Consumers snap up daily deals. But for a small business owner, the deal isn’t always so sweet. While customers delight in a 49 percent savings, businesses lose revenue with little to no promise of customer loyalty, likely because daily deal grabbers have no interest in paying full price for the good or service.
Only 66 percent of businesses that use daily deals as a part of the marketing mix report it to be a profitable investment. (Mobivity, 2012) That’s likely due to too big of a discount or as one small business owner puts it: “The deal creates a frickin mob scene.” At Brassiere Beck, a daily deal reduced average check size from $80 to $55, leaving many would-be customers out of a table when the deal’s approaching expiration propelled a horde of customers to rush into the restaurant. (USA Today, 2012) Certainly the social buzz and hype associated with a stellar daily deal can give a store or brand some increased reach, but benefits do not always outweigh the costs.
Small business owners are always looking for ways to get their messages out effectively and at a low-cost. Moving past the hype of the daily deal, advertisers have a myriad of ways to promote their messages to local consumers on and offline.
For SMB advertising, community is key. Extending that to the “digital” community through Facebook, Twitter, Instagram, YouTube and a plethora of other social sharing sites brings a brand in front of their audience, where the audience, likely, spends much of their online time.
Hyper Local Online Advertising
A relatively new concept, hyper local online advertising is starting to make a splash with Internet Providers, Web site publishers AND Advertisers/SMBs benefiting from the investment. The concept is simple – local businesses want to advertise online. But, why would they spend resources to send their message to people who are not in their area, thus will never visit their store? Targeted ads based on geographic location are the answer to this dilemma. By purchasing ads only in specific regions, as defined by an Internet provider, advertisers can effectively target the audience that matters most – the local consumer.
Out of Home
Finally, local businesses benefit from out of home campaigns as the non-digital counterpart to online local advertising. This could include a billboard, event or mascot strategically placed in or near a place of business.
The bottom line is that businesses must continue to find new ways to get their messages in front of the right audience, without sacrificing profits. Businesses that dive into new, digital advertising opportunities now have the advantage of reaching potential customers before the competition.
How else are you leveraging the web as a part of your marketing mix?
The first rule of advertising: you have to reach the right people, at the right time, at the right place.
Today, consumers are spending more and more time online. The average American spends at least two hours of their day online, a number likely to increase as our social lives and jobs propel us to spend more time near a computer or mobile device (Mashable, 2011).
For advertisers, this presents both new opportunities and new challenges.
Online advertising offers myriad opportunities: display ads, email marketing, SEO, site sponsorships, and more. It’s not always easy to target the right consumer via these digital channels – and with privacy concerns surrounding browser tracking, advertisers need new ways to effectively target their intended audience.
The concept of locality online is still relatively new to most community businesses, but it’s a part of online marketing that’s rapidly gaining importance. Here are three reasons online advertisers need to “get local”:
- Consumers work, shop, and play within a 30-mile radius of where they live. For local businesses, the value of geo-targeted online ads is huge. For instance, if you’re a car dealership in Phoenix, don’t waste marketing budget on online banner ads that someone in Orlando might see. Use locally-targeted advertising to reach the right audience – the local audience.
- Customers research online, shop in-store. In fact, according to Internet Retailer, 83% of US consumers go online to research electronics, books, music and movies before buying in a brick-and-mortar store. Online brand exposure’s vital when introduced to a local market, especially for small businesses. While SMBs may not be able to compete with the big advertising budgets of mega-retailers, they can leverage less expensive online advertising opportunities to get their brand in front of a local customer at the right time – when they are ready to purchase.
- Customers prefer to buy local. They may be doing research online, but Forrester reported that 75% of consumers said they would actually prefer to purchase goods locally. People perceive greater value when they get to interact with a member of their own community rather than a faceless computer. Using local advertising gets your message in front of the customer at the right place – where they’re going to make a purchase.
You don’t have to be stuck scratching your head to figure out where advertising dollars are best spent – go local, online. Many companies are offering businesses the chance to evolve their local, online advertising strategy. Yodle helps local businesses boost their online presence with a suite of online and mobile marketing solutions. For online advertising targeted to specific geographic areas, advertisers turn to us: MyTurf Ads. ReachLocal ensures that clients’ local business information is updated across 20,000 web directories. It’s clear advertisers are going online but also keepin’ it local.