promotion of products/services to several companies that complement each other. The basic principle is that communication and sales should be in the place where a person is located for it. At the same time, each of the participants in the cross-promotion program has their own interest. Some seek to increase the number of buyers at the expense of the client base of their partners, others — to achieve recognition of their brand. Audience intersection is key to successfully applying cross-marketing technology. If you think about it, there are partnerships in almost all areas of business — design studios cooperate with building materials stores, cafés or hotels with taxi services, banks with real estate organisations, etc. Such advertising not only makes it possible to save money, but it is also more useful for the final recipient. If you do not know who to offer such affiliate programs, then the easiest option is to call all the companies that, in your opinion, will be interested in it, and discuss this option of cooperation with them.
5. “Don’t put all your eggs in one basket.”
The mistake of many companies in the fact that they start to invest their funds only in print publications or television, forgetting about Internet opportunities, contextual advertising or promotion in social networks. Distribute funds across different communication channels. Sometimes a good selection of one print media, local TV channel, internet portal, and transport advertising or a good mash banner is enough to get the most out of it.
Finding the one and only correct approach is impossible. The advertising budget should carry fundamental opportunities to change, be as flexible as possible, and respond to changes in politics, economics, legislation, and the competitive environment. Only a combination of several methods and a businessman’s inner flair will help to develop a harmonious budget, close to optimal, that will bring real results!