Hey, listen all those who have predicted the demise of print media. Newspapers are not going to be perished under the onslaught of Internet-powered media. Instead, global newspaper circulation is rising, mainly due to the demand in Asia and South America.
According to officials at an international newspaper conference, circulation of paid newspapers rose 2.6 per cent worldwide in 2007, with the biggest jump in India and China.
According to a report by the World Associated of Newspapers, China is now the largest market for newspapers with 107 million copies sold daily.
The study also shows a slump in readership in the US and Europe, where traditional dailies struggle to survive amid free newspapers and web portals.
Officials feel that the findings should be a cause of optimism about the industry.
"They say newspapers and print are dead. Well, I just don't see it," the association's president, Timothy Balding, said at the conference, which was attended by more than 1,800 publishers, editors and other senior newspapers executives at the three-day conference.
Newspapers are doing brisk business in Asia, home to 74 of the world's 100 largest-selling dailies. But there's been a decline in readership in the West, with circulation falling three per cent in the US last year and 1.9 per cent in Europe.
Over the last five years, circulation has been down eight per cent in the US. The report also said that while newspaper advertising revenue rose in all regions, it showed a downward trend in the US, where it fell three per cent last year.
Online ad revenue up
Internet advertising revenue worldwide increased 32 per cent.
Research presented at the conference predicted an increasing shift from print to online media, with the editors are increasingly aware of the need to develop multimedia platforms in order to reach new audiences.
People in the industry talk of "1-2-3 filing," which means presenting news alert headline first for breaking news, followed by a short present-tense story mainly for the web and broadcasters, and the third step being adding details and format stories in ways most appropriate for different news platforms.
Is online the emerging media?
A study by Associated Press showed that the news consumption patterns of young adults are different from that of the previous generations.
"People don't walk out to the driveway to collect their newspaper. They open their e-mail," Jim Kennedy, AP's director of strategic planning, said while presenting the study.
The research project also showed that young adults face troubles over being flooded with facts and updates as well as in-depth reports.
A worldwide survey of 704 newspaper editors by Zogby International and Reuters showed 44 per cent believed that most people would be reading their news online in 10 years, up from 41 per cent in a similar study last year.
A survey of Nordic newspaper editors showed they see free newspapers as their main competitors, followed by the Internet.
According to the report, free dailies account for nearly seven per cent of global newspaper circulation and 23 per cent of circulation in Europe.
Showing posts with label Advertising world and Media. Show all posts
Showing posts with label Advertising world and Media. Show all posts
Monday, August 4, 2008
The Power of Newspapers
Newspapers can be an important component in any advertiser's media mix.
Newspapers give advertisers significant local reach. They are the voice of their community.
• On an average weekday, 50% of U.S. adults read a newspaper and 2.3 people read each copy of a newspaper.1
• On an average Sunday, 57% of U.S. adults read a newspaper – that's more than watch the Super Bowl.1
• Newspapers are the #1 source for local news.2
Newspapers help advertisers reach an attractive demographic.3
• Readers tend to be highly educated and affluent, have higher Internet penetration and shop online more frequently.
• Readers say that the newspaper is "an important part of their daily routine," and that "reading the newspaper is relaxing to me."
Newspapers are a key resource for shopping information that drives consumers to make purchases – online and offline.3
• 84% say they visited a retail store as a result of newspaper advertising.
• 60% said they visited a website to learn more about a product or service seen in a newspaper ad.
• 50% said they bought something online after seeing a newspaper ad.
Newspapers are relevant throughout the purchase cycle.
Consumers refer to newspaper ads whether they're gathering product information or deciding which merchant offers the best price.
Steps to building a newspaper campaign
1. Choose newspapers based on geography, circulation size, ad size availability, section availability, and other criteria.
2. Select day(s)-of-week, desired section, and ad size for each desired publication.
Newspapers give advertisers significant local reach. They are the voice of their community.
• On an average weekday, 50% of U.S. adults read a newspaper and 2.3 people read each copy of a newspaper.1
• On an average Sunday, 57% of U.S. adults read a newspaper – that's more than watch the Super Bowl.1
• Newspapers are the #1 source for local news.2
Newspapers help advertisers reach an attractive demographic.3
• Readers tend to be highly educated and affluent, have higher Internet penetration and shop online more frequently.
• Readers say that the newspaper is "an important part of their daily routine," and that "reading the newspaper is relaxing to me."
Newspapers are a key resource for shopping information that drives consumers to make purchases – online and offline.3
• 84% say they visited a retail store as a result of newspaper advertising.
• 60% said they visited a website to learn more about a product or service seen in a newspaper ad.
• 50% said they bought something online after seeing a newspaper ad.
Newspapers are relevant throughout the purchase cycle.
Consumers refer to newspaper ads whether they're gathering product information or deciding which merchant offers the best price.
Steps to building a newspaper campaign
1. Choose newspapers based on geography, circulation size, ad size availability, section availability, and other criteria.
2. Select day(s)-of-week, desired section, and ad size for each desired publication.
Internet is rivaling TV and print
Study confirms the Internet is rivaling TV and print
Data has traditionally been lacking for marketers who want to understand the media consumption habits of consumers in Asia and how people in the region perceive each medium with regards to their personal and business needs. A new study sheds valuable light on the topic.
Microsoft Advertising conducted a media consumption study via Synovate AsiaBUS service, surveying over 11,000 people aged 15-64 in 10 markets in Asia Pacific: Australia, China, Hong Kong, India, Japan, Malaysia, Singapore, South Korea, Taiwan and Thailand.
The research findings confirm the Internet has become a mainstream medium that now rivals traditional media such as television, newspapers and radio. The survey also reveals that the Internet excels over other media in attracting key demographics for advertisers.
Key audiences spending more time online
The AsiaBUS Study shows people spend 15 hours a week on the Internet, challenging the leading position of TV (18 hours). Respondents also report spending far less time reading newspapers and magazines, 5 hours and 3 hours respectively, though radio still accounts for quite a significant share of media time (12 hours).
Looking at media consumption across demographics, a few groups show higher engagement with the Internet than with other media. For example, those aged 25 to 34 spend the most time on the Internet, 18.5 hours per week versus 17 hours on TV. Two other groups show an even stronger preference for the Internet: University graduates and Top/Middle management, both of which are prime targets for advertisers given their higher purchasing power, and personal and business decision making power.
Internet is top source for information
Besides exploring media consumption habits, the study also examines perceptions of these media. What comes out very strongly is that the Internet is regarded as the top information source, be it for personal or business interests. The Internet is the first place people look for information and gives the depth of information they want.
The Internet's outstanding information gathering capabilities also helps consumers decide what to buy. People feel the Internet keeps them ahead of the game, describing the Internet as an active medium which puts them in control.
With all these advantages, it is not surprising to see that people are planning to use the Internet more than other media in the future.
Advertisers look no further: online is "in"
The AsiaBUS Study confirms once and for all that the Internet has clearly assumed its rightful place as a mainstream medium in consumers' thoughts and actions. With the Internet's importance continuing to rise even more in the future, advertisers will be turning online more and more to engage with prime target audiences.
Data has traditionally been lacking for marketers who want to understand the media consumption habits of consumers in Asia and how people in the region perceive each medium with regards to their personal and business needs. A new study sheds valuable light on the topic.
Microsoft Advertising conducted a media consumption study via Synovate AsiaBUS service, surveying over 11,000 people aged 15-64 in 10 markets in Asia Pacific: Australia, China, Hong Kong, India, Japan, Malaysia, Singapore, South Korea, Taiwan and Thailand.
The research findings confirm the Internet has become a mainstream medium that now rivals traditional media such as television, newspapers and radio. The survey also reveals that the Internet excels over other media in attracting key demographics for advertisers.
Key audiences spending more time online
The AsiaBUS Study shows people spend 15 hours a week on the Internet, challenging the leading position of TV (18 hours). Respondents also report spending far less time reading newspapers and magazines, 5 hours and 3 hours respectively, though radio still accounts for quite a significant share of media time (12 hours).
Looking at media consumption across demographics, a few groups show higher engagement with the Internet than with other media. For example, those aged 25 to 34 spend the most time on the Internet, 18.5 hours per week versus 17 hours on TV. Two other groups show an even stronger preference for the Internet: University graduates and Top/Middle management, both of which are prime targets for advertisers given their higher purchasing power, and personal and business decision making power.
Internet is top source for information
Besides exploring media consumption habits, the study also examines perceptions of these media. What comes out very strongly is that the Internet is regarded as the top information source, be it for personal or business interests. The Internet is the first place people look for information and gives the depth of information they want.
The Internet's outstanding information gathering capabilities also helps consumers decide what to buy. People feel the Internet keeps them ahead of the game, describing the Internet as an active medium which puts them in control.
With all these advantages, it is not surprising to see that people are planning to use the Internet more than other media in the future.
Advertisers look no further: online is "in"
The AsiaBUS Study confirms once and for all that the Internet has clearly assumed its rightful place as a mainstream medium in consumers' thoughts and actions. With the Internet's importance continuing to rise even more in the future, advertisers will be turning online more and more to engage with prime target audiences.
Tuesday, June 10, 2008
Networking Sites - Marketing in the New Age Media
SOCIAL networking is not only for the gum-chewing, game-playing, post-industrial .mp3 generation. It is pervasive and will change the way marketers, media owners, and users interact. Facebook claims 54 million active users. 45% of their users are (age) over 35 LinkedIn has 15 million subscribers and the average user (age) is around 39 Second Life has over 10 million residents, and over $1-million in business was transacted in the last 24 hours. There are more out there like Hi5, Orkut, Bebo vying to be a part of this gigantic virtual gabfest. Social networking sites provide you with the tools to create your online personal profile, stay in touch with your friends, and play games, watch videos, download music, be a pundit, musician, and artist. The sites broadly fall into four categories with differing service goals: Social: Sites like MySpace, and Orkut , primarily created as an online hang-out. The users are there to catch up with their online friends, share music, videos and views. Social+business: Facebook started as a way for Harvard students to stay in touch, but is now being used by professionals to stay in touch with their colleagues and friends. Second Life enables anyone, including businesses, to build their interactive environment, kind of like a 3D website with amazing graphics capability.
Business: Linkedin.com provides professionals a means to stay connected, get answers, and be a passive job-seeker.
Affinity networks: These provide all the collaboration tools of their bigger peers but target users with special interests. E.g. fashion-networks.com provides a networking hub for the apparel industry.
These networks are still is their early adoption phase and sorting out various teething issues like privacy, profitability and so on. So, why should you be interested? India is estimated to have 30 million internet users. A study by JuxtConsult of 10,000 households indicates 22% of users spend over two hours a day online as opposed to just 14%, who spend that amount of time watching TV.
Collaborative networks mark a milestone in New Age Media because: The ability to collaborate, in real-time, with vast groups of like-minded people changes the dynamics of influencer management. Perceptions are no longer shaped by marketing communications, but by what their friends, and friend’s friends say about you. It is the complete democratisation of opinion when you can reach thousands of people at a mouse-click, for free. E.g., a best employer survey is not all that relevant if I can call upon my network of 20,000 LinkedIn friends and friends-of-friends to share their first-hand views of the organi-.
Customer relationship management can never be the same again. Your customers can share tips, views, and cribs in realtime on Facebook. They can do it without you (and probably do), but it would be so much better if you joined that conversation or provided an alternative forum
Conversations are the key to success in this transparent, all-social, all-talking, allsharing world. You cannot engage with your prospects by shouting at them –– it has to be a dialogue, and it has to be in a format that they see value in. The consumer has complete choice to ignore your marketing message. Unlike TV or radio where advertising subsidised the service, these networks are free. So if you have a presence on Second Life, your avatar must wait to be asked for information before it can start selling. Or your visitor will just fly away to the next virtual world.
Collaborative networks are still in their early-adopter phase, and it is a good time to explore the medium and develop expertise. Here are three things that organisations might consider:
- You have to be in it to win it. Just as the early websites were brochureware, you may want to start with a stripped down presence on these sites and then work your way to a more full-fledged option once you are comfortable with the nuances of the medium.
- Engage in conversations, don’t advertise. The key to success is pullmarketing, not push. Offer something ––at least a virtual T-shirt –– to attract people to your site, and once they visit, structure the conversation around their specific interests.
- Be focused. The virtual world is infinite. Be clear about your positioning and whether your primary audience is your employees, potential employees, customers, media or prospects.
- by Jessie Paul, Chief marketing officer, Wipro Technologies
Internet is rivaling TV and print
Study confirms the Internet is rivaling TV and print
Data has traditionally been lacking for marketers who want to understand the media consumption habits of consumers in Asia and how people in the region perceive each medium with regards to their personal and business needs. A new study sheds valuable light on the topic.
Microsoft Advertising conducted a media consumption study via Synovate AsiaBUS service, surveying over 11,000 people aged 15-64 in 10 markets in Asia Pacific: Australia, China, Hong Kong, India, Japan, Malaysia, Singapore, South Korea, Taiwan and Thailand.
The research findings confirm the Internet has become a mainstream medium that now rivals traditional media such as television, newspapers and radio. The survey also reveals that the Internet excels over other media in attracting key demographics for advertisers.
Key audiences spending more time online
The AsiaBUS Study shows people spend 15 hours a week on the Internet, challenging the leading position of TV (18 hours). Respondents also report spending far less time reading newspapers and magazines, 5 hours and 3 hours respectively, though radio still accounts for quite a significant share of media time (12 hours).
Looking at media consumption across demographics, a few groups show higher engagement with the Internet than with other media. For example, those aged 25 to 34 spend the most time on the Internet, 18.5 hours per week versus 17 hours on TV. Two other groups show an even stronger preference for the Internet: University graduates and Top/Middle management, both of which are prime targets for advertisers given their higher purchasing power, and personal and business decision making power.
Internet is top source for information
Besides exploring media consumption habits, the study also examines perceptions of these media. What comes out very strongly is that the Internet is regarded as the top information source, be it for personal or business interests. The Internet is the first place people look for information and gives the depth of information they want.
The Internet's outstanding information gathering capabilities also helps consumers decide what to buy. People feel the Internet keeps them ahead of the game, describing the Internet as an active medium which puts them in control.
With all these advantages, it is not surprising to see that people are planning to use the Internet more than other media in the future.
Advertisers look no further: online is "in"
The AsiaBUS Study confirms once and for all that the Internet has clearly assumed its rightful place as a mainstream medium in consumers' thoughts and actions. With the Internet's importance continuing to rise even more in the future, advertisers will be turning online more and more to engage with prime target audiences.
Wednesday, June 4, 2008
Newspapers won't perish under cyber threat
While newspaper circulation shows a dip in the West, it is showing an upward trend in Asia
Hey, listen all those who have predicted the demise of print media. Newspapers are not going to be perished under the onslaught of Internet-powered media. Instead, global newspaper circulation is rising, mainly due to the demand in Asia and South America.According to officials at an international newspaper conference, circulation of paid newspapers rose 2.6 per cent worldwide in 2007, with the biggest jump in India and China.According to a report by the World Associated of Newspapers, China is now the largest market for newspapers with 107 million copies sold daily.The study also shows a slump in readership in the US and Europe, where traditional dailies struggle to survive amid free newspapers and web portals.Officials feel that the findings should be a cause of optimism about the industry."They say newspapers and print are dead. Well, I just don't see it," the association's president, Timothy Balding, said at the conference, which was attended by more than 1,800 publishers, editors and other senior newspapers executives at the three-day conference.Newspapers are doing brisk business in Asia, home to 74 of the world's 100 largest-selling dailies. But there's been a decline in readership in the West, with circulation falling three per cent in the US last year and 1.9 per cent in Europe.Over the last five years, circulation has been down eight per cent in the US. The report also said that while newspaper advertising revenue rose in all regions, it showed a downward trend in the US, where it fell three per cent last year.
Online ad revenue up
Internet advertising revenue worldwide increased 32 per cent.Research presented at the conference predicted an increasing shift from print to online media, with the editors are increasingly aware of the need to develop multimedia platforms in order to reach new audiences.People in the industry talk of "1-2-3 filing," which means presenting news alert headline first for breaking news, followed by a short present-tense story mainly for the web and broadcasters, and the third step being adding details and format stories in ways most appropriate for different news platforms.
Is online the emerging media?
A study by Associated Press showed that the news consumption patterns of young adults are different from that of the previous generations."People don't walk out to the driveway to collect their newspaper. They open their e-mail," Jim Kennedy, AP's director of strategic planning, said while presenting the study.The research project also showed that young adults face troubles over being flooded with facts and updates as well as in-depth reports.A worldwide survey of 704 newspaper editors by Zogby International and Reuters showed 44 per cent believed that most people would be reading their news online in 10 years, up from 41 per cent in a similar study last year.A survey of Nordic newspaper editors showed they see free newspapers as their main competitors, followed by the Internet.According to the report, free dailies account for nearly seven per cent of global newspaper circulation and 23 per cent of circulation in Europe.
Hey, listen all those who have predicted the demise of print media. Newspapers are not going to be perished under the onslaught of Internet-powered media. Instead, global newspaper circulation is rising, mainly due to the demand in Asia and South America.According to officials at an international newspaper conference, circulation of paid newspapers rose 2.6 per cent worldwide in 2007, with the biggest jump in India and China.According to a report by the World Associated of Newspapers, China is now the largest market for newspapers with 107 million copies sold daily.The study also shows a slump in readership in the US and Europe, where traditional dailies struggle to survive amid free newspapers and web portals.Officials feel that the findings should be a cause of optimism about the industry."They say newspapers and print are dead. Well, I just don't see it," the association's president, Timothy Balding, said at the conference, which was attended by more than 1,800 publishers, editors and other senior newspapers executives at the three-day conference.Newspapers are doing brisk business in Asia, home to 74 of the world's 100 largest-selling dailies. But there's been a decline in readership in the West, with circulation falling three per cent in the US last year and 1.9 per cent in Europe.Over the last five years, circulation has been down eight per cent in the US. The report also said that while newspaper advertising revenue rose in all regions, it showed a downward trend in the US, where it fell three per cent last year.
Online ad revenue up
Internet advertising revenue worldwide increased 32 per cent.Research presented at the conference predicted an increasing shift from print to online media, with the editors are increasingly aware of the need to develop multimedia platforms in order to reach new audiences.People in the industry talk of "1-2-3 filing," which means presenting news alert headline first for breaking news, followed by a short present-tense story mainly for the web and broadcasters, and the third step being adding details and format stories in ways most appropriate for different news platforms.
Is online the emerging media?
A study by Associated Press showed that the news consumption patterns of young adults are different from that of the previous generations."People don't walk out to the driveway to collect their newspaper. They open their e-mail," Jim Kennedy, AP's director of strategic planning, said while presenting the study.The research project also showed that young adults face troubles over being flooded with facts and updates as well as in-depth reports.A worldwide survey of 704 newspaper editors by Zogby International and Reuters showed 44 per cent believed that most people would be reading their news online in 10 years, up from 41 per cent in a similar study last year.A survey of Nordic newspaper editors showed they see free newspapers as their main competitors, followed by the Internet.According to the report, free dailies account for nearly seven per cent of global newspaper circulation and 23 per cent of circulation in Europe.
Tuesday, June 3, 2008
The Power of Newspapers
Newspapers can be an important component in any advertiser's media mix.
Newspapers give advertisers significant local reach. They are the voice of their community.
· On an average weekday, 50% of adults read a newspaper and 2.3 people read each copy of a newspaper.
· On an average Sunday, 57% of adults read a newspaper – that's more than watch the TV News · Newspapers are the #1 source for local news.
Newspapers help advertisers reach an attractive demographic.
· Readers tend to be highly educated and affluent, have higher Internet penetration and shop online more frequently.
· Readers say that the newspaper is "an important part of their daily routine," and that "reading the newspaper is relaxing to me."
Newspapers are a key resource for shopping information that drives consumers to make purchases – online and offline.
· 84% say they visited a retail store as a result of newspaper advertising.
· 60% said they visited a website to learn more about a product or service seen in a newspaper ad.
· 50% said they bought something online after seeing a newspaper ad.
Newspapers are relevant throughout the purchase cycle.Consumers refer to newspaper ads whether they're gathering product information or deciding which merchant offers the best price.
Friday, February 15, 2008
Advantages & Disadvantages of Billboard advertising
Outdoor/Billboard Advertising Advantages
Big, splashy messages attract attention. Using this medium you must be short and to the point!
Your ad has impact. Technology is allowing for more and more innovations like talking, moving, smoking, changing and twinkling billboards. Hot air balloons, blow-ups, flags, banners and other eye-catching devices are an option, too. You can even hire "rolling billboards" on the back of a truck that drives a route you choose to make sure your billboard is seen by the right audience numerous times.
Your ad reaches lots of people, many of whom see it repeatedly as they travel regular routes.
Outdoor/Billboard Advertising Disadvantages
It's hard to reach a specific audience. You might be able to target a neighborhood, but can't be more specific than that.
Your creativity is inhibited by space limitations.
It's hard to measure its effectiveness.
Your ad may become weathered or vandalized.
Costs can be quite reasonable for a billboard that you want to leave up for a sustained amount of time. However, innovative adaptations can become quite expensive.
Big, splashy messages attract attention. Using this medium you must be short and to the point!
Your ad has impact. Technology is allowing for more and more innovations like talking, moving, smoking, changing and twinkling billboards. Hot air balloons, blow-ups, flags, banners and other eye-catching devices are an option, too. You can even hire "rolling billboards" on the back of a truck that drives a route you choose to make sure your billboard is seen by the right audience numerous times.
Your ad reaches lots of people, many of whom see it repeatedly as they travel regular routes.
Outdoor/Billboard Advertising Disadvantages
It's hard to reach a specific audience. You might be able to target a neighborhood, but can't be more specific than that.
Your creativity is inhibited by space limitations.
It's hard to measure its effectiveness.
Your ad may become weathered or vandalized.
Costs can be quite reasonable for a billboard that you want to leave up for a sustained amount of time. However, innovative adaptations can become quite expensive.
Direct Mailers or Junk Mails???
Junk Mail: Don't ya love it?
Junk mail. Unwanted mail that fills your mailbox day after day that you must sort through to get to the real mail...the bills. Did you ever stop and consider, "How did I end up on this mailing list?" "Why are they sending this stuff to me?"
Why? Because you fit the profile of the person most likely to purchase that product based on past experience. Does your neighbor receive the same junk mail you do? Except for the Publisher's Clearing House mailing probably not. Why? Because you are different from your neighbor. You have a different model car, different clothes, different hobbies and interests. They may receive mailings on outdoor products and you receive mailings on books and indoor hobbies. They golf you hunt and fish. They like beer, you like wine.
How Did I End Up On This Mailing List?
The two most popular means of getting on mailing lists are: Using a credit card to purchase something or filling out a warranty card when you buy a new product. Third is magazine subscriptions.
Do you have an American Express Card? American Express allegedly keeps 450 pieces of information on each cardholder. Each time the card is processed, you decide by your purchases, which sales offers will be included with your next bill. Direct mail is major business. More money is spent each year on direct mail than any other media. Why? Because it works.
How does direct mail compare with other advertising?
Let's suppose that one of the magazines your target market reads is Time Magazine. I know as a small town business you aren't going to advertise in Time. Humor me to make this point. You want to place a full page ad in Time. Cost: $75,000. Let's say, for this exercise, that Time has 500,000 subscribers. So, our message is going to reach 500,000 people, right?
Well, it won't reach the people who just read a portion of the magazine that doesn't include our ad. It won't reach the people who go right past our ad looking for something else.
I also said that Time is ONE of the magazines our target market reads. Actually our demographics only fall within a small cross section of the total Time readership. Our target market might be ages 18-45. Times age demographics might be 18-65.
Your market is in there but it is a portion of the overall demographic. You are wasting your money reaching people between the ages of 46 and 65. They are not your customer. And last but not least, our ad is there with our competitors.
Why does direct mail work?
It's efficient and cost effective. If your research and profile of your target customer is correct you have eliminated contact with unqualified customers. Huh? What does that mean?
Each time you refine your mailing list you eliminate more and more non-customers. Every non-customer you eliminate lowers the cost of the mailing.
For example: My target market is left handed Italians, who live in towns of less than 9,714 people, in two story houses, on the south side of the street, own female Clydesdale horses and are married to women named Inga. Does this list eliminate most of the population? Yes it does. But why would I want to spend a ton of money on conventional advertising hoping I would reach this small market segment.
If I want to reach homeowners, why would I waste money advertising to renters? Don't you do this now with your current ads on the radio and in the newspaper? Are there radio stations renters aren't allowed to listen to that I could advertise on? Newspapers renters aren't allowed to read?The more I know about my customer, the easier they are to reach and sell. The more non-customers I can eliminate from my list the lower the advertising cost becomes.
Junk mail. Unwanted mail that fills your mailbox day after day that you must sort through to get to the real mail...the bills. Did you ever stop and consider, "How did I end up on this mailing list?" "Why are they sending this stuff to me?"
Why? Because you fit the profile of the person most likely to purchase that product based on past experience. Does your neighbor receive the same junk mail you do? Except for the Publisher's Clearing House mailing probably not. Why? Because you are different from your neighbor. You have a different model car, different clothes, different hobbies and interests. They may receive mailings on outdoor products and you receive mailings on books and indoor hobbies. They golf you hunt and fish. They like beer, you like wine.
How Did I End Up On This Mailing List?
The two most popular means of getting on mailing lists are: Using a credit card to purchase something or filling out a warranty card when you buy a new product. Third is magazine subscriptions.
Do you have an American Express Card? American Express allegedly keeps 450 pieces of information on each cardholder. Each time the card is processed, you decide by your purchases, which sales offers will be included with your next bill. Direct mail is major business. More money is spent each year on direct mail than any other media. Why? Because it works.
How does direct mail compare with other advertising?
Let's suppose that one of the magazines your target market reads is Time Magazine. I know as a small town business you aren't going to advertise in Time. Humor me to make this point. You want to place a full page ad in Time. Cost: $75,000. Let's say, for this exercise, that Time has 500,000 subscribers. So, our message is going to reach 500,000 people, right?
Well, it won't reach the people who just read a portion of the magazine that doesn't include our ad. It won't reach the people who go right past our ad looking for something else.
I also said that Time is ONE of the magazines our target market reads. Actually our demographics only fall within a small cross section of the total Time readership. Our target market might be ages 18-45. Times age demographics might be 18-65.
Your market is in there but it is a portion of the overall demographic. You are wasting your money reaching people between the ages of 46 and 65. They are not your customer. And last but not least, our ad is there with our competitors.
Why does direct mail work?
It's efficient and cost effective. If your research and profile of your target customer is correct you have eliminated contact with unqualified customers. Huh? What does that mean?
Each time you refine your mailing list you eliminate more and more non-customers. Every non-customer you eliminate lowers the cost of the mailing.
For example: My target market is left handed Italians, who live in towns of less than 9,714 people, in two story houses, on the south side of the street, own female Clydesdale horses and are married to women named Inga. Does this list eliminate most of the population? Yes it does. But why would I want to spend a ton of money on conventional advertising hoping I would reach this small market segment.
If I want to reach homeowners, why would I waste money advertising to renters? Don't you do this now with your current ads on the radio and in the newspaper? Are there radio stations renters aren't allowed to listen to that I could advertise on? Newspapers renters aren't allowed to read?The more I know about my customer, the easier they are to reach and sell. The more non-customers I can eliminate from my list the lower the advertising cost becomes.
Some gyan on media planning
Advertising can never be an expense, it must always be an investment. There must be at least a 75% expectation that the advertising will reach and produce more in sales than it will cost to place. If you don't have that 75% expectation then you should not place the advertising.
Who and where is your target market? - If you are selling farm equipment, are your customers in town or on the farm? Right. On the farm. So why waste advertising dollars that reach town people who are not your target market even though that media may also reach your target market? See the next point for more on this.
Cost per thousand? - Remember point one from above? Advertising must always be an investment never an expense. Media sales people are going to talk to you in terms of cost per thousand. This is the per person cost it takes to reach their audience. Notice I said "their audience" not your target market. So how does my farm analogy from above fit in here? What you should be concerned with is cost per customer. How much does advertising cost to bring a target market customer into your place of business? Cost per thousand is immaterial if most of the audience is not your target market. The cost per customer would probably make this advertising too costly for a satisfactory return on your advertising investment.
Which forms of media are best in small towns?
These will of course vary depending on the size of the town and media that are available to you. It will also vary depending on the size of your target market within your sales area. In many cases the size of your town will have a lot to do with the forms of media you choose.
For example, if we use the farm equipment analogy from above, you don't want to advertise to the people of the town who are not your customers. You want to reach rural customers who farm for a living. So in this case I would recommend direct mail. I can target rural routes with fliers or postcard mailers just for that market for much less than a newspaper ad or radio spots. See: Direct Mail: Why It Works And How To Use It.
Suppose you were a real estate agent and every morning when you walked in your office, there on your desk, would be a list of people ready to buy a house that day. They qualified for the credit, and were ready to buy. All you need to do is show them your listings.
Would that make your life easier? What would a list like that be worth to you? Well, that's sort of how direct mail works.
Who is most likely to buy?
As far as I know, no such list exists. But what you do have is a direct mail list that will tell you, based on past history, surveys, industry studies and collected information, a profile of the person most likely to purchase a home.
The most likely home buyer might be X years old, is married, has X children, makes X dollars per year, has X years of education, favorite pastime is X, hobby is X, favorite car is X and so on.
Who and where is your target market? - If you are selling farm equipment, are your customers in town or on the farm? Right. On the farm. So why waste advertising dollars that reach town people who are not your target market even though that media may also reach your target market? See the next point for more on this.
Cost per thousand? - Remember point one from above? Advertising must always be an investment never an expense. Media sales people are going to talk to you in terms of cost per thousand. This is the per person cost it takes to reach their audience. Notice I said "their audience" not your target market. So how does my farm analogy from above fit in here? What you should be concerned with is cost per customer. How much does advertising cost to bring a target market customer into your place of business? Cost per thousand is immaterial if most of the audience is not your target market. The cost per customer would probably make this advertising too costly for a satisfactory return on your advertising investment.
Which forms of media are best in small towns?
These will of course vary depending on the size of the town and media that are available to you. It will also vary depending on the size of your target market within your sales area. In many cases the size of your town will have a lot to do with the forms of media you choose.
For example, if we use the farm equipment analogy from above, you don't want to advertise to the people of the town who are not your customers. You want to reach rural customers who farm for a living. So in this case I would recommend direct mail. I can target rural routes with fliers or postcard mailers just for that market for much less than a newspaper ad or radio spots. See: Direct Mail: Why It Works And How To Use It.
Suppose you were a real estate agent and every morning when you walked in your office, there on your desk, would be a list of people ready to buy a house that day. They qualified for the credit, and were ready to buy. All you need to do is show them your listings.
Would that make your life easier? What would a list like that be worth to you? Well, that's sort of how direct mail works.
Who is most likely to buy?
As far as I know, no such list exists. But what you do have is a direct mail list that will tell you, based on past history, surveys, industry studies and collected information, a profile of the person most likely to purchase a home.
The most likely home buyer might be X years old, is married, has X children, makes X dollars per year, has X years of education, favorite pastime is X, hobby is X, favorite car is X and so on.
Subscribe to:
Posts (Atom)
