Objectives, Message & Media and Budgets - the key drivers that impact advertising decisions
Our topic for this article is the three key drivers that influence the advertising decisions every franchisee, franchisor and business owner is faced with.
By Gerhard van Wyk
Advertising Objectives
Step one in any advertising initiative is to consider your objectives and determine what you hope to achieve. Knowing your objectives at the outset will aid you in determining whether the advertising worked, provided that your objectives are measurable.
Often, the objective of an advertising campaign is described as ‘to increase sales’, but in reality, most often sales are not directly impacted by advertising. Advertising is but one of a number of variables affecting sales, and its effect is usually so indirect as to be indeterminate.
What advertising will achieve is to inform, persuade and remind customers of the products and services offered, and by informing consumers, advertising brings about changes in awareness. Such changes in awareness are realistic, important and measurable.
Understanding this, businesses should strive to define advertising objectives that are realistic, measurable and important.
Message & Media
To get their message to market, most companies employ the services of an advertising agency. Advertising agencies are broadcast communication specialists and are responsible for crafting the creative message, selecting the media used to convey the message and the timing thereof.
Appointing an agency does, however, not mean companies should give the agency free rein to do as it pleases, and intelligent companies will also not do the agency’s work for them.
Even when deferring to an advertising agency, companies should have a reasonable understanding of the available media, the cost implications and the advantages and limitations of each, and they must be critical of the work delivered by their appointed agency.
Advertising Budges
One of the most difficult decisions companies face is how much to spend on advertising.
Two issues confuse the problem of how much to spend. Firstly, there is the question of how much to spend. Spending so little that the impact is not noticeable means the spend has been wasted and over-spending on additional advertising that has no positive effect on awareness, persuasion or sales is, in fact, also wasted. Secondly, the residual effect of advertising is difficult to account for.
Determining an advertising budget is neither easy nor precise, but it is certainly better than picking an arbitrary number. While franchises often determine their advertising budget as a percentage of sales, typically between five and ten percent, an advertising budget should really be set with an objective in mind.
A conundrum that tickles the senses is that in difficult times advertising budgets are often the first to be cut under the reasoning that “it is not important”, however when a business is at risk of closing down, the first thing they do is to place an ad “Franchise for Sale”.
By Gerhard van Wyk
Advertising Objectives
Step one in any advertising initiative is to consider your objectives and determine what you hope to achieve. Knowing your objectives at the outset will aid you in determining whether the advertising worked, provided that your objectives are measurable.
Often, the objective of an advertising campaign is described as ‘to increase sales’, but in reality, most often sales are not directly impacted by advertising. Advertising is but one of a number of variables affecting sales, and its effect is usually so indirect as to be indeterminate.
What advertising will achieve is to inform, persuade and remind customers of the products and services offered, and by informing consumers, advertising brings about changes in awareness. Such changes in awareness are realistic, important and measurable.
Understanding this, businesses should strive to define advertising objectives that are realistic, measurable and important.
Message & Media
To get their message to market, most companies employ the services of an advertising agency. Advertising agencies are broadcast communication specialists and are responsible for crafting the creative message, selecting the media used to convey the message and the timing thereof.
Appointing an agency does, however, not mean companies should give the agency free rein to do as it pleases, and intelligent companies will also not do the agency’s work for them.
Even when deferring to an advertising agency, companies should have a reasonable understanding of the available media, the cost implications and the advantages and limitations of each, and they must be critical of the work delivered by their appointed agency.
Advertising Budges
One of the most difficult decisions companies face is how much to spend on advertising.
Two issues confuse the problem of how much to spend. Firstly, there is the question of how much to spend. Spending so little that the impact is not noticeable means the spend has been wasted and over-spending on additional advertising that has no positive effect on awareness, persuasion or sales is, in fact, also wasted. Secondly, the residual effect of advertising is difficult to account for.
Determining an advertising budget is neither easy nor precise, but it is certainly better than picking an arbitrary number. While franchises often determine their advertising budget as a percentage of sales, typically between five and ten percent, an advertising budget should really be set with an objective in mind.
A conundrum that tickles the senses is that in difficult times advertising budgets are often the first to be cut under the reasoning that “it is not important”, however when a business is at risk of closing down, the first thing they do is to place an ad “Franchise for Sale”.
Comments
Post a Comment