Nearly any business that operates in today’s complex marketplace must advertise to stay alive, grow and compete. With so many options, how does a business decide on a strategic investment which best supports its advertising message?
Ad Planning & Budgeting
While there are a number of ways to budget your advertising, many advertisers make two common mistakes when they begin. The first is budgeting based on habit. Put simply, what they spent in the past is what they’ll budget for in the future, perhaps adding a percent or more to offset inflation. This method offers no leverage to take advantage of opportunities or to deal with competitive challenges. It is only slightly better than the second most common ad budgeting method – looking in the cash register to see how much you can afford today.
Why a Formal Ad Budget?
The 4-Step Ad Plan
How Your Market Shops and Spends
Before you can advertise at all, you need to understand your customers. Many advertisers know their target market – their age, income, education and the like – but understanding how they shop will affect when you advertise, where you advertise and how often you advertise. A few key concepts deserve careful consideration as you begin to develop your marketing plan: 1. The “Thin Market” 2. Recency and 3. Frequency.