Entrepreneurs are often in a bit of a conundrum when it comes to advertising. How much should you spend? What types are most effective? And how do you measure the return on your investment? I’ve found that when it comes to spending ad dollars, the answers are often unclear—especially to newly-established companies.
While creating awareness about your product or service is absolutely essential, there is an alternative. Public relations can be much more cost-effective and results-driven than paid advertising, especially when you’re first starting out.
So what exactly is the difference between the two? With advertising, you need to have a professionally designed or written ad—then pay for the print space or radio/TV time to run it. With PR, you essentially get many of the same results, without paying the big bucks (although it will take your time and effort). You can see PR in action in most magazines you read by flipping to the “new products” pages—whether it’s beauty products, apparel, gadgets or children’s products that are featured, their presence there is a result of public relations “placements.”
Certainly there is a time and place for advertising—witness the millions spent annually by major corporations, who are not wasting their money. But for companies just starting out, PR can be a smart first step in creating product awareness. To begin, craft a compelling message. What is the most unique feature that sets your product or service apart? Does your company or product have an interesting back-story or human-interest angle? Does your product solve a common problem?
Once you craft your message, you will need to pitch your story to the media. This takes some research. Create a target list of media with an interest in your product or service, down to the individual reporter. For instance, if you’ve created a new type of software, create a list of technology reporters from major newspapers and magazines across the country. If it’s a beauty product, target style reporters. You can then post your press release free on www.prweb.com. This gives your press release an “official” look, which you can then forward to reporters, colleagues, friends—anyone you know to get the word out.
Your goal is to get your product or company mentioned—free of charge—in a magazine, newspaper, or news show that speaks to your target audience. If it’s a trusted media source, your presence will often be taken more seriously than through paid advertising, as this type of “editorial” mention can create a higher level of credibility and acceptance.
Once you create awareness and begin generating substantial sales, it may be a better time to consider advertising. Start out slowly and don’t spend your whole marketing budget in one place—this can be disastrous if your ad proves unseen or ineffective. Consider including a “call to action” in your ad—a coupon code for a percentage off, or a dedicated phone number for product orders. This way, you can help track your ad’s success.
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By Tamara Monosoff.
