Does Your SME Need Advertising?
Straight answer is emphatic Yes📣!!! Whatever the size of your company,product/service or market your company needs to advertise. All we can debate about is on methods or tools and frequency.
Advertising is critical for your company’s growth and bringing in necessary revenue. It drives sales and at the same time builds brand awareness and credibility which helps your company in long term. Advertising aids sales force to sell your product or service.
There are spillover effect of advertising as it amplifies other things in your business too.
Journalists find companies that advertise, referral sources remember companies that advertise, people fan and follow and friend from ads, and employees can point to well-placed ads as a source of pride in place they work.
Although It might seems like a cost with no immediate result but when done intelligently advertising will definitely be beneficial, and provides good return on every rupee invested in advertising.
Here are few points to consider when you plan to advertise:
1. Understand your customer and build user persona; You need to do complete research on customers & users on their age, occupation, location, income bracket, buying pattern, interests,
language, what they like or dislike, what motivates, influences and frustrates them. This will help you understand what type of language,image you should use in your advertisement and what could attract their attention.
2. Objective of campaigns and Company’s positioning: Very critical to decide early on how you want to position your business, and what is the objective of advertising. Is it sales, channel partners development, or simply spreading brand awareness?
3. Frequency of advertisement matters the most: Your ads needs to hammer customer psyche on
periodic basis to build brand awareness and eventually sell your product or service to customer. Publishing your advertisement once in a while would not be great return on investment.
4. Set aside a budget as per company’s cash flow situation; our research says your advertising
budget should be roughly around 10 % of the revenue. Don’t need to blow the entire budget at one shot, plan it out over the time to maintain advertising frequency.
5. Hire professionals or outsource to third party: No point in learning nuances of advertising as
you need to focus on your business too. Hire someone with relevant experience who has worked in company of your scale, has handled advertising and thoroughly understands your market. Avoid people from large FMCG companies because they are bit extravagant in advertising spends by nature. Let professionals focus on content (which is also called copy in advertising industry terminology), visuals (images or videos that will be used in your campaign) and medium ( where to run your advertising campaign).
6. Follow your competitors advertising efforts: This will help you understand your competitor’s perception of business, market and customer but be original in your copyrighting.
7. Track your advertising: Track website traffic, and velocity of sales numbers when you are advertising. You can also track inquiries flowing in through email or phone calls. If you are using traditional methods like print or mass media, you must set goal, expected results and actual result. In case you are advertising digital, almost all the platforms such as Google, Facebook, and LinkedIn provide detailed analytics.
Conclusion: Objective, content, visual, frequency and medium are five factors which make advertising work. Think it this way, the consumers will never get to know about the products and services if they are not advertised. Advertisements help the consumers to make decisions regarding which product and service to buy. With the help of advertisements, a consumer gets the best possible options.
Author: SpiderG Knowledge Hub
SpiderG is platform for startups and SMEs to automate their bookkeeping, employee management and increase productivity.