What is the reason for 50% of your advertising budgets being squandered in Russia?

Greetings!

The content presented in this document can be applicable not only to the Russian market but also to markets in any other country. The principles I outline here can serve as the foundation for any marketing campaign.

What should a commercial look like and how should the advertising message be crafted? What elements should be included in advertising communication to maximize sales effectiveness? Unfortunately, there is no definitive answer to this question, as every business is unique and identical circumstances rarely exist. However, having knowledge of certain marketing principles allows us to understand the general direction and create an effective marketing infomercial. How can this be achieved? That’s precisely what we will discuss in this article.

First and foremost, it is crucial to comprehend the purpose of any advertising message, whether it is conveyed through radio, television, or a website. If you were to ask the average entrepreneur or marketing specialist about the objective of their advertising, the common response would likely be “to sell a product or service.” However, this perspective often results in wastage of 50-70% of the advertising budget. It is now widely acknowledged that advertising should not merely entertain or amuse, but rather, it must sell and be effective. This is absolutely correct! Yet, the key question that arises is: “What precisely does the advertisement need to sell?” You may be surprised to learn that advertising should not directly sell goods or services. Drawing from my experience in marketing communications, I firmly believe that advertising should sell “a small action” within the sales chain. But what does that entail? Let’s delve into it.

Any successful business operates through specific business processes that form a “sales chain.” For instance, let’s consider the sales chain of a company specializing in selling plastic windows:

Now, let’s shift our focus to what window manufacturers primarily advertise. Successful companies often promote the convenience and affordability of installing plastic windows with messages like, “Call now to learn more details; this promotion is available for a limited time.” From this, we can deduce that the TV commercial is not aimed at selling a window directly, but rather, it encourages the viewer to make a phone call, motivating them to reach out to the manufacturer. Once the customer contacts the window company, they are then prompted to schedule a measurement appointment, and only after this step is the window purchase finalized.

Therefore, attempting to sell a product through direct advertising that screams “Buy now!” can be challenging. However, selling a smaller action, such as making a call, visiting a website, or reading an email, proves to be much easier and more effective.

Moreover, a significant number of individuals are currently hesitant to invest in the installation of plastic windows. However, there is a much larger group of people who are eager to simply make a call and inquire about an intriguing promotion. This trend extends beyond the realm of plastic windows. For instance, the proportion of individuals willing to purchase an annual gym membership at any given time is relatively small compared to those who would readily participate in a free trial day at the gym. A glance at Russian national TV advertising reveals that over 50% of it encourages viewers not to make an immediate purchase, but rather to perform a small action like “Register online” or “Call the free hotline.” This confirms the notion that prominent national companies realized long ago that employing “direct advertising pressure” wouldn’t help them acquire customers. Conversely, regional and local advertising in Russia is saturated with direct advertising messages.

To craft an effective advertisement, focus on selling an action that requires minimal effort, as it only demands one minute of your valuable time. Recognize that the modern consumer tends to be somewhat lazy, hence valuing the fact that people take the initiative to call or email you. This signifies their interest and establishes your importance to them. Furthermore, carefully consider the sales mechanism of your product. If it already exists, comprehend what exactly you are selling and at what stage you are selling it. This understanding will aid in determining the essential components of your advertisement and what actions it should motivate people to undertake.

We reside in a world where customers hold the power. As life constantly evolves, so do business practices. Thus, it becomes crucial to grasp the core of contemporary marketing and stay abreast of the times. While the direct influence of advertising is fading, it is no longer sufficient to astonish your clients with a “super product” or “super service.” Your advertising message should emphasize the advantages of your offerings and inspire customers to provide feedback.

I trust that this article will prompt you to contemplate how you can adapt your marketing strategy and amplify the feedback garnered from your advertisements.

Теплые пожелания,

Vadim Tylik