Read Start Your Own Business Online
Authors: Inc The Staff of Entrepreneur Media
Start Your Own Business (81 page)
Getting Help
Once you’ve gone through all these steps, you should have a good idea what is involved in broadcast advertising. But learning to be a smart consumer in the TV and radio market isn’t always easy. If you’re worried about making the right choice on your own, consider hiring a consultant or an advertising agency to guide you.
When approaching radio stations, it’s important to learn their demographics, and look at how closely they match your target market. Sorting out demographics is one area where hiring an ad agency or consultant can really help. Every radio station in the country says they are number one in a certain time spot or with a certain audience, so it helps to have an insider on your team.
Radio can be a good option if you only need to reach a small geo graphic area, such as a single city or town. Another option that can help an advertiser pinpoint a small geographic area is cable TV. With networks featuring all-news, sports, music, weather and other specialized topics, cable lets you microtarget the groups that fit your customer profile. Plus, cable TV allows you to reach your target audience in specific towns, without wasting money covering viewers who are too far away to use your products or services. Major cable system providers, such as Comcast and Adelphia, allow you to buy advertising on cable programming within geographic zones that can be as small as five miles or in multiple zones to reach an entire major metropolitan area. So it’s easy to target both geographically and based on the special viewing interests of your audience.
WARNINGDon’t wait to market. Fight the tendency to pay too little attention to your customers and to resist marketing until you’re in trouble. Market when times are good, and you’re more likely to keep the good times rolling.
For example, a business owner looking to reach upscale members of the community might try advertising on CNN. A sporting goods store might make a big splash by advertising locally during the national broadcast of “Monday Night Football,” carried by ESPN.
But what if you want to target prospects beyond your local broadcast area? You can still use cable TV and radio to achieve your goals. Rather than advertise on your local cable TV provider, for example, you could go directly to national cable networks—from HGTV to ESPN 2—and negotiate for a spot schedule on programs that are targeted to your audience.
Today, there are more options than ever to reach national audiences using radio advertising. Thousands of radio stations now simulcast on the internet, and there are networks of internet-only radio stations to suit every breed of listener. If your startup is well-capitalized and you can budget at least $2,000 for a national radio campaign as part of your media mix, you can reach an affluent audience online.
The monthly audience for internet radio tops an estimated 48 million, and a study from Arbitron and Edison Media Research showed online radio listeners are twice as likely to live in households with annual household incomes of more than $100,000. There are other advantages as well: Nearly 80 percent of internet radio listeners tune in while they’re at work. So when your spot plays, your prospects are just one click away from your website. In addition to running audio advertising, it’s often possible to place online ads your prospects will see while listening.
The challenge is to book the best stations that can reach your audience in sufficient numbers to produce results. Net Radio Sales (netradio
sales.com
) represents the largest network of internet radio stations and is a good place to start an online radio campaign using one station or all stations in a particular format or in a specific geographic market area.
Direct Mailsales.com
) represents the largest network of internet radio stations and is a good place to start an online radio campaign using one station or all stations in a particular format or in a specific geographic market area.
Direct mail encompasses a wide variety of marketing materials, including brochures, catalogs, postcards, newsletters and sales letters. Major corporations know that direct-mail advertising is one of the most effective and profitable ways to reach out to new and existing clients.
What’s the advantage? Unlike other forms of advertising, in which you’re never sure just who is getting your message, direct mail lets you communicate one-on-one with your target audience. That allows you to control who receives your message, when it is delivered, what is in the envelope and how many people you reach.
To create an effective direct-mail campaign, start by getting your name on as many mailing lists as possible. Junk mail isn’t junk when you’re trying to learn about direct mail. Obtain free information every chance you get, especially from companies that offer products or services similar to yours. Take note of your reaction to each piece of mail, and save the ones that communicate most effectively, whether they come from large or small companies.
e-FYIGet your business on target with these two direct-mail websites:1.
Directmag.com
offers case histories, mailing list resources and e-newsletters, including DirectNewsline for direct marketers.2.
Dmnews
(
dmNews.com
) offers business updates, a blog, white papers and e-mail newsletters.
The most effective direct-mail inserts often use key words and colors. Make sure the colors you use promote the appropriate image. Neon colors, for example, can attract attention for party-planner or gift basket businesses. On the other hand, ivory and gray are usually the colors of choice for lawyers, financial planners and other business services.
To involve the reader in the ordering process, many mailers enclose “yes” or “no” stickers that are to be stuck onto the order form. Companies such as Publisher’s Clearing House take this technique further by asking recipients to find hidden stickers throughout the mailing and stick them on the sweepstakes entry. It also asks customers to choose their prizes, which gets them even more involved.
Next, read up on the subject. A wealth of printed information is available to help educate you about direct mail. Two of the betterknown publications are
DM News
, a bimonthly trade paper, and
Direct Magazine
, a monthly.
DM News
, a bimonthly trade paper, and
Direct Magazine
, a monthly.
The Direct Marketing Association (DMA) in New York City is a national trade organization for direct marketers. For a catalog that highlights many of the direct marketing industry’s books, a free brochure that lists a variety of direct marketing institutes and seminars across the country, or more information about joining, call the DMA at (212) 768-7277. You can also visit the group’s website at
the-dma.org
.
Mailing Liststhe-dma.org
.
No matter what type of direct mail you send out, you’ll need a mailing list. The basic way to build a mailing list is by capturing name and address information for everyone who buys or shows interest in your product. If you sell by mail, you’ll already have this information. If not, you can get it off customers’ checks. Hold a drawing and ask customers to fill out an entry card or drop their business cards in a bowl. Or, if you’re a retailer, simply put a mailing list book next to your cash registers where customers can sign up to receive mailers and advance notices of sales. One of the best ways to build a mailing list is to compile a database using the leads generated by your other forms of advertising.
AHA!A growing number of list publishers sell lists on CD. Since these lists may not be updated as regularly as other list sources, be sure to ask how current the list is before you buy.
The list you develop using your own customers’ names is called your “house list.” Of course, when you’re starting out, your house list is likely to be skimpy. To augment it, one way to go is to rent a mailing list. There are two ways to rent a mailing list: approaching the company you want to rent from directly or using a list broker.
Any company that mails merchandise or information to its customers—catalog companies, magazine publishers, manufacturers, etc.—usually has a list manager who handles inquiries and orders for the mailing list. If, for example, you know that subscribers to
Modern Photography
magazine are likely to be good prospects for your product, then you can rent the subscriber list directly. Another good source is local newsletters or group membership lists. Many organizations will let you use their member lists; these can be very cost-effective.
Modern Photography
magazine are likely to be good prospects for your product, then you can rent the subscriber list directly. Another good source is local newsletters or group membership lists. Many organizations will let you use their member lists; these can be very cost-effective.
If you aren’t sure whose list you want, then call a mailing list broker. List brokers know all the lists available and can advise you on what type of list would work best for your business. Many can also customcreate lists based on your requirements. You can find brokers in the Yellow Pages under “Mailing Lists” and “Mailing Services,” and in the classified sections of mail order trade magazines. The DMA can also refer you to brokers. Another source is the monthly directory
Standard Rate and Data Service Direct Marketing List Source
, available in major reference libraries.
Standard Rate and Data Service Direct Marketing List Source
, available in major reference libraries.
Some list companies let you sample a list before making a pur chase. Rental costs typically range from a low of $50 per thousand (CPM) for the most basic compiled lists to $250 CPM for names with multiple selections, such as recipient’s name, job title, type of business or number of children, for example. This is for a one-time use only. (List owners typically “seed” their lists with their own names and addresses so they can tell if you use the list more than once.)
SAVEKeep your house mailing list up-to-date by cleaning it regularly. To do this, send out mailers with the notation “Address Correction Requested.” The post office won’t charge you for sending you the new addresses of your customers when the cards are returned.
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