Are Advertising Stunts Wasted Dollars?
Sometimes the stuff that defies ROI analysis brings a priceless payoff
If you’ve ever worked in marketing, startups—or simply watched the Super Bowl, you’ve likely experienced the puzzlement of seeing unknown niche B2B companies blow what looks like stupid amounts of money on advertising campaigns. I’ll never forget first seeing a social media management app advertising on top of taxis during a business trip to New York City. There’s something darkly amusing about watching an over-funded startup light VC dollars on fire.
But then I took a page from their playbook. You often can’t parse fact from fiction until you put some skin in the game…
Just Another Trip Through the Airport
Set the way-back machine to Fall 2017. My social media company had recently become profitable—after burning lots of VC money. It took us a layoff, a giant pivot, inventing an entirely new business model, and a mentality of only spending when we felt real pain.
But here I am, walking through my local Cincinnati airport on the way to client meetings in Chicago. As I fast-walk to Terminal B, I notice for the 658th time that most of the billboard space here is empty. Now, I’m no fan of billboards. I’ve even written a book about how most such advertising is annoying rubbish.
However I’m even more annoyed by crappy business models. I can’t help but think why the space is empty. I mean, airports host hold-hostage some of the highest-income individuals and biggest-spending corporate travelers. Is there nothing the Queen City of Cincinnati has to offer for sale to them?
An “Aha!” lands in my brain. My startup, aptly named, Ahalogy, is an excellent Cincinnati business. We’ve got a winning influencer marketing product to offer all of those corporate visitors. And if so much space is taken up by “Your Ad Here” slots, perhaps we can get a great deal on a prime spot?
Making the Case
A few weeks later and I’m setting up my pitch in our loft conference room for my weekly Executive Team meeting. I’m feeling nervous. It’s odd because this group reports to me, and they’re an outstanding team. We’ve got a great partnership—but I’m about to suggest we spend thousands of dollars on something with questionable ROI and could come across more as a CEO’s ego trip. Hell, maybe I am on a CEO ego trip. I value their judgment—so if I can’t convince them, I’ll kill the idea. That’s the way we roll as a team.
I proceed to make my case:
Our company had hit the next level of growth by doubling sales again and getting profitable. It was a great time to make a more significant impression on clients, partners, and potential acquirers.
Cincinnati happens to be the world headquarters of both Kroger and Procter & Gamble. These are two of the biggest companies in the consumer packaged goods space, which is our customer focus. That means countless leaders from other brands and partners come through our airport to and from meetings with these industry titans.
I did a little research. Remember those taxi ads I mentioned above? I tracked down one of those companies’ leaders and asked, “Was it worth it?” He said it was the best investment they had ever made, leading to lots of buzz and business. His theory was that people in the industry do a double take when they see an ad for a product targeting them in an unexpected place. It’s an impression that earns real attention, and they seem to like being targeted this way.
Finally, I set the ROI expectation to be realistic. If we got just one additional client project, the ad would pay for itself.
I finish my pitch, and they don’t laugh out loud. They are smiling and excited. Maybe I should have asked for an even bigger budget…
Let’s Make an Ad
The next few weeks are a blur as we ramp up our first-ever company billboard. Our marketing leader, Sam, takes the idea off my hands and rallies an in-house design and copy team to start working. We think the best creative would be to showcase one of our influencer campaigns—after all, the quality of this work is why we keep winning business over the competition. It’s also a chance to showcase one of our client brands.
We track down folks for final approvals. There was a chance our featured brand, Dannon, would say “no.” If you’ve worked with large companies, you know getting through legal barriers to stuff like this is a minefield. But we picked Dannon partly because we have a favorite client partner there, Tony Fung. He says “YES!” with enthusiasm and pride. Next, I review the plan with our Board. Technically they don’t have to approve spending like this, but I don’t want them surprised when someone in their network mentions seeing it. They give a thumbs up.
Our digital creative team learns how to get a real-life billboard produced, printed, and posted. And just weeks later, I’m back at the airport, taking my family on vacation, and we see our big, bold, and beautiful ad on the way up to our gate. Naturally, we stop and take a photo together (see above).
An Unexpected Result
You might wonder how many new clients or projects we got from this investment. Honestly, I have no idea. A problem with billboards is that you can’t measure a click to your website or collect leads as people walk by. But we did receive several comments of recognition and praise from the clients, partners, and potential acquirers that we hoped to reach. It helped us get on the radar and look like a real industry player. We ran a similar ad at the airport near Walmart headquarters and got more positive feedback. A few months later, one of those potential acquirers made an offer we couldn’t refuse.
But perhaps the most significant return on our investment was the pride our team felt from creating the ad and having their friends and family notice. It’s hard to explain to your Mom what a social+influencer startup is. But when she sees your company advertised at the airport, she’s impressed. Our young staff heard many such comments from their Moms and Dads.
And there was a pride factor in planting a stake in the ground. We were sending a message: Welcome to OUR town, Cincinnati—a marketing hub for over 100 years where our company is kicking ass and leading what’s next.
I learned that sometimes you need to go with your gut and do something that makes you look “Big”—maybe a lot bigger than you really are.
Bob
I recently heard from a friend in Chicago that based on the radio ads alone, one would think Cannabis companies must be everywhere in Chicago. She'd never considered cannabis but after so much repetition (mental availability?) she's more "open to it". Her only issue is the kid factor, the ads come on where they're all in the mini van--which is a whole other issue. Great article Bob.