Without a good advertising plan, startups and new businesses cannot grow and achieve long-term success. While every smart entrepreneur understands the importance of advertising, first-time business owners need to understand how to formulate an advertising strategy that maximizes their profits. It may be tempting to appeal to as large an audience as possible, but this strategy may be counterproductive.
Kye Giscombe has founded and directed startups that achieved long-term success such as the sports apparel company Contact Sports, Inc. and the construction company Cosmo Horizon. Kye Giscombe explains, “Marketing your business to as large an audience as possible can waste time and money because out of a large general audience, only a small sector of that audience will purchase your product or service. The key to formulating a good advertising strategy is figuring out which portion of the population will actually spend their money on what you’re selling.”
In light of this truth, startup and new business owners should find the target demographic their product should appeal to. While age groups, income, and education levels are important to consider, factors such as hobbies, interests, and values may be even more important when considering who your target audience is. Once you have determined who your ideal customer is, you can start tailoring your advertising to meet their needs.
Kye Giscombe continues, “For physical advertising, you should post flyers or advertisements at places your ideal customer will frequently visit. For example, if you sell fitness equipment, post flyers at your local gym. On the other hand, you should present digital advertisements that will appear when your ideal customers are searching for information relevant to them. Google AdWords and SEO can help with this.”
A mix of physical and digital advertising can be most effective, especially because most people turn to the Internet for information. Be sure to prioritize advertising in your quest for long-term business success.