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Buying Advertising that Works to Your Farm’s AdvantageDirect Farm Marketing for Success VII Using Advertising to Your Farm’s Advantage

March 2014

Amy Ladd, Lucky Ladd Farms

What is Advertising?

Advertising is attempting to influence the buying behavior of your customers by providing a persuasive selling message about your products and/or services.

Advertising describes how you’re going to deliver your unique selling proposition to your prospective customers.

Advertise to Inform Potential Customers:

1) WHAT product or service is available

2) WHEN that product is available or in season

3) WHERE the product may be purchased

4) HOW the products is different or more desirable

Steps to an Effective and Measurable Multi-Channel Advertising Campaign

Identify your target customer/market

Define goals for your advertising campaign

Research and compare media outlets and options

Plan the advertising campaign

Execute and Measure

What is the BEST Advertising Outlet?

The best advertising outlet is the one that will best reach your farm’s target customer.

The “target customer” is identified as the kind of person

most likely topurchase your product.

Develop a Customer Profile

Demographic Information:

Age

Gender

Location

Ethnic Background

Family Status

Income

Level of Education

Psychographic Information:

Interests

Hobbies

Values

Attitudes

Behaviors

Lifestyles

Location Information:

Travel Distance

Surrounding Area

(they live/work in)

Find out Where Your Target Customer Gets Their Information

Newspapers

Magazines

Television

Radio

Online

Transit

Community Involvement

Print

Direct Mail

Professional/Business Organizations

Directories

Cooperative Advertising

Vehicle Advertising

Local, Regional, National

Ask potential advertising outlets to supply you with current information about their circulation and ad demographics.

Develop a Marketing Budget

How much of your annual budget will you spend on marketing?

General Rules of Thumb:

5 percent of total revenue to maintain current market position

Around 10 percent of total revenues to grow or gain greater market share

New companies may spend up to 20 percent of total expected revenues

How much of your advertising budget will you spend on each media outlet?

“Many businesses have failed because they were unwillingto properly budget for marketing activities.”

Advertising Outlet Opportunities

Newspapers

Box Ads

Inserts

Special Showcase

Don’t overlook special interest newspapers

Magazines

Very effective way of reaching target market.

Television

Local Stations

Cable Ads

Radio

Local Stations

Online

Online:

Websites

Social Media Networks

Email

Daily Deal Sites

Blogs

Transit

Billboards

Benches

Bus Stops

Advertising Outlet Opportunities

Community Involvement

Visible, tangible involvement with your community is more than good public relations

Let yourself be seen as a business that cares

Direct Mail

Geographically target your mailings

Print

Business cards

Brochures / Flyers

Directories

Telephone Book

Professional/Business Organizations

Usually offer exclusive advertising opportunities to their members

Makes other small businesses aware of your products/services

Cooperative Advertising

Wholesalers

Retailers

Other Businesses

Vehicle Advertising

Custom vinyl graphics

Magnetic sign

Pros and Cons of Types of Advertisingfor Farms/Specialty Crop Producers

Media PROS CONS

Newspaper & Magazine • Loyal readership• Perceived credibility• Longer shelf life (Some papers

and Magazines)• Highly targeted• Tangible• Tells a story in a picture• High Sunday readership

(newspapers)

• Costs can vary greatly and are generally high-cost

• Long lead time• Limited flexibility• Potential for competitor ads to

be displayed nearby• High ad clutter• Little control over placement• Declining reach

Radio • Increased reach and frequency• Sounds increases recall• Production done by radio

station• “In the Moment” medium• Targets audience with active

lifestyle• Flexible• Geographic focus• Effective with proper

placement

• Limited message• High channel switching• High ad clutter• Intangible• No visual component to

reinforce message• Short life span limits exposure• Target audience composition

may require advertising on multiple stations

Media PROS CONS

Television • Highest reach• Conveys personality of a brand• Attentive audience• High impact (combined audio

and visual enhances effectiveness)

• Portrays real-life situations• Geographic focus

• Ads interrupt entertainment• Limited, expensive premium

inventory• High production cost• Limited length of exposure• High ad clutter• Declining reach DVR effect• High channel switching

Online: Website and Blogs • Increased frequency and reach• Less expensive• Flexible• On-demand, interactive

medium• Most measurable• Engaged audience

• Potentially intrusive• Potential ad clutter• As many or more bad buying

options as good• Still being defined; not

standardized• Not easy way to search,

analyze, compare and buy online properties

• Perceptions of credibility• Requires regular maintenance

for maximum effect

Media PROS CONS

Print(business cards, brochures, flyers)

• Longer shelf life• Control over message• Deliver important information• Create a positive first

impression• Flexible• Portability• Convenient• Tangible• Low-cost (in large quantities)

• Space limitations• High production costs (for small

quantities)• High distribution costs• Only small percentage actually

read• Requires venues for distribution• Changes in information can

cause it to become outdated resulting in wasted money

Transit • Accessibility• Large reach• Frequency• Flexible (geographically,

demographically, creatively)• Impact• Effective in high-traffic areas• Guides customers to location

• Fleeting message• Environmental influence• Audience measurement• Lack of quality control• Low supply in desirable

locations• Costs can widely vary based on

location• Perceived as pollution

Media PROS CONS

Direct Mail • Control over message• Timely• Allow for specific focus

(geographic, economic, social)• Tangible• Measurable results• Low production cost• Can be used to create repeat sales

and customer loyalty

• Low response rate (2% - 3%)• Junk mail effect• Not effective for general

advertising• Bulk rate mailings may have

delayed delivery time• Generally considered high-cost

per person reached

Email • Low-cost• Ease of use• Create repeat sales and customer

loyalty• Environmentally friendly

• Requires building a database• Response can be dependent on

effective subject and message• Delivery issues• SPAM effect

Directories • On average, reaches 76% of US adults per month

• Second highest media for credibility

• Long shelf-life• Accessibility (24-hours per day)

• Highest level of ad clutter• More directories mean lower

reach per directory• High cost for competitive

positioning• Limited control and flexibility

Media PROS CONS

Social Media • Low-cost and/or free• Similar effect as word-of-

mouth• Can potentially reach large

audience• Builds customer relations• Create repeat sales and

customer loyalty• Visual images increase

effectiveness

• Require significant dedication of time and effort

• Posts should be carefully crafted so not to generate negative feedback

• Requires regular maintenancefor effectiveness

• Regular posting most effective during busiest crop production and marketing season

Daily Deal Sites • Relatively low-cost• Structured redemption and

expiration dates• Attracts large number of

customers• Advertises your business• Helps move inventory• Generates incremental revenue

• Attracts low-end bargain seekers

• Deals hurt the brand by making customers price sensitive

• Don’t attract repeat customers or build customer loyalty

• Deals are not profitable• Contract terms and conditions

can vary greatly

A Closer Look:Newspaper and Magazine Ads Space ads - priced by size and location of the ad

Priced by “column inch” – one column wide by one inch high

Ads on cover or back pages often command premium prices

Text in ad is called “copy”

“Layout” is how the ad looks in the publication

Local publications will often offer layout services for free

Important to consider submitting deadline for timely events

A Closer Look:Newspaper and Magazine Ads Compare circulation to readership

Track effectiveness by including a coupon/discount offer

For optimum effectiveness, ads should be placed:

In the section target customer is most likely to read (Family or Lifestyle)

On the right-hand side and “Above the fold”

Classified ads are not effective for retail advertising

A Closer Look:Billboards “Traffic count” refers to the number of vehicles passing by a

billboard’s location per day

Locations with higher traffic counts are generally more expensive

Contracts are negotiated for a certain period of time.

Long-term contracts are preferred but not required

Assistance with design and layout are often included with cost of billboard lease

A Closer Look:Billboards For optimum effectiveness, billboards should be placed in location

where view is unobstructed by trees, buildings, traffic signs and other billboards

Height and size are important

Lit billboards will been seen by more people (at night), but may be more expensive

Billboards placed at a stoplight or in areas with slower speed limits may allow more time for viewer to see and read the board, but may also be priced higher

A Closer Look:Broadcast Advertising (Television & Radio) Often most expensive types of advertising because of their large

audiences

Ads are typically purchased to be aired a certain number of times during certain time frames

Ads aired during higher rating periods are more expensive

The audience is typically measured in a “weekly cume”

For radio this is typically the number of people that tune in during any given 15-minute period during the week

For television, this is typically the number of people tuning in during any 30-minute period during the week

A Closer Look:Broadcast Advertising (Television & Radio) Ad production services are often included in the ad price, but can be

negotiated to be done for free

Costs for broadcast media rates may be listed as a “cost per thousand.” Clarify whether that is cost per thousand persons or per thousand homes

Selecting ad air time is key, ask when is your target customer likely to be listening/viewing and likely to be making purchasing decisions

Narrower rotations and more desirable times are most effective.

Mid-day is good for radio, but generally bad for television

A Closer Look:Broadcast Advertising (Television & Radio) Broadcast rates may be lower for ads airing at less desirable days and

times.

This will increase the viewer frequency, but the trade-off may not be worth the investment if you are not reaching your target customer

Standard commercial air time is usually 60 seconds in length, but stations offer 30 second, 15 second and 10 second ads too, often at a much lower rate

Name-only options for segment sponsorships can be effective in conjunction with other ads

Consider book-end ads, they are shorter ads that run at the top and bottom of a commercial break

A Closer Look:Broadcast Advertising (Television & Radio) Tracking results of your broadcast advertising

Include redirects or vanity URLS in your ad

Easy to remember or catchy phrase URL addresses

Include unique coupon codes

Remember to make the code easy to recall and listener-friendly

A Closer Look:Online Advertising A website is no longer optional but required

Simple, free websites are available through a variety of sources

Consider a modest monthly advertising expense to “upgrade” a website using a professional designer.

With the number of mobile Internet users set to surpass desktop users by 2015, there is increasing emphasis to ensure that websites can be viewed as easily on mobile as they can at the home or office computer

Most effective when combined with traditional advertising outlets

Be sure to budget enough time to maintain an effective presence if using email, Twitter and Facebook

A Closer Look:Online Advertising Monitor website traffic

Services such as Google Analytics help track the traffic to your site

Printable coupons and special discount codes can be used on your website to help track effectiveness

Emerging social media advertising and online review sites, social bookmarking and article marketing are another effective way to advertise your goods and/or services

A Closer Look:Online Advertising

Common names for online display advertising placements on websites:

Leaderboard

Banner

Skyscraper

Other forms of online advertising

Pay Per Click (PPC)

Text

Sponsorship

Online directory listings

A Closer Look:Online Advertising

Email Marketing Email marketing has been proven to be the most effective way to retain

customer that have already purchased from you.

Provide good content, some interaction, some graphics, even a giveaway, along with a effective headline and you’ll see results.

Set up an opt-in subscriber email list

Some sites have them built in like eBay and CafePress

Also service providers such as Constant Contact and MailChimp

A Closer Look:Online Advertising

Google Ads – http://adwords.google.com Take advantage of their fee features because it will increase the size of

your ad and a larger ad is more likely to catch your target customer’s eye

Define negative words – words that you do not want your ads to appear for.

This tool can help - http://www.wordstream.com/negative-keywords

Consider “remarketing” you Google Ads will appear on other sites that are part of the “Display Network” once a visitor leaves your site and visits others site in the network

A Closer Look:Online Advertising

Facebook

Build relationships and loyalty by providing informative information, pictures, polls, graphics, videos, links and whatever else your target customer would be interested in.

Facebook Ads - https://www.facebook.com/business/products/ads

The more targeted your ads are the more effective they will be

Attach images to your “Calls to Action,” images draw the most attention

Online Marketing and Social Media Experts to Follow:

http://www.marismith.com/

http://www.hubspot.com/

http://www.socialmediaexaminer.com/

http://mashable.com/

A Closer Look:Online Advertising Social Bookmarking

Sites like de.lic.ious, StumbleUpon, Digg, and Reddit are popular for sharing your favorite sites or favorite news articles and spreading the good word on sites that are worth a look

Article Marketing

Increase exposure and establish yourself as an expert in your field. Article marketing is an excellent, free way to get publicity to your website or business. Readers generally regard authors as credible and knowledgeable in the subjects they write about. Write a good article about your business, products or anything that relates to what you do and then drive traffic to your site through a link at the bottom of your online article.

A few online article websites include: Squidoo, Hubpages, and Zujava

A Closer Look:Online Advertising Blogging

Express your individual thoughts, offer advise and educate the masses. Blogging can be a very effective marketing tool. It is free and you can earn money from your blog too. Provide fresh, relevant, informative content on your blog and then link it to your business website. Search engines value blogs that are updated with new content often.

Daily Deal Sites (Common Examples include - Living Social & Groupon)

Generally these sites offer discount deals that are 50% off. So a $20 certificate would sell to the customer for $10. Then the discount site takes their cut which is generally a 50-60% of the sell, leaving the business $5 for a $20 offer

Must ask yourself, from a marketing prospective, do you feel that selling your product or service for 75% less than what it normally costs creates value?

A Closer Look:Online Advertising

Daily Deal Sites - Additional Considerations

Clear your schedule and prepare your website for extra traffic (5x normal volume); expect lots of phone calls and email questions on the day of and the week following your promotion

More customers than expected could buy your offer, making fulfillment and logistical nightmare (especially if they all come in as the offer is expiring) and in the process you provide poor customer service, which would negate the chance for a return visit or add-on sales; cap the deal as part of your contract

Consumers who use the sites are discount shoppers and expect you to offer additional discounts on a continual basis in the future to keep their loyalty making it hard to retain them as long-term customers

Your regular customer’s experience could suffer

Businesses must continue to honor paid amount for deal for five years after promotion is over

Daily Deal Sites will not share customer email addresses so you will need to collect that information at the time of redemption if you want to add those customers to your database

Consumer Bullying Effect – Stick to the fine print, Know your state laws regarding expiration dates and cash back requirements

Find the Right Media Mix

Gone are the days of running an effective advertising campaign in one single media channel

The benefits of multi-channel advertising include:

Extended Reach

Greater Frequency

Better Measurability

Opportunity to leverage multiple media outlets to strengthen the impact of your campaign

Multi-channel advertising increases the ROI of your campaign, allowing you to reach more of your target audience more efficiently

Tips for Getting Started Effective advertising conveys the same message across multiple

channels.

Always use the same name, logo and slogan

Establish free or inexpensive promotion methods

Give out business cards or flyers to existing customers at the farmers markets you sell at

Establish a presence on the web by using free blog sites to develop a webpage and social networks like Facebook

Offer discounts or rewards for referrals or return purchases

Don’t forget the power of the press; develop relationships and incorporate news releases as part of your marketing strategy

Tips for Getting Started Start early, and do not be in a hurry

Get quotes from advertising outlets you are considering working with long before you plan to advertise to negotiate rates, times and placement of ads

Ask for discounts or deals

Don’t give-in to high-pressure sales tactics because the salesman says it’s a good deal; make sure it’s a good fit for your budget and right for your needs

Advertising Checklist

1) Communicate a simple, single message.

2) Make sure the ad is competitive.

3) Make sure the ad looks professional.

4) Stick with an appropriate, likable style and color scheme.

5) Be credible.

6) Be truthful.

7) Ask for the sale.

Benefits of Working with anAdvertising Agency Expertise

Researchers, Media Planning and Buying, Creative Services Small agencies may specialize in one area of expertise

Time Saving Hiring an agency will free you to spend more time running your business and

free your staff to do what they have been train to do

Money Saving Most agencies are given discounts by publishers, and radio and TV stations, so

they can get cheaper rates Agencies can also redesign ads to be more effective while taking up a smaller

amount of space

Brand Development Develop logos and advertising that will create brand awareness Research to target the most effective market

Considerations of Working withan Advertising Agency

1) Does the agency understand your business?2) Can they help define your objectives?3) Will they research your competition?4) How well can they integrate your marketing outlets?5) Creative doe not equate to “effective” – Do their ad designs and

messages “pop?”6) How well do they leverage relationships?7) How does the agency select advertising outlets and negotiate prices?8) Does the agency understand how and where to place ads for maximum

effectiveness? 9) How do they charge for services?10) Can they agency help you evaluate the pros and cons of each marketing

opportunity and it’s cost-effectiveness?

Buying Advertising that Works to Your Farm’s Advantage

Direct Farm Marketing for Success VII

In cooperation withA program of the

Amy LaddDirect Marketing ConsultantLucky Ladd Farms

Email: [email protected]: (615) 274-3786Website: http://luckyladdfarms.com