CHAPTER 1

Part 1Classified Advertising

"Charlie, I'm going to start with classified advertising, if that's OK?"

"Fine by me, Brad. At least it's something I know a bit about, having done afair bit of it over the years."

That was exactly my reasoning, and it was working.

"I thought we'd start with the familiar and then progress to the not-so-familiar,if you follow my drift."

"I'm right there with you, man. You lead the way."

My strategy is always to go right back to basics. That way there's little chanceof anything falling through the cracks.

"I'm going to start by looking at what classified advertising really is, andwhat makes it successful. Then we'll consider exactly what you need to do toensure that yours is a success. How does that sound?"

"Beautiful. Let's get into it."

What Is a Successful Classified Advertisement?

Classified advertising is one of the most cost-effective lead generation toolsany business can use. It commands greater confidence than almost any other formof advertising. The true beauty of the classified section in most newspapers isthat people who are reading it are doing so because they want to buy aparticular product or service.

Unlike normal print advertising where you're trying to convince people they needwhat you're selling, people reading the classifieds have already made thedecision to buy.

They're qualified customers looking for a deal. All you have to do is get themto deal with you.

So what makes a successful classified advertisement?

Basically any classified advertisement that pays for itself can be consideredsuccessful. That's not to say our objective is to spend $100 and get $100 worthof sales as a result of it. What you need to understand is the lifetime value ofeach customer who responds to your ad.

Think of it this way: You acquire customers through classified ads. Youracquisition cost is determined by how much your classified advertisement costs,divided by how many customers it brings into your store.

Once you've calculated this figure, you can work out how many times customersneed to purchase from you before they become profitable. In the average businessthis will mean selling to them two times before you begin to make a profit.

With this in mind, you need to focus on bringing the customer back on a regularbasis. Therefore, any classified advertisement that covers its cost initiallywill turn out to be profitable in the long term.

What Makes a Successful Classified Ad?

There are a number of key elements which, when combined, make a successfulclassified advertisement. The most important of these is the headline. You'llfind out everything you need to know about how to write effective headlines inPart 8.

Another important consideration is the offer you're making. No matter how wellwritten your classified advertisement is, without a great offer it will notwork.

In the following pages you'll learn how to write headlines that work, how toposition your advertisement for maximum exposure, and which typefaces have thebest recognition levels. You'll also discover which category your classifiedadvertisement should appear in, what size to use, and which benefits, angles,and appeals work best.

The Seven Steps to Classified Advertising Success

Step 1: Who Is Your Target Market?

Before you begin designing your classified ad, you need to have a clear idea ofwho it is you are trying to reach. You need to know exactly who your targetmarket is. If you don't, it's almost impossible to attract them. You'd have totake the let's-see approach. Unfortunately, the let's-see method of advertisingtends to fail every time. One thing is certain: You won't see anything in theway of new customers.

You need to know exactly who you're dealing with, what they're interested in,and what's going to make them buy your product. If you don't know these basicfacts, you're really just taking your chances.

So let's get specific. Who are the people most likely to be interested in yourproduct or service? Here are some guidelines.

Age: How old are they? Don't just say all ages or a variety. We want to create apicture in the mind of your average customer. Think of an age that symbolizesmost of your customers.

Sex: Are they male or female? Half and half is too broad. Practically everybusiness is split one way or the other. Give it some real thought. Which genderspends more with you and visits more often?

Income: How much do they make? Do they earn a great living, meaning quality isthe big issue, or are they scraping for every dollar, always looking for a deal?It's essential that you find this out.

Where do they live? Are they local, or do they come from miles around to dealwith you? This will dictate how you communicate with them.

Step 2: Where Should You Run Your Classified Advertisement?

Now that you've identified the who, you need to find a publication that reachesthem. There may be a number of seemingly suitable publications. To find outwhich works best for you, try them all and then test and measure the results.You'll find out all you need to know about testing and measuring in Part 10.

Newspapers are among the most common classified advertising mediums for thesmall- to medium-sized business, although some trade publications may also havea section for classifieds. Newspaper advertising can be relatively expensive,particularly in metropolitan markets. Basically, there are two types ofnewspapers for you to choose from, although there may be only one in someregional centers.

Daily Newspapers

The first of these are daily newspapers. These are papers that are printed sixor seven days a week, but be aware that circulation can vary greatly from day today. For example, a paper's circulation (number of papers sold each day) may be45,000 on a Saturday and only 23,500 on a Monday.

Weekly Newspapers

The second type is weekly newspapers. These are printed only once a week and arequite often delivered free of charge to homes. Because weekly newspapers aredelivered to specific areas, they can be a great advertising tool for tradesmen,accountants, hairdressers, and other similar types of businesses.

Daily...