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What Is The Best Type Of Advertising

Updated on April 15, 2013

Best ROI For Advertising

We are often asked "What is the best type of advertising?" and although there are many good options, not every option is best for every business. If there was one specific type of advertising that could be considered without a doubt to be the best then I'd have to say that it must be word of mouth advertising because the ROI or Return On Investment is huge. For example if you own a business and three people walk in today and tell you that they were referred by a friend then you'd be very happy about that because you didn't pay anything for those three new clients. Maybe you are running some advertising on TV and that brings in 20 new customers each day. In that case the TV advertising is working much better than the word of mouth advertising and now the only good thing about the word of mouth advertising is that it was free. Word of mouth advertising might be the best type of advertising if we only consider the cost. If we look at what brings in the most customers then most of the time, for most business owners it won't be word of mouth advertising.

Wait... did I just say that word of mouth advertising is the best type of advertising or did I say that it is not the best type of advertising? Yes! Word of mouth is the best type of advertising and the problem is that you can't rely upon word of mouth advertising. If store owners were to sit around and wait for people to randomly tell their friends to go shop in a certain store those shops would most likely go out of business. Other types of advertising need to be done in order to generate enough activity (sales) that some of the new customers might go tell their friends.

How To Survive In Business When The Economy Is Slow - How To Market Your Business In A Slow Economy

When business gets slow many business owners make two mistakes:

1. Cutting back on advertising at a time when you could look strong and gain market share is always a mistake.

2. Lowering prices to try to stimulate sales often just gives away profits and insures failure.

Full Service Advertising Agency
Full Service Advertising Agency

Internet Marketing

Internet Advertising

What is the best type of advertising? If there was one set answer to that question then wouldn't all of the biggest and best businesses just use that one best advertising method and all others would become obsolete? We often see auto dealerships advertise on TV and the big car companies must know what is best so does that mean that TV advertising is the best? TV advertising works well for car dealerships because they will make a large profit on each car sold and therefore it is worth it to put thousands of dollars each week into TV advertising.

The fact remains that the best advertising is the type of advertising that works best for your business. For example a restaurant near a movie theater may find that movie theater advertising is an excellent way to bring in new customers. This doesn't mean that YOUR business should use movie theater advertising. A full service advertising agency can help you to consider all of the types of advertising that might work well in your business. The best way to approach this is not to ask, "What is the cost of radio advertising?" the best way is to say, "My advertising budget is $X amount per month, what should I do?" and in that way you'll get advice instead of a price list.

For many types of business internet marketing is very effective because you can reach a large audience at a very low cost. By using internet advertising we can expand our business without renting new office space in other locations. We are often able to promote our products and services in places that would otherwise be out of reach. For the cost of a decent website that ranks well we can reach the same potential clients that others have to reach using direct mail, TV, radio and newspaper advertising. All of the other methods of advertising are much more expensive than internet marketing. Social media marketing combined with good online strategy is the way to go in today's economy. Expanding online is far more cost effective than adding a new location and staff to support that location.

Great Offer
Great Offer

Direct Mail Marketing

Coupon Offers

Direct mail marketing might be a great option for your business especially if you have an offer to bring people into your place of business. For example an offer of a free appetizer with any dinner purchased is often a very inexpensive give away that might drive traffic to your location.

The postcard below was direct mailed for a high end steak and seafood restaurant. The mailing list was created based upon high value homes that were not more than 3 miles from the restaurant. Although people will drive to get to a nice restaurant; this was successful because it is easier to get people to drive to a close restaurant.

Viral Marketing

Internet Marketing

With a viral marketing campaign we may decide to invest our advertising dollars in producing a funny video about our business and then promote the video using social media marketing. If the viral marketing campaign is executed wisely then it may spread at a very low cost and generate a very nice ROI or Return On Investment. This type of advertising is very useful in times when the economy is not booming and you need to keep some type of advertising going, yet you don't have unlimited funds to spend. Viral marketing isn't free and when compared with many other types of advertising it can be a great bargain.

It is difficult to think of any business that wouldn't benefit from good online advertising or some type of internet marketing. For example a dentist that ranks well in search engines will treat more patients. A lawyer advertising online for specific types of legal work will get more clients. A roofer that shows up when people search for "roof repairs would do well with internet marketing. In these three examples if those business owners were to advertise on TV, radio, newspapers or direct mail they would find that it would be much more expensive than internet marketing and possibly not as effective. For example when the roof on my house leaks I won't wait to see what roofer advertises on TV; I'd go to the Internet and search for a roofer. It would be the same for the dentist and the attorney; when you need them you are more likely to search for them online. There is nothing wrong with the other types of advertising and if the budget allows then TV advertising for example can be great for branding. If our roofer was advertising on TV on a regular basis then one day when we need a roofer we might remember the one we saw on TV.

Advertising Tips - How to get the most out of your advertising dollars

Today we have so many options when it comes to advertising; how is a business owner to select the best type of advertising? Here are some books about advertising that you might find useful.

Are you doing well with internet marketing or something else? Tell us what type of business you have and what works best in your industry.

What Type Of Advertising Has Been The Best For Your Business

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    • LauraCarExpert profile image


      5 years ago

      Viral marketing is tough but very effective. Look at "dollar save club" on youtube!


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