Coming into Las Vegas, you don’t need a show guide to see who’s playing. One trip from the airport and all the major acts in town are displayed larger than life. Penn & Teller, The Jersey Boys, David Copperfield, are all standing tall above the road. The promoters in Las Vegas must believe that billboards are an effective form of advertising. And they’d be right.

To some extent.

Billboards certainly have the power to be effective tools in your advertising repertoire. They have two inherent advantages over other media.

1. They reach lots of people fairly inexpensively.
2. They reach lots of people with regular, heavy frequency

We are creatures of habit. We travel down the same roads on the same route to work, to school, or to home. We see the same billboards once, twice, maybe as much as 6 or 8 times a day. That is a lot of impressions. Some say billboards are the most cost-effective method of reaching a mass audience with enough frequency to be remembered (remember our discussion about frequency in radio?).

But not all billboards ARE remembered. Like other passive media, there are important steps to creating a successful media campaign.

First, you have to understand the limitations of billboards. A person has, at best, about 3-4 seconds to read your billboard – only enough time for 1 picture and 8 words (including your logo). That is not much room or time to say much of anything. On those Vegas Act billboards there is a picture of the performers, the name of the performance, and the hotel where it is performed. Nothing more, nothing less.

Yet, too many ineffective billboards try to cram too much text, too many or too complicated pictures, and then add in the company logo, address, phone, website and directions. It will take you three or four passes just to read it all. Yet, you’ll be bored enough to ignore it after the first drive by.

Frequency, while good because it reinforces your message, can also work against you. After seeing a billboard a few times, if the picture has no meaning and stays unchanged over time, it starts to blend into the background.

And frequency is not always the most important element. Those Vegas boards are seen only once, yet they work. Why? Because the message already has an emotional content for the reader. When you see Penn & Teller, you already have a feeling attached, either from experience, or other forms of advertising. The feeling may be one of excitement or one of disinterest. But the feeling is there nonetheless.

Therefore, the emotions that your billboard evoke are every bit as important to it’s success as the number of people who see it and the frequency by which they see it.

To do billboard advertising effectively, follow these tips:

• Limit your board to 1 picture and 8 words including your store name & website. Anything more and the board has too much information. Simplicity is best.
• Print the design of your board on an 8.5×11 paper and tape it to the wall across the room. All designs look good on a computer screen. The key is if it looks good from a distance.
• Use a picture that elicits an emotion tied to your store. Without an emotional tie, the billboard is just clutter on the mental freeway.
• Change your boards frequently. After about 3-4 weeks, unchanged billboards become invisible.

Billboards CAN be effective when done right, reaching a ton of people at a fraction of the cost of newspaper or TV. But you have to be able to make an emotional connection with 1 picture and 8 words. Can you do that with your business? If so, call your outdoor advertising rep today. If not, get back to the drawing board and find another advertising avenue to explore.

Do you agree or disagree?

-Phil

In today’s business climate you HAVE to have a website. It is a minimum requirement of doing business.

Over 70% of all households have Internet access. That number grows even higher at higher incomes and lower ages. According to a Pew Report study, shopping is one of the top uses for both men and women.

The key word is “shopping”. According to Merriam-Webster, shopping is defined as, “to examine goods or services with intent to buy”. The wealth of information on the Internet makes examining goods or services easier than it has ever been.

From this data many of you might make the false assumption that you have to offer e-commerce on your website, that you have to join the throngs of online merchants. Although you certainly can be successful selling online, here’s another statistic to make you think.

According to the Census Bureau of the Department of Commerce, online sales in 2008 were a whopping 3.3% of all retail sales. Yes, that’s right. Only $3 out of every $100 spent at retail were spent online. I guess the demise of the brick and mortar store might be slightly overblown.

Here’s the point. Over 60% of Americans are shopping online, but only 3% are buying online. So how are they using the Internet to do their shopping? They shop online four main ways.

1. To see what is available
2. To find information about features and benefits
3. To read reviews from other users and experts
4. To find stores that carry what they want

Yeah, the first three are pretty much the same stuff they could get just by entering your store and asking your staff (if they found you with #4). But they are doing it online for a number of reasons.

• The Internet has more information than most sales people
• The Internet is open when your store is not
• You can surf the Internet anonymously (in your pajamas)
• You don’t have to show your ignorance

Those last two points are important. According to the Pew Report above, men are more aggressive shoppers online, which only makes sense. Men do not like to admit they don’t know something. They don’t like to ask questions. They certainly won’t ask for directions. The Internet allows them to get all the info they need before entering a store so they do not feel inferior. Another group that prefers the anonymous aspect of Internet shopping are Introverts. They also like to get all the information they can before they have to interact with someone.

Men and introverts – two groups that collectively make up 75% of the population – give you all the reasons necessary for you to have a website. Think of your website as the Silent Salesman for your store. He costs a fraction of the other staff, yet he works tirelessly 24/7 building trust and goodwill and making customers more comfortable with your business. And he gets to embody all the qualities of your best salesman because you get to create him.

You have to have a website and you have to have the following components:

• Your hours, location and contact information – make it easy to find, many people are using the Internet as their yellow pages
• Your purpose for being in business – what you do and why (from a customer’s perspective) you do it better than everyone else
• What customers should expect when they visit – products, services, policies, etc.
• Pictures – the Internet is a visual medium
• More information – keep the basic pages simple (everything on one screen), but offer more for those who wish to click on it

The key is to make your site pleasing to the eye with minimal but well-written copy that answers the questions potential customers would ask about your business. Make it interesting and always about what the customer will find or experience in your store. And keep it consistent with your Character Diamond.

You don’t have to do e-commerce. You don’t even have to show all your products. But you do have to make sure you are linked to all of your vendor’s websites as a place to buy. And make sure at the very least you talk about what product categories you do offer. List the best known brands and let them advertise for you. The goal is to give enough information to make potential customers interested, comfortable and willing to do business with you.

In today’s business climate you have to have a website. Do you agree or disagree?

-Phil

PS If you’re doing e-commerce, I highly recommend you read the book Call to Action by Bryan and Jeffrey Eisenberg. It will help you convert more lookers into buyers.

As we continue the discussion of how advertising works differently in different media, we enter into the new, scary online world of Email, Websites, and Social Media.

Today’s topic is Email.

At a fraction of the cost of direct mail and with the availability of templates and email services, many consider Email to be the easiest, most inexpensive way to reach your customers multiple times with multiple offers and tons of information. Some call it the perfect solution to more costly traditional advertising.

And in many ways, they would be right. Here are some of the inherent advantages of Email Marketing.

• It is relatively inexpensive to use. Constant Contact, one of the largest email services, offers plans as low as $15 per month, and only $30 per month for lists up to 2500 emails. That’s $360 per year, or the equivalent of 818 first class stamps.
• You can do it as often as you like at no additional charge.
• It is quick. Within minutes of hitting the send button your Email is in the inbox of your recipients.
• It is easy. You can write, edit, format, add pictures, do surveys and more with just a minimal amount of computer skills.
• You can track your results quickly. Three simple ways to track the ROI include: How many emails get opened? (Is this number growing or shrinking?) How many coupons were used? How many people are subscribing/unsubscribing? If your list keeps growing, people are finding value in the info you send.

Email might be one of the best ways to utilize the new technologies to grow your business. But you have to cross a few hurdles to get there.

First, there is the list. Where did it come from? Who is on it? Do the people on the list want to get your email? To be successful, your email list has to be permission-based. It has to be people who gave you permission to send them stuff, people who want to hear from you. Otherwise, you’re just sending spam and making people angry at you.

How do you get a good list? By asking for it. Put a fishbowl on your counter and ask customers if they want to sign up. Offer a $25 gift certificate drawn monthly for anyone who signs up that month. Put a link on your website (Wait, you don’t have a website? We’ll discuss that next). Put it on your Facebook page, register receipt and front door. Ask, ask, ask.

Second, you have to commit to sending out regular emails and checking your list regularly for accuracy. How often should you send out an email? Some people say weekly, others say daily. I say, whenever you have something new to say. At the very least, say something once a month so that the people on your list don’t forget about you. At the very most, say something new EVERY time you send an email. And check for bounce backs. If an email address doesn’t work, delete it.

Third, you have to have a thick skin. People will unsubscribe to your email for a variety of reasons and you’ll get a report of it. You can’t take it personally. But if too many people unsubscribe, either you have a bad list, or you’re sending out a bad email (probably both). Tweak your message and see what happens.

The bottom line is that Email can be an extremely successful marketing tool if you follow these simple practices:

• Get a good list. Get permission up front and let people know what they are signing up to receive. Grow your list by asking everyone everywhere if they are interested.
• Use a professional service to send your email. I use Constant Contact, but there are other services. The professional services have templates for you to use, know how to avoid spam filters, ensure that you use best practices such as unsubscribe notifications, and can manage your lists more efficiently than you ever could.
• Add pictures to your emails. A picture may not be worth a thousand words, but images are eye-catching and interesting. They also help the people who just like to skim and scan move from topic to topic.
• Make the content fresh and new. Say something new with every email. It doesn’t have to be a discount or coupon, but it does have to be fresh and new and consistent with your Character Diamond.
• Send it out often enough to be remembered but not so often as to be annoying.
• Measure the ROI. Is your list growing or shrinking? Are more or less people opening each email? Are coupons and special offers being used? If the ROI is not good, keep tweaking the message until it turns around.

If you have the time to write the copy, you have the time to send out Emails. And at the current rates, it is an affordable way for you to reach your loyal customers often and keep them coming back regularly.

If you can grow a good list, you should definitely be doing Email Marketing.

Do you agree or disagree?

PS Sign up for the Toy House Email Newsletter at http://www.toyhouseonline.com/.

Every form of advertising has it’s pros and cons. Magazines are no different.

To understand magazine advertising, you have to understand the magazine business model. Ray Bard of Bard Publishing explained it best when he said:

“When you’re thinking about writing a book on a subject or considering a
business to go into, it’s essential that you find out 2 things:

1. How widespread is the public’s interest in it?
2. How deep is that interest?

“If interest is not widespread and not very deep, you’re looking at a Puddle. Never invest time or money in a puddle.

“If interest is widespread but not very deep, you’re looking at a Swamp. Be careful of swamps. They look like oceans at first because everyone is interested. But that interest is shallow, not deep enough to drive action. Investors go broke when they see a swamp and think it’s an ocean.

“If public interest is wide and deep, you’re looking at an Ocean. But you’re going to need a platform on which to navigate your ocean. If you don’t have a platform, you’ll drown. And you’re going to need a plan or you’ll drift.

“If public interest is narrow but deep, you’ve got a Well.
Don’t underestimate it. You can draw a lot of water from a well. I once knew a
writer who wrote a book called The Care and Feeding of Quarter Horses. The book held no interest for readers who didn’t own a quarter horse, but those who did had deep enough interest to buy the book. It was extremely successful.”

Magazines are Wells. Interest is narrow but deep. If you sell to rock climbers, there are magazines exclusively for rock climbers. If you sell to perennial gardeners, there are magazines for perennial gardeners.

No matter how niche your product, there is most likely a magazine that perfectly fits that niche. And unlike almost all other forms of traditional advertising, only magazines can consistently give you potential customers that exactly fit your profile.

So what’s the downside? Two things…

• Frequency
• Cost

The more niche the magazine, the less often it is produced, meaning the less often your ad has the chance to be seen. And being a passive ad, there is the possibility it won’t get seen at all. This can be tough if you’re trying to promote an event or special sale and you miss getting seen in time. This can also be tough if you’re trying to raise top-of-mind awareness (branding). Since frequency is the key to memory, lack of frequency works against your long-term goals.

And costs for magazine ads can be astronomical. If it’s a full color magazine, you probably need a full-color ad just to have a shot at getting seen, and those ads typically cost more.

But if you think a magazine might be the right avenue for your advertising campaign, here are some things to keep in mind:

• Make sure the readership fits your customer profile as closely as possible. Ask your current customers what magazine they read to help you choose which magazines would be the best fit.
• Understand the goal of the magazine and match your ad to the goal. If the magazine is used primarily to give event information, you should advertise your events. If the magazine primarily is used to give information, make your ads informational.
• Ask for discounted rates and priority placements in return for signing full-year contracts. The best customers get the best ad placements. Be one of their best customers.
• Use professional production for your ads. The magazine is using professionals. You should too.
• Keep it simple. Print ads are like billboards, only a limited time to get your attention. Your ad should be able to attract someone’s attention is less than 3 seconds. Pay special attention to your headline and your graphics.

One of the biggest benefits of magazine advertising is the fact that people hold onto and re-read magazines often, giving readers multiple chances to see your ad. Add to that the chance to reach your very specific niche audience and magazines can be the well that fills your profit tanks full.

If there is a magazine with the exact right readers, a purpose aligned with the purpose of your business, a decent frequency, and a cost you can afford, you should consider it as a viable advertising option.

Do you agree or disagree?

A continued discussion of how ads work differently in different media…

Ready, aim, fire!

Shotguns are different from rifles. Rifles fire bullets, singular masses of metal propelled by gunpowder that make a single, clean (deep) hole in the target. Shotguns fire shot, a collection of small pieces of metal that scatter somewhat as they fly giving you a wider margin of error for hitting your target, but penetrate less deeply.

Direct mail is a lot like a shotgun, a scatter shot approach to finding new customers. You purchase a list of potential customers, create a mailing piece, send it out with a message that has wide (but not deep) appeal and hope you get a return. Unfortunately, the average return rate is usually less than 3%.

There are two problems with this approach:

• The list
• The message

It is difficult to get a quality list. People are more private and stingy with their personal information. They only give it freely when there is a promise not to sell or trade such info away.

The list makers all claim to have great lists, but there is a good chance they had to beg, borrow and steal to make a list that might actually get you a decent return.

Plus, these lists are based on basic demographics with no consideration for the all-important character traits these potential customers have. Demographics are far less important than psycho graphics for determining who will be most receptive to your message.

Creating a list on your own takes time and generally only gives you a list of current customers, not a list of potential new ones. This is okay if your goal is to get more repeat business, but not a way to generate new clients.

But let’s say you are able to get a quality list of potentials at an affordable price. What are you going to say to them? How will you entice them into your store? A coupon? A discount? A sale?

While effective at drawing certain customers, coupons and discounts have some negative consequences, too. They signal customers that your prices are too high in the first place because you’re so willing to lower them. They teach customers to wait for the next coupon or discount or sale. They tell your customers that prices are negotiable.

Also remember, the bigger the offer, the bigger the return (and the bigger the consequences).

You could make your mailing piece about a product, but you’ll only be able to attract a portion of the list that is currently in the market for that product.

Now you see why although 46% of all adults read their direct mail pieces, 97% of the recipients of a typical mailer casually toss it aside and take no action.

If you’re going to do Direct Mail, follow these tips:

• Get your list from a reputable source or create your own. In this world of spam, permission is necessary to even get your mailer seen, let alone acted upon.
• Ask for details of the list that go beyond age, gender, and income. Demographics such as these are not guarantees of matches for your brand message.
• If you are sending multiple mailings to the same list, limit the coupons to once a year so as not to train them to wait for the next deal
• Make your message as powerful as possible. Your message is like a magnet. It’s power to attract is proportional to it’s power to repel. Although some will be repulsed, others will be empowered to act.
• Measure your results. A typical Direct Mail to a purchased list will garner about 2-3% response. Can you live with that? A good quality list with an above average message sent at the peak time of your season might get as much as a 5% response. A great message sent to your personally created list (your known fans) at the perfect time can get you a 9% response.

We only use Direct Mail once a year to thank our loyal customers for doing business with us. We send a postcard at the end of October with a message consistent with our Character Diamond and a coupon worth $20 off a $100 purchase (our only coupon of the year). Our return last year was 9.2%. Of course, the list was of high quality – all customers who had purchased from us in the past and asked to be on our mailing list. And the message was spot-on, hitting all the right buttons that made them customers in the first place.

Still, 90.8% of the postcards did not come back. And if you do the math… We generated over $100,000 in top line sales, but at a cost of almost $18,000 (printing, mailing and discounting costs). The biggest question is… How much of that was sales we might not have received otherwise? After all, the list was our greatest fans.

Use Direct Mail only if you know you have a quality list, know exactly how to say something powerful to them, and are willing to absorb those costs involved.

Do you agree or disagree?

Continuing the discussion of how ads work differently, lets talk Yellow Pages.

For some of you, your Yellow Pages probably take up half or more of your ad budget. I know. We used to be the same way.

Unfortunately, Yellow Pages are only for those people who have lost the will to advertise. It is the last resort someone takes to find a business they have never previously known. It is the last place someone will look to find you if they have not heard of you through word-of-mouth or other forms of advertising.

Think about your own Yellow Page habits. First, do you still even use them? Or has Google become the directory of choice? Second, are you looking up a phone number of a business you know or a category of businesses you don’t know?

The Yellow Page reps have plenty of seductive statistics telling you things like how 88% of all people surveyed would go to the Yellow Pages first if they needed to find a plumber. Don’t get trapped by the numbers. Ask yourself WWYD?

Here’s what really happens… Your toilet has sprung a leak. You have no clue what to do. you don’t know any plumbers. You reach for your phone. The first person you call is…

Your Dad. (Or spouse, or best friend, or boss or co-worker)

You ask them if they know a good plumber. By the time you get to the phone book you already have a name in mind of who you will call. The Yellow Pages only supply the number, not the name, not a referral. Think of it as an info guide, not a form of advertising and persuasion.

Forget all the statistics. As Winston Churchill said, “The only statistics you can trust are those you falsified yourself.” The real truth is that you want customers to be thinking of you long before they need a phone number. You want them going to the phone book for one reason only – to look YOU up because they have already decided where to go, they just need a phone number and directions.

So when do you use Yellow Pages for advertising?

• When you are getting traffic from outside your own phone book region and need a place for people to find your contact info.
• When you are in an industry where no one advertises at all and the Yellow Pages are the only place to find anyone
• When you are in a town with an extremely high turnover rate where no one stays long enough to make friends for referrals.

If you’re going to do Yellow Pages, here are some tips:

• Get all the free listings you can get. Some companies have deals that give you free listings under certain headings. Ask your vendors and ask your Yellow Page reps.
• Go simple – Get your single line listing. If anything, add your website.
• Be realistic – If you don’t get traffic from a certain area, don’t go in that book. The expense will not pay for itself over the long run.
• Measure your online traffic to see if their online listing of you is giving you any referrals
• Ignore the secondary books in your market. If enough people ignore them, maybe they’ll go away.

Some people consider Yellow Pages the necessary evil of advertising. I question the necessary part. Your goal should be to get people thinking of you long before they reach for the book.

Do you agree or disagree?