In Part 3 of our discussion about “Money” we began to dig into marketing. We listed the three items below and will add another today which is social media.
- Print Ads
- Direct Mail
- Referrals or Word-of-Mouth
- Social Media
We looked at Print Ads and as we posted before we are going to keep going so you can get a real education as to what is going on and how to make all of these work for you.
Taking a cynical look at print ads will help us use our money, our time and our creative juices properly and most efficiently. There is a saying about most print ads that gives them another name and that name is “tombstone ads.” Why? Because most of them are dead!
How can we say they are dead with all of the advertising that takes place around the world? All you need to do to verify this is to look at most of the newspapers in the world and you will see that most of them are struggling. They are under tremendous financial pressure because people have moved away from them to do their advertising. If these ads worked really well most people would stay with them but they don’t because generally they do not give the return those running the ads need.
Think about this, it costs an advertiser tens of thousands of dollars to run a large ad in a large national paper. If that ad pulls more than the cost of the ad in profit dollars, they would keep running the ad. But if it doesn’t pull in more than the cost of the ad, the cost of production, the product costs they are selling, etc., why would you keep running the ad? They stop the ad and that stops the money rolling into the newspaper’s bank account.
Many businesses small and large go to ad agencies for help to create a really cool ad that will get people’s attention (we are all for this provided you can verify certain things that are discussed below). This costs a large amount of money with no guarantees. Now you run the ad and everyone sees it and the ad agency you contracted wins an Addy award. What is an Addy award? Great question!
An Addy is an award given to the agency that produces a really cool ad, maybe one that is different or edgy or something else. Now the ad agency let’s everyone know they won it because it is great advertising. Businesses flock to that kind of thing because they must be an awesome agency because they won the award. Maybe, maybe not.
The real question should be; how much money did the ad generate for the business that asked for help and ran the ad? If the ad made more money than the cost of the ad, the cost of the agencies fees, the cost of the product, the cost of the media that ran the ad, etc., then it was a great ad. However, generally this doesn’t happen, what did happen was that you financed an agency to win an award that they are going to go out and make more money with while you are left with a big hole in your bank account.
What is the moral of this story? If you are going to run print ads (and I am not saying not to), you need to have a specific set of goals, a plan to get you where you want to go. You also want to ask the right questions of any agency that you are going to contract with to make sure you are getting what you want out of the ad campaign.
- How much revenue did your last 5 campaigns generate?
- Was it above or below what your client was looking for?
- Did it make money for your client?
- Was it profitable for the client?
- Did they hire you to run another campaign?
- May I speak with them?
These are extremely important questions that you need to have answered before you sign on the dotted line. Get the answers, dig deep and stay motivated – you can do this.
Until then, subscribe to our different sites and start to get a world-class education that is far and away better than anything you will get in any school. Why? Because this really works, no theory, no psycho-babble, just real, hard-learned knowledge that will launch your business!
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Until our next post – we wish you all success!
The Dean of Success! ©