Effective Advertising Begins with Good Planning

How many times have you decided to buy a product, visit a store or use a service based on an advertisement? Probably more often than you realize. That’s because successful companies recognize that advertising is not merely a business expense; it’s an investment in building sales. They also know that good advertising programs don’t just “happen;” they are the result of meticulous planning, evaluation of options and thoughtful decision-making.

You need not be part of a large corporation to benefit from advertising. In fact, small businesses often depend on the exposure of advertising to generate sales and interest in their products or services. But like most regular expenses, advertising requires a budget based on careful evaluation of specific business needs and goals. Setting the advertising budget shouldn’t be pure guesswork. A good place to start is industry trade journals, which provide information on the average advertising expenditure for different types of businesses.

Armed with an annual dollar advertising budget figure based on your estimated sales, you’ll want to make a monthly budget to plan for your varying advertising needs during the year. Some types of businesses have major sales during particular months. Others build heavy sales around the holiday season or other seasonal activities. Every business has its own special needs. If you are just opening your business, you will want announcement advertisements.

Depending on your cash flow, you may want to build in some flexibility in your advertising budget. If you are expanding a store or adding a new product line, you may increase the frequency and size of advertisements. Unforeseen events also may occur. For example, you may need to notify your customers of a change in hours or service if you become ill or a natural disaster occurs. You may also learn that one of your current advertising outlets offers an opportunity to greatly increase your exposure for a small extra charge.

There are plenty of sources of information that will help you fine-tune your advertising strategy. Most media outlets are happy to provide prospective advertisers with rates, circulation, audience or coverage. Some will offer a free meeting with a representative who can answer your questions in detail. Usually, rates are based on the cost per thousand for the advertisement, meaning the cost to you for reaching 1,000 people or homes. Be sure you understand how such figures are based, for one medium’s cost per thousand may not mean the same as another’s. Don’t buy ads based solely on cost. Concentrate on how well the medium — Internet, television, radio or print — will serve you in reaching your target audience.

You can plug into a wealth of business know-how by contacting your Santa Barbara chapter of SCORE “Counselors to America’s Small Business.” SCORE counselors offer free, confidential advice about every aspect of starting, running and growing a successful business, even mentoring.