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?