How many of you advertise?If you do advertise, why do you do it?Most of us think we must advertise to get sales, sales, sales. We think if we don’t spend the money on print, radio, or TV ads – we won’t make any money.#1 You need sales so you decide to advertise#2 Once you recover from the shock of the advertising spend, you decide on the media format to use#3 You place the ad and wait…and wait…and wait#4 You see an increase in sales and assume the advertising campaign is working. That is what they want you to think!In order to determine if your advertising is working and is effective, you must calculate your Advertising ROI. To calculate your advertising ROI you simply:#1 Take the cost of your advertising spend (let’s say $5,000 per week)#2 Know what your Sales/Service Gross Margin is (let’s say 30%)#3 Divide your Advertising spend by your gross margin ($5,000/30%)In this example, you will need to increase your sales by $16,666 dollars per week against an advertising spend of $5,000 per week! You need to ask yourself, “If by using the ad campaign I am planning, is there any way possible I can gain that amount of sales volume.” If you can – then great! Go for it! I am willing to bet that if you do this exercise with all of your ad campaigns, you will realize few of them, if any, provided you with break even results!Remember, you are in this business to make money! It does not come easy. Advertising is fun. Advertising is glamorous. Advertisers promise you outstanding returns on your spend with incredible traffic. Next time you’re in the market to advertise, resist the lure of the advertising world. Ask your advertisers to share their clients’ success stories. Ask for references. Call the references and ask them if they did an advertising ROI on their endeavor. Finally do some work yourself – put the pencil to paper and calculate your own advertising ROI. If you can’t justify the dollars, don’t do the ad.
Author Archives: schatzi
What Is Contextual Advertising and How Is It Done?
What is Contextual Advertising?There are thousands of ads floating on internet focusing different products and services. More than 90% of websites show some ad that is relevant to the content of that page. These ads mainly come from Google or other similar advertising network. This type of promotion of a product or service on a website having relevant content is known as contextual advertising to the internet marketers. For example, if you are willing to buy a property and you input your keywords in the Google search bar and search a website dealing in the property business then you may see an ad of a real estate agent in this page then this type of advertising is contextual advertising of the real estate agent.How it is done?In this type of advertising, an ad of a product or service will be viewed by all those viewers who visit those websites showing that ad. So if an advertiser has decided to publish an ad through Google AdSense, then his ad will be viewed by thousands of targeted visitors depending on the budget of the advertiser. There is no need for the advertisers to know the publishers personally because the advertiser would get any publisher he may not know. There is also no limit to the maximum publishers an advertiser may get because the number of publishers an advertiser may get depends on the budget he has planned for his ads. All the publishers who belong with the same niche as the advertiser is may publish the ad of the advertiser because the distribution of ads among the publishers is done by the programs operating in the Google server.Benefits to the publishersMore and more users who own a website or blog are joining the various advertising networks to become publishers. The reason for continuous increment in publishers is the revenue a publisher earns when a visitor reaches to the site of the advertiser after clicking the ad published in the site of the publisher. There is no limit to how much a publisher may earn because his earning is directly proportional to the number of clicks that the site of the publisher can give to the advertiser. Google AdSense is the best and cheapest method to become a publisher because to become a publisher through Google, you will not need to run those costly offline advertising campaigns. All you need to become a publisher is an online web portal where you can publish your content.Google AdSense has changed the face of the contextual advertising by making an automated relation between the advertisers and the publishers. So this type of advertising is now much easier with Google AdSense and other similar advertising networks.
Benefits of Aerial Advertising
Although business owners might not think of aerial advertising when planning their annual advertising budget, they should.There are many distinct advantages to using airplane advertising. In many cases, the advantage of using plane advertising over more “traditional” advertising mediums is quite significant.When planning an advertising budget, business owners should consider the distinct advantages of using aerial advertising as a medium to get a message across. The return on the initial investment could be significant.Some of the benefits include:Cost savingsFirst, aerial advertising is cost effective. You can easily reach thousands of people in a small period of time. You don’t have to assume they’ll watch the commercial and not flip the channel. You can be assured that when airplane messages appear, they will look skyward and pay attention to the advertisement that’s passing over.That means there is no money wasted on advertising that won’t be read or paid attention to. In fact, it’s estimated that plane advertising costs about 50 cents per thousand people. No matter the deal offered by a radio station or a newspaper, it’s hard to beat the return on the aerial advertising dollar. Cost effective it is.NoveltyIt’s unusual and provides a break from the usual. People pay attention to aerial advertising, likely because it’s not something you see often. When they are laying in the sun on the beach on a lazy July day, they look skyward when airplane messages appear.In addition, that novelty leads to memory. That is, people remember the aerial adds they see more than they remember other types of advertising. This is partly due to the novelty – they stop and say “hey, look at that plane and the banner!” – But it’s also the attention the banners garner. Studies show that people will generally watch the aerial advertising as is passes over and will continue to watch it until it disappears from sight. That’s a solid block of time where the intended audience is focusing on the advertiser’s message.Non intrusiveTo get the message across, advertisers who use banner towing aren’t intruding on people’s homes, their living room tables or their cars. They are simply providing a message that’s flown over the beach, or an event or other gathering.People don’t feel as if their privacy, opinions or personal reading has been invaded. This advertising actually does something that most advertising can’t do – provide a welcome distraction, entertainment and a novel thing to talk about.Increase ad recallPeople remember aerial advertising more than any other advertising medium. Studies have shown that when questioned, 77% of the people who had just seen airplane advertising remembered what was being advertised on the banner. Another 67% could remember what was being advertised.These numbers are far greater than the response to other kinds of advertising like radio and print ads.All of these benefits add up to one great benefit – better use of your advertising dollar and a better return on that dollar.Aerial Advertising services are available from companies that specialize in this type of advertising. The Internet is a good source of information when it comes to choosing aerial advertising services. Arnold Aerial Advertising is one of the companies that provide such services. Located in New York, Arnold Aerial Advertising provides nationwide service with affordable rates.