Proper advertising strategy can increase profits by 83%
British organization of small and medium-sized businesses, advises companies to invest more in advertising their products and services. First, it will help increase profits, and secondly, contributions to the state budget will stimulate the economy, the Campaign informs.
The report, published by the British Association of advertisements, indicated that the proportion of small and medium-sized businesses which use the services of advertising, is only 18%. Meanwhile, smaller companies have 50% of the labor force and 40 % of revenues.
The researchers found that 30% of small and medium-sized businesses which invest in advertising, are eight times more profitable on every £ 1 invested than larger companies.
Most businessmen refuse to advertise their products because of too high prices for such services. Due to the benefits received by the country from SMEs, the government should help businesses improve their performance through advertising.
According to the survey results, structured advertising campaign is considered the most beneficial with effectiveness of 83 %. Advertising, which is aired on several channels, such as television, radio and the Internet, gives results in 71 % of cases. The least attractive advertisements is that uses one source. They are effective only at 61%.
