Why Quality of course!
Are you sure about that? Really do you know? If you do, then you are a good deal ahead of most major TV ad execs who simply cannot grasp this concept. Traditional advertising versus the greater exposure and cost-effectiveness of the interwebs generally ends in an ugly, sometimes violent, shouting match between overpaid and under-thinking suits that do not want to admit that what they were taught 10-15 years ago is now failing. With the advent of commercial skipping DVR’s, its happening at an alarming rate. Just like the real estate bubble burst, so will traditional mass-market advertising. Lets take a look at the facts, shall we? Read on and I will show you how to do it better…
More after the jump…Quality or Quantity?
Oddly enough, this is a valid question and not quite so easily answered. Many of you (probably 99% or more) have a television and have seen commercials for just about everything you can think of, from shoes to jeans to computers to even sex. Can you remember the last time you were moved to purchase anything off of TV? Most everyone can think of one thing they saw on TV that they wanted to buy, of course.
Why did you want to buy it?
There are several reasons that it could be:
- Price
- Utility
- Need
- Want
- Joe has one
- Need to have a better one than Joe
The list goes on – my point is that every TV commercial is trying to give you this feeling and play on your rationalizations that because the comercial is interesting, funny, charming, outrageous, or seductive, that the product is on par with the entertainment value. What the companies are asking you to do is take their word for it and go spend your hard earned cash because their product will make you:
- Faster
- Stronger
- More beautiful
- More attractive
- Better in bed
- Better at what you do
- Happier in some way
But Tim, that’s true with any product we’ve never tried or heard of. Mathematically it makes sense to hit as many people as possible, doesn’t it?
That is a very valid point, from one point of view. If you look at sales numbers, you generally look at a ratio that is called many different things, but let us call it an Absorption Ratio (AR). Simply stated, an absorption ratio is how often a product is purchased versus how many times it was presented to the customer. AR is traditionally very low, in the 10%-15% range or less for mass-market advertisements. That means for every 100 customers shown an advert, they will see 10-15 purchases as a result. The actual number could be higher or lower, due to natural circumstances. To really know, shoppers would have to be surveyed about every product they purchase at the check-out and that is far too difficult to accomplish. Back to the main point – if you know that you have a 10% AR, and you want to increase your sales by 1000 units per day, then you need to reach out to 10,000 people each day. If you are factoring cost per person, this can get very expensive very quickly. Notice in my article about superbowl advertising, the price per person goes up $30 in 10 years. Even at low numbers, the cost is very high, and ultimately ineffective.
Ok, I get it. Its expensive and times are tough. But what’s the alternative?
Essentially what you want is to increase your AR. If you have a higher AR, then you personally need to show less people. Another aspect is the talkability factor a.k.a. word of mouth. This is where buzzwords like “viral” and “social media” come in. I’m dancing around here hoping you’ve already connected the dots. What I am saying is that your message itself isn’t the most important thing! Who and where the information given is the key, now.
Let me ask you – who would you take advice on what laptop to buy?
- Sales advertising exec and writing staff that creates commercials for a living
- Tech geek who has tested and reviewed all of this year’s best models
No brainer, right? You would think this makes the most sense in the world but the secret is that corporate America has not caught on, yet. They still pump money into TV and high-priced ads when the answer is obvious to everyone else. Podcasting News reported that podcast advertising is seven times more effective than TV or Radio ads. Seven times!
Why do you think this is?
- People listening to the podcasts are already interested in the subject matter, and more likely to purchase items based on a recommendation from someone who’s opinion they respect.
- Item and service reviews are a feature on the shows. They are presented in an entertaining way that consumers can identify with.
There are other reasons, of course but I believe these to the be the primary drivers behind their success. This sort of “niche” marketing has been around for ages just like mass-marketing, however the venues have not been nearly as visible. You’ve probably heard something about the internet creating a level playing field for businesses. This is very much the truth because of the open nature of the internet.
So to put this question to bed, quality in advertising is much more productive and profitable. Remember, you’re not shooting for as many faces as possible with your ads, you’re shooting for the right faces, regardless of number. If you show the right ones, they will do your work for you.
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