Advertising

[djdonny]

I just got off the phone with yet another newspaper that wants me to buy advertising space.

Call me cynical, but after 10 years of running this business, I've gradually come to the conclusion that the only ones who are really making money by advertising in newspapers, magazines, directories, etc, are the multi-system companies who can book at least 4-5 events for a single time slot. (And, of course, the publications themselves are making plenty of money from advertisers.)

It may take me a few more years, but I wonder if the same conclusion can be made about web banner ads, web directory links, etc.

The less I spend in advertising, the more of my hard-earned money I get to keep. I'd probably be better off just relying on repeat business.

Any thoughts?

[Jim Casey]

Well..

Print has never worked for me Donny, but web ads have been killer for me.

I look at advertising and whether it will bring me a 10 to 1 ratio back. If it does, I keep it, if it doesn't, I don't.

[djdonny]

I like the 10 to 1 ratio philosophy. I may follow that.

If I really don't expect more that one job from an ad, I'd spend no more than $60.

To spend $1800 on a magazine ad, I'd have to get 30 gigs!

Hmmm...

Thanks, Jim.

[DJMC]

I average 30 dollars to one for web advertising (including the cost of my dial-up ISP which is "bundled" with my web hosting)

Just to compare---In 1992 I spent $700 PER MONTH on advertising in YP

in 2002 I spent $600 for the entire year for advertising.

Then in 2003 I spent about $800 for the entire year. The extra $200 was well spent as I got about 20 more jobs over the previous year.

This year I plan to spend about $950 for the year 2004.

Take out the $211 cost of CWNet (ISP + Web Host), and my total cost of advertising is about $738 PER YEAR.

So I spend ONE-TWELFTH what I used to spend for advertising than I did 12 years ago, and I'm making 2x or even 3x per gig.

Who would-a thought the Internet would reduce my advertising expense (as a percentage of revenue) from 30% down to 5%???

[Jim Casey]

Matt...
How much do you spend with ATF??? :dollar

[DJMC]

Originally posted by Jim Casey@Jan 29 2004, 11:29 AM
Matt...
How much do you spend with ATF??? :dollar

hey let's not go there, OK? :shrug

[djdonny]

ATF?