“Small businesses are quietly making millions under the radar. The big corporations have not caught on yet. When they do the opportunity will be gone”
Business owners, WHY are you overpaying for advertising that doesn’t even work like it used to?
Life is all about flow. Water can either be your best friend or your worst enemy. If you’re in flow you can ride the waves… If you don’t, you fight against the current and eventually drown.
I see this far too often. People are stuck in old ways that are just not as effective anymore.
Let me give you two examples and tell me what you would choose:
A. Spend $10,000 on advertising and get back $50,000 on the front end;
B. Spend $10,000 on advertising and get back $5,000 on the front end.
Logically you would take the first option… So why is it that the everyday “smart business owners” are choosing the second?
I’ll explain a little more…
Magazine print advertising used to be one of my favorite methods to advertise. But now we’re in a digital age where the internet has changed everything, especially advertising.
When it comes to your ROI (Return on investment), there is nothing quite like the internet.
Why? Because it’s so untapped! The majority of the world doesn’t quite understand online advertising just yet.
Print, T.V and radio ads have been around for a long time but the internet is still relatively unknown.
People are only just beginning to understand its power. Yet, they don’t know how to really tap into that power.
Because of this, businesses have an opportunity of their lifetime. Especially the small to medium sized businesses… The little guys finally get a chance to play.
I just want to break down an example for you. I’ll try keep this as simple as possible.
My mission is to save you thousands if not MILLIONS, of dollars in advertising and make the process simpler for you.
Magazine numbers are NOT what they appear to be. I’ll explain more as I go.
The examples I am laying out for you can be applied to any niche or business new or old.
Let’s say you own an auto part store called Auto Zone.
You want to advertise your exhaust pipes in the Car and Driver Magazine and have more people buy from your store.
Your ad will likely look like this: A ‘cool’ car in a nice location with the exhaust pipe showing… There will be a list of benefits/ features of the exhaust and the call to action will be to visit one of the nearby stores and to visit your website.
So what would a Facebook ad look like in comparison?
You could have a cool video explaining why the exhaust pipe is perfect for car enthusiasts and the call to action prompts them to click the link to your website or Facebook page and to visit one of the local stores.
Now, how many people will see your advertisement? I’ll share more on this in a moment because it’s not always as it seems…
The info below was taken directly from Car and Driver Magazine statistics as at December 2014:
Total Circulation of magazine: 1,207,157
Subscription % of circulation: 93.3%
Single copy sales % of circulation: 6.7%
On Facebook, the number of people interested in Car and Driver Magazine or like pages related to the magazine is 4,373,070.
Now let’s get to the costs… How much will it cost you to reach your audience?
Here are the Car and Driver Magazine rates to place ads in their issues:
Full Page = $227,630
2/3 Page = $170,725
1/2 Page*= $136,580
1/3 Page**= $102,435
(Amounts taken directly from Car and Driver Magazine website)
Let’s compare it to Facebook ad spend:
A view of an ad is called ‘impressions’.
The cost is $4 CPM “based on my tests, cost will vary” (cost per thousand impressions).
So if you want to reach around 1.2million people, roughly the same number as the circulation of the magazine, then you are looking at spending $4,802.
And this is for a BIG news feed ad…
Compare the differences of the costs.
Even the cheapest magazine ad option of a 1/3 of a page is literally 20 x the cost of Facebook ads.
And I’ll say with confidence, that the print ad won’t be half as effective as a video Facebook ad.
I know this is a little long but it can literally save your business.
If you have a big company where your ad budgets don’t make a dent in the bank account, feel free to hire me! I’ll accept the price of a $227,630 full page print ad and generate you better results online.
Let’s move on to the logistics of magazines these days.
I’ll lay out a couple of scenarios of the Car and Driver Magazine for the 1.2 million copies that are issued every month in 2015:
Scenario 1: The magazine arrives in the subscribers’ mailboxes and maybe half of them actually open it up. They skim through the magazine and might catch a glimpse of your ad. So what happens with the small percentage of people that actually gives your ad some attention? Probably nothing. Like the majority of magazine ads these days, it’s not engaging enough. The magazine probably won’t even make it into people’s bathrooms because nowadays people go on their phones when they’re on the toilet…
Scenario 2: Barbershops across the nation have magazines spread out… But what do you do when in a waiting room? The majority of people never pick them up while they wait for their turn to get a haircut. Again, cell phones are a lot more entertaining than the magazines sitting on the table in front of them. Don’t get me wrong, a few people will pick up the magazine and enjoy it. But you’ll be talking about the minority now.
Back in 2000 a client in a barbershop would pick up the magazine to kill time because he had no other option.
Companies are operating like it’s still the year 2000.
Now let me lay out a few scenarios for Facebook ads:
Scenario 1: A person is sitting at home on Facebook from their laptop and your ad pops up in their timeline showing your awesome video about exhaust pipes and cars. They give the video a ‘Like’ then comment something like, “Awesome video” and tag their friend Dave to check it out. The person then proceeds to your website to find out more about your range of exhaust pipes and other products. Good luck having someone in 2015 saying, “Hey John, checkout this magazine ad, it’s awesome.”
Scenario 2: A person is waiting their turn in a barbershop, killing time on their phone. Chances are they’re on Facebook and your Autozone ad pops up on their timeline. They see the ad and do nothing… Still better than not seeing it at all.
The good thing with Facebook is you can start with a small budget. Would you rather pay $100 for the week and see results or would you prefer to commit thousands of dollars up front to a magazine without a guarantee of it working?
How about being able to change your ad any time you wish? If something isn’t yielding results, you can tweak the ad settings… You can’t do that with a magazine, you only have one shot to get it right.
Then there’s the demographics… With Facebook ads you can target your demographics so specifically to reach the exact audience that actually wants to see your stuff. You just can’t get that specific with magazines.
The lists go on and on…
Right now advertising online is very affordable, though it won’t always be this way. When big companies finally catch up, the little guys won’t be able to afford online ads like they can today.
How many little guys can take the risk of $100,000 on magazine ads?
And how many can risk $100 on Facebook ads?
That’s enough for today.
Online advertising is a passion of mine and is what I do for a living. It’s a lot simpler than many think. It doesn’t matter if you have , Huge fortune 100 company, local yoga studio, if you sell digital products online, or if you are a photographer, Facebook ads can help you.
I would like to invite you to a Free Online Workshop I’m hosting. All the details are below and I look forward to having you on there.