If small businesses want to expand their customer base and increase their profits, they should consider investing in advertising to create brand recognition within a larger audience. Numerous advertising techniques are available for small businesses to choose from.
You have the option to focus on digital ad platforms such as Facebook, Twitter, LinkedIn, YouTube, and Google AdWords. Alternatively, you can select traditional advertising mediums like newspapers, radio, and local TV. Making strategic investments in advertising for your small business can lead to a significant return on investment, attracting valuable new customers to your company.
Types of advertising for small business
Small businesses seeking to increase their revenue through advertising must carefully select advertising methods that are affordable and appropriate for their business model. The following are some effective advertising methods employed by small businesses to market their products, services, or content:
1. Social media advertising
Small businesses often choose social media advertising because it is relatively inexpensive and allows for specific audience targeting.
If you own a retail store, you have the option to use ad targeting options to limit the audience for your social ads. This can be done by selecting a certain demographic and a specific mile radius around your store. Social advertising can be done on various social media platforms, such as:
- Facebook: Facebook is a great advertising choice for most small businesses, because of the widespread adoption of the platform and the relatively low cost of their ads. Almost 70 percent of American adults use Facebook, and among those who use it, nearly 75 percent log in to the service at least once per day. There are different ad units to choose from on Facebook, including video ads, customer offers, carousel images, lead generation, page likes, event responses and more. You can learn more about Facebook advertising on the Facebook Business site.
- Instagram: Instagram ads are a great option for small businesses with a highly visual brand that appeals to younger audiences, since 60 percent of Instagram’s one-billion users are under the age of 30. Instagram includes many of the same targeting parameters offered by Facebook and their ad units include image ads, video ads, Stories ads and carousel ads. You can also include clear call-to-action buttons to drive traffic to your website.
- LinkedIn:LinkedIn advertising tends to be a bit more expensive compared to other social networks, but it’s a great option for small businesses with a business-to-business (B2B) sales model, since you can target professionals in specific industries and with certain job titles through LinkedIn ads. There are more than 560 active professional users on LinkedIn.
2. Pay-per-click advertising
PPC advertising, a form of online advertising, involves advertisers paying a fee whenever a user clicks on their ads, primarily on search engines. Advertisers compete for ad placements by setting a maximum price they are willing to pay for a click.
If a person views your ad but does not click on it, there will be no cost to you. The primary platforms for PPC advertising are Google Ads and Bing Ads.
PPC advertising, which stands for pay-per-click advertising, falls under the umbrella of search engine marketing (SEM). It serves as an excellent choice for small businesses operating within tight financial constraints. As per WordStream, on average, businesses earn $2 in revenue for every $1 invested in Google Ads.
3. Mobile advertising
Mobile advertising refers to a form of digital advertising where advertisements are exclusively displayed on mobile devices such as smartphones and tablets. The scope of mobile advertising encompasses:
- Mobile display ads
- Mobile search ads
- Mobile videos
- Mobile app ads, which are meant to drive downloads of a brand’s app
- Social media ads served on mobile devices only
4. Print advertising
Before digital advertising came into existence, print advertising used to be the main advertising approach employed by small businesses. Presently, the revenue generated by print ads is decreasing, meaning that as a small business owner, you may discover that the cost of print ads is significantly higher compared to the cost of digital and social advertising.
Measuring the success of your print advertising campaigns is also more challenging due to the near impossibility of proving the number of people who saw your print ads and subsequently made a purchase at your store or became a client of your business.
However, print advertising can still be a viable option for local businesses or those targeting older, less tech-savvy audiences, as part of their ad budget. Examples of print advertising include newspaper ads, magazine ads, and ads in brochures and flyers.
5. Broadcast advertising
Broadcast advertising encompasses mass-market media channels such as television and radio. Although the cost of TV advertisements can be a barrier for small businesses, if there are local TV and radio stations in your vicinity, it may be a more affordable option, and the target audience could be highly suitable for your local business.
The cost of airing broadcast ads is determined by various factors such as the duration of the ads (which results in higher costs for longer TV and radio ads), the frequency at which they are played, and the specific time of day they are broadcast. Additionally, the cost of producing the ads needs to be taken into account, as creating professional TV ads can be quite costly.
6. Native advertising
Native advertising is a specific type of digital advertising that is also present on social media platforms. These ads are created with the intention of seamlessly blending in with the surrounding content on a webpage or social media newsfeed. As a result, they may not appear as advertisements, but instead may consist of a blog post offering useful tips that are relevant to your desired audience.
Native ads are created with the intention of attracting prospective customers and subsequently presenting a call to action that conveys the attributes of your company or brand.
7. Email advertising
To utilize email advertising, you need to possess a customer database as it operates in a distinct manner compared to other forms of online advertising.
Customer data can be obtained by using promotional offers, contests, or your eCommerce platform. The primary focus of contemporary email advertising is usually on generating repeat business. For instance, you can send an email advertisement to your entire customer list in order to promote an upcoming product or sale.
You have the option to merge your email marketing activities with other forms of advertising. By utilizing an appropriate email marketing platform, you can incorporate video ads or other significant content into your emails, thereby promoting enhanced engagement.
8. Mobile advertising
Mobile advertising will become more important as smartphones continue to dominate. In 2021, 56% of web traffic originated from mobile devices. Mobile advertising, similar to online or digital advertising, encompasses various advertising methods. These methods can be classified as mobile advertising.
- Mobile display ads/banner ads
- Video ads on mobile devices
- Mobile ads that encourage users to download an app
- Text ads
Moreover, mobile ads have the capability to adjust to various types of digital advertising as well. This is exemplified by the ability to endorse social ads exclusively on mobile devices, which can also serve as a means to advertise your company’s application.
9. Print advertising
Due to the constant decline in revenues from print ads, this specific strategy may not appear as appealing as the low-cost digital alternatives. The difficulty in determining the effectiveness of print advertising lies in its inability to produce the quantifiable “clicks” like other forms of advertising.
However, print ads continue to be relevant, particularly for businesses that aim to reach local residents or individuals who may not be as familiar with digital platforms. Opting to buy advertising space in a local newspaper or on the back cover of a magazine is a viable option for these businesses.
To maintain the same meaning, rephrase the text without adding or removing information: Include a QR code in your physical advertisements to combine your print and online advertising strategies. This will allow readers to use their smartphones to scan the code and be redirected straight to your website or social media page.
10. Outdoor advertising
Out-of-home advertising, also known as outdoor advertising, can be as effective as print advertising in reaching local consumers by utilizing attention-grabbing signs and displays. This form of advertising offers various formats and options, such as:
- Billboards
- Public transit ads
- Flyers
These types of ad formats usually have limited space, but at the minimum, they can help promote your name and increase brand awareness within your local community.
11. Direct mail advertising
Direct mail remains an effective method of reaching out to local consumers. Despite the perception that it is outdated, utilizing “snail mail” can still effectively distribute flyers, place coupons directly into the hands of consumers, and promote upcoming sales.
You can enhance your direct mail ads by directing viewers to your website, similar to print ads. Furthermore, you might discover inventive methods to collect customer data for future use in email marketing campaigns or other strategies.
Tips for your next advertising campaign
Given the wide array of advertising platforms available, how can small business owners optimize their ad campaigns?
Define your goals
Before you start designing your next online or video ad, take some time to consider your objectives. What do you aim to accomplish with your advertisements? Typical objectives may include:
- Increase sales
- Capture customer data
- Generate more social media followers
By setting specific goals, advertisers can assess the efficiency of their marketing campaigns. In case you face difficulties in reaching your goal, it might indicate the need to change strategies.
Drive traffic to your website
Explore innovative strategies to increase the flow of visitors to your website, enabling them to access captivating content featuring your exclusive products or services, as well as significant updates on upcoming promotions and events.
It is surprising to find that 36% of small businesses do not possess a website of their own. Particularly, smaller businesses claim that they perceive their business as being too small to warrant having one.
Today, there are various user-friendly website builder tools that can greatly assist in creating a compelling and polished website. These tools are capable of enhancing sales and improving overall efficiency in all essential operations.
Know your audience
The target audience you have greatly influences the choice of ad platforms for your business. It is important to select the social media platform that aligns with your customer base. While Facebook caters to a wide range of users, Instagram can help you engage with younger audiences as 60% of its users are under the age of 30.
Time your digital ads
When it comes to timing, it is important to consider various aspects. Apart from aligning your seasonal promotions with the calendar year, it is crucial to analyze your yearly financial reports. Identify periods in the year when you face a slowdown in business. By scheduling advertisements during these periods, you can boost sales during historically quieter times.
Use images and video
When posting ads on your social media pages, ensure that you utilize high-quality images that catch the users’ attention as they scroll, as advertisers have observed that social media posts with images result in 42% more clicks compared to those without.
Video ads can be equally effective means of communication. Watching a well-executed video often holds more interest than reading a lengthy passage, and video content is generally favored by younger age groups compared to printed material.
Measure and adapt
Lastly, it is crucial to consistently assess your advertising strategy by considering whether you have achieved your objectives, adhered to the budget, and generated additional revenue through your advertisements.
If your advertisements are not accomplishing your objectives, it might be necessary to reevaluate your approach. In the future, you may need to consider altering your ad content or utilizing a different platform. Alternatively, you might need to realign your business goals with your ad performance.
