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The emergence of the broadband Internet has paved the way for new marketing technologies. More subtly, it makes using the old standbys—radio and television—more flexible and affordable. The result: A richer mix of approaches to customers and prospects.
The Best Marketing Mix: Old and New
While much has been discussed about the impact of the Internet on local businesses in recent years, 2007 should be the year that local businesses fully embrace useful online tools in order to market their business more effectively, efficiently and affordably.
Internet advertising is already invaluable for businesses. Over the past two years, local/small businesses have increased their use of e-mail lists by almost 60 percent, banner ads by more than 50 percent and keywords by more than 40 percent. In addition, during this time, the use of certain advertising media, such as radio, local shopper guides and the Yellow Pages, decreased by more than 20 percent.
However, the news is not all bad for traditional channels, especially television. Two-thirds of small businesses are interested in advertising on television, but in the past year, less than 15 percent of those polled had done so, because it was assumed to be out of their price range. In addition, 77 percent said it is “too expensive to buy the time on air” or “too expensive to develop advertisements” themselves. However, the research findings show that small businesses would prefer to advertise on TV over radio, newspapers, magazines and Internet keywords.
The introduction of new technologies together with wider broadband penetration have effectively leveled the marketing playing field for local businesses due to the affordability of services that were once only available to deep-pocketed national companies. The barrier to entry has also been lowered, not just with new media – such as online advertising – but with traditional media (i.e. radio and television) as well. Now, advertising services that used to be labor intensive, such as media planning, have become increasingly automated with the advent of the Internet.
This is why we founded Spot Runner, the world’s first Internet-based advertising agency. Here are two case studies that illustrate how local business owners can take advantage of the new online tools, including Spot Runner, that are available to get a leg-up in the marketing game and revamp their business strategies in 2007 and beyond.
Case Study I
iSold It is a franchise company that takes the work out of selling online. Simply drop off your goods at the counter and, for a small commission, this company takes care of everything else, including payment and shipping. One of the iSold It franchise owners, Jeff, knows that marketing for the brand is marketing for his franchise. His challenge is to brand the iSold It brand after minimal results from advertising through newspapers, radio, shopping carts, and coupon packs. Jeff has teamed up with two other iSold It owners in his city to pool their advertising resources and get more bang for their collective buck. They can more effectively market their brand by blending elements of his initial marketing tactics with the Internet tools available to local businesses like iSold It.
Here is Jeff’s marketing plan without Internet tools:
• Newspapers
• Radio
• Shopping carts
• Coupon packs
Here is what Jeff could do with tools available through the Internet:
• Local television advertising
• Internet Yellow Pages (IYP)
The marketing mix that Jeff used in the first scenario could be improved upon. iSold It’s target audience is primarily women who don’t have the time or know-how to deal with an auction site like eBay, specifically soccer moms, baby boomers and empty nesters. In this second scenario the company is targeting these groups with local television advertising in the marketing mix.
For iSold It, advertising via television is quite effective as its visual nature allows the company to explain the concept of the business much easier than through other media. In addition, television advertising is much more affordable than people think and can be purchased at a fraction of the cost of traditional radio or print advertisements by using a service like Spot Runner - a Web-based advertising agency that enables local businesses to customize ads they choose from a library of thousands of pre-produced spots. The results seem to speak for themselves, as Jeff demonstrated when doubled his revenue by running a local market television campaign.
Similarly, while newspaper and Yellow Page ads can reach customers looking for auction drop locations, another effective tactic for iSold It is to use an Internet Yellow Pages (IYP) site, such as Citysearch, which provides visual and interactive content to help inform and attract new customers. Instead of purchasing a static ad in a book, iSold It also can offer updated information, photos and weekly offers in its online listing with a few clicks of the mouse.
Case Study II
Mitch is an entrepreneur with a rapidly growing flower and gift business in Southern California, The business was originally comprised of two stores that were once under separate ownership but Mitch renamed them Devynn’s. His challenges was to create brand awareness for the new name but also to raise awareness local patrons, especially his primary demographic – women, ages 35-65 – in a seasonal business.
Here is Devynns’ marketing plan without Internet tools:
• Yellow Pages
• Few print ads in local newspaper
Here is what Devynns could do with tools available through the Internet:
• Local television advertising
• Daily/Weekly Email newsletter advertisement (i.e. Daily Candy, Splendora)
• Internet yellow pages (IYP)
The biggest challenge for Devynns’ was branding the two stores that were under a different name into one recognizable face in the local community. Nothing does that like television. The Yellow Pages or the daily newspaper usually aren’t the first places most people go to find a flower shop. Consumers head to the local store they drive by every day or go with a brand they recall seeing. Television advertising helps create this impression. In fact, the company did $80,000 worth of business in September of 2005 and $95,000 in September of 2006 with nothing else to attribute to the rise in business, other than the Spot Runner television advertisement.
Devynns’ can also place affordable ads in email newsletters like Daily Candy or Splendora to hit the younger portion of their primary demographic. Because Devynns is a seasonal business, the tools in the latter scenario allow Devynns the ability to be nimble in its advertising approach and create timely ad campaigns.
Lastly, instead of advertising in the traditional Yellow Pages, it’s best that Devynns look to online listings like Yahoo! Local and Citysearch where business owners can update information, photos and weekly offers with a few clicks of the mouse, in addition to more interaction with new and existing customers from the immediate feedback received through reviews and comments.
As consumers now have access to more sophisticated tools to get their information, local businesses can use the same tools to capture their audience’s attention in 2007. While accessing e-mail may have been the length to which many business owners utilized the Internet in the past, local businesses will need to take advantage of new online resources in the near future in order to stay competitive. How do businesses get started? Most of these tools are available on the Internet so a simple search will do the trick. You can also visit some of the links listed above. The process is easier than you think.
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