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Thread: Is advertising worth it?

  1. #11

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    Quote Originally Posted by b-turner View Post
    It has been mentioned what if you don't need,like or use the advertised product. This actually is not a result of advertising not working but rather it did because although you don't buy the product, you learned of it by advertising being effective.

    You really can't do much about those who don't like or don't need the advertised product. No matter what those sales won't happen. You have to think of those ready to buy and how to get them to consider you. Advertising might reach a wide swath of the population, but it is a much smaller group that is ready to buy now and that's where all your results come from.
    I am curious, is a client at any advantage when they are the only thing in that business to advertise on a particular station? Maybe it's just me, but I'd feel like it was harder to get in customers to my car dealer if I was buying on a station next to a bunch of other dealers and national spots for other car companies than say the local bookstore example given above, which may be the only bookstore getting advertising from radio in this particular market, or one of only a couple, not a half dozen or more.

  2. #12

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    If you're the only one I'd think you would be at an advantage. I think one of the worst things happening on radio and TV is running direct competitors in the same stop set. When you have 3 car dealers in the same break I suspect it would be easier to mix information among all the car dealers.

  3. #13

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    He's local to Knoxville TN (though about every market has an obnoxious car dealer)


    Quote Originally Posted by landtuna View Post
    Never heard of them nor have I ever heard of "Fooorrrrrrrr the People". Must not be in my market or my very limited radio listening isn't enough TSL.

  4. #14
    Quote Originally Posted by bobdavcav View Post
    I would think the business doing said advertising would want some kind of return on that investment, and they won't advertise if they don't get that return.
    Exactly, and since most advertising is based on return business, you have the answer to your question. They don't buy ads for charity.

  5. #15

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    There is a guy in Houston that built his business with radio and TV advertising. He began by renting pieces of furniture from small furniture stores,putting it under a tent on a corner and selling orders for the piece of furniture ordered through the little furniture store that gave him a commission for each order.

    His commercials were horrible and he admits they were. Some radio ad TV stations refused to air them.He didn't care if the played midnight to 6 am. In time he had an old warehouse.

    Before coming to Houston, I remember seeing the same guy on TV in Dallas around 1969. He pulled the wad of cash from his back pocket and loudly proclaimed Gallery Furniture saves you money back then. By 1993, I got to Houston and the radio and TV airwaves were filled with the same guy and his 'saves you money'.

    Today he runs what was the highest volume single location furniture store on earth doing more volume than many of the national chains do from all their stores. I think he has 2 locations now.

    The commercials are still obnoxious, just not as much as they were. Everybody knows the name Gallery Furniture, that they 'save you money' and that you get no back order slip..buy today, it's in your house today (even if you buy at 9 at night).

    You might know the owner through The Houston Rockets (I think he was the primary owner) or the guy that opened his store to storm victims during Hurricane Harvey.

    I think he'd say he's built what he has in part by advertising. He'd say it certainly works.

  6. #16
    Quote Originally Posted by b-turner View Post
    There is a guy in Houston that built his business with radio and TV advertising. He began by renting pieces of furniture from small furniture stores,putting it under a tent on a corner and selling orders for the piece of furniture ordered through the little furniture store that gave him a commission for each order.

    His commercials were horrible and he admits they were. Some radio ad TV stations refused to air them.He didn't care if the played midnight to 6 am. In time he had an old warehouse.

    Before coming to Houston, I remember seeing the same guy on TV in Dallas around 1969. He pulled the wad of cash from his back pocket and loudly proclaimed Gallery Furniture saves you money back then. By 1993, I got to Houston and the radio and TV airwaves were filled with the same guy and his 'saves you money'.

    Today he runs what was the highest volume single location furniture store on earth doing more volume than many of the national chains do from all their stores. I think he has 2 locations now.

    The commercials are still obnoxious, just not as much as they were. Everybody knows the name Gallery Furniture, that they 'save you money' and that you get no back order slip..buy today, it's in your house today (even if you buy at 9 at night).

    You might know the owner through The Houston Rockets (I think he was the primary owner) or the guy that opened his store to storm victims during Hurricane Harvey.

    I think he'd say he's built what he has in part by advertising. He'd say it certainly works.
    That would be old "Mattress Mac" McIngvale, right? He blew through a lot of his profits when he splurged on racehorses some years back. Not sure if he's still in the game. If he is, it's on a much smaller scale. He used to have runners in many major stakes races.

  7. #17

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    That's the guy and he's still going strong.

  8. #18
    A few months ago the wife and I were in purchasing a new sofa from the local furniture store in Fredericksburg, VA. While the 20-something sales agent was writing up the order, we got into a conversation about advertising. I mentioned to the sales agent that I'd recalled they used to do quite a few weekend remotes with the local Hot AC station. The agent confirmed they used to, but he convinced the furniture store owner to move their ad budget to "digital", including social media like Facebook and Instagram. The goal was to increase reach for less money than what they had been spending with local radio. So I asked; when you did the radio remotes, how much foot traffic into the store was directly attributed to the radio ads, and how much of that foot traffic converted to actual sales? I could tell by his expression that it dawned on him while he was replying to my question; they made on average 15-22 sales per weekend radio remote from an average 50-60 people through the door that were called to action by advertising with the station. My next question was lobbed-up: So how many sales have converted from foot traffic that was directly attributable since moving your ad budget to all digital and social? Answer: None that he knew of. As we were wrapping up our business, he justified the decision to move all their ads away from radio by stating: "All my friends and family are on Instagram, so that's where the store needs to be too." As we were heading for the door, the sales guy shook my hand thanking me for buying from them. I did a total 'Colombo' Oh, just one more question; how many of your friends and family have come into the store and purchased furniture from you? He just smiled and wished us a good day.

  9. #19

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    I would have loved to witness that conversation,Kelly A. Most merchants and others working in the store have no clue of what advertising is doing for them. For some reason, furniture stores I've dealt with tend to strive to attribute sales to the source of advertising over and above any other type of business I dealt with. I won't say the digital advertising is a waste.I'm sure it is working for them. I'd think radio in general has better reach in raw numbers and may be better attuned to hone in on a target demographic than most media options. It boils down to cost per thousand to reach the target audience that buys your product.

    For example, I was selling radio in a market where I competed with a regional FM. It wasn't that they weren't popular just as our station was. In fact we hit adults too in that small market where the advertiser buys more on reaching adults than that youth oriented station. I simply talked cost of getting the customer in the store. With the 100,000 watt station the business paid to reach people who would never become their customer along with their target group. With the station I worked for, a class A, our reach and pricing was based on the trade area for our community. We were priced accordingly. The business could spend less for the same schedule with us knowing all our listeners were in their trade area or pay more to reach many who would never become their customer on the 100,000 watt regional FM. Once I got them, it was time to find those things I could do that they liked emotionally and increase that budget a bit.

  10. #20
    I agree with b-turner. I cant imagine why anyone would want to be the third car commercial in a row. For that matter, the "stop set" doesn't make good sense either, but it is the norm. I've heard as many as 14 spots, psa's and promos in a row in my market. Who would want to pay to be #8 of 14 in a row?

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