ARTICLES
WHY WRITE WHEN NOBODY READS?
TELL ME WHAT I DON'T KNOW!
YOUR MOTHER WAS RIGHT
ARE YOU TALKING TO YOURSELF?
WHAT ARE YOUR ADS REALLY SAYING?
ARE YOU A LEADER OR A FOLLOWER?
WHY ENGLISH TEACHERS DESPISE COPYWRITERS
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(This article appeared in the May 2000 issue of Hoosier Banker, published by the Indiana Bankers Association. While it's directed to bankers, the messages are just as relevant for other business owners and managers.)
Bankers are viewed as community leaders, usually with good reason. But when it comes to decisions about advertising, many blindly follow their competitors.
If those competitors are making well-reasoned decisions, echoing them is not a bad idea. But experience teaches me that too many decisions are made without the kind of thinking bankers expect from their own customers.
About sales reps.
The men and women who sell newspaper and radio advertising are among the nicest people you will ever meet. In fact, some are so friendly that bankers rely upon them as trusted advisors.
Doing that is okay, as long as you never forget who employs them and how they are compensated. Ask a newspaper rep how you should spend your ad budget, and you will probably get strong urging for newspaper advertising, along with research supporting that recommendation. You probably won't hear, "I wouldn't choose newspaper now. I saw a study saying radio works well, too." It's not a matter of deceit; it simply means they are loyal to their employer and the medium they know best. Never hesitate to ask for advice; just remember they have a stake in your decisions.
The guilt sections.
Nearly every local newspaper publishes special editorial sections and pages like the Spring Sports Review, the Home Improvement Preview, or the Celebrate America's Freedom tabloid.
I call them "guilt sections" because many sales reps use guilt to sell the space. "You don't want to support high school basketball? You don't think Independence Day is important? You know, Farmers & Spelunkers Bank is going to be in there."
Usually, you should avoid these sections like the plague. Most are created solely to get you to increase your expenditures, and they are better at making money than your neighborhood counterfeiter. (If you're not already suspicious, wait until the publisher introduces the "Meet Your Local Bankers" section.)
Many bankers advertise in them only because they are afraid their absence will be conspicuous. Guess what? The only people who pay attention to whether you're there are your competitors. I convinced one bank to stop advertising in a particular monthly feature, and within six months, four of its five competitors followed suit.
If you do decide to advertise, use ads that promote your services and products. Running a "Go Boll Weevils!" message with bad artwork of a straight-armed running back is the equivalent of dropping your wallet in a trash can.
In addition, advertise only in sections with a logical connection to your business. The Spring Home Builders Review tabloid might be great for a construction lending ad; conversely, your ad will probably go unnoticed among the caterers, dressmakers and photographers in the Bridal Section.
D.A.R.E. to refuse.
Let logic and reasoning make your ad decisions, not guilt. I once urged a banker to avoid the local paper's anti-drug page. A one-line mention of the bank's name cost $50, and the paper planned to donate 10 percent of the proceeds to the local D.A.R.E. drug-education program.
The sales rep was furious. "You mean to tell me the bank doesn't care about keeping kids off drugs?"
So I took her through the math. Say the actual production and the time it took to sell that one line of type cost the paper $5. The paper collects $50 from my client, gives $5 to the cause, and after expenses, pockets a nice $40 profit. If all 25 one-line mentions sell, the D.A.R.E. folks get $125, and the publisher walks away with a healthy $1000. By the way, a full-page ad in the paper normally ran $800.
There are many great causes out there. If you want to support D.A.R.E., the Humane Society, the girls' basketball team, or the local food pantry, hand them a check. Supporting them by buying an overpriced ad is like offering a transfusion and spilling all of the blood.
Media, media everywhere.
No matter how quickly your bank makes money, you cannot keep pace with those who think of interesting ways to help you spend it. From restaurant placemats to athletic calendars to grocery store receipts, every salesperson promises great results. Choose to advertise with one, and every one of his competitors will see you as an easy sale (or an easy mark).
You don't give in to impulse purchases at the mall. Don't do it here, either. Pay attention to your annual advertising plan and parcel out discretionary dollars as though they were gold. When someone approaches you with an intriguing offer, ask yourself whether your bottom line would benefit more if you put the money into placemats, or into something like sales training and staff incentives.
Due diligence.
I've yet to meet the banker who would make a fifty-dollar loan without performing at least rudimentary due diligence. Frankly, if lending customers approached their finances the way many bankers handle ad budgets, you would reject their applications without a second thought.
Approach your advertising expenditures with the same consideration you put into loan decisions. Take the time to study your advertising investments, and you will be much more likely to get the return you want.
Article copyright 2000 Scott Flood All Rights Reserved
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