small business internet advertising

These days the single greatest challenge facing every small business owner is the economic recession.

The simple fact is small businesses have been hit hardest by the recession.

According to The Small Business Economy: A Report to the President produced by the U.S. Small Business Administration, “more than half of the 763,000 jobs lost in the first two quarters of 2008 were lost in small firms.

This has made finding ways to spend get rich from home more efficiently and effectively paramount for a small business to remain successful.

While most people will continue to talk about the damaging effects the recession has had on their business, a savvy business owner will recognize the recession as an opportunity to grow their business.

In the past 60 years America has been through nine recessions and recovered from every one.

While it may sound strange to think of the recession as an opportunity, if the right investments are made you can easily increase your profits and outpace your competition.

That’s because during a recession most small business owners cut back on spending and especially on advertising.

Yet, numerous studies have shown that this is a mistake.

In a joint study done by State Universityand Western; Oregon University; dated April 19, 2009 they found that:“Firms that are able to increase advertising during recessions are likely to have stronger future earnings.”

The researchers studied data from five recessionary periods since 1971, sampling data from more than 3,000 firms listed on the public stock exchange.

Another study done by compared 101 household name brands that increased ad spending during the recessionary period 1989-1991. For those who cut spending on advertising, it took 2 years after the end of the recession to regain their original position.

By that time, aggressive competitors had almost tripled their market share, while less than 30% of those who cut advertising ever regained their market share in the following expansion period.

The question becomes how should a small business owner invest their advertising dollars?

Many small business owners will turn to traditional forms of advertising such as: television, radio, Internet Newspaper or the Yellow Pages. The fact is however, that these forms of advertising are cost prohibitive and simply not as effective as they once were.

Reaching an audience through traditional forms of media is harder today then ever before.

Only 1 out 3 three Americans read a daily Internet Newspaper, Ohio-based; found that just 1 in 20 people actually watch television commercials.

Bill Gates stated: “The Yellow Pages are going to be used less and less… These things always take time, but Yellow Page usage among people, say, below 50, will drop to zero — near zero — over the next five years.”

As for radio, according to the Outdoor Advertising Association of America; (OAAA) advertisers must buy deep (multiple stations and formats) to accumulate audience reach of over 50%, offsetting the cost effectiveness of radio if the target is a large, broad group of consumers.

Traditional forms of advertising are also cost prohibitive for a small business owner looking to reach the widest audience with a limited budget.

Advertising in a regional or local Internet Newspaper for a 3 x 5¼ ad running twice per week for 52 weeks can cost as much as $792 a week. At those rates one year of advertising in the paper twice per week would cost $41,184.  A twenty six week sponsorship of a local Internet News program with a thirty second spot running once a week and four additional thirty second spots, one in each locally produced sporting event (high school and college) would cost

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