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With Your LED Screen"

It's the Few Heavy Users, Stupid!

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So, in the last post we said that advertising messages should be created for, and directed at, the Heavy Using Customers in your category.

This simple concept helds a lot of fundamental implications...

First of all, why should your Digital Billboards Advertising aim the Heavy Using Customers? Easy: because the few Heavy Users represents the biggest part of your revenue (and profits).

In terms of value of goods sold per Customer, the Pareto Rule applies (also known as the 80/20 rule): 80% of your business is generated by 20% of your Customers.

But this means that light and average users represent a significant percentage of consumers, up to 80%!

When your Customers invest in advertising on your digital billboard, it costs them the same to reach the average as it does to reach the heavy user.

Which mean that most of the advertising effort (and cost) is wasted towards people that wouldn't buy a significant amount anyways - or wouldn't buy at all.

This also means that if an advertising message is created for the average user, it doesn't have an impact to the heavy users!

Heavy Users probably understand your business better than you do, they know your competition better than you do and they might know your product better than you do.

So targeting the average user is stupid because your are wasting most of your efforts towards people that won't significantly affect your business.

What you must do is understand who your heavy users are and what makes them buy your product. And then give them even more compelling reasons to do that over again with an even stronger message.

Of course it’s hard and requires a lot of work... but do you have any alternative?

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Get Her Money Out Of Her Purse

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Ok, so we said that your job is to be the salesman of your Customer - using your LED screen properly.

You must create ads that will help him to sell more of what he offers: if you fail to do that, on the long run your Customer will realize that he could spend his advertising money on another medium or just use them to go out with friends.

Now, this is not an easy task: if it was easy, anyone would do it - that's why you are paid good money from your Customers.

There are many things you should do to create effective advertising (and in case you didn’t notice it yet, investigating such techniques is the main aim of this blog), but the very first thing you should do is identify your (Customer's) target, the final user.

This isn’t easy either because most of your advertisers don’t know who their "target Customer" is... so if even they don’t know, then why should you care?

Because if you don’t find it out, your advertising won’t be effective, your Customers won’t renew their contracts and you'll have to spend resources finding new Customers rather than milking those you already have.

How to identify the "target user" will be the topic of a few posts to come, but here are some hints you may want to consider:

  • Advertising messages should be created for, and directed at, the Heavy Using Customers in your category (please, order the The Ad Contrarian book. It's free - see the Resources Section).
  • Women make [almost all] the financial decisions and they buy [almost] everything—commercial as well as consumer goods.
  • People over 50 comprise 29% of the population and they control 77% of financial assets (and they are the target for 10% of all advertising!!!)

Now, I know that the profile of your target Customer must be way more accurate and that these are general facts that not necessarily describe your final user... but you can not ignore them either.

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You’re a Salesman, Not An Artist

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Too often I happen to see on LED screens (yes, even on ours) some ads that were objectively terrible: transition effects, cluttered text, horrible color combination, unclear promotion, lack of contacts like phone or website…

And sometime I get potential Customers who saw that particular screen, complaining about the “image quality”.

How do I explain to them it does not depend on the screen, without looking biased? And most important, how can this advertising agency get paid from its Customers?!

Next time you create an ad for your screen, please remember to simplify and specify: I‘ve seen thousands of ads that were too complicated or too generic. I’ve never seen one that was too simple or too specific.

Remember that you’re a salesman, not an artist: if you want to be an artist, god bless you and good luck. But first you probably need to quit your day job.

To make good advertising you must be able to sell something with the ad you create. And that's important, not just for the sake of creating "good advertising", but because is the only way to make sure your advertisers renew their contract next month.

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Is Advertising An Intangible Asset?

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Let's talk about how to sell such an intangible asset as as advertising.

Today I had an email exchange with an expert in advertising and here's what he told me:

"We can say straight away that defining advertising "intangible", is a luxury that only so called marketing experts can now afford.

The investment that the advertiser make, is aimed at obtaining very tangibles returns: the user expects its advertising investment to result in higher turnover.

So whoever sells anything, must have specific knowledge of the product or service that he/she promotes: taking into account that selling means to solve a problem to someone.

All of us who operate on the market as salesmen, must be sure that the Customer will thank us after the purchase.

Only on this condition we can face with passion the effort to identify the target, qualify it, define the strategies to win it and make it loyal to our Company.

This is the preparation that a salesman should have today. It applies to all those who sell, from needles to transatlantic."

Now, that's some good food for thoughts...

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Learning By the Lakes

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A couple of weeks ago we had our second quarterly meeting.

Every 3 months we have a corporate meeting to which any employee and manager is asked to attend, or worse, to present!

We don’t usually share what we do and say during these meetings. But I realized that since we don’t do anything secret, maybe it would be nice to give you a little insight.

In the morning we do have a presentation to share with everybody how's the company going against its objective, what are the biggest improvements or problems, we officially welcome the new arrivals and then we host a question and answer session open to anybody.

The presentation usually last the entire morning. At the end of it we have a quick lunch together and then we start with the afternoon activity.

This time we organized an outdoor training hosted by the most famous Italian trainer - who gave us the honor to spend some time with us - and with two of his best team members. He was my teacher and coach at the university and I was enthusiastic when he accepted to organize something for the entire company.

The result was a wonderful afternoon by the lake from which anyone of us learned how to improve his personal life rather then just his job... but isn’t that what it is all about?

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