Consider these examples where ad space is used to:
- Announce a new professional or service employee
- Announce lists of employees with long service
- Thank sponsors or volunteers for a particular event
- Promote a preferred charitable endeavor
Each is a legitimate use of space or time, but should not come out of an advertising budget. They are not effectively advertising the business, but fulfilling a different role.
But, you might argue, “Announcing a new employee such as a famed doctor or hair dresser is advertising how our business has captured a great new talent and it will drive traffic to our business from those who follow this person.” True to a degree, but it’s also likely true that the talent came with a “book” of their own and have already emailed and called regulars to announce their new location. More often, this type of ad is used as an ego-soother, just to make the new employee happy, and even might have been part of a negotiated package to bring them to a business from a competitor.
The same could be said of the next two bullets. The ads are goodwill to employees, volunteers and sponsors. A personal thank you note or gift may have worked as well and even been less expensive.
The last bullet is a charitable donation not an ad spend. It’s a legitimate way to help a cause or organization gain recognition that it cannot afford on its own. In this case, the ad should be written to promote something about the charity so that the ad works hardest for the cause being promoted. Then the ad is an ad, but not for the business paying the bill. For that business, the charge should be seen on the books as a valued, and likely non-deductible charitable donation unless the donation is given to the charity directly to purchase the ad space on their own. Many charities welcome and desire this type of donation over cash, because it improves their own effectiveness to raise donations, or encourage volunteers from others.
Dollars for these types of ads should, ideally, come out of marketing budgets, HR budgets, or community service budgets for larger companies. For smaller companies, they should also be allocated to a non-advertising line to be accounted for accordingly and not skew the company’s review of its own ad effectiveness at year’s end.
Last, but not least is image advertising. Large companies know not to look for an ROI in dollars with image advertising because it’s not the purpose of the ads. Instead, they might measure awareness effectiveness. The lesson in this is that not all ads are equal. Don’t judge them all the same way or look for the same metrics in reviewing their effectiveness as each serves a distinctly different purpose.
The Walk-Away: Advertising is a serious and not inexpensive endeavor. If using advertising space for reasons other than directly advertising a business, don’t allocate the dollars from your advertising budget. Spend them from lines that allow you to see what you did during the year in an honest way, and allow you to measure true advertising results accurately.