Grex Coop10 Conference

Item 57: Grex's Advertising Strategy

Entered by aruba on Tue Dec 2 03:29:35 1997:

Recently Grex has spent small amounts of money on advertisements.  (One ad in
the "Once Upon a Mattress" program and one in the ConFusion program.)
But the fact is that we lack, at the moment, a strategy for deciding:

  1. how much money to spend on advertising,
  2. where to place ads, and
  3. what they should look like.

I'll be the first to admit that I am completely clueless about these issues.
I've entered this item to solicit some ideas on an "advertising strategy".

Mary Remmers suggested that the amount spent on advertising be linked with
the amount of profit made by the Grex store.  That's one way to answer
question number 1, but I have no idea if it's a reasonable one.

So, please post your ideas here.
18 responses total.

#1 of 18 by mta on Tue Dec 2 05:05:58 1997:

I would suggest that the amount spent on advertising in a particular place
should also depend on the response we get from that place.  I think we might
get a lot of new users from an ad in the Observer -- but I've held off because
there are other, cheaper ways to advertise.  And I think we'd have to run the
ad for several months to know whether it was working.

If we found a place that brought folks in in droves then it would certainly
be worth a bigger budget than repeated advertising that was cheaprt, but never
brought anyone in.


#2 of 18 by gibson on Tue Dec 2 06:56:57 1997:

        you're asking for the holy grail. every advertiser will kill for the
place to run such an ad.


#3 of 18 by aruba on Tue Dec 2 07:29:43 1997:

Does anyone out there have any experience placing ads?


#4 of 18 by mta on Tue Dec 2 19:01:57 1997:

Yes.  I do.


#5 of 18 by krj on Tue Dec 2 19:48:13 1997:

Mostly what I have been thinking of is "niche marketing" of the conferences.
I did the flyer for the music conferences -- so far ineffectual, as far 
as I can tell, and the flyer is not snazzy enough.  Someone else wanted 
to make a flyer promoting the gaming (Amalgam) conference for 
distribution at the big games store on South U. 

The ConFusion program book is a move in much the same direction;
it's designed specifically to appeal to science fiction fans.

What are the Observer ad rates?  Maybe if we know what the target is, 
we can see if some folks want to pledge money towards an Observer ad to 
run for some number of months.  (And what are the ad rates for the CURRENT?)
 
I don't see any reason to link ad expenditures to the performance of the 
Grex store.  Certainly we shouldn't advertise ourselves into insolvency.
But ads are not like Grex store stock: they are a pure cash outlay with 
no expectation of (immediate) return.   


#6 of 18 by aruba on Tue Dec 2 23:53:16 1997:

I guess I agree - I don't see why it should be linked to the store either.
Mary, do you want to defend that idea?

What I'm trying to decide right now is whether to implement Mary's idea of
separating out store finances and advertisements into a "promotional fund"
on the treasurer's report.  Doing so kind of tacitly links advertising
expenditures to store profit.  I'm not sure we're ready to do that.

Maybe I'll just go ahead and show everything coming from the general fund
this month, and we can sort it out differently next month if need be.


#7 of 18 by mary on Wed Dec 3 00:10:33 1997:

Whether advertising is directly linked to store profits isn't something I
find worth a lot of defense.  It just seemed like a natural extension as
t-shirts, mugs and mousepads essentially are advertisements.  So using
some of the store's profits to advertise Grex in other ways seemed like a
good idea.  Advertising is also a lower priority item in the budget and if
the store wasn't bringing in much profit then how nice that the profit
wasn't being counted on elsewhere, like for the phone bill. 


#8 of 18 by aruba on Wed Dec 3 02:33:41 1997:

OK, I've decided for the moment to separate out store transactions but to call 
the separate entity "Store Cash Balance".  We'll see if it makes sense to
people.


#9 of 18 by dang on Wed Dec 3 03:07:31 1997:

It looked okay to me.  It did end up with the General Fund being larger than
the bank ballance, tho.


#10 of 18 by valerie on Thu Dec 4 17:35:41 1997:

This response has been erased.



#11 of 18 by mta on Fri Dec 5 01:18:29 1997:

I looked into the ad prices in Current.  It has thew advantage of being
something people keep around for a month for reference (much like the
Observer) but a "business card sized" ad is about $30 a month.

Again, it's in the back of the magazine -- real ads with good spots cost lots
more -- but it has the additional advantage that peoiple open Current whgen
they want to find a way to entertain themselves.  That fits rather nicely with
Grex, I think.  We're fun!


#12 of 18 by danr on Sun Dec 7 15:22:42 1997:

As already mentioned, the big thing about spending money on advertising
is monitoring the results and then modifying the strategy based on those
results.  It seems to me that we need to agree how we measure the results.
Are we looking for more users, more local users, more conference users,
or what?

Having said that, one low-cost, but potentially effective way to advertise
is in the AA News.  They have a small section on page A4 or A5 called 
"Bulletin Board" that consists of small, text-only ads.  I know that I
always read the ads in this section.


#13 of 18 by other on Sun Dec 7 16:24:52 1997:

do we have software monitoring new accounts and new members over time?  it
would seem a fairly simple way of measuring.  the only difficulty i see would
be controlling for multiple accounts of individual users.


#14 of 18 by valerie on Sun Dec 7 22:50:56 1997:

This response has been erased.



#15 of 18 by aruba on Mon Dec 8 06:12:28 1997:

Yup, that would be my goal too, but I gather the point was to come up with 
some criteria by which we can measure the success of our advertising.


#16 of 18 by other on Mon Dec 8 15:03:20 1997:

right.  what i'm thinking is something which would puul from the log such
things as:
from where new users are coming (indication of whether they might have been
affected by our ad efforts)
when the new user first used the system (chronological association with ad
efforts)

this could be combined with similar information about new *members*, and
scanned for trends or peaks which might be associatable with any advertising.

where they heard about us, too.  (almost forgot that one)


#17 of 18 by gibson on Thu Dec 11 04:08:02 1997:

        I've used the observer bulletin board before with some results. the
cost is something like $3.50 per line depending on how many days you run the
ad. for $30.00-40.00 you could try it and see if you get any bites.
that price is for 3-5 days depending on line count.


#18 of 18 by lilmo on Wed Dec 17 03:15:51 1997:

The types of "measurement" described in #16 are much more likely to give us
accurate information than asking ppl where they heard about us.  People just
don't remember things like that.  If it is a trusted source, whether written
or oral, what they will remember is that they trusted the source from
which they go tthe information.  If they have a friendly feeling towards
a certain newspaper (for example), they may well remember that they heard 
about us,and that they had a friendly feeling twoards the source, and decide
that they heard about us from a "friend".

When marketers of "single-purchase" items, like cars, are trying to assess
the value of a given ad campaign, they ask if ppl remembe it, not if it
caused them to go out and buy one of their cars.  They ask how the ads made
them feel towards teh product, not if they marched, zombie-like, to the 
nearest dealer.

Eh, what do I know?


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