How to avoid wasting money on advertising

advertising

Here’s how to avoid a common advertising mistake, which loses small business owners a fortune.

I’d like to start by asking you to consider the following question.

Who [not how many] are you reaching?

When it comes to advertising, relevance is more important than numbers.

Most small business owners buy advertising, based on the number of people who will read, watch or listen to the advertisement. It’s understandable, because that’s how ads are usually pitched to them. Those selling the ads know that when they approach a small business owner, who desperately needs to generate sales or enquiries, the BIG numbers sound very attractive.

What you need to know, in order to protect yourself from buying ineffective ads, is this:

It’s not about the number of people who will potentially see or hear your ad. It’s about who those people are.

Here’s an example of why the numbers are only a small part of the advertising equation. It’s from a reader who asked me to share her experience with you.

The ad reached 125,000 people… for just $475!

I was prompted to write today’s post, after Kelly emailed me to say she had recently paid for an advertisement that went into a newsletter, with a readership of 125,000 people. She explained that whilst the readership “wasn’t a great fit”, she thought $475 to reach all those people was a bargain.

Her advertisement generated 9 responses and no sales.

Here’s what she got, in return for $475:

  • 7 responses came from pushy advertising salespeople, trying to sell her more ads. This is common. Advertisers look for business owners who are buying ineffective ads. They know these are the easiest people to sell ads to.
  • 2 responses came from people who were totally unsuitable for the service she was advertising.

Like most small business owners, Kelly was seduced by the number (or reach) of the advertising, rather than who the advertising was reaching. Please don’t let that happen to you.

The sweet spot you’re aiming for is a well written ad, which reaches a targeted, large audience.

Here’s some useful information, with examples, on how to get your advertising right.

Remember -- if you'd like some help with your business or a project, you can Pick My Brain for the answers and ideas you need. This service is [literally] guaranteed to help you. You can find out more here.

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