Have you ever wondered, how can advertising help a business? In short, it helps your business grow.
Benefits of small business advertising include attracting new customers and helping you sell more products and services to existing customers. It can increase profitability, too, by helping increase order size.
What Does Advertising Do?
Advertising helps change outdated or negative perceptions of your business, if needed. Advertising can also increase visibility within your industry, helping you attract partners that can expand your business.
Indirectly, advertising helps you grow word of mouth referrals. The more new customers you gain through advertising, the more word of mouth those customers in turn will share with others.
To sum it up, when trying to answer the question “how can advertising help a business?” you can see how it brings in more top line revenue, and drops more to the bottom line.
The Benefits of Small Business Advertising
Let’s drill down to understand exactly how advertising can help a business, depending on your industry. But in reality, what does advertising do? Here are 18 benefits of small business advertising:
Increase Foot Traffic
For brick and mortar businesses, advertising in newspapers, magazines, television and radio can get more customers in the door.
For B2B businesses, advertising can fill your sales funnel and help you get more leads for your sales force to follow up on.
Introduce New Products
For software or consumer manufacturing businesses, advertising can help launch products with a splash.
Highlight Product Enhancements
If your business has an existing product or service, advertising can make the public aware of improvements. Letting the public know about your innovation can boost sales.
Improve Brand Awareness
Advertising keeps your business top of mind so consumers think of it when they require a service. This is especially good for service businesses such as HVAC or pest control. But almost any kind of business can benefit.
Spread the Word about a Sale or Special Promotion
For any kind of retail business, advertising can make the public aware of a sale or promotion bringing in more customers in the process.
Lift Brand Image
For businesses in industries suffering from an outdated or poor perception, advertising can transform public opinion creating a more favorable impression. For example, advertising can make people aware of expanded capabilities or offerings.
Boost thought Leadership or Industry Profile
If you are a consultant or run a tech company and want to be known for your expertise, advertising can help. Native ads can promote your content demonstrating your expertise and building your reputation as a thought leader. Sponsoring content that features expertise also raises your profile and helps attract industry partners.
Announce a Store Grand Opening
Use outdoor advertising, newspaper ads or mailers to publicize a new location. Get more foot traffic.
Stand Out from the Competition
For businesses in crowded markets, advertising can set your brand apart.
Advertise special bundles and order size incentives to increase your customers’ average order value. Example: offer “threshold based” coupons, such as 10 percent off every order over $150.
Expand the Power of Word of Mouth
Advertising can help jumpstart and amplify word of mouth. About 85 percent of small businesses report they get most of their customers through word of mouth, according to a study by Small Business Trends.
But what if you could drive the word of mouth sharing by your customers even higher? The more new customers you get through advertising, the more happy customers you will have to share word of mouth praise about your business!
The above list is not exhaustive. But it should help you answer the question “What does advertising do?” and get you thinking about how advertising can help a small business better achieve its goals.