February 15, 2016 at 2:42 am #40813
We are starting a home based graphic design business in Spokane, Wa., pop 210,000.
We are considering a 1/4 page (color) print ad in the local business paper which claims a circ of between 12-14k in their bi-weekly publication. Our rate is $4,500 to run the ad in 4 consecutive issues.
This seems pricey but business minded people are our targeted audience.
Your thoughts on the potential value versus the cost of this approach?
Thanks in advance, ArtFebruary 15, 2016 at 2:41 pm #40826
Good luck on starting your business. There is an assumption embedded in your question. That your customers will be local. That may or may not be true. There are a number of sites where you can compete for business globally like 99Designs, DesignCrowd, Upwork to name a few. The benefits of being on these sites is that you will be competing for work from people actually in the market for design services.
Here is my question for you. Why do you think graphic design services is something that potential clients want to buy locally?
Good luck, MarcFebruary 15, 2016 at 11:38 pm #40835
Marc, We are focusing primarily but not solely on the local market. Many clients still like to meet in person, especially if it is an expensive project.
Would you offer an opinion on my question re the ad cost?
Thanks in advance!March 7, 2016 at 5:10 pm #41614
Hi Art, I do not know what they are charging is in line with prevailing market rates. However, I think it will be hard to get a good ROI on your investment.
Lets say your average project is a $1,500 job. To generate revenue equal to $4,500. You would need to do 3 projects. However, once you include your time as an expense, my guess is that you would need to get 6 project to break even.
Well, you would be getting around 50,000 ad impressions (maybe – assumes everyone reads the full paper and doesn’t just skim or look at the front page) to a general audience. The people reading your the journal are not specifically looking for your service. If you got 1/20% response rate (people calling or emailing), I think that would be good. That would be 25 people. Most people will be early in the process and not read to proceed with the purchase. So, I think you might get 10% of to eventually move forward with a purchase. That would be 3 sales.
The numbers that I just put in are guesswork, however, this is the thinking that you should do.