Cutting the Advertising Shop Speak Presented to: Fruita Chamber of Commerce 4/12/04 By: John Dane, KSTR-FM 96.1 SALE!

Advertising Media Print Phone Book Newspaper Direct Mail Couponing Magazine Catalog Tangible Passive BroadCast Television Radio Cable Intangible Active New Internet Facimile Intangible/ Tangible Passive Outdoor Signage Billboard Park/Bus Bench Bus/Taxi Street Hawker Intangible Passive

Measuring the Audience Cost Per Point = Dollar amount to reach 1% of the total measured audience. Total audiences can vary in size by medium/demographic. Rating = Percentage of the whole measured audience (total tv watchers of GJ TV 140,000) Share = Percentage of the current measured audience (Current TV watchers 30,000) Reach = The total amount of unique people the medium reaches. Frequency = The total amount of times each unique person hears/sees your message. CPM = Cost Per Thousand, the dollar amount invested to reach 1,000 unique persons

Medium - Print Print Phone Book ….. Newspaper …... Direct Mail ….. Couponing…… Magazine …… Catalog …….. Tangible Passive Advantages - Tangible Reference Guide Traditional Broad Demographic Highly Targeted to Demographic Special Sale offer, Urgency “Act Now” Targeted Demographic – Pass along readership Customer can “Shop” without being in the Shop Disadvantages - Passive Long lead time No competitve separation, some lead time “Junk Mail”, High CPM Lead time, High CPM High Printing & Distribution Investment.

Medium - Broadcast BroadCast Television ……… Radio ………….. Cable ………….. In-tangible Active Advantages - Active Low CPM, +95% Viewership. Low CPM, +98% Listenership, the last outside advertising exposure before purchase. Target by demographic, Low CPM. Disadvantages – Intangible Production Lead time No Visual Production Lead time

Medium - Outdoor Outdoor Signage ……… Billboard …….. Park/Bus Bench… Bus/Taxi ……….. Street Hawker…… Intangible Passive Advantages - Announces I’m Here! Come on In! Roadmap! To Location! Freuqency! People hibitually at the same place every day. Reaches all demographics and geographics. Sales person Come on in! Disadvantages – Intangible/Passive $$$, but if you Don’t have one, Get One! Short term exposure. Reach, short term exposure Short term exposure.

Medium – New New Internet ……….. Facimile ………. Intangible/ Tangible Passive Advantages - Tangible Low CPM, no printing costs, can be intrusive. Printout becomes tangible, narrow targeting. Disadvantages – Intangible/Passive Only becomes tangible when the customer prints the ad. Most people consider this the same as “Junk Mail”

Advertising Identify you Target Market It is important to know to whom you want to speak to. Is it your current customer. This is the easiest to target. Is there a market for a new type of customer. Create a Customer Profile. This can bring the biggest sales growth What is the best way to reach them? Gather the Demographic Information on different advertising mediums. What is the best way to speak to them? This is where your Advertising Sales Professional can be the biggest help. Now identify your investment to reach this customer, what is each customer worth, and how many potential customers do you have to reach to have 1 new customer? Note: There normally is an industry standard for business advertising usually between 5%-10% of gross sales. Small Business normally spends between 3%-5%. Sales promotions may have a much different sales target.

Advertising Sales People We are all sales people! Expect Honesty – Have agreement in writing Expect an Explanation– If you don’t understand the agreement then have your salesman explain it until it makes sense. Contact your Sales Person – Don’t be afraid to call, good or bad your sales person wants to here from you. Be Honest – If you don’t feel you can use the advertising, tell them, and tell them why. Your Sale person should be your consultant, working with you to best advertise your business. Win-Win should not be a slogan, but a way of doing business.

Advertising 80% Confusion