Here is really what it costs not to advertise
For centuries, advertising has served as a vital tool in the business world, enabling sellers to target their market and effectively promote their trade. Advertising creates awareness for products and services, amplifies a business over its competitors and provides credibility to companies.
Last year, UK advertising expenditure grew 4.6% to reach £22.2bn, the eighth consecutive year of market growth* and is forecast to increase again during 2018. Many businesses are aware of the benefits of advertising and continue to use this powerful instrument in driving sales. So for those businesses that are reluctant to spend money on advertising, what will this cost them in the long run?
Business promotion is an integral part of any business’ success, as it is through promotion that a business expands its customer base and opens new windows of opportunity. We live in an age where it is possible to monitor the data from advertising, and yes, it’s proven to work. ‘Profit Ability’ has analyzed over 2,000 advertising campaigns to uncover the impact of advertising and from the findings, quantified the total profit generated by different forms of advertising in the UK.** The study concluded that advertising is a powerful business investment. Looking at total profit return on investment (ROI) over 3 years, the average campaign delivers a profit ROI of £3.24 per pound spent. This is money a business is losing by not advertising.
Advertising remains an important factor in informing consumers of a business’ existence and the options available to them. The question is not should I advertise, but when should I advertise. Advertising is one part of your business that you can control; honing in on your target market and identifying new strategies that will move you closer to your business goals. All forms of advertising deliver profitable returns when considering long term impact. If you choose not to advertise your business, you will inevitably lose out on profit.