Advertising can be a powerful tool to tackle marketing challenges like low brand awareness, a shrinking customer base, or tough competition. You might simply want to increase foot traffic to your business and think advertising can assist with that.
Not everyone can afford a 30-second national TV ad during a major championship game. Fortunately, there are more affordable options if you choose wisely. Here are seven types of advertising that fit within the budget of a small business:
Social Media Ads – Ads on platforms like Facebook, YouTube, and Twitter can cost just pennies per person who sees them. Each social platform has a different pricing structure, and the cost can vary based on the action you’re looking for, such as views or click-throughs. You can set a small daily budget, perhaps just $20 per day, which adds up to around $600 a month.
Classified Ads – Classified ads are great if you want to post a job opening or offer services like lawn care or cleaning. A classified ad might cost $200 for a 30-day run in some newspapers, or less for a shorter duration or in a smaller paper.
Event and Charity Sponsorships – Sponsoring local events like high school sports or charities can be relatively cheap. You can get good visibility starting at about $500. You could also donate branded items like keychains, notepads, or water bottles with your company logo for a few hundred dollars more. This not only promotes your business but also supports your community.
Sign Spinners – If you’re having a grand opening or running a special sale, consider hiring a sign spinner. This service costs around $30 an hour (rates vary by market), so for 5 hours a day over 5 days, it would cost $750. Remember to factor in the cost of printing the sign and check local regulations to make sure sign spinning is allowed.
Every Door Direct Mail – The U.S. Postal Service offers a cheaper way to send direct mail through their Every Door Direct Mail tool. You can target specific neighborhoods, for example, real estate agents or home improvement contractors might send out 5,000 postcards for under $1,500. This estimate includes printing and a special postage rate of $0.177 per piece.
Local TV Ads – Local TV ads are much less expensive than national ones, although they aren’t the cheapest option. Costs depend on reach, time of day, and other factors. Producing the ad could cost several thousand dollars, and airtime might cost $5,000 to $20,000 to reach between 1,000,000 and 4,000,000 viewers. This might be worth it if you sell high-value items like cars or jewelry.
Local Deal Vouchers – Sites like Groupon and Living Social can offer low out-of-pocket costs since you don’t pay upfront. However, be careful with your profit margins. For instance, if you offer a $50 item for $25 through Groupon, and Groupon takes half of that, you only receive $12.50 for something you usually sell for $50.
These cost estimates are just that—estimates. Many factors can affect advertising costs, so always get firm quotes in advance.
Remember, the most effective strategy combines advertising with other marketing efforts. For example, advertising your grand opening while hiring a DJ, providing food, and running a publicity campaign targeting local media and social media channels can be far more effective than advertising alone.
