Advertising Online

The two main vehicles for advertising on the internet are Google ads (AdWords) and Facebook ads, both can be very effective and have low entry cost - you should definitely give both of them a try.

Outdoor Advertising Media

When people think of Outdoor Advertising, they usually think of the colorful billboards along our streets and highways. Included in the "outdoor" classification, however, are benches, posters, signs and transit advertising (the advertising on buses, subways, taxicabs and trains). They are all share similar advertising rules and methods.

Outdoor advertising reaches its audience as an element of the environment. Unlike newspaper, radio or TV, it doesn't have to be invited into the home. And it doesn't provide entertainment to sustain its audience.

Some Outdoor Advantages

Since it is in the public domain, Outdoor Advertising assuredly reaches its audience. People can't "switch it off" or "throw it out." People are exposed to it whether they like it or not. In this sense, outdoor advertising truly has a "captured audience."

It's messages work on the advertising principle of "frequency." Since most messages stay in the same place for a period of a month or more, people who drive by or walk past see the same message a number of times.

Particular locations can be acquired for certain purposes. A billboard located a block in front of your business can direct people to your showroom. Or you can reach rural areas efficiently by placing a billboard in each small town.

Outdoor advertising is an excellent adjunct to other types of advertising you are doing. In fact, it is most effective when coupled with other media.

Some Outdoor Disadvantages

Outdoor advertising is a glance medium. At best, it only draws 2-3 seconds of a reader's time.

Messages must be brief to fit in that 2-3 second time frame. Ninety-five percent of the time, either the message or the audience is in motion.

The nature of the way you have to buy outdoor advertising (usually a three month commitment) is not conducive to a very short, week-long campaign.

When you buy outdoor advertising, remember that location is everything. High traffic areas are ideal. A billboard in an undesirable area will do you little good. Keep your message concise (use only five to seven words) and make it creatively appealing to attract readership. Few words, large illustrations (or photos), bold colors and simple backgrounds will create the most effective outdoor advertising messages.

DIRECT MAIL

What makes "direct" mail different than regular mail? Nothing. It's just a way the advertising world describes a promotional message that circumvents traditional media (newspaper, radio, TV) and appeals directly to an individual consumer. Usually through the mail, but other carriers also participate.

Direct mail may be used more than you think. Studies indicate that it is the third largest media expenditure behind television and newspaper.

Rules to Remember

Define your audience. Figure out who you want to reach before developing your direct mail program. This allows you to specifically target your message to fit common needs. It is the best advertising medium for "tailoring" your appeal.

Locate the right mailing list. You can either build a "house list" by doing the research yourself and compiling the information on a computer - or you can purchase an "outside list" from a list house or mailing organization already pre-prepared and ready to go.

There are many ways to purchase lists. You can buy them demographically (by age, profession, habits or business), or geographically (by location, or zip code). Or you can by a list with both qualities. More than likely, there is a mailing list company in your area that would happy to consult with you on your needs. If not, there are a number of national mailing lists available.

For assembly, addressing and mailing your project, you also have the choice of doing it yourself or locating a mailing service company to do it for you. As the numbers of your direct mail pieces increase, the more practical it is for you to enlist such an organization for assistance. They also are very good at getting you the lowest postal rates.

Consider using a self-addressed reply card or envelope to strengthen return. Use a Business Reply Postage Number on the envelope and you'll only pay for the cards which are sent back to you.

The blessing (or curse) of direct mail is that there are no set rules for form or content. The task of deciding what your mailing should have as content, its design and its message(s) is up to you. However, remember to attract the reader's attention with color and creativity. Use clear, comfortable writing and make your appeal easy to respond.

And of course, coordinate the mailing with other advertising media if you are also using them in the same campaign. It can significantly increase the potential return.

SPECIALTY ADVERTISING

"Giveaways" -- the pencils, pens, buttons, calendars and refrigerator magnets you see everyday -- are called "Specialty Advertising" in the advertising business.

Chances are, you have some specialty advertising items right at your desk. Businesses imprint their name on items and give them away (or sometimes sell them at very low cost) in order that:

You notice their name enough times on the item to build "top-of-the-mind" awareness. So when you need a restaurant, for instance, you think of their name first.

You appreciate the goodwill of the company giving you the item and eventually return the favor by giving them some business.

These are both long-term advertising investments that can take months or years to turn into actual sales.

First, select the best item that would tell your story most effectively. While an accountant can give away an inexpensive calculator, the same item may not be ideal for a hairdresser. A comb or brush might be more appropriate in that case.

Second, decide what you are going to say on the item. A company slogan? Address directions? Since you have a relatively small area, you must be very concise and direct.

Third, figure out your method of distribution. Are you going to send them to each customer through the mail? If so, how much will that cost? Will you have them in a big bowl that says "take one"? Distribution is just as important to consider as buying the item.

Prior to opening your business you must decide upon the general price Amount you expect to maintain. Are you going to appeal to
people buying in the large, moderate, or low price range? Your choice of location, look of your establishment, quality of goods
handled, and services to be offered will all depend on the customers you would like to bring, and so will your costs.

After establishing this general price level, You're ready to cost Individual items. In general, the purchase price of an item must
cover the cost of the item, all other expenses, plus a profit. Therefore, you'll need to markup the thing by a specific sum to
cover costs and earn a profit. In a business which sells few things, total costs can easily be allocated to each product and a
markup quickly ascertained. With many different things, allocating costs and determining markup might require an accountant. In
retail operations, products tend to be marked up by 50 to 100 per cent or more simply to make a 5% to 10% gain!

Let us work through a markup example. Suppose your company sells 1 product, Merchandise A. The provider sells Product A to you for
$5.00 each. You and your accountant determine the prices involved in selling Product A are $4.00 per item, and you want a $1 per
item profit. What's your markup? The sale price is: $5 plus $4 and $1 or $10; the markup therefore is $5. As a percentage, it is
100%. So you have to markup Product A by 100% to make a 10% gain!

Many small business managers are interested in understanding what Industry markup standards are for a variety of products.
Wholesalers, distributors, trade institutions and company research companies publish a huge assortment of such ratios and business
statistics. They're useful as guidelines. Another ratio (along with the markup percent ) important to small businesses is the
Gross Margin Percentage.

The GMP is similar to your markup percent but whereas markup Refers to the percent above the price to you of every item that you
must set the selling cost in order to cover the other costs and earn profits, the GMP indicates the relationship between sales
revenues minus the expense of the product, which can be your gross profit margin, and your sales revenues. Exactly what the GMP is
telling you is your markup bears a certain relationship to your sales revenues. The markup percent along with the GMP are
basically the exact same formula, together with the markup referring to individual product pricing and GMP referring to the item
prices times the amount of items sold (quantity ).

Maybe an illustration will clarify the purpose. Your firm sells Product Z. It costs you $.70 each and you decide to sell it for $1
each to cover costs and gain. Your markup is 43%. Now let up state you sold 10,000 Merchandise Z's Last month hence producing
$10,000 in revenues. Your price to purchase Product Z was $7000; your gross margin was $3,000 (earnings minus cost of products
sold). This is also your gross markup for your month's volume. Your GMP would be 30%. Both these percentages utilize the same
primary amounts, differing only in division. Both are used to set up a pricing method. And both are printed and may be utilized as
guidelines for small firms starting out. Often managers decide what Gross Margin Percentage they'll have to earn a profit and just
visit a published Markup Table to find the percent markup that correlates with that margin condition.

While this discussion of pricing may appear, in certain respects, to Be directed just to the pricing of retail merchandise it
could be applied to other types of businesses too. For solutions the markup must pay for selling and administrative costs in
addition to the direct cost of doing a particular service. If you're manufacturing a product, the costs of direct labour, supplies
and materials, parts purchased from other concerns, special tools and equipment, plant overhead, selling and administrative
expenses must be carefully estimated. To compute a price per unit needs an estimate of the number of components you intend to
produce. Before your mill gets too big it would be wise to consult a lawyer about a cost accounting system.

Not all things are marked up by the typical markup. Luxurious articles Will take more, staples . For example, increased sales
volume by a lower-than-average markup on a specific item - a"loss leader" - may bring a greater gross profit unless the purchase
price is reduced too much. Then the resulting increase in sales will not raise the total gross profit enough to compensate for the
minimal price.

Sometimes you Might Wish to sell a particular item or service at a lesser Markup so as to boost store visitors with the hope of
increasing earnings of Regularly priced merchandise or generating a large number of new support contracts. Competitors' prices
will also regulate your prices. You cannot sell a Product if your competition is greatly underselling you. These and other Factors
May cause you to change your markup one of items and services. There's no magic Formula that will work on each product or every
service all the time. But You should remember the general average markup which you want to make a Profit.