Setting aside enough money for an advertising budget can be quite a challenge for a small business. One way to make sure you’re spending those dollars wisely is to make sure you select the most effective advertising media in which to run your ads.

The term “media” refers to the type of outlet that will run your ad. These include elements such as newspapers, television, radio, magazines, online, and many other potential advertising opportunities. Many marketing and advertising plans include a combination of several media in the same campaign. 

While the array of choices may be intimidating, carefully thinking through your media buy and keeping your customer in mind every step of the way will help you make the most effective advertising decisions.

Take stock of your business and competition

Before spending even one dollar for advertising, first answer some key questions. Specific answers to these questions will drive a more focused, targeted advertising strategy. Ask yourself:

• What is the main goal of my advertising? To drive more traffic to my store? To sell more of one specific product or service?  To sell off overstock?  To develop more long-term customers?
• Who is my target audience?
• How much can I budget?
• How is my competition advertising their products or services?

Choose the right media vehicles

While there is rarely a single right or wrong way to select media, thorough analysis and research will help you choose the best forums for your advertising message.

The first task at hand when deciding on media vehicles is to make a comprehensive list of available media in your market. Be creative – aside from just listing local newspaper, television and radio outlets, think about what kind of media your potential customers read or listen to as well as when and where they are most likely to see your ad. This may include yellow pages, specialty publications, billboards and Web sites.

The American Marketing Association offers a Media Buying Service that may be helpful in selecting and buying local media.

Once you have a list of all the available media, start researching how much it costs to run an ad in each vehicle. Again, be specific and keep your audience in mind.

A four-color ad in a newspaper will cost more than one run in black and white. A television commercial slot during the evening news will cost more than one run in the middle of the night, but the late night spot may be the one for you if night owls are in your target audience (such as a 24-hour restaurant or other night-friendly business).

Since the cost of media is usually the largest expenditure in an advertising program, your budget will be a major factor in deciding which media to choose. No matter how ideal an ad vehicle may seem, it can only be so for your business if you can realistically afford to buy the ad space or time. Prioritize which media you want to use and which ones you can afford.

There is no straightforward rule about whether newspaper is better than radio or magazines are better than newspapers. It all boils down to knowing and reaching your customers.

Consider where your customers will be when they hear or see the ad and how you want them to respond. Are you just trying to build awareness of your business, or do you want customers to “act” on the ad in some way?

The yellow pages are the most obvious ad vehicle for services such as plumbing because that’s the first place your customers will turn when they need assistance. On the other hand, very few people turn to the yellow pages for fast food ideas. A fast food franchise owner may choose instead to use a billboard or run a radio ad during heavy drive times.

In some cases, you may choose your ad based on what your competitors are doing. If your rival is running hourly radio ads on a certain station, that station probably will not be the best media for your ad. The good news is there are often many ways to reach your target audience, and many businesses will find that a mix of different media is the best way to reach their customers.

Timing your ads

Your goals for advertising will drive not only where you run your ads, but how often. Are you trying to encourage customers to buy your product or service on a regular basis, like with a housekeeping service? In this case, you will want to budget and plan a continuous, steady advertising schedule following a regular pattern.

Are you trying to generate business during important times each year? In this case, your budget will be loaded to do more intense, concentrated promotions. Florists, for example, could focus promotions around peak times like Valentine’s Day and Mother’s Day.

When researching the cost of advertising on each medium, be sure to find out the cost for the periods you’re interested in, from time of year to time of day. In the florist’s case, she may find advertising costs more in some media than others around Valentine’s Day so may choose to either concentrate her ad dollars in her top choice or spread the dollars out to cover ads in alternative media.

Keep in mind that no matter how memorable you think your ad is, most people will have to see or hear it multiple times before it sticks. Budget accordingly to ensure your ad can run frequently or in enough different media at once to make an impression.

No matter what your strategy, don’t leave your research or ad placement decision until the last minute. Lead times for different media vary widely, and you don’t want to miss your window of opportunity.

Networks and monthly magazines require the longest lead time, particularly for ads slated to run during the winter holidays. Some monthly magazines may require you to place holiday ads as early as July. Local newspapers and radio stations will have much shorter lead times, but each outlet is different, and there is no hard and fast rule that applies across the board.

Measure your progress

To keep your advertising costs within a reasonable budget, small business owners should calculate the cost of reaching potential customers and monitor each ad’s effectiveness.

To calculate and compare the costs of reaching potential prospects, most advertisers use the cost per thousand, or CPM figure. The figure is simple to calculate if the outlet’s ad representative doesn’t have it available for you. CPM = (cost of the ad x 1,000)/size of audience. In other words, the CPM for an ad costing $500 in a publication that reaches 10,000 people is ($500 x 1,000)/10,000 = $50.
 
You also may hear the term “weighted cost per thousand” or “weighted CPM.” In this calculation, the audience is equal to only the part of the audience exposed to the ad, or the number of people likely to see or hear your ad at any time. For example, a radio station may broadcast to an entire metropolitan area, but it’s extremely unlikely that every single person in that area will be listening to the station at the same time. 

For more information on media measurement, read the Understanding Media Math Best Practice paper.

Once you compare CPMs across different media and place your ad accordingly, be sure to track your results as specifically as you can to make sure your message is reaching your potential customers. When you get a new or returning customer, ask how they heard about your business or promotion. You may find the most expensive ad buys aren’t always the most effective.

By keeping thorough track of which ads are reaching your customers, you can adjust your advertising dollars accordingly and come back better prepared when your advertising cycle begins again.