How do small businesses decide where to spend their advertising budgets?

Question

Their are so many places to advertise these days. The yellow pages, online, outdoor billboards, local radio, sponsoring teams or events, local newspapers and magazines. How can a small business sort through all of these options?

Answer 1

You have to look at your demographics and at what they are most likely to pay attention to.

Yellow pages are fine for some retail, but have really become a huge (in the cost of larger ads too) of money due to the fact that many places now have 4-5 different versions and usually only keep one book. The only way that they are usually going to really be cost effective anymore is if you really have a business that has some kind of niche that keeps you from being one of many of the same type listed there.

If you own a sign, printing company, or other that relates to team parents and children; sponsoring teams might work some, but is usually more of a courtesy to show some community involvement. Don't forget direct mail, this can be the most cost effective way to reach specific groups of customers with advertising and coupons and can be based on demographics.

So you ask who my customer is, where they live, and what do they like and you have the best chance of coming up with the best answer.

Answer 2

They need to assess their business and situation first.

Who is their target market?

What demographic are they aiming for?

After that, they need to determine the best ways to get at those people.

Are they more likely to be radio listeners?

- What kind of station - rock - talk radio - classical?

Newspaper readers?

- Local paper or national?  Do they read the flyers?

Online surfers?

- Gamers? Forums? Do they visit local sites and chat rooms?

Answer 3

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