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Advertising - Frequently Asked Questions

Q.- Why should I advertise no matter if we are in a recession or not?

A.- Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service. Money spent on advertising had increased dramatically in recent years, before the current recession. In 2007, spending on advertising has been estimated at over $150 billion in the United States and $385 billion worldwide. Procter & Gamble Co. hit a milestone by becoming the first advertiser to break the $5 billion mark on U.S. spending in a single year. Advertisers spent $5.78 billion in the U.S. Hispanic news media in 2007.

Advertising is as old as human beings. Egyptians used papyrus to make sales messages and wall posters. Lost and found advertising on papyrus was common in Ancient Greece and Ancient Rome.

Q.- Why should I advertise in a recession, when consumer confidence is low?

A.- A series of six studies conducted by the research firm of Meldrum & Fewsmith showed conclusively that advertising aggressively during recessions not only increases sales but increases profits. This fact has held true for all post-World War II recessions studied by The American Business Press starting in 1949. Your company should be visible all the time in order to avoid competitors to put you out of business.

Understand the business environment where your company works. If you are located in Los Angeles county it is important to know that there are 250,000 private companies in the county. Of this total, about 50,000 are Hispanic-owned businesses.

Q.- What should I do to advertise in a recession?

A.- Set an advertising budget that can help your company reach the market segment you really know is the right one for your company. If you sell products and services for everybody, a general market news media like a daily newspaper, radio or TV should be of great help. If you need to acquire specific middle-class customers, carefully select the news media aimed at such a market segment, like print magazines and/or online publications. If you sell to Hispanics, use Hispanic news media. Review Hispanic news media at hand and decide which one is the best for you. Promote what makes your company different. Branding experts say customers perceive few businesses to be as unique or expert as the owners believe they are. Advertising will help you say why you are different.

Q.- I have read that many news organizations are moving to the Internet. How can I advertise online?

A.- Yes, many newspapers and magazines have folded their print editions and are now operating online only. On the Internet, advertising works on different models, but basically the point is the same: to send a message to online audiences as you do in the traditional media. Some online publishers use a CMP (cost per thousand adviews) model, other use a CPC (cost per click) model. You can see fancy, animated banners, also videos on which users can click and jump to the advertiser's website for further information and buying options. As a business company, you are supposed to have a website that shows your products and services, prices, customer support, how to contact you and some information about your company. Some businesses publish client testimonials. This propels your company's credibility. Of course, when you design and post a website, you will need exposure for Internet users to find you on the web and become your clients. Online advertising is the most helpful marketing tool to achieve such a goal.

You will pay for a combination of the model you select, CPM or CPC, and the size of your ad unit. There are different ad units to buy. The Interactive Advertising Bureau suggests online publishers some standards related to the size of ad units: leaderboards (720 x 90 pixels); skyscrapers (120 or 160 x 600 pixels); banners (468 x 60 pixels); rectangles of different sizes. Please, see a variety of ad units.

Advertising During Recession

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