Archive for the ‘Marketing’ Category

Marketers intent on following the money need look no further than their computer screens. According to a new survey from marketing service and software provider Alterian, 45% of DMers spent at least $500,000 in 2007 for online efforts, compared with just over one-third in 2006.

That spending increase has to come from somewhere, and that somewhere is likely from offline efforts. Among DMers, 30% spent less than $100,000 on offline campaigns, up from 23% in 2006 and 18% in 2005.

The move to digital marketing should continue: 84% of those surveyed anticipate their online spend will increase during the next 12 months, with only 1% foreseeing a decline.

Part of this may reflect the relative youth of the online space, but part may also reflect marketers going where the customers are. Only 44% of all marketers said their offline spending would increase, compared with 52% in 2006 who expected it to rise. The number expecting decreases was 11%, identical with 2006.

Aside from boosting their online spending, two-thirds of all marketers said they were allocating additional resources (such as headcount, man-hours or research) to database and analytical functions. Forty-two percent are putting more resources toward digital efforts, and 39% are investing more in process and operational functions.

Survey respondents are also embracing specialists for certain marketing functions. Forty-five percent outsource creative design to agencies, while another 41% rely on vendors for e-mail campaign execution. Nearly four in 10 (37%) turn to list companies to manage their files, and 35% use outside database and analytics firms. Seventeen percent have outsourced their campaign management functions.

But as marketing departments embrace a wider variety of channels, their ability to coordinate all their functions through a single management system has dwindled. Seventy percent of all marketers use at least three marketing applications to accomplish their responsibilities, and 20% rely on seven or more.

Alterian’s survey was conducted during October and November 2007 through online questionnaires and in-person interviews at direct marketing trade shows. The study incorporates responses from 852 marketing professionals.

Grow your list at every turn. Every day there are opportunities to add someone to your e-mail list. Train yourself and those you work with to take advantage of every opportunity to grow your list. If you haven’t added a sign-up box to your website, now’s the time. If you have a store front, keep your e-mail book on the counter and ask every customer to sign it. Consider setting a goal to grow your list by a certain percentage this year.

Spend more time on e-mails. If you want your e-mails to be valued by those on your list, put more time into them. Are you giving yourself enough time to think about what you’re trying to accomplish? Are you giving your best effort to creating content that is interesting and useful to your list members? Do you have great ideas for e-mail promotions that you haven’t put to work yet? Let this year be the year. The little bit of extra time and energy you spend on creating your e-mails can get a big return.

Keep a clean list. Doesn’t it feel great to sleep in clean sheets, eat in a clean kitchen or put on a clean shirt? We love when things are clean, but it takes work to get them that way. It’s the same with your e-mail list. It might take some work to get rid of old e-mails and hunt down the issues for those being blocked, but it’s worth it. And once you’ve spent the time to do a deep cleaning, the upkeep is easy. Make it your goal to give a little bit of time to list cleaning each month so you can get that good feeling that comes from having a sparkling list made up of people who want to hear from you.

Test, test, test. Testing is the best way to determine what you can do to get optimal results from your audience. By testing, you can learn what day and time of day to send, what subject lines get the most opens, and what topics, promotions, offers, and calls-to-action get the best responses. Your open and click-through rates will give you the answers. By testing and using your findings you’ll be better equipped to create highly effective e-mails. Make sure to take good notes.

Segment your list. Dividing your list into categories based on interests, shopping habits, geographical locations or any other criteria you choose is an excellent goal for this year. Targeted marketing can make a huge difference in the responses you get from your e-mails. If you can communicate with your contacts about something that you know is of interest to them, you have a much better chance of getting them to open the e-mail, read it and act on it. The more targeted the message, the better the response.

Small business advertising is a science and an art. Companies often miss the fundamentals of advertising. Regardless of the size of your business an understanding of the laws of advertising can reap huge rewards.

My understanding of these fundamental laws came years ago when I had the privilege of working for one of the all-time advertising success stories; NordicTrack. NordicTrack’s advertising was based on flawless execution of fundamentals.

According to Small Business Administration, 5% of an entrepreneur’s gross sales should be budgeted for advertising. A 5% small business advertising budget can only help if you understand the laws of advertising.

6 Laws of Small Business Advertising Success

1. Use One Message: A high response rate ad usually conveys a single message.NordicTrack’s message of the "World’s Best Aerobic Exerciser" was simple and compelling. Your small business advertising needs to quickly communicate its core message in 3 seconds or less. If you are fearful and overwhelmed by technology, which computer book do you buy? "DOS for Dummies" began a best-selling phenomena because its message was easily understood and to the point.

2. Add Credibility: It has become human nature to distrust advertising. Claims need to be real and credible. Roy H. Williams, best-selling author of the "Wizard of Ads" says, "Any claim made in your advertising which your customer does not perceive as the truth is a horrible waste of ad dollars."

NordicTrack added enormous credibility from a University of Wisconsin-LaCrosse research study, ranking the cross-country ski exerciser first in the areas of weight loss, body fat reduction, and cardiovascular fitness. Ivory soap’s advertising success was attributed to its credible statement that ivory soap is the 99-44/100% pure.

3. Test Everything: Large businesses have a greater margin to waste capital and resources without testing advertising. Small businesses do not have the luxury. Use coupons, codes, and specials to measure the headline, timing, and placement of your ad. Test only one item at a time and one medium. Testing can be as simple as asking every customer for several weeks how they heard of your business.

4. Be Easy to Contact: Every single brochure, box, email and all company literature should have full contact information including: website and email address, phone and fax numbers, and company address. It seems simple but is forgotten by most companies. At NordicTrack, every box a ski machine went into had full contact information and the "World’s Best Aerobic Exerciser" tagline. Be everywhere.

5. Match Ads to Target: Successful business advertising speaks to one target market only. At NordicTrack, the ads were tailored to each market. An ad in a medical publication preached the cardio-vascular benefits of cross-country skiing to heart patients. Ads in women’s magazines discussed the weight-loss and calorie burn from cross-country skiing. Focus the message to the target group.

6. Create Curiosity: Successful business advertising does not sell a product or service. NordicTrack’s ads sold the free video. Once a potential customer watched the video, they contacted the company for more information. The end result, millions of dollars of sales. Create ads that generate interest and make the customer want more information.

Having a poor response is not the medium’s fault. Often the problem is the message. Small business advertising is not a quick fix solution to marketing your company. It takes planning, testing and constant exposure to have an impact on your small business. Done correctly, small business advertising can be a winning strategy