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Forgot The Ad Budget? Don't Panic!


Bob is excited about his new business. He secured funding. He leased the building. He stocked it full of new gadgets. He hung the sign. He posted a banner on his window that reads,"Grand Opening!". And now he stands behind the counter, waiting for customers to come flocking in. And he stands there. And he stands there. And he stands there.

And then it hits him: No one knows about his shiny new store!

I've seen new and even established businesses make this same mistake over and over again. Advertising is the last thing they think of. They assume that since their doors are open and the merchandise is on display, customers will come running in. But they won't come. Not until they know how great your new business is! And to do that you need to plan and execute an advertising budget and strategy.

Many times I've been called in to consult with a new business to help plan their ad strategy well after their stores have opened when in fact, this is something that should have been done during the initial planning stage.

So is it too late? No, but sometimes it's a major sticker shock to those who did not put a realistic plan together from the start. Remember that advertising, like your store and your merchandise, is an investment towards your profits.

But let's say you're like Bob and your business is already up and running. How do you put together a realistic ad budget? Well most people use a percentage of gross sales as a means of figuring this out. If however, you're a new business owner with no prior sales, you can base it on industry standards. Use the web and search out other related businesses for a guide. Once you've figured what your gross sales should be, think about using 3 to 5 percent as a starting point for your ad budget. Another factor to consider when planning an ad budget is that it should encompass all aspects of your advertising from media placement to creative costs and production of your ads.

And remember: advertising must be done with consistency. Let me write that again. Advertising must be done with consistency. When planning your ad budget, make sure you allot enough funding to allow it to last throughout the year whether your sales will be spread out evenly or are cyclical. If you spread your budget too thin, chances are your ad campaigns may not be heard or seen enough to stay in the minds of consumers. And if your business is brand new, you'll want to plan on spending more at the beginning for your initial start up campaign.

Some businesses make the mistake of advertising strong for about three to four weeks and then they stop. Keep in mind that consumers have very short memories and with 3000 plus advertising messages that pummel their brains everyday, it's no wonder! That's why you have to stay in the public's eye consistently. Oh, and it also helps to have a clever message but we'll talk about that in another article.

Once your ad budget is established, the type of advertising you use will be based on your specific business but normally if your business is consumer based, even in these modern web based times, traditional media such as radio, television, print, billboard and direct mail should still play major roles.

Many times I've helped clients put together an in-house survey for their customers to fill out. This can be helpful in determining what type of advertising they'll need as well. Questions like, "What radio stations do you listen to?" "Do you subscribe to the newspaper?" and "Do you shop on-line?" can be useful in getting to know your customer's habits as well as how to attract more like them.

Consulting an advertising agency is a very good way to get started as well. To find a good agency, try contacting other business owners you know for a referral or perhaps an established business whose advertising style and creative appears to fit your goals.

Remember: planning your advertising budget and strategy is as important as the products your trying to sell. Think about your advertising now and you'll never end up like Bob: standing behind the counter waiting for customers that never come.

Hal Eisenberg is an award winning copywriter, voice over talent and producer, as well as owner of The Eisenberg Agency, a full service advertising agency specializing in creative ads that get results. Visit his web site at http://www.eisenbergagency.com. Mailto: halacious@eisenbergagency.com.


Todays News by officejax free advertising and ad exchange solutionsMORE RESOURCES updated Sun. December / 08 / 2019

Will the 2020s be online advertising's holistic decade? - TechCrunch
Will the 2020s be online advertising's holistic decade?  TechCrunch

It's not just Peloton — here are some of the biggest advertising whiffs from major brands - CNBC
It's not just Peloton — here are some of the biggest advertising whiffs from major brands  CNBC

Lynn Small, advertising and marketing executive, dies - Chicago Tribune
Lynn Small, advertising and marketing executive, dies  Chicago Tribune

4 Advertising Tools That Will Help Increase Your ROI From Facebook - Business 2 Community
4 Advertising Tools That Will Help Increase Your ROI From Facebook  Business 2 Community

CNN ratings fall to five-year low among key advertising demographic - Washington Examiner
CNN ratings fall to five-year low among key advertising demographic  Washington Examiner

Carvertise Expands as It "Drives" National Advertising Campaigns - MarTech Series
Carvertise Expands as It "Drives" National Advertising Campaigns  MarTech Series

Outcry as Google bans political advertising in Singapore as election looms - BBC News
Outcry as Google bans political advertising in Singapore as election looms  BBC News

3 Top Stocks to Buy in Digital Advertising - Motley Fool
3 Top Stocks to Buy in Digital Advertising  Motley Fool

Facebook and Alphabet upgraded by Stifel on advertising optimism - CNBC
Facebook and Alphabet upgraded by Stifel on advertising optimism  CNBC

Why Intrusion-Lite Advertising is the Future of Digital Ads - MarTech Series
Why Intrusion-Lite Advertising is the Future of Digital Ads  MarTech Series

BP Under Fire For “Misleading” Advertisements - Yahoo Finance
BP Under Fire For “Misleading” Advertisements  Yahoo Finance

The 30 Under 30 Reshaping Marketing And Advertising 2020 - Forbes
The 30 Under 30 Reshaping Marketing And Advertising 2020  Forbes

Ad buyers are wary of advertising becoming a casualty of the streaming wars - Digiday
Ad buyers are wary of advertising becoming a casualty of the streaming wars  Digiday

UPDATE 1-Peloton 'wife' pops up in new advertisement - Yahoo Finance
UPDATE 1-Peloton 'wife' pops up in new advertisement  Yahoo Finance

Is Your Dealership Using Video Advertising to Its Full Potential? - http://cbtnews.com/
Is Your Dealership Using Video Advertising to Its Full Potential?  http://cbtnews.com/

Landmark Lawsuit Wants Fossil Fuels Ads to Carry Warning Labels - Gizmodo
Landmark Lawsuit Wants Fossil Fuels Ads to Carry Warning Labels  Gizmodo

Advertising Market (Edition:2019) Outstanding Growth – Omnicom Group, Dentsu Inc, Publicis Groupe - Associated Press
Advertising Market (Edition:2019) Outstanding Growth – Omnicom Group, Dentsu Inc, Publicis Groupe  Associated Press

Reaching Live Sports Viewers with Advanced Advertising - Broadcasting & Cable
Reaching Live Sports Viewers with Advanced Advertising  Broadcasting & Cable

5 trends that threaten the Facebook-Google duopoly in digital advertising - AdAge.com
5 trends that threaten the Facebook-Google duopoly in digital advertising  AdAge.com

TikTok takes on Facebook in US advertising push - Financial Times
TikTok takes on Facebook in US advertising push  Financial Times

Amazon Management Talks AWS and Advertising - The Motley Fool
Amazon Management Talks AWS and Advertising  The Motley Fool

Addressable TV advertising for every platform operator - Videonet
Addressable TV advertising for every platform operator  Videonet

We Need to Fix Online Advertising. All of It. - Slate
We Need to Fix Online Advertising. All of It.  Slate

A New Tool From Spotify Walks the Line Between Advertising and Pay-For-Play - Rolling Stone
A New Tool From Spotify Walks the Line Between Advertising and Pay-For-Play  Rolling Stone

National CineMedia On In-Theater Advertising: 'It's A 50-Foot Screen And A Captive Audience' - AdExchanger
National CineMedia On In-Theater Advertising: 'It's A 50-Foot Screen And A Captive Audience'  AdExchanger

Where Are NFPs Going Wrong with Their Advertising? - MarTech Series
Where Are NFPs Going Wrong with Their Advertising?  MarTech Series

Healthy Community, ADVERTISING: Advertorial — GEORGE BALLING: Losses… - Coeur d'Alene Press
Healthy Community, ADVERTISING: Advertorial — GEORGE BALLING: Losses…  Coeur d'Alene Press

Bloomberg 2020 Campaign Launch Shows Enduring Power Of TV Advertising - Forbes
Bloomberg 2020 Campaign Launch Shows Enduring Power Of TV Advertising  Forbes

ADVERTISING: Advertorial — DR. WAYNE M. FICHTER: Do you have degenerative disc disease? - Coeur d'Alene Press
ADVERTISING: Advertorial — DR. WAYNE M. FICHTER: Do you have degenerative disc disease?  Coeur d'Alene Press

UK Advertising to Reach £24bn in 2020; Ogury Raises USD$50m (£38m) - ExchangeWire
UK Advertising to Reach £24bn in 2020; Ogury Raises USD$50m (£38m)  ExchangeWire

The biggest private equity hires of 2019; WeWork’s new advertising push - Business Insider
The biggest private equity hires of 2019; WeWork’s new advertising push  Business Insider

Eco-friendly or falsely advertised? Sustainable fashion advertising in Europe: do's and don'ts - Retail & Consumer Products Law Observer
Eco-friendly or falsely advertised? Sustainable fashion advertising in Europe: do's and don'ts  Retail & Consumer Products Law Observer

Truth in advertising? - Herald-Mail Media
Truth in advertising?  Herald-Mail Media

Why Digital Advertisers Can't Ignore Full-Page Ads Such As Pop-Ups And Interstitials - Forbes
Why Digital Advertisers Can't Ignore Full-Page Ads Such As Pop-Ups And Interstitials  Forbes

P&G's Pritchard Preaches DIY Advertising 12/06/2019 - MediaPost Communications
P&G's Pritchard Preaches DIY Advertising 12/06/2019  MediaPost Communications

Top 10 Trends in Digital Advertising in 2020 - Business 2 Community
Top 10 Trends in Digital Advertising in 2020  Business 2 Community

Google restricted ad targeting for political ads - Vox.com
Google restricted ad targeting for political ads  Vox.com

Brown Parker & Demarinis Advertising - Ad from 2019-12-07 | Office Services - Hanford Sentinel
Brown Parker & Demarinis Advertising - Ad from 2019-12-07 | Office Services  Hanford Sentinel

Sprinklr Acquires Nanigans' Social Advertising Business - Business Wire
Sprinklr Acquires Nanigans' Social Advertising Business  Business Wire

MainAd, an Advertising Technology Company Appoints Roberto Pizzato as Its Head of Marketing - MarTech Advisor
MainAd, an Advertising Technology Company Appoints Roberto Pizzato as Its Head of Marketing  MarTech Advisor

How to police political advertising - The Economist
How to police political advertising  The Economist

Chase bank chooses Dallas man with Down syndrome for advertising campaign - The Dallas Morning News
Chase bank chooses Dallas man with Down syndrome for advertising campaign  The Dallas Morning News

Google to Restrict User Information It Gives Advertisers - The Wall Street Journal
Google to Restrict User Information It Gives Advertisers  The Wall Street Journal

Adtech Leaders Launch FlowerShop Media Digital Advertising Platform Designed for the Cannabis Market - GlobeNewswire
Adtech Leaders Launch FlowerShop Media Digital Advertising Platform Designed for the Cannabis Market  GlobeNewswire

Podcorn connects advertisers with podcasters and manages sponsored messages in podcasts - TechCrunch
Podcorn connects advertisers with podcasters and manages sponsored messages in podcasts  TechCrunch

Origin Indonesia | Driving e-commerce growth in Southeast Asia with digital advertising - TechNode
Origin Indonesia | Driving e-commerce growth in Southeast Asia with digital advertising  TechNode

Paul Bainsfair: how to safeguard advertising's future - More About Advertising | Insights into Advertising
Paul Bainsfair: how to safeguard advertising's future  More About Advertising | Insights into Advertising

ADVERTISING: Advertorial — JONATHAN M. SASSER: Acupuncture: Science-based medicine or Hokum? - Coeur d'Alene Press
ADVERTISING: Advertorial — JONATHAN M. SASSER: Acupuncture: Science-based medicine or Hokum?  Coeur d'Alene Press

BP faces ‘greenwashing’ complaint over advertising campaign - Financial Times
BP faces ‘greenwashing’ complaint over advertising campaign  Financial Times

The Irresistible Visual Power of Urban Advertising - CityLab
The Irresistible Visual Power of Urban Advertising  CityLab

How advertisers can generate rewards, not risk, from user-generated content - AdAge.com
How advertisers can generate rewards, not risk, from user-generated content  AdAge.com

French National TV Starts Advertising Bitcoin - BeInCrypto
French National TV Starts Advertising Bitcoin  BeInCrypto

The FDA warned 15 companies to stop advertising CBD illegally. 3 products are sold in N.J. - NJ.com
The FDA warned 15 companies to stop advertising CBD illegally. 3 products are sold in N.J.  NJ.com

Political Advertising In 2020: A $10 Billion Windfall - Radio & Television Business Report
Political Advertising In 2020: A $10 Billion Windfall  Radio & Television Business Report

YouTube is working to bring advertising to edgier content as demonetization woes grow - The Verge
YouTube is working to bring advertising to edgier content as demonetization woes grow  The Verge

Trump campaign, Republicans blast Google for political advertising changes - POLITICO
Trump campaign, Republicans blast Google for political advertising changes  POLITICO

WPP and Publicis chart contrasting courses through advertising gloom - Financial Times
WPP and Publicis chart contrasting courses through advertising gloom  Financial Times

SEC Responds to Tech Changes with Advertising Amendments - The National Law Review
SEC Responds to Tech Changes with Advertising Amendments  The National Law Review

Advertising giant Dentsu again found violating rules on overtime hours - The Japan Times
Advertising giant Dentsu again found violating rules on overtime hours  The Japan Times

Popeyes Marketing Exec: Sandwich Success 'Involved Zero TV Advertising' - Yahoo Finance
Popeyes Marketing Exec: Sandwich Success 'Involved Zero TV Advertising'  Yahoo Finance

8 online advertising risks your agency must be prepared for - AdAge.com
8 online advertising risks your agency must be prepared for  AdAge.com

Proposal to amend SEC testimonial rule to greatly expand advisers' advertising efforts - InvestmentNews
Proposal to amend SEC testimonial rule to greatly expand advisers' advertising efforts  InvestmentNews

In-App Advertising Market to Witness Huge Growth by 2025 (Chartboost, Flurry, Inmobi, Millennial media and many more..) - VaporBlash
In-App Advertising Market to Witness Huge Growth by 2025 (Chartboost, Flurry, Inmobi, Millennial media and many more..)  VaporBlash

Black Friday Banner Gone Wrong: Advertising in Free Plugins - WP Tavern
Black Friday Banner Gone Wrong: Advertising in Free Plugins  WP Tavern

Will Political Ad Spend Mean Boom Or Bust For Commercial Advertisers? - AdExchanger
Will Political Ad Spend Mean Boom Or Bust For Commercial Advertisers?  AdExchanger

Why Outdoor Advertising Right Now is Like the Internet of 15 Years Ago - Digital Signage Connection
Why Outdoor Advertising Right Now is Like the Internet of 15 Years Ago  Digital Signage Connection

Bloomberg places at least $37 million in television advertising over next two weeks - CNN
Bloomberg places at least $37 million in television advertising over next two weeks  CNN

Conservatives begin online advertising blitz in final days of campaign - Telegraph.co.uk
Conservatives begin online advertising blitz in final days of campaign  Telegraph.co.uk

Snapchat fact-checks political ads, unlike Facebook, says CEO Evan Spiegel - CNBC
Snapchat fact-checks political ads, unlike Facebook, says CEO Evan Spiegel  CNBC

BuzzFeed’s SponCon lets display advertisers request editorial content for their target audiences - Digiday
BuzzFeed’s SponCon lets display advertisers request editorial content for their target audiences  Digiday

Papa John's founder files lawsuit against ad agency; his wife files for divorce, saying marriage is 'broken' - CNBC
Papa John's founder files lawsuit against ad agency; his wife files for divorce, saying marriage is 'broken'  CNBC

Facebook: Advertisers to get more tools to control where ads appear - The Mercury News
Facebook: Advertisers to get more tools to control where ads appear  The Mercury News

The Future of Local TV Advertising in 2020 - Broadcasting & Cable
The Future of Local TV Advertising in 2020  Broadcasting & Cable

Minnesota sues Juul for deceptive and unlawful trade practices, false advertising - FOX 9
Minnesota sues Juul for deceptive and unlawful trade practices, false advertising  FOX 9

What's next for Intelligence Automation in advertising? - Prolific London
What's next for Intelligence Automation in advertising?  Prolific London

Programmatic advertising must handle more complex media-buying decisions, study says - Marketing Dive
Programmatic advertising must handle more complex media-buying decisions, study says  Marketing Dive

TripAdvisor Launches its First Self-Serve Advertising Platform - PRNewswire
TripAdvisor Launches its First Self-Serve Advertising Platform  PRNewswire

The convergence of advertising and marketing - MIT Technology Review
The convergence of advertising and marketing  MIT Technology Review

Councillors scrap proposal for trash-can advertising in city parks - SooToday.com
Councillors scrap proposal for trash-can advertising in city parks  SooToday.com

The Ad Screens on Ride-Hail Cars Collect Data, Too - CityLab
The Ad Screens on Ride-Hail Cars Collect Data, Too  CityLab

Adtech firm Ogury raises $50 million to build data-privacy tools - Business Insider
Adtech firm Ogury raises $50 million to build data-privacy tools  Business Insider

Revealed: Mental health websites are selling your data to advertisers - New Scientist
Revealed: Mental health websites are selling your data to advertisers  New Scientist

Poundland Raises Eyebrows With Chocolate Finger 'Santa Banter' Advertisement - LADbible
Poundland Raises Eyebrows With Chocolate Finger 'Santa Banter' Advertisement  LADbible

Connected TV And Advertising: What It Is, And Who The Trendsetters Are - Nasdaq
Connected TV And Advertising: What It Is, And Who The Trendsetters Are  Nasdaq

Is Ben & Jerry's misleading consumers? Lawsuit says 'happy cow' representation not quite true - USA TODAY
Is Ben & Jerry's misleading consumers? Lawsuit says 'happy cow' representation not quite true  USA TODAY

Why Sprinklr Is Buying Nanigans' Social Advertising Business - Pulse 2.0
Why Sprinklr Is Buying Nanigans' Social Advertising Business  Pulse 2.0

Landlord accused of advertising corridor as London flat for £845 a month - Yahoo Sports
Landlord accused of advertising corridor as London flat for £845 a month  Yahoo Sports

Mobile Advertising Needs More Than Just 5G - MarTech Series
Mobile Advertising Needs More Than Just 5G  MarTech Series

Is The Future Of Digital Advertising Conversational? - Forbes
Is The Future Of Digital Advertising Conversational?  Forbes

25 Fascinating Years of Digital Advertising [Infographic] - Social Media Today
25 Fascinating Years of Digital Advertising [Infographic]  Social Media Today

Doctors urge FTC to protect kids from online advertisers - CBS News
Doctors urge FTC to protect kids from online advertisers  CBS News

The Best Kind of Advertising: Winning a barbecue world title weeks before opening your OKC restaurant - KFOR Oklahoma City
The Best Kind of Advertising: Winning a barbecue world title weeks before opening your OKC restaurant  KFOR Oklahoma City

Tremor renews TV advertising partnership - Proactive Investors UK
Tremor renews TV advertising partnership  Proactive Investors UK

BBVA USA Bancshares Inc. Grows Stock Holdings in Lamar Advertising Co (NASDAQ:LAMR) - Mitchell Messenger
BBVA USA Bancshares Inc. Grows Stock Holdings in Lamar Advertising Co (NASDAQ:LAMR)  Mitchell Messenger

Digiday Research: Marketers are increasingly advertising on retail sites - and not just Amazon - Digiday
Digiday Research: Marketers are increasingly advertising on retail sites - and not just Amazon  Digiday

Google Play Store removes FX File Explorer for deceptive advertising that is not found in the application - Asap Land
Google Play Store removes FX File Explorer for deceptive advertising that is not found in the application  Asap Land

Bloomberg Will Spend $100 Million on Anti-Trump Online Ad Blitz - The New York Times
Bloomberg Will Spend $100 Million on Anti-Trump Online Ad Blitz  The New York Times

Hong Kong advertising sector workers rally to kick-start five-day strike - Hong Kong Free Press
Hong Kong advertising sector workers rally to kick-start five-day strike  Hong Kong Free Press

Measuring online behavioral advertising: One more step to protect users - EurekAlert
Measuring online behavioral advertising: One more step to protect users  EurekAlert

Old Navy will shift back to brand-building in a growing trend among advertisers - CNBC
Old Navy will shift back to brand-building in a growing trend among advertisers  CNBC

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