Best Business Expert

When your business considers its marketing mix, how do you decide what kinds of marketing are in and what kinds are out? Usually, there’s a combination of reach, frequency, and cost, and hopefully a consideration of whether the marketing medium is aligned with your product or service.

Those are important considerations but there is one that often gets missed, particularly from small (and sometimes midsized) businesses. It’s the target factor.

While it can be valuable to get your message out to as many people as possible, it is often far more valuable to get your message out to a highly targeted group instead. Unfortunately, the targeted marketing is often ignored in favor of the more general broad-based effort, often because of cost. After all, so the thinking goes, doesn’t it make more sense to spend less per eyeball?

Let’s look at an example:

Company A sells B2B services and pays $1000 for 5 ads in a general newspaper. The paper will reach 1 million households.

Company B sells the same B2B services and pays $1000 for 5 ads in a business newspaper. The paper will reach 100,000 businesses.

In this example, Company A’s marketing seems to provide more value because it gives a lower per-eyeball cost. However, Company B’s marketing will probably be the best value. The reason is the market reading the ad. Spending $1000 to reach a million households is just fine, except that only a fraction of those household readers are decision-making business people who are thinking about the needs of their business. And, by the time they have are able to act, even fewer will recall the ad or the company.

Company B’s marketing, which seems to cost more per eyeball, will likely return better value because its readers are business readers focused on business problems. The ad is delivered in a format the reaches them while their mind is on business. It’s a much better target.

So, while marketing reach is important, targeted marketing is more important. It will cost more per eyeball, but it can also deliver far more customers to your business.

Contemporary VA

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