Marketing is especially important for small to medium-sized businesses because more scarce cash flow must truly maximize return on investment (ROI). Traditional methods included things like TV, radio, billboards, print, and a few others. Then came digital marketing methods such as Google Ads, social media, and search engine optimization (SEO).
I often engage with businesses of all sizes, but particularly more local small to medium-sized businesses, on an emerging method that builds strong brand loyalty and offers low-risk, high-reward ROI -- NIL partnerships with local collegiate and high school athletes.
1. Traditional Marketing Methods
TV Advertising: Because of its wide reach, TV ads are popular for high-visibility campaigns. But I find them to have become more risky. They have a higher barrier to entry and may be losing ground to technology. An individual 30-second commercial might cost between $200 and $1,500, depending on the time and station. Though some yield about a 300% ROI, live TV has had to battle with the evolving technology such as DVR, streaming services, etc. It is a good option in the right situation, but often is really more of an option for larger companies.
Radio Ads: A potentially good method for targeting specific demographics or regional audiences. However, this is often a niche area, as the barrier to entry is high, the ROI varies widely, and the target audience is usually very targeted. Ranging from roughly $200 to $5,000 per week, depending on situation, the ROI can also range (also roughly) from 50% to 300%. With few exceptions, there are generally more cost-effective, higher ROI options.
Print Advertising (Newspapers, Flyers, Magazines): Print media can be a profitable area for businesses, with around a 120% ROI (very fact dependent), but has the same concerns as modern day TV and radio advertising. Ads can run between $200 to $1500 depending on the particular ad size and placement frequency. Like TV advertising, I feel success here is very factually dependent on the print medium, target audience, and marketing budget. And like TV, print has had to find a way in the digital age.
Billboards: Billboards remind me a lot of my time in the military. They are done because it's what has always been done (without regard to the evolution of society). These are, from my research, EXPENSIVE enterprises; I've read $750 to $2,500 per month in smaller cities to $14,000 or more in larger areas. I've read that these can provide up to around a 500% ROI, but I'm unconvinced. And with the evolution of society into the digital age, more remote work availability, and just changing societal norms, I'd defer to others on this. There are certainly a large number of lawyer billboards out there, though there are a growing critical mass of marketers pointing firms to less expensive, more effective methods.
Direct Mail: Again, very industry, sub-industry, and campaign dependent. There is a low barrier to enter, probably around $.50 to $2.00 per mailing (regular mail). The reason the estimated ROI seems to be around 29% is, well, look in your mailbox. Flooded with mass mailings. For example, when I serve as a registered agent for newly formed companies, I receive DOZENS of envelopes that look the same. Think also about an individual arrested for a criminal offense. DOZENS of lawyer mailings.
But, being able to differentiate your envelope may increase that ROI. Though, that comes at a higher expense. A mix can work, but usually (like most methods) as part of a broader marketing strategy.
Community Sponsorships: I suggest these sponsorships are less advertising and more brand development (though not necessarily brand development through relationship building). Here we are talking about getting a building named after the business (high end) to sponsoring a local event, sports team, or charity. A business can probably accomplish this for between $100 to $5,000 as a general estimate, but the ROI is apparently hard to quantify. Though, they do generate goodwill and potentially long-term awareness. The right sponsorship does begin the brand loyalty conversation.
Networking: Of course, the quintessential traditional marketing method. Building individual relationships within your industry and community. Low cost, very high labor cost. It takes time. But, in fields such as law, this used to be the only way you were allowed to market.
2. Digital Marketing as a Modern “Traditional” Method
Digital marketing is a maze to maneuver, saturated with companies making promises that just can't deliver. I have been fortunate to partner with a truly talented company, ADS Marketing Strategies, that upholds the highest values of honesty and hard work. Realistic solutions, honest feedback, and comprehensive strategic planning.
Here are a few methods utilized in the digital marketing world:
Google Ads: I am agnostic on Google Ads. Because they are a low initial barrier to entry, it is an extremely saturated space. That's not even considering the Google algorithms and its bidding equation. While it may seem a low barrier entry, the bidding equation drives traffic to businesses willing to pay higher per click. Conventional wisdom is the cost is about $1 to $5 per click on selected keywords, but that can be bid up. So, the more competitive, the higher per click, which often drives small to medium-sized businesses (or those more frugal with their marketing dollars) down in sponsored search results. If you have the resources, though, you can estimate probably a ROI of 200% or so.
Like many other methods discussed here, this is high dollar output with rather uncertain return. Traditional methods of marketing, unless in specific markets and specific situations, are largely outdated. To be honest, as I hope is evident, digital marketing methods are probably just as uncertain, but have a lower barrier to entry, and can be more easily exploited by smaller, more nimble enterprises.
Email Marketing: Super cost-effective, but I balk at what I've read about the ROI. I, and those I know, receive hundreds of emails a day. To say that a $10 to $50 a month investment yields an average 4,200% ROI (so, $42 for every $1 spent), seems absurd. Everyone would do it. And because everyone does, the numbers just don't add up.
Now, email marketing to existing customer relationships? To a specifically targeted market? Maybe. But to research and obtain that market data is also going to cost. I like email marketing to existing customer relationships as part of a broader strategy, but I truly question the "data" I've seen (though, I am always receptive to additional data).
Social Media Marketing: Now we are approaching what I believe is not only the future of marketing for the smaller, more nimble enterprise, it is our today. Facebook, Instagram, X, Tik Tok, Reddit, Threads, and many other platforms offer organic and low cost branding and customer loyalty built on relationship development. There is always the paid ads option, typically running between $.50 to $2.00 a click. And, maybe you can reach that 300% ROI. But, again, think Google Ads. These platforms leverage their revenue generation on capturing an audience and bidding up advertising costs to reach that audience.
As we'll discuss more below, organic brand development through social media marketing meets, with some generational exceptions, society where it is.
The problem isn't barrier to entry. That is low. The problem is time. It takes a strategy, regular engagement, effort, and time to produce sufficient content to rank higher in search results. And more and more customers are engaging with businesses on social media than the more traditional computer-based website search.
SEO (Search Engine Optimization): In my view, the absolute heart of modern digital marketing. Whether it's website, blog, or social media, SEO is about getting found early in relevant search results. It is the wizardry of our time. But you have to choose wisely. Costs vary widely, but start with between $500 to $2,000 a month. Like most things, the larger, faster, "resourced" business is a machine. You, and your competitors, will have the same output with a different label. Pick a consultant that takes time to understand both you and your industry, and works out a specific plan for you.
But, SEO, like social media marketing, takes time. You need patience, and a commitment to provide plenty of content, to build this success over time. So, ROI is hard to estimate and varies quite widely.
By the way, studies show that consumers click on the top organic result more than any sponsored result. Consumers aren't stupid. SEO is a long-term strategy that helps businesses appear in search results. Costs vary widely, with small businesses typically spending between $500 and $2,000 per month on SEO services. While the ROI for SEO can take time to realize, businesses often see substantial returns as they improve their ranking and visibility online.
3. NIL Marketing: A New Option for Small Businesses
Name, image, and likeness (NIL) marketing is the latest evolution in marketing that presents a plethora of low-cost, high-reward opportunities for small to medium-sized businesses with a creative marketing brain. With NIL, businesses can pay student-athletes to post about their products or services on social media, attend events, or participate in other promotional activities. This type of marketing is especially popular for brands aiming to reach younger audiences.
The cost of NIL marketing varies depending on the athlete’s popularity and social media following. Though I summarized a few types of campaigns in a previous post, this emerging area is virtually limited only by the imagination. Early data seems to show that ROI can reach 500% or more, particularly for social media-based NIL marketing on platforms like Instagram and TikTok. What matters most is matching the
4. Comparing Traditional, Digital, and NIL Marketing
Marketing Method | Average Cost | Average ROI |
TV Advertising | $200 - $1,500 (local spot) | 300% |
Print Advertising | $200 - $1,500 | 120% |
Billboards | $750 - $14,000/month | 500% |
Direct Mail | $0.50 - $1 per piece | 29% |
Radio Ads | $200 - $5,000/week | 50% - 300% |
Google Ads | $1 - $5 per click | 200% |
Social Media Ads | $0.50 - $2 per click | 300% |
Email Marketing | $10 - $50/month | 4,200% |
SEO | $500 - $2,000/month | Long-term gains |
Community Sponsorships | $100 - $5,000 | Long-term brand value |
NIL Sponsorship | Varies ($100s - $1,000s) | 500% or more (early data) |
Conclusion
For small businesses, both traditional and NIL marketing methods have their strengths. Traditional methods, such as billboards, print ads, and radio, help businesses reach wide, local audiences. Digital tools like Google Ads, SEO, and email marketing offer cost-effective, highly targeted ways to engage potential customers. NIL marketing, meanwhile, provides an innovative approach to connect with younger demographics and create a personal brand connection.
Using a mix of traditional, digital, and NIL marketing may give small businesses the most robust results. This blended approach leverages the strengths of each method, from broad-reaching ads to personalized digital engagement and youthful brand partnerships, helping businesses remain competitive in a changing marketing landscape.
Comentários