Can You Afford Not To Advertise?


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Without a doubt, one of the most difficult things to decide for any business is how much to spend on promotion. There is one way to determine the answer. How much is the customer worth to you? This would be a sure sign on how much you can afford to spend on advertising.

A simple way to determine this is by figuring out what the Cost Per Contact would be. Lets say you spent $1,000 on advertising in a magazine and your advertisement will be seen by 1,000 paid subscribers of this publication. The Cost Per Contact would be $1.00 per contact, which is a small price to pay to have your add viewed by 1,000 people!

Large corporations use this formula to base their advertising costs per person. For example, a 30 second spot during the Super Bowl would set you back $2.4 million. BUT, on average 40 million people watch the Super Bowl every year. That means companies like Pepsi, FedEX, IBM, etc. had a cost per contact of $0.06 per person. Was it worth it? I’d say so. These companies make hundreds of millions of dollars every year. And to spend $0.06 per person to bring in that kind of revenue is well worth it.

So the question is, can you afford not to advertise?

About iMAJ Marketing: iMAJ Marketing is a marketing firm designed to aid businesses in Direct Marketing Programs. For additional information on how we can help your company's marketing efforts, please email us at or call 407-264-8746.


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