Does advertising work?
Posted by Kimberley on Saturday, December 18, 2010
Under: Business
"We can't do advertising. Advertising sucks. eBay, Google and YouTube don't do it." I hear the so-called 'experts' telling you: 'Advertising is on its way out! It's the new economy! It's all about word-of-mouth!'
So does advertising work? Of course it does. Don't just take my word for it, just look at McDonalds, Coke, Pepsi, but to name a few!
While the experts are preaches that advertising doesn't work, I challenge those 'experts' to find just one high-income-growth company who doesn't advertise.
Why Advertising Works?
Do this two-step process:
1.Think of a distant acquaintance.
2.Now, think of a friend you see often.
If two of them were in a room full of other people, who do you gravitate toward? For a ridiculous majority of us, we'll approach our friend. Arizona State's Psych Guru Robert Cialdini calls that the familiarity principle.
That is, the more you see something provided it's under a positive light, the more you like it.
In other words, the more that people see your company (whether that's a newspaper ad, website visit, TV exposure, etc.) -- subconsciously, the more they'll like it.
And -- if deciding between your brand and a more obscure one, guess who wins?
Does Advertising Work For Every Company? For most part, yes -- if you do it right. Placing a full page ad for your new product, and hope that'll bring in every reader of the ad - Not a chance. That's how internet companies earlier this decade imploded:
They threw all their marketing eggs into one basket, hoping the masses would latch on.
They never did. Instead, advertising takes a continuous "test-see-act" approach for your company.
How to Advertise
It's a continuous cycle that continually loops through three steps:
1.Test Small tests.
Don't break your bank. You want to test as many marketing media as you can. Whether that's direct advertising, cost-per-click campaigns, cold calling, commercials, test a variety of mediums to see what works best.
2.See Notice the results.
What returns a juicy ROI (Return on Investment) What doesn't? Rank each marketing method you do by the cost-per-acquisitions.
3.Act
For the advertising mediums that worked best, dump a great percentage of your marketing budget into them. For the other less successful ones, hold back those marketing £££'s.
4.Cycle:
Repeat #1.Endlessly seek ways to knock off your #1 ad variation; that ensures you're optimising your marketing spend.
Think of the ATP tennis tour. When the organisation finds its #1 player, does it close the doors and think 'mission accomplished?' No!! Instead, it continually finds, promotes, and refines players who could take over that #1 spot. If you're a true business, finding your tops ads will never be a mission accomplished.
So does advertising work? Of course it does. Don't just take my word for it, just look at McDonalds, Coke, Pepsi, but to name a few!
While the experts are preaches that advertising doesn't work, I challenge those 'experts' to find just one high-income-growth company who doesn't advertise.
Why Advertising Works?
Do this two-step process:
1.Think of a distant acquaintance.
2.Now, think of a friend you see often.
If two of them were in a room full of other people, who do you gravitate toward? For a ridiculous majority of us, we'll approach our friend. Arizona State's Psych Guru Robert Cialdini calls that the familiarity principle.
That is, the more you see something provided it's under a positive light, the more you like it.
In other words, the more that people see your company (whether that's a newspaper ad, website visit, TV exposure, etc.) -- subconsciously, the more they'll like it.
And -- if deciding between your brand and a more obscure one, guess who wins?
Does Advertising Work For Every Company? For most part, yes -- if you do it right. Placing a full page ad for your new product, and hope that'll bring in every reader of the ad - Not a chance. That's how internet companies earlier this decade imploded:
They threw all their marketing eggs into one basket, hoping the masses would latch on.
They never did. Instead, advertising takes a continuous "test-see-act" approach for your company.
How to Advertise
It's a continuous cycle that continually loops through three steps:
1.Test Small tests.
Don't break your bank. You want to test as many marketing media as you can. Whether that's direct advertising, cost-per-click campaigns, cold calling, commercials, test a variety of mediums to see what works best.
2.See Notice the results.
What returns a juicy ROI (Return on Investment) What doesn't? Rank each marketing method you do by the cost-per-acquisitions.
3.Act
For the advertising mediums that worked best, dump a great percentage of your marketing budget into them. For the other less successful ones, hold back those marketing £££'s.
4.Cycle:
Repeat #1.Endlessly seek ways to knock off your #1 ad variation; that ensures you're optimising your marketing spend.
Think of the ATP tennis tour. When the organisation finds its #1 player, does it close the doors and think 'mission accomplished?' No!! Instead, it continually finds, promotes, and refines players who could take over that #1 spot. If you're a true business, finding your tops ads will never be a mission accomplished.
In : Business