Evaluating Your Competition’s Advertising Campaigns
Research and evaluate how your business’s competition approaches advertising when your business devises its advertising plan. Analyze your business competition’s advertising when planning the extent of your advertising budget, as well. A few phone calls should tell you how much the competition is paying for these kinds of ads:
Regular newspaper ads
Weekly mail coupons or brochures
Why should you want to know what your competition is spending? This information gives you some basis for planning your own budget. Forewarned is forearmed, which in this case means that gathering information about the other guys helps you make a quantified judgment about how much you need to spend in order to compete with them.
If you own a mom-and-pop hardware store, you may have a tough time generating a budget that can compete with the monster-size warehouse stores — but don’t panic. Simply outspending the other guy (or even trying to keep up with him) isn’t necessarily the point of this research. When you know how the competition advertises, you can better evaluate all your options.
Regardless of the limits of your ad budget, and whether you’re trying to reach a broad audience, you can afford mass media, including radio commercials, ads in a mass-circulation daily newspaper, spots on broadcast television and cable stations, ads in the regional editions of major magazines, and a variety of Internet advertising.