How much of the money spent on
Advertising in
America
is wasted? John
Wannamaker said half. Rex
Biggs and GregStuart
say 37.3%. Either way, it's way too much.
This week's posting, the third in a
five-part series onadvertising waste,
covers one of the biggest sins of all – waste by habit.
Original post date: 10/9/06
Habit-based programs. When someone says "What should we put
in the Spring campaign?" it's a sure sign that the Spring campaign
is a waste of money. Doing things because that's the way they've
always been done is putting the cart before the horse. The objective
isn't to do an ad. The ad is just one of many possible means to the
real objective: profitable sales. An ad for the sake of an ad is a
waste.
Avoid the pitfall: Zero base your plan. Determine what
objectives need to be achieved, then allocate resources and build a
program to achieve them. Don't
start with a media plan then try to figure out how to use it.
Habitual media plans. The media universe is undergoing
tectonic changes right now. No one has a clue what it will be like
when – or if – it returns to equilibrium. There are only two givens:
It's not
like it was a year ago.
It's not
going to be like it is now next year.
The
situation is a bit like a spin in a NASCAR race. Experienced drivers
know they shouldn't turn away from the spinning car, but head right
at it. Because the only sure thing is that it's not going to stay
where it is.
Staying with
the media you've used in the past after your target audience has
moved on to other information/entertainment sources is guaranteed to
waste your marketing budget.
Avoid the pitfall: Reevaluate media selection with every
single plan.
The habitual ad. You know the one we mean. Old
faithful. In retail it may be the "Salebration" in B2B "Quality
companies have counted on for (insert your number here) years."
Service industries have the "We care about you" ad.
Companies
fall into the habit of using insipid ads because they think they're
safe. But they're actually the most dangerous advertising of all.
That's because nobody notices it. Companies that go with the
expected ad or commercial, or the one least likely to offend anyone
(including the competition) usually have invisible advertising.
That's a very expensive waste of marketing communications dollars.
Avoid the pitfall: Break the habit and do a high profile
ad or commercial or web site. It may make you a bit nervous. After
all, all the other companies in your industry aren't doing ads,
commercials or web sites just like yours. Which is why it can stand
out and be effective.
The habitual year-end budget cut. Companies that cut ad spending when
they aren't making their numbers often learn that things weren't
really tough until the budgets were cut. The price of attracting a
prospect isn't going to change. So companies that cut budget begin a
self-fulfilling prophecy of failure:
They're not
making their numbers, so they cut the budget.
They have
fewer prospects, so they have fewer sales.
Fewer sales
means they're missing the numbers by even more.
So they cut
the budget again.
Avoid the pitfall:
Know the advertising investmentrequired to produce a sale.
Determine how many sales you need.
Budget to provide the sales you need to
meet the company's objectives.
Explain to the budget cutters that sales
cost $100 (or whatever) apiece. They can have as many as they
want, at that price. Or they can cut the advertising budget
which will cut sales.