Tue 9 Dec 2008
Getting the Most from Your Advertising Dollars
For small business owners, the decision about where to spend their advertising dollars can be difficult. You want to reach as many people as possible, right? The surprising answer is not necessarily.
Many small business owners make the mistake of spending big money to advertise, for example, in the local daily newspaper.
While a good choice for some businesses, others would be better off spending that money in other ways.
Look at the Numbers
This is why. Let's use a dog grooming shop as an example. She spends $5,000 on ads per year in the local paper.
Out of everyone who reads the paper, 35% own pets. That means that while she is reaching of audience of, let's say, 50,000 only 17,500 even own pets. That is 28 cents per pet owner.
In the area where the dog groomer does business, there is also a regional pet magazine that is published each month. The circulation is only 10,000, but she could advertise in each issue for only around $2,500 per year.
That is only 22 cents per pet owner. In that example it is easy to see which option would be the best for the dog groomer.
As a small business owner, you should explore all advertising options available to you and then make decisions about where to spend your advertising dollars based on how many people will see each ad are actually in your target demographic.
That makes much more sense that just doing a figure based on total readers.
Be wise with your advertising dollars, so that they can work for you!