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You can barely get through a day today where you don’t hear about the hardships local businesses are experiencing. Cut backs, layoffs, down sizing seem to be the buzz words of the day.
Savvy business owners know that in order to bring business and money in, they need to advertise. In times such as these, many will cut their advertising budgets resulting in even less business. Others will cut expenses elsewhere and actually increase their advertising efforts.
Which is the right thing to do?
Well, in a sense both are right. It’s a good and necessary practice to evaluate advertising methods and drop what isn’t working and step up what is. Yellow page advertising, for example, is very expensive. It is not uncommon to spend anywhere from $600 – $1800 per month on a feature ad in the yellow pages. If you are spending money on a yellow page ad, I do hope you are tracking results. You may very well find that your community is following the trend that most of the free world is in – heavily reduced consumption of print media. In fact, there has been such a drop in use of the traditional telephone directories that some communities have gone to a system where receiving a new phone book is no longer automatic.
The place that people go to today to find a telephone number, to find a product or service, an address, directions, information… is the internet. They do it from their home computers, office computers and mobile phones. We are living in a new kind of information age. Children no longer refer to a printed encyclopedia or dictionary when doing their homework – it’s Google all the way.
So back to the question of whether to cut advertising budget or increase it, one of the smartest things any business owner can do is to invest their advertising dollars where their customers are looking – and that is online. Paying $1500 per month for a full page yellow page ad just doesn’t make sense anymore! At one time, it was critical to local business success. Now, it may well be contributing to local business demise.
