Ad campaigns play a key role in most marketing strategies, but to get the most for your money you must identify and target those who want what you’ve got

W hen we started advertising in 2002 our spend was just £8,000. This year we’ve allocated £750,000.” As Serious Readers’ founder Alex Pratt explains, advertising is an essential component of his company’s marketing strategy.

The business started by selling commercial lighting, but now two thirds of its income is through the sale of high-quality reading lamps direct to consumers. As the lights last for a long time, the market doesn’t lend itself to repeat business, so continual customer acquisition is the name of the game. Hence the level of advertising needed to drive sales.

Press, TV and radio, the internet – you’ve probably tried at least one or two already. And you’re probably acquainted with billboards, distributing flyers or slapping your logo and contact details on the sides of local taxis. But before you write your next cheque, ask yourself: how can I get the biggest bang for my advertising bucks?

Strategic thinking

What are your objectives? If it’s putting your product range in front of new customers, where are you likeliest to find the ones you want to reach? When Serious Readers began to advertise, the company assumed it was targeting the over 50s (the most likely customers for powerful reading lights) in the AB income group. “Initially we advertised in The Daily Telegraph, because we felt that many of our potential customers would read that newspaper,” says Pratt.

It was something of a punt, but it paid off. However, when you start advertising more widely – say, across a number of publications and media channels – it’s advisable to underpin your targeting strategy with some statistical analysis. “If you have a database of existing customers, profile the people who are buying from you,” says Sarah Sproston, media manager of integrated marketing agency More2. “And once you know what your best customers look like, target similar people.”

Sproston cites the Target Group Index, which provides a breakdown of the media spending habits of consumer segments. And if there is a major crossover between the people who buy your product and those who, say, read The Daily Telegraph or The Daily Mail and listen to Classic FM, you have a strong pointer as to where to advertise.

Choosing channels

Once you find your audience, you then have to decide on the best advertising tools for the job. So what are the rules? In general, if a campaign is aimed at driving direct sales by mail order or the web, a leaflet or catalogue inserted in a magazine is likely to be better than a glossy full-page display ad on the publication’s own pages. This is because the insert can carry more product information and will typically also contain feedback tools, such as reply coupons and vouchers.

In contrast, display ads tend to be seen in terms of brand building rather than generating sales directly. If you’re aiming at the mass market, television (although expensive) can successfully drive sales and build brands, while commercial radio offers a cost effective means to hit a receptive, but possibly amorphous, local audience. “Radio is great if you have a call to action,” says Sproston. “For instance, if you have a special offer for a local event, it can be a great way to draw attention to it.”

Online advertising has its own strengths. Contextual ads served by search engines (or paid-for positioning on search engine results tables) enable companies to reach customers when they are looking for a particular service. Banners on websites also drive sales, but are rarely effective on their own. “Online advertising tends to be most effective when supported by offline activity,” says Julian Hough, group development director of communications agency, Engine Group.

So the media you select will depend largely on your aims. For instance, design-led leisurewear company, Joules Clothing sells through three distinct distribution channels: web and catalogue sales, own-brand retail stores and third-party retailers.

As head of marketing Georgina Johnson explains, the company uses a different strategy for each channel. “For direct sales, we use magazine inserts,” she says. “To support sales through third-party retailers, we take out display ads, mainly in equestrian titles, to raise awareness rather than drive sales. To promote our own shops, we use local advertising and email.”

It’s a strategy the company has honed over time, but in the early days at least, Johnson admits advertising was bought ad hoc with variable results. So how do you choose the right media and publications for the job in hand?

Sarah Sproston says one of the simplest, but most effective, strategies is to examine what else is going on in the market. “Look at what your competitors are doing,” she says. If you’re working with an agency, you’ll get plenty of advice, but those specialising in one or two advertising channels may steer you in the direction of their own competencies.

“Advertising strategy should be holistic,” says Hough. “It’s always best to work with multi-disciplinary agencies who can advise you on the best strategy for your needs.”

Measuring the results