The market is slow, consumer spending is down, and the market is looking towards recession, but some companies are still advertising heavily to make up for the slump. The reason for this is that they are maintaining their comparative advantage over their competitors. When the market is slow, that means that you are going to have a few less consumers shopping for your products, which also means that YOU need to make sure that your business is getting these spenders and not your competitor.
I have a great story for you. Masterserv, a plumbing company, focuses their advertising on copper repiping. Do you know anyone who actually needs copper repiping for their homes? The answer should be no. No-one needs copper repiping. Copper repiping is as necessary as plating your walls with gold. At least your walls are visible and will be noticed by all the people that you invite into your home daily. Nobody even sees your copper repiping except your plummer. Well 2007, considered one of the worst years in consumer spending and for businesses in recent history, was Masterserv’s best year in business. Masterserv has been advertising on KFI for years, and Bill Handel does an endorsement spot for them. Masterserv’s owner even took the time to write KFI to thank them for his success as it would not have been possible without Bill’s endorsement and the KFI team.
What can we attribute this to. A couple things…
1. Masterserv has been on radio for years, thus owning a piece of the consumer’s mind. Even if they stopped advertising today, all the years of advertising they have done will continue to reward them for years to come as they own a piece of every KFI listeners mind. In this respect, they have made a investment in their company for the future. Most advertising (even direct response) sees greater results in the long term and that is why 90% of advertising campaigns see higher yields on their returns in the later months of their advertising campaign.
2. A second reason why Masterserv had a great year is likely because their competitors weren’t spending as much in advertising allowing them to gain the comparative advantage over their competitors. Sure, maybe there wasn’t as many consumers in the market, but because all the other companies realized this they stopped their advertising and so there also wasn’t as many competitors in the market allowing Masterserv to play a bigger role.
So why is radio right for you in 2008.
1. Radio reaches more consumers than any other advertising medium
2. Radio is like your Grandpa, it can tell a story better than any print, tv, or direct mail campaign. As a result you make the consumer believe that they need your product.
3. Newspaper circulation is declining, and rates are rising. The LA Times can’t keep an editor for the life of them because they won’t cut the budget even though circulation has decreased.
4. Radio listenership in the LA market is on the rise. KFI listenership just passed the 1.5 million mark making it the number one news/talk radio station in the country.
5. Cheap production (free for most): Radio is cost efficient in reaching your audience, and…
6. TALK RADIO IS A DIRECT RESPONSE MACHINE!!!
If you are even considering advertising on radio call me today for a free consultation. Call me at 818 566 4646 or email me at cameronsamimi@clearchannel.com
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