Friday, April 22, 2011

How to Examine Your Failed Ads and Make Them Work Next Time

"I tried advertising. It doesn’t work." The conviction of the people making this claim is unshakable - most likely because they’re describing exactly what happened to them. Of course, if they had said, "My kid tried riding a bike, but he fell over. Bicycles don’t work," or "I tried golf once. I didn’t get a hole in one. Golf is a stupid waste of time," everyone would recognize the absurdity of the statements, says marketing consultant Chuck McKay. But as every kid (and every golfer) knows, even common activities require some basic skills.
At its basis, advertising is simple.Incredibly simple. Just deliver to the public your offer to sell something. The public’s reaction, though, is not as uncomplicated as "I’ll buy" or "I won’t buy." Actual responses range from absolutely no interest on the unsuccessful end of the response continuum to, on the successful end, people pounding on the door because the sign says the store opens at 8:30, and it’s now 8:32.
Why do most ads produce results somewhere between these extremes? There are 10 factors that could cause your advertising to produce disappointing results. The first two factors involve your offer:

Cause #1: Did anyone want the stuff you had to offer?
Ideally, businesses would identify and research a market, then develop what the customer really wants. In the real world, manufacturers create, and retailers stock, things they believe people will want. Sometimes, they’re wrong. When those retailers say to the world, "Hey, come and buy our diamonelle-encrusted left-handed can openers," people don’t say, "I don’t want any, thank you." They don’t say anything. They care so little about the offering, they don’t even notice the ad, and won’t remember ever seeing or hearing it.

Cause #2: Did you offer what people needed when they were most likely to need it?
Think seasonality. Swimsuits don’t sell well in November. Halloween candy won’t get much attention in April.
The next four factors involve the content of your message:

Cause #3: Did your ad snag shoppers' attention? Were you able to hold that attention long enough to deliver your offer?

There are three broad categories of advertising communication: entertainment, information, and engagement.
1. Entertaining ads can work, if there’s a direct connection between entertainment and the one thought you’re trying to plant in the minds of shoppers. In far too many ads the entertainment is not relevant to the advertising message.
2. Most ads offer information. Unfortunately, it’s about the advertiser. Good ads are about the customer. Instead of "We have a huge selection of clean, late model cars to fit any budget," try "Admit it, you’re going to like the way people look at you when you drive a classic Porche."
3. Engagement requires the shopper to pay close attention to, and consciously consider, the content of your advertising. Unless that shopper is ready to purchase, catching her with a marginally different offer won’t elevate your ad to consideration status.
Say the same things your competitors do, and rest assured that most shoppers will ignore you. But say something salient, something highly meaningful, and watch the difference.

Cause #4: Did you engage? Did you actually say anything worth remembering?
Too many ads are tedious, dreary, boring, and monotonous. Are yours? Just because you have a lot to say doesn’t mean your audience will sit still and pay attention. Nobody gets emotionally involved in a laundry list of brand names, sale items, or the number of collective years of your staff’s experience. The most you can expect of any ad is to convey one single, compelling idea. Find that one idea, and express it.

Cause #5: Did your ad persuade? Did you extend an invitation to buy (a call to action)?
Sometimes we notice a highly creative and entertaining ad campaign, only to find out later that the advertiser lost market share while the campaign ran. The "¡Yo quiero Taco Bell!" chihuahua, "Joe Isuzu," and Old Spice’s "The Man Your Man Could Smell Like" campaigns come to mind. High entertainment value. Precious little persuasion.
Entertainment aside, shoppers are skeptical. No matter how truthful any claim you make in your ad might be, people don’t automatically believe you. That process which falls between demonstrating your evidence, and leading them to agree with your claim, is persuasion.

Cause #6: Did your ad complement your image?
People who project different personalities, depending on which group of people they’re associating with, are not trusted. Without trust, you don’t have customers.
Like people, companies have personalities, which are a critical part of their brand. Advertising is an extension of that brand. If it’s loud, insulting, self-centered, annoying, or otherwise offensive, people will assume your business is organized around those qualities.
What is it that people know about you? What is your professional reputation? What is your image among customers? Among non-customers? Do you have an image? How do you know?
The final four causes involve external factors:

Cause #7: Did you choose the right medium? Did you have the right sized ad?
Think of advertising as your cost to acquire customers. Costs per exposure, per thousand, or per rating point only matter indirectly. Media efficiency is calculated by dividing the number of dollars invested by the number of new customers you’ve acquired. Magazines with tiny circulations but active readership may be a great investment. Regional television stations with the highest priced ads in town may also be a great investment.
Until you track the number of new customers each produces, and the average sale of each new customer, you can’t do a meaningful comparison.

Cause #8: Did you schedule your ads at the optimum frequency?
There are two factors which combine to make media impact. One is the size of the ad (in column inches, or seconds, or pixels), and the other is the number of times shoppers read / hear / view it. Exceptionally salient ads may only need one exposure. Most require multiple exposures to the ad before people respond to your offer. Under normal circumstances you’re going to need to run that ad several times.

Cause #9: Did you allow enough time for shoppers to need what you sell?
People eat several times a day. They need new tires every year or two. They buy refrigerators and mattresses maybe once per decade. How many of them are in the market for what you sell at any given time?
Ads for short purchase cycle offerings should pay off quickly. The impact of grocery or restaurant ads can be measured in days. Other products, which have longer purchase cycles require more patience, and more persistence.

Cause #10: Did you start with a clear goal?
What was it you wanted to happen when you bought that advertising which didn’t work? Did you expect to see new faces in your store? Additional referrals? Greater market awareness for your company ("getting your name out there")? Sales increases? Additional goodwill? If you don’t know what you were attempting to accomplish, how can you be sure your advertising DIDN’T work?
Yes, advertising works. We suspect everyone knows that.

A former boss, when told advertising didn’t work, offered to run some free radio ads for the skeptic. He said, "Let me tell you what they’ll say: Free $100 bills at your business." No one ever took him up on it.
Maybe yours is one of those companies which has all of the customers it needs. Congratulations. We envy you. Most every business owner we talk to, however, needs a steady influx of new customers.
Like playing golf or riding a bicycle, there are skills you’ll need to make it work. You weren’t born with the ability to run your own company, but you learned what to do, and when, and why. Likewise, you can develop the ability to profitably advertise that same company. You’ll need to invest a modest budget, commit to some seriously detailed record keeping, and allocate enough time to develop and hone those skills. Thirty minutes a day for the next year will give you the rough equivalent of one semester of Intro to Marketing.
Fortunately, there’s a lot of great information available, and much of it free. If you’re ready to get started, drop us a note and we’ll send you a recommended reading list.

Tuesday, April 19, 2011

Turn Your Business Resolution into a PR Revolution


As eyes look forward to a new business year, many small business owners and entrepreneurs are hoping that this year will be the one that catapults them into success. But businesses often overlook a key element when making their business plans and resolutions.

Most new businesses fail within three years – and it’s often due to the fact that many business owners think that simply hanging up an OPEN sign and placing an ad in the yellow pages will attract customers.
What it takes is a marketing strategy that’s effective – and in the case of many small business owners – on a limited budget. They need public relations to turn the resolutions into revolutions.

Public relations and publicity are some of the most cost-effective methods of marketing available today.
Besides the fact that it’s low cost or no cost, publicity can help establish your credibility. It can position you as the expert in your field, building you a powerful presence.

The key is to include your public relations and publicity efforts as part of a year-long, strategic business plan.
As you’re looking toward what you’re going to accomplish in the future, make sure you incorporate different public relations efforts as part of your complete plan. That way you’ll be sure to schedule it in, just like any other business task.

Shannon Cherry, publicist, recommends these low-cost public relations strategies to help revolutionize small businesses:
  1. Write articles. Articles don’t have to be long; they just need to be informative. Submitting online, as well as offline, provides a good chance to get your name in print at no cost.
  2. Write press releases. Reporters everywhere are looking for stories, and a press release gives them the information to write that story. Just make sure it’s newsworthy, not just an advertisement.
  3. Use social media. I cannot stress enough that social media including Twitter and Facebook are publicity tools, not your complete marketing effort.  Make sure you include content valuable to your target market, as well as promote your products and services.
  4. Use your business cards. Think of your business card as a mini billboard and start handing them out everywhere. Include them in all your correspondence and put them in places that they’ll be seen.
  5. Start speaking. Speaking in front of an audience usually makes you an expert. People like to buy from experts. Speaking is free, and it’s just like making a sales call to many people at one time.
Successful companies make public relations a priority. Whether selling direct, through distribution channels or via e-commerce, a successful company must achieve and maintain a strong market presence through a continuous and effective public relations program.