Business News Desk -Starting a new business is never easy. It is full of excitement as well as many challenges. A major reason for the success of every startup is its advertising or promotion strategy. Just making a good product is not enough, it is also important to tell and make people aware about it and this requires advertising and promotion. Startups are usually short of money, so some things should be kept in mind while making a budget for advertising or promotion.
First decide your objective
Before thinking about advertising channels and budget allocation for your startup, it is important for you to identify the objective of your startup. This will make it easier for you to create a marketing strategy. You need to decide whether the purpose of the ad is to increase sales, spread awareness, or acquire new customers.
Understand your target audience
You also need to understand who your target audience is and accordingly budget your advertising spend. After making the budget, advertisements will also have to be made on the same basis. If your target audience is older people, you can’t tailor ads to youth. In such a situation the advertising budget will go waste. The message you want to convey through your ad also needs to be determined by your target audience.
Analyze all channels
You should also research and analyze what advertising options or in other words what channels are available to your startup. You have to see how much money is being spent on which channels like print media, TV, radio, social media, hoardings etc. and to what extent it is achieving your objective.
How to allocate money for advertising?
First of all you have to allocate a part of your income for advertising. To know how much funds to allocate for advertising, you will have to analyze the financial position of your company. After that you have to allocate advertising budget to different channels. When allocating funds, allocate more to the channel that you are confident will achieve your objective. Also, allocate less funds initially to new channels i.e. those that you have not tried before. Keep watching and analyzing the performance of all these channels all the time and see if you need to make any changes to your allocation.
Pay special attention to digital advertising
In this era of Digital India, pay special attention to digital advertising. The biggest reason for this is that it is very accessible to people and it is easy. Additionally, digital advertising is also cheaper than other channels. Plus, you can track your ad performance. The biggest advantage of digital advertising through social media is that you can deliver your advertisement to the target audience, which will benefit you.
Calculate Return on Investment
Finally, you also need to calculate the return on your investment. You have to see how much money you spent and how much benefit you got from it. Keep in mind that this benefit does not necessarily have to be in money. To find out whether you have benefited or not, you need to take a look again at your purpose or objective. If your objective is being achieved, then it is fine, otherwise you should change your strategy and analyze it once again.
