So many entrepreneurs that I talk to don’t fully understand advertising. They think that advertising is marketing and vice versa. They see advertising everyday. When they open a newspaper, when they watch T.V., when they visit a website, when they listen to the radio, as they are driving they are exposed to advertising.
We all know that most entrepreneurs are not from a business educational or business background. Therefore, they believe that they must advertise using the same media that they see everyday. In other words buy T.V., newspaper and radio ads. They don’t analyze the effectiveness of buying these ads. Instead, they just do it because they see others doing it. This is totally the wrong approach to advertising and marketing in general.
The most important issue when developing your marketing strategy which may include advertising is “Return on Investment.” This is where current display advertising on T.V., radio and in newspapers falls down. They are too expensive and therefore don’t give the return on investment required. In many cases, the return on investment is negative and that’s a great way to burn through all your cash. You are not in the cash burn business, you are in the cash making business.
Marketing has now moved away from advertising to “talkvertising.” This is because the math just doesn’t make sense for traditional advertising anymore. The approach to talkvertising is much different than the approach to traditional advertising for entrepreneurs. It’s about having your product so different, innovative, quirky, good that people talk about you.
Technology has supercharged word of mouth. Word of mouth can now turn your start-up global overnight. However, the biggest hurdle to achieving this is by following a “by the book” strategy. Grey is not a color worth talking about. If advertising rates come down to a level where they make sense for a start-up, then great. However, even if you can turn a good ROI from a traditional campaign it’s a good idea to talkvertise as well.
The key is to get the buzz going. After all, if your start-up is going to take off you need to be comment worthy. As you build your business always think about talkability. I’s like recruiting sales people who will work for free.
Remember, advertising won’t make your business, talkvertising will.