How Not to Burn Your Advertising Budget

[Jasmine]

Before you start an advertising campaign you need to understand one basic thing about advertising that is, advertising is an accelerator and not an initiator. What does this actually mean?

Advertising will take something you have for example, your product, service, or offer, which is selling well and put in front of more people so that you generate more money. However, advertising cannot take new offer, new product or service that hasn’t been proven yet to make it sold out. Just because you have pumped in money does not mean you will sell huge. Even if ads are helping you to sell, the moment you stop advertising, you will also stop making money.

The answer is to use the combination of paid media, earned media, shared media, and owned media. Paid media means the platform where you run ads. Earned media means your personal network, the relationship you build with your customers through service deliver and good will. Shared media refers to the community you build. Owned media refers to your blog, email list, etc.

 

[Mika]

Running ads is one of the methods to build your revenue. Running ads is also a way to retain your customers. That's why the big businesses continue to spend a lot of money on advertising, and in fact, advertising is one of the top expenses for all businesses, some businesses even spend more money on ads compared to product development or business development. Excessive advertising might not be very good for consumers because they might be tricked into buying products that are not good, excessive advertising is also not very good for the businesses because it increases their operational costs, resulting in reducing the quality of the product and services. However, there is one platform that ultimately benefits from this advertising business, which is the advertising network. That's the reason why Facebook and Google make hundreds of millions of ad revenue. For a small business owner, it is very necessary to handle advertising properly because you cannot spend as much money for cost per click or cost per milie, or cost per action, as the big businesses are spending. Bug businesses will always outperform you in terms of ad occupancy. Therefore, small businesses should use another form of promotion that is cheper yet effective.