It is a fact that nearly all medium-sized or big businesses advertise. But most small businesses do not.
There’s a clue there!
Bigger companies are bigger partly because they advertise. Small companies are smaller, partly because they don’t advertise. So, there is something about advertising that helps companies grow.
The reason why advertising creates growth is because of its ability to reach so many people. Bigger companies are bigger than smaller companies because they have more customers than them. (It’s not because they have heavier spending customers than smaller business).
So, if a small business wants to grow, it needs to address a large group of people, and should be considering advertising as a powerful lever to achieve that.
Indeed, given that most small businesses do not advertise, there is a clear potential competitive advantage in doing so. Not only will you get the benefits of advertising, but you will also get those benefits ahead of your non-advertising competitors.
It is worth also mentioning that advertising’s ability to reach potential customers can have the effect of both growing a small business but also of helping a business avoid decline. It can help replenish lost customers as well as add additional ones.
(Later we will look at how you can ensure your advertising is not only seen by a lot of people, but a lot of the right people - not just everyone).