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Is your marketing an expense, or an investment?

Earlier today I had a meeting with a sales professional from a newspaper, wanting of course to sell me advertising. I get it, I really do, newspapers are dinosaurs, at least the way they were twenty years ago. About halfway through the meeting, it was blatently appearent that this company could really care less about how effective my marketing was with them. Creativity was shot down. Its not like I pitched the 'Word of Mouth on Steriods' commercial again. All I said was an Advertorial would probably be the most effective for me.

So, lets get down to the numbers; 23,000 eyeballs (ok 46k, you know who you are), one ad in the weekly publication, modest size, over $1,000. I can do simple division, that is a $23 CPM. I almost had a heart attack. To put things in perspective, I plop out roughly $0.62 CPM for a Facebook campaign, and that is splurging. Which led me to think to ask, how much for a simple listing in your Online Directory. $3,588, which includes a 30 second video. But you can only use the video for a year. And you can only post it to your website, and we will have a copy on ours. Basically, they are limiting the functionality of what they severely overcharged you for, for the sole purpose to do it again next year. So whats the average time spent on your site? He didn't know, but Alexa.com did. 1 minute, and decreasing with time. Which brings me to my next point. I bet they also don't know that Yahoo is re-known WORLD WIDE for their local directory, and they only charge $299 per year, yes I know, Yahoo doesn't rent you a video.

Why spend money on marketing that dinosaurs have designed to be consumable and ineffective? Why not invest it? Take that $1000 a week and buy content. While you are at it, have it SEO'ed. Google doesn't reset number 1 just because it is January 1st. For the $3500 on the online directory (with the lease on the video), lets put this in perspective. I can get a professional TV Quality video done for $500. Hire a spokesperson for the spot for an extra $1,000. Granted it wont be Micheal Jackson, or Johnny Cochran, but person well suited to the role (if needed). Then stick it up on Facebook, and Youtube, and Vimeo, and Daily Motion. Maybe spend a couple hundred promoting that video. SEO optimize the video. Guess what, it is not going anywhere. YouTube doesn't delete the videos just because it is January 1st.

But when all is said and done, only 14% of the consumers will trust a word you tried to communicate in that ad. 90% are going to trust a comment someone made about your business on a Social Media Site. You don't need a big budget to see results anymore. After I did my calculations, a $120 campaign generated more dollars in profit than the proposed $54,000 campaign (came in at a $3k loss for the year). Now is probably a great time for you to do your own ROI Calculations, or to call someone (HINT HINT 484-505-8903) who works with your best interests in mind, not their commission check.

Published Monday, March 12, 2012 by

Filed under Marketing, TechTips,


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