Small businesses operate on tight budgets and rarely put money aside for advertising. The problem with this is that advertising is what gives many businesses an edge over the others in today’s competitive market. If you own a small business, you should not only advertise it but also make it a top priority and try to understand the importance of advertising for small businesses.
Inc suggests setting aside a percentage of your total projected sales revenues for advertising, even as low as 5 percent. Business mogul Henry Ford once said, “A man who stops advertising to save money is like a man who stops a clock to save time.” So rather than viewing advertising as an expense, you should look at it as an investment.
Still not convinced? Read on to discover six good reasons why you should invest in advertising.
1. Advertising Provides Instant Feedback and Monitoring
When you run ads on different platforms, you might get more phone calls or emails and wonder which platform got you those inquiries. Facebook’s Ads Manager and Google Adwords allow you to monitor individual campaigns.
You have a variety of information at your disposal, including:
- What types of people are viewing your ads
- What time of the month your ads get the most response
- Which devices people use the most to view your ad and respond to it
Without this instant and repetitive feedback, it’s hard to know what’s working with your advertisements and what isn’t. Being a small business owner, you probably don’t have the time or resources to monitor individual platforms. But with paid advertising tools, you can get all this information at once, and adjust your advertising strategies accordingly.
2. Ads Increase a Small Business Credibility
Advertising shows your consumers and business competitors that you’re open and credible, and you believe in your brand to satisfy the consumer’s needs. It can attract consumers to try out your products or services regardless of the economy. The fact that you have money to advertise would imply that you’re doing fairly well as a business and therefore they can trust you.
You may have excellent products or services, but if you don’t create a brand image, it will be hard for consumers to find a reason to come to you and remain loyal. Entrepreneur Middle East advises that a powerful logo and the right colors will etch an unforgettable image in the consumer’s mind. This will subconsciously lead them to believe in what you’re selling.“Nobody reads ads. People read what interests them. Sometimes, it’s an ad.” - Howard Gossage Click To Tweet
3. Ads Help You Reach Your Target Customers
A big perk of paid advertising is that some sites such as Facebook and Google have algorithms that enable your ads to reach your target market. For example, if you’re selling trendy sneakers, the ads will go to the younger population more often.
You can see that you don’t need to spend a fortune on advertisements to reach your target audience. Small businesses are just as valuable as large ones, and one of the few things that equates the two is how well the marketing is done.
4. Advertising is Important to Help Keep Your Consumers Up To Date
If you want to launch a new product or convey new information to your consumers, advertisements come in handy. The consumer needs to be in the loop about any major changes in your business for them to adjust accordingly.
You can use advertisements for your small business to alert consumers about:
- Changes in the services you provide
- A new product you launched
- Upcoming events
If a loyal customer traveled to your business place for a service that he’s been getting for the past five years, and you tell him that you no longer provide it without prior notice, you can call that bad customer service. An advertisement gives you the ability to communicate to all your consumers at once.“Nobody counts the number of ads you run; they just remember the impression you make.” - Bill Bernbach Click To Tweet
5. Advertising Increases Consumer Traffic for your Small Business
Forbes reports that 82 percent of smartphone users go online to search for purchases they want to make in-store. How much more traffic would you get if the first business that popped up on an online search was yours?
The market is constantly changing, and when new consumers move to your area, searching online for options is the norm. Advertising often means that your business will always pop up as an answer to the consumer’s search. Once they become familiarized with your services, they’ll keep coming back.
6. Advertising Helps Your Small Business Get Quality Reviews
People who look for sellers or service providers online use reviews to judge whether the business is worth their time and dimes. If you have a good online reputation, consumers are more likely to open their wallets for you. Happy customers can’t write good reviews about you unless they are already interacting with you online. So how do you get them to start writing reviews?
New consumers will get to know about your business from your ads, and they will also get honest reviews from actual customers.45% read reviews before making a purchase. - Forbes Click To Tweet
Get Professional Help Advertising Your Small Business
Setting money aside for advertising may look extravagant from a small business point of view, but the benefits you will reap will make it worthwhile. It not only gives you more sales, but it’s an opportunity for you to create a good reputation for your business. In this case, you have to spend money to make money.