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Forgot The Ad Budget? Don't Panic!


Bob is excited about his new business. He secured funding. He leased the building. He stocked it full of new gadgets. He hung the sign. He posted a banner on his window that reads,"Grand Opening!". And now he stands behind the counter, waiting for customers to come flocking in. And he stands there. And he stands there. And he stands there.

And then it hits him: No one knows about his shiny new store!

I've seen new and even established businesses make this same mistake over and over again. Advertising is the last thing they think of. They assume that since their doors are open and the merchandise is on display, customers will come running in. But they won't come. Not until they know how great your new business is! And to do that you need to plan and execute an advertising budget and strategy.

Many times I've been called in to consult with a new business to help plan their ad strategy well after their stores have opened when in fact, this is something that should have been done during the initial planning stage.

So is it too late? No, but sometimes it's a major sticker shock to those who did not put a realistic plan together from the start. Remember that advertising, like your store and your merchandise, is an investment towards your profits.

But let's say you're like Bob and your business is already up and running. How do you put together a realistic ad budget? Well most people use a percentage of gross sales as a means of figuring this out. If however, you're a new business owner with no prior sales, you can base it on industry standards. Use the web and search out other related businesses for a guide. Once you've figured what your gross sales should be, think about using 3 to 5 percent as a starting point for your ad budget. Another factor to consider when planning an ad budget is that it should encompass all aspects of your advertising from media placement to creative costs and production of your ads.

And remember: advertising must be done with consistency. Let me write that again. Advertising must be done with consistency. When planning your ad budget, make sure you allot enough funding to allow it to last throughout the year whether your sales will be spread out evenly or are cyclical. If you spread your budget too thin, chances are your ad campaigns may not be heard or seen enough to stay in the minds of consumers. And if your business is brand new, you'll want to plan on spending more at the beginning for your initial start up campaign.

Some businesses make the mistake of advertising strong for about three to four weeks and then they stop. Keep in mind that consumers have very short memories and with 3000 plus advertising messages that pummel their brains everyday, it's no wonder! That's why you have to stay in the public's eye consistently. Oh, and it also helps to have a clever message but we'll talk about that in another article.

Once your ad budget is established, the type of advertising you use will be based on your specific business but normally if your business is consumer based, even in these modern web based times, traditional media such as radio, television, print, billboard and direct mail should still play major roles.

Many times I've helped clients put together an in-house survey for their customers to fill out. This can be helpful in determining what type of advertising they'll need as well. Questions like, "What radio stations do you listen to?" "Do you subscribe to the newspaper?" and "Do you shop on-line?" can be useful in getting to know your customer's habits as well as how to attract more like them.

Consulting an advertising agency is a very good way to get started as well. To find a good agency, try contacting other business owners you know for a referral or perhaps an established business whose advertising style and creative appears to fit your goals.

Remember: planning your advertising budget and strategy is as important as the products your trying to sell. Think about your advertising now and you'll never end up like Bob: standing behind the counter waiting for customers that never come.

Hal Eisenberg is an award winning copywriter, voice over talent and producer, as well as owner of The Eisenberg Agency, a full service advertising agency specializing in creative ads that get results. Visit his web site at http://www.eisenbergagency.com. Mailto: [email protected].


Todays News by officejax free advertising and ad exchange solutionsMORE RESOURCES updated Wed. August / 23 / 2017

How Startups Can Start Advertising - Forbes

Forbes

How Startups Can Start Advertising
Forbes
How should my start-up approach advertising? It's a difficult and important question for start-ups. It's difficult because, relative to established brands, start-ups do not have the luxuries of a dedicated strategist to plan the advertising or an ...
Technology Has Changed Advertising ForeverHuffPost

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Why AT&T Could Put the TV Advertising Revolution on Hold - AdAge.com (blog)

AdAge.com (blog)

Why AT&T Could Put the TV Advertising Revolution on Hold
AdAge.com (blog)
Take the content from Time Warner and DirectTV, combine it with AT&T's ever-expanding trove of subscription data, then add Brian Lesser -- the former GroupM CEO who joined AT&T this month to lead a mysterious new advertising division -- and you've got ...

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Advertising's Enfant Terrible - AdAge.com

AdAge.com

Advertising's Enfant Terrible
AdAge.com
Advertising right now is in this creative fucking nowhere's land. I want to be a chief creative officer that's tapping into what's going on in culture, art, music, fashion, design in a real way, versus being an advertising creative director. I'm much ...


Analyze This: How Brian Wieser Got To Be the Most-Quoted Man in Advertising - AdAge.com

AdAge.com

Analyze This: How Brian Wieser Got To Be the Most-Quoted Man in Advertising
AdAge.com
When Brian Wieser strolls the Palais during the Cannes Lions International Festival of Creativity, he flies under the radar. "I'm not a celebrity in the industry. I'm definitely B-list," he says. While he may go unnoticed at industry events, his ...


London Calling For Brexit Fix: Ad Trade Fights Back - AdAge.com

AdAge.com

London Calling For Brexit Fix: Ad Trade Fights Back
AdAge.com
There is a huge client in dire need of marketing in the U.K., and the stakes couldn't be higher for advertisers. That's because the brand most in need of a good solid pitch is U.K. advertising itself. Britain officially voted to leave the European ...

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Advertising Is Commoditized -- But You Don't Have To Be - Forbes

Forbes

Advertising Is Commoditized -- But You Don't Have To Be
Forbes
Advertising isn't just industrialized. Thanks to Henry Ford's example, it's commoditized. Assembly line advertising, marked by mass production and automation, will soon replace marketing jobs with dashboards and out mode an entire class of craftspeople.


Chinese Advertising SDK Caught Stealing Data From Android Devices - BleepingComputer

Chinese Advertising SDK Caught Stealing Data From Android Devices
BleepingComputer
An advertising software development kit (SDK) embedded in many legitimate apps has been secretly siphoning user data and sending it to the servers of a Chinese company. Developed by Chinese firm Igexin, the advertising SDK was found in over 500 apps ...

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Celebrities join the call for Amazon to stop advertising on Breitbart - Washington Examiner

Washington Examiner

Celebrities join the call for Amazon to stop advertising on Breitbart
Washington Examiner
Celebrities and Twitter users have taken to the social network to call on online retail giant Amazon to pull its advertisements from right-wing Breitbart News.

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AccuWeather iOS App Sends Location Data to Advertising Partner - BleepingComputer

AccuWeather iOS App Sends Location Data to Advertising Partner
BleepingComputer
Will Strafach, an independent security researcher, has stated over the weekend that the AccuWeather iOS app sends location information to a data monetization firm named Reveal Mobile. On its website, the company touts the ability to "convert mobile ...

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Patagonia: Investing in Customers Can Be the Best Advertising - HuffPost

HuffPost

Patagonia: Investing in Customers Can Be the Best Advertising
HuffPost
In a recent media buy in Montana local television & radio, something Patagonia never does for advertising, they've invested in saving Bears Ears and Grand Staircase Escalante National Monuments in Utah, and Gold Butte and Basin and Range National ...

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