Three Ways to Make "Cents" of Your Ad Spending
Billions of dollars are spent on advertising efforts annually. In fact, according to research by eMarketer, total media ad spending will reach over $185 billion this year. While all that spending may seem indulgent, advertising is a key driver in business development and growth. Much like product development or extending a franchise, advertising truly is an investment in your business. And, when utilized to its maximum potential, it provides a very high return. Here’s why:
1. You Have to Spend More to Make More
Business owners, managers and marketers may seek to gain the most value while spending the smallest amount of money; in other words, maximizing the return with as little input or expenditure as possible. This may be practical in some areas of business growth and development, but studies are showing that dynamic advertising efforts should not be sidestepped or downgraded.
Similarly, be cautious of free advertising. While it may be alluring, it will most likely not produce the results necessary to fulfill its purpose, which is to advance your brand and promote consumer interaction. The process leading to developing and delivering powerful advertising content is no difference than shopping for commodities or services. That tired old saying, “you get what you pay for” applies across the board.
2. Don’t be Afraid to be Aggressive
Research suggests that businesses that choose to increase or maintain their advertising spending yield greater margins than those that choose to reduce their spending. Furthermore, studies show that despite the recent recession’s effect on consumer behavior, there is evidence that aggressive advertising efforts contributed to a 257% increase in revenue for companies that increased their advertising spending versus those who cut ad costs between 1980 and 1985.
What does this mean for your business? Don’t back down. Building your brand takes time and consistency, and even in a soft economy, customers are researching, planning and making purchases. Staying aggressive, even during downturns, is vital. When the market rebounds, your business will be positioned to come out on top and have an opportunity for significant growth.
3. Protect Your Investment; Cultivate Your Business
When you think about the types of advertising that can impact your business, be sure to consider the best media platforms to reach your target audience. More importantly, make sure the quality of your ads demonstrate the message you’d like to send as a brand. Because the best advertising efforts can come with a hefty price tag, you have to ensure that your business’s ad work is valuable.
One fundamental advantage in investing in quality creative is that this work isn’t “one and done.” Quality creative can be revised and revamped as part of a series to be used on various media platforms. This type of investment proves to be an evolving success factor with the power to continue meeting and exceeding business needs.
So, what does this all mean? In short, advertising should be viewed as an investment in your business – not just as an expense. This can be pricey, but developing quality advertising will grow your business and keep your money where it counts.
Want to learn more about the importance of your advertising investment? Check out Cox Media’s “Investing in Quality” e-book for a deeper look into creative advertising campaigns.