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OK, I’ve covered this subject before …. I’ve got a funny
feeling I’m going to be covering it again….but I’m going
to keep shouting the message until it gets through:
BRAND ADVERTISING CAN MAKE YOU BANKRUPT!
I’ve had many conversations with people over the last few
months that have proven to me again and again that a huge mass
of people still don’t get this point.
It applies to your advertising….but it also applies to all
of your Marketing.
It is one of THE foundations for wonderful business success,
so even if you think you’re out of danger, please read this,
print it out and give it to anyone involved in your business.
The Two Forms of Advertising
There are two forms of Advertising. The first is Brand
Advertising. The Second is Direct Response Advertising.
I think I’ve begun to understand why so many of us are
blinkered on this subject.
It’s because we are surrounded by…..in fact totally
immersed in the world of Brand Advertising.
Brand Advertising is EVERYWHERE.
Virtually every TV Commercial you see is Brand
Advertising. Every poster you drive by is Brand Advertising.
Many of the commercials you hear on the radio are brand
advertising.
Just to be clear, Brand Advertising is advertising that
promotes a brand, that gets a brand name into your head. Coca
Cola is an example of Brand Advertising. So are all the TV
commercials for new cars. So is virtually every commercial or
ad that has semi naked women or men in it. They are using a
complex and fascinating neurological process called
‘anchoring’ to get your brain to associate pleasant
feelings (that’s the semi naked part) to their product (eg
the car) Most of this goes on outside of our conscious
awareness. But as a result of the billions these companies
spend (yes billions) we all feel drawn towards the brands.
Of course you and I are far too intelligent to be influenced
by this type of manipulation, but it works with everyone else,
right? By the way, what beer do you drink? What perfume do you
wear????
Anyway, branding is a fascinating subject……I could talk
about it for hours….and it makes total sense for these multi
national corporations to engage in it. It is incredibly
powerful. The only thing is, it’s got virtually nothing to
do with the success of your business.
So What’s the Problem?
Good Question. Here’s the problem.
Mr Smith owns a local tailors. He’s built the store up over
10 years through word of mouth recommendation. Now he’s
going to do some serious advertising in local newspapers and
in some regional magazines.
90% of the advertising that Mr Smith has been exposed to
throughout his life has been the type of brand advertising
discussed above. So, not surprisingly he thinks that’s what
‘advertising’ is.
He gets a designer to create an ad for him that has his logo
at the top, a picture of some of his best suits…a snazzy
slogan because that’s what you do in advertising…he runs
his ad for a few weeks. He gets three responses and two of
those are from other publications trying to sell him
advertising. He calls the newspaper sales rep and says he’s
disappointed….. The sales rep tells him not to worry because
it’s all building his ‘Brand’ in the community. He soon
finds that the bank manager is slightly more interested in
‘cash in the bank’ than ‘brand in the community’ so he
gives up on advertising and never does it again.
Mr Smith’s Solution
Mr Smith’s story is very common. The reason I’m going
on about this issue is I continue to hear from very well
intentioned business people who are in deep trouble because
someone sold them into the concept of building their brand.
Mr Smith needed someone to explain to him that he needed to do
Direct Response advertising instead. This is advertising that
produces a clear, measurable response. Perhaps an ad that
tells people that if they come in his store this Saturday with
a copy of the ad, they’ll get 25% off their new suit and a
bottle of Champagne.
It produces a response…. Five people walk in on Saturday
with the ad and three of them buy a new suit. The ad more than
pay for itself. Everyone’s happy. Simple as that. But it can
only happen if Mr Smith understands the principle of Direct
Response Advertising.
But my Business is different
Let me backtrack a little….
One of the other problems with Brand Advertising is it’s
very hard to measure. Coca Cola can certainly measure the
effectiveness of their advertising across the year in any
particular country or region, but it would be virtually
impossible for them to measure the effectiveness of one ad in
one publication.
That’s fine for Coca Cola because they can afford it and
they’re engaged in a totally different activity than a small
business owner.
The reason I am writing this article is that I keep hearing
intelligent business people trying to justify to me why
they’re still engaging in brand advertising that’s
virtually impossible to measure.
Their argument is that they’re a growing or reasonably large
business and that they have a ‘recognised brand’ and that
the advertising is helping to promote that brand.
I’m sure it may be.
But they’re missing the point.
This is the best bit of all….. but virtually no one gets it.
I really hope that you do……
Here’s what they don’t get….
ALL DIRECT RESPONSE ADVERTISING IS ALSO BRAND ADVERTISING
Let me repeat this. It’s important
ALL DIRECT RESPONSE ADVERTISING IS ALSO BRAND ADVERTISING
Let’s take our tailor, Mr Smith as an example.
His ad that promotes his offer for people to come in on
Saturday and get their discount, will have his address and
phone number prominently displayed. It is a direct response ad
because it is designed to produce a response that can be
clearly measured. People will be rewarded for marching into
his shop on Saturday waving the newspaper ad as proof that
they read it.
But as an added bonus, it’s also great Brand Advertising. It
builds the profile of Mr Smith and his store into the minds of
thousands of others who see the ad, but who don’t respond on
this occasion. We can’t really measure how useful that is
but it doesn’t matter because it’s just an added
bonus….the ad has paid for itself through it’s direct
response component.
So you can have your cake and eat it…you can have your Brand
Advertising but it should always be an ‘added bonus’ once
the direct response part has paid for the ad.
What do all the people who want to spend a fortune on
‘Brand Advertising’ have in common?
I have noticed a fascinating pattern of behaviour over the
last couple of years, particularly in slightly larger
businesses.
I’ve noticed that the people who fight tooth and nail to
continue their Brand Advertising all have something in common.
Can you guess what it is?
It’s not their money that’s being spent.
That’s right. It’s not their money being spent.
You can always be certain that the people fighting to maintain
those expensive glossy ads that are not working, are not
spending their own cash.
They’re also not spending their own cash when the
advertising agency takes them out to lunch and talks to them
about the importance of ‘Brand Recognition.’
I’ve been privileged to work with some highly successful
entrepreneurs and business owners. They immediately get the
distinction between Brand Advertising and Direct Response.
Immediately. Why? Because it’s their cash.
To quote Sir Alan Sugar from the recent UK series of The
Apprentice:
“I’ve written books on Advertising. Cheque Books.”
Or perhaps the issue of Brand Advertising is best summed up in
another of Sir Alan’s favourite quotes:
“What a lot of bollocks”
Happy Marketing!
Chris
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The
Big Advertising Debate - 