Cable Advertising Provides Targeted, Affordable Campaigns for Entrepreneurs (10/23)

Cable Advertising Provides Targeted, Affordable Campaigns for Entrepreneurs

In a recent industry forecast produced by Veronis, Suhler & Associates, cable television has emerged as a popular form of advertising, with a projected compound annual growth rate of 13 percent through 2000. Estimated revenues for national cable-network advertising top $7 billion for 1998 - up $1 billion from 1999. This booming medium has prompted experts to advise small business owners to consider cable, along with other advertising options, as a cost-effective method of reaching a significantly targeted audience.

"Local cable, in particular, is a good choice because it targets a small geographic universe that is more likely to be the appropriate customer base for a small- to mid-sized company," says Marjorie Valin, vice president of public affairs for the American Advertising Federation (AAF). She says even national cable ads can be affordable. "A 30-second spot on select basic cable networks can be as low as $100 on Court TV, $500 on Black Entertainment Television, $300 on the Food Network and $600 on MSNBC, all the way up to costs that rival network television for such blockbusters as ESPN's NFL games."

Diane Pastor, of Michigan-based Mars Advertising, says national cable ads are not only affordable, they also allow for frequent airing of your message along with target-specific network options. "If [a business'] product targets men, it could communicate to viewers of ESPN and the Discovery Channel. If [it] is a local retail advertiser, it could purchase only those cable systems that cover a five- to 10-mile radius of its store," she explains. Although cable is a fragmented medium, Pastor adds, you can define viewers of specific networks to work in conjunction with the objectives of your message.

"Regardless of the medium, an ad will only succeed if it offers value to viewers," says Valin. "The fleeting nature of advertising requires that you limit the ad to one simple, powerful idea that reinforces brand loyalty or moves someone to buy. If it squanders that opportunity, it won't work on any medium." She says the small business owner should consider all possibilities before pursuing any one advertising option. "The product or service, whether it's new or mature, the business location, the competitive environment and the advertising budget are all considerations that may make cable a good value or not," explains Valin.

"Cable dollars are increasing because of affordability and cable's ability to offer long-term planning for whole networks rather than select shows to reach an audience," says Pastor. "Yet broadcast via 'traditional television' is still being maintained. Very few advertisers are taking money from traditional methods and putting all into cable." Wally Snyder, president and CEO of the AAF agrees. "Through its programming, cable delivers customers that are more uniform in their preferences, tastes and lifestyles," he says. "Cable will whittle away at network TV's market share, but it will not eliminate the need for entertainment of a broad and general nature that appeals to a good percentage of the population."