For the past month, local marketers have emailed, Tweeted and commented their ‘Best Practices’ to us - which we happily reviewed and compiled for comparison. While we received many great ‘Best Practices’ one company’s carefully laid out and detailed submission stole our attention.  Congratulations to Idaho-based Brewtopia Beer Market!

Brewtopia is a startup company that struggled to find initial capital for a retail concept in this difficult economy. They ultimately decided to take a different approach and use social media tools such as Twitter, Facebook and Meetup.com to create and foster brand awareness in an organic fashion.

“We began this by starting a series of beer dinners where we paired 6 beers with 6 courses of gourmet cuisine prepared by some of the city’s top chefs. Next, we began to focus our attention on becoming the ‘go to’ vendor for refreshments at social networking events like Tweetup, Tech Boise and Ignite Boise. Lastly, we began to develop large scale productions that will generate capital and bring brand awareness to a new level. This August 8 - 9th, we’ve organized a beer festival  ‘Boise BeerFest’ where we expect to attract 15,000 to 25,000 people from all over the country! We will have over 50 American Craft Beers on tap, 8 bands, a stand-up comic, over 25 food vendors, dozens of merchandise vendors, a children’s play and craft area, a charity raffle, food drive, homebrewers competition and a whole bunch more!”

All of this activity has proven to be very productive for Brewtopia. Seeing a real return on their efforts and investment has them feeling confident despite the difficult economic climate. We are excited to see what the rest of the year brings for them and we will DEFINITELY be stopping by the Boise BeerFest!

Other interesting submissions we received:

• Give postcards to customers asking them whether they would recommend you to a friend or family member. “Using this simple tool has helped us gain valuable feedback, while also reinforcing to our customer that we want to make sure that they are happy with our service(s).”
• Work with another company nearby to advertise on billboards. “Billboard advertising was too expensive to do on my own, but by working with three of the other nearby companies, we were able to afford it - we all got to get our name out there in front of our local customers and did it without breaking the bank!”
• Personalizing local advertising. “We have found that customers really like to see the people who work in our store (opposed to some stock photographed model) in our local advertising. We now try to make sure we include a picture of one of our sales people, manager or a team member in all of our advertising.”
• Giving a small gift at the end of a product installation. “We have stuffed animals with our logo on them that we leave in the corner of a room when we are done installing carpet or flooring. People just love them - we have had people come into the store just asking to get one of our branded stuffed animals!”
• Send out handwritten ‘Thank You’ notes to your customers. ”For any medium to large scale purchase I try to send out a simple, handwritten ‘Thank You’ note. This day and age, it is easy to forget the power of a real, handwritten note - even if it is just a line or two.”

Overall, there is no ‘one size fits all’ when it comes to identifying YOUR best local store marketing practice(s). Spend some time really thinking about your brand, your message and your store’s perceived personality - what would resonate with your local customers? And watch out for our next contest, perhaps you could be our next ‘Balihoo Schwag Bag Winner’!

We’re doing some significant work on our website today including updating our overall identity, overhauling the website and rolling out new messaging.  As a result, we’re experiencing a few link breaks (especially on the blog).  Please pardon this inconvenience, we’ll have everything working smoothly in no time! 

In the mean time - any feedback you have on the new site is appreciated!  Let us know what you think:  www.balihoo.com 

Holy crap!  When I picked up my Saturday Edition of the Wall Street Journal this weekend something just didn’t feel right.  So, I squeezed it – kinda’ like a pack of Charmin - and shook it – kinda’ like a wrapped Christmas present - and to my surprise noticed a scintilla of red peeking out of the top right corner of the paper.  What was this?  I have been reading the Journal since I was a kid - not because I was an aspiring businessman, per se, but my father was a union newspaperman and every weekday morning he’d bring home all the New York area union-affiliated newspapers and I would wake up in all my glory to read them: The New York Times, The Daily News, The Wall St Journal, The Star ledger (NJ), even The Racing Form, which made me know way too much about handicapping as a little kid.  I’ve continued to read the Journal consistently for years, so the small difference in the paper’s pliability was readily apparent to me, and I can verifiably say this is the first time I saw a foreign document hidden inside the bounds of The Journal.

What was hiding inside was an FSI, otherwise known as “Free Standing Insert”, which we laymen call a circular.  You probably know them well because they appear in just about every Sunday paper and over the years have become more commonplace in daily papers and via the mail.  This particular FSI was a colorful, four-pager for Regus office centers.

Despite my shock at seeing the FSI in the Journal, I think it could signal some changes that are occurring in the newspaper marketplace.  I have no “inside” knowledge of this, so just taking some guesses, but if there was a purposeful decision by the Journal to open up to FSI advertising, I think that’s a good sign for newspapers in general.  This prompted a bunch of questions in my mind.  We all hear how bad newspapers have been doing, so has the WSJ changed or expanded its advertising model?  Are advertisers driving this change because FSI’s are more effective than standard run-of-press (ROP) ads within the paper, and thus will advertisers have more options/flexibility with FSI’s?  If newspapers offer more flexibility and capabilities for FSI advertisers, could they help boost their revenue?

I’m particularly interested in these questions because FSI’s are a component of our business at Balihoo.  Through our local marketing solution, we offer users the ability to customize and place an advertisement in every medium. FSI is a big part of this, especially since so many of our users utilize FSI as part of an integrated campaign.  Essentially, they customize their ad (oftentimes in many places on the sheet(s)), then with the click of a button the FSI is sent to a best-in-class printer, drop-shipped to the paper of their choosing, and run in the paper at the right time to coincide with their campaign.  I often hear “FSI is more effective than ROP,” so again, I’m wondering if advertisers essentially drove the WSJ to open up this form of advertising within their hallowed paper.

What does this all mean to advertisers? Maybe it’s a leading indicator that newspaper advertising will evolve - we at Balihoo certainly believe FSI advertising works today and should be a part of an integrated campaign for many of our customers.   But we firmly believe newspapers need to do more to help their advertisers.  Offering more comprehensive “solutions” to advertisers around FSI could be one path.

FSI’s already offer many benefits over ROP advertising: users can vary messaging in FSI’s to test different offers, more easily geo-target their ads, and given the size the advertiser can ensure their identity isn’t lost in a small news ad while having more “room to play” with things like multiple coupon offers and such.  But to do some of these things requires quite a bit of leg work on the advertisers’ behalf and newspapers could essentially change their model to help alleviate some of this legwork.

Some ideas I have on how newspapers could improve their offering: first, they can make geo-targeting and testing easier and seamless for the advertiser by offering more consultation to their advertisers and partnering with FSI printers to offer turnkey packages.  Second, they could open up more of their research to their advertisers – again, this could come from a consultant at the newspaper who works closely with the advertisers to ensure they are reaching their audience in the most effective way.  Finally, they could do more to help their customers advertise in an integrated fashion by offering “packages” that combine FSI and other complementary media so they all revolve around the same campaign theme – for example, text ads and direct mail that speak to the same offer as the FSI.

If newspapers are going to “save themselves” they need to be truly solutions oriented.  Just my thoughts!

If you have ever lived in Idaho or considered moving here you have probably wondered about potential Idaho employers. When I moved to Boise after college and started the job searching process, I frequently found myself wondering (post-interview) - “Okay, so [company name] says they are ’x’ and according to Google they are ‘x’ but I wonder what it’s really like to work there..maybe it’s more like ‘y’.”

Much to my delight, I quickly learned that with Balihoo, what you see is what you get. When I became a Balihoo’er, my incredibly enthusiastic boss described to me in vivid detail what the Balihoo work environment was like - since then, I’ve been faced with several unexpected challenges and whirlwind days but overall the basic foundation of Balihoo that I perceived when I first came in the door and the vibe that my boss planted in my mind hasn’t wavered.

In my opinion, the key to Balihoo’s positive work environment lays in the manner in which our company’s core values are continually spotlighted.  Our core values aren’t some inconsequential blurb mentioned as an after-thought on initial employment papers - they are core attributes used on a daily basis not only by the management but by every single Balihoo employee.

I would be lying if I said I was that surprised when I found out that Balihoo was deemed a great place to work - it just made sense to me. But to be the only start-up among the top 10 places to work in Idaho (among companies with less than 100 employees) -as well as the only venture-backed and the only tech-company to have made the cut really impressed me!

So you may be asking - what exactly did/does it take to make this list? The Best Places to Work in Idaho award program is put together by the Idaho Business Review and POPULUS to identify, recognize and honor the best places of employment in Idaho. Every year, hundreds of Idaho companies compete to make the list. The finalists are made up of 15 companies (Top Ten Smaller Employers Statewide and Top Five Larger Employers Statewide). Employees are all surveyed (we used the online method) and evaluated on the following:

• Company Management
• Work Environment
• Work-Life Balance
• Employee Growth and Development
• Overall Compensation

Making this list, alongside nine other fantastic companies, is exciting for everyone at Balihoo. We will keep on keeping on until next year, when who knows, maybe we will climb up on that list. (While competitiveness isn’t one of our three core values - it IS something that the average Balihoo’er seems to possess). Interested in joining the Balihoo team, check out our career page here to see if we currently have any positions open that spark your interest.

I had a long spring weekend filled with beautiful Idaho sunshine and a lot of household chores. My wife Stacie and I went through the entire house and created a long list of things that we would like to fix up over the coming months. The list ranged from the mundane (cleaning out the garage and touch-up painting) to the complicated (refinishing our hardwood porch). However, the single largest project on the list has been a longstanding request from both my wife and kids - build a tree-house.

I consider myself a very handy person and have picked up a great deal of home maintenance skills over the years. However the single most important skill I have acquired is recognizing when I am out of my league, and hiring a professional. I have wasted countless dollars and hours taking on jobs that are over my head, just to end up with a professional correcting my mistakes in the long run. I would have been much better served working on my business, or playing with my kids and hiring a professional in the first place. The job would have been done right and would have cost less money and time.

We see this same issue play out day in and day out in the local marketing arena. Faced with a long laundry list of business “chores”, owners often bite off more than they can chew – especially when it comes to marketing. Owners are rarely marketing “professionals”, yet they tend to take the chore of promoting their business on their own shoulders. They design ads, negotiate media schedules and even star in their own spots. Marketing has become a professional discipline and is becoming increasingly more complicated on a daily basis. New technologies are creating tremendous opportunities for local marketers to reach their target customers, but the options are overwhelming and the technologies can be confusing.
At Balihoo we are dedicated to bringing professional marketing strategy and execution to the local level. For too long this level of sophistication has resided with National marketers only; we are changing that. We work tirelessly on our software and services to ensure that we can deliver a tremendous value to our customers and help them to succeed in all of their marketing objectives.

So by now you must be saying – “it looks like Pete is going to hire someone to build the tree-house”. You’re wrong. I worked in high school and college building homes and decks and feel that I am well qualified to design and build a world class tree-house. However, detailed finish work is not my game, so I am hiring someone to come and refinish the hardwood floor on our porch. In the end knowing where my time will be most effectively spent is a lesson I have learned the hard way, and I am hopeful that more local business owners recognize that their time is best spent running their business and getting help from a professional when it comes to marketing.

Some Friday afternoon fiddling with Animoto brought about this video as a thank-you to our latest customer additions: 

One of my passions is interior design.  I admittedly Tivo design and HGTV reality shows and watch them with pure excitement while my husband moans and groans and escapes upstairs to play his guitar.  I’ve never pursued interior design as a career because I don’t like the idea that clients would have opinions and budgets.    That being said, the construction and design of both of our offices has been my reality show, and despite there being lots of opinions and a budget, it really was an exhilarating project for me.  I love the way our office turned out and think the space has evolved into one of the best out there.

I recently went on an expedition for modern furniture for our lobby.  The office is modern/industrial, so I wanted to find furniture that would complement it and soften the cold, sterile aesthetic that modern design sometimes imparts.  Our lobby has six corners and thus is a pretty awkward space, so I was having a hard time figuring out the furniture arrangement.  One night at 4am, I sat straight up in bed with a vision.  I immediately got up and sketched my idea on paper.  Then, on an unseasonably warm Thursday winter afternoon, I set out on my mission: 4 club chairs, a coffee table, lighting, and an entry table.  If we were anywhere but Boise, this would be one stop shopping at IKEA.  30 minutes, in and out, pack the stuff up to the office, pull out the trusty allen wrench, and assemble 6 cases of flat packed furniture.  Mission accomplished.

Anywhere but Boise.

I went to no less than 25 stores.  I was completely discouraged by the lack of modern furniture available in Boise.  I found a single chair, a lamp, and some accessories.  The rest was ordered online, and I was like a kid on Christmas morning when it finally arrived.  I rediscovered how pounding the pavement and finding hidden treasures all over town is so much more satisfying than shopping online.  Search engines don’t find cast metal dog bones when you’re looking for a coffee table.

If you come to the office, there isn’t a receptionist on duty- just some fabulous orange chairs and a white lacquer coffee table to greet you.  Hang a left, and you’ll find me at the end of the hall.  I’ll get you what you need, where you need to go, or to whom you need to meet.

The Wall Street Journal recently reported that mobile advertising is growing, but far off last year’s predicted pace.  Spending on mobile advertising is expected to be about $200 Million this year, far off the expected $1 Billion, but still up significantly from $120 Million in 2008.

Like several other media we’ve mentioned in past blogs, the cost of mobile advertising is down with the economy.  Think about it - some of these mobile advertisers are hurting ($200 Million doesn’t allow too many companies to stay in business, many of whom expected huge growth this year).  The situation warrants you to think, “How can I use mobile advertising to my advantage?”

First off, there are many different ways to advertising via mobile - these include text ads, either via standard SMS or via bluetooth, display (banner) ads, mobile gaming, or video - for more info see this wikipedia post.  There are a lot of ways you could deploy mobile advertising, but we at Balihoo are strong advocates of a “test and control” approach to advertising, especially in newer media, and we think a great way to try mobile is through a limited test. So, here is ONE approach you as a local store owner could use:

Mobile is best for a younger demographic (18-25 or maybe up to 35) - using it for older demographics could work, but may not be worth the risk.  Additionally, mobile is better for driving demand than it is for branding, so think about “testing” a demand generation campaign toward a younger audience, perhaps versus another medium that has worked for you in the past, like direct mail or pay-per-click.  Allocate the same budget to both mediums and use consistent messaging or offers (e.g. same coupon amount) to ensure you don’t unduly influence the test.  Launch your campaign during the same timeframes, again, to limit external influences on your test.

The hardest part will be determining how much to spend - you need to make sure you spend enough to ensure the sample size is large enough to yield believable results.  This can be tricky - there are sample size calculators (http://www.raosoft.com/samplesize.html) but if this is confusing, I’d strongly recommend you hire an ad agency.  The final step will be measuring the result - a good approach would using a coupon, which will allow you to monitor the lead source whether you have a good point-of-sale system (to capture the coupon) or not.

One of the cool things about mobile advertising is many companies now offer the ability to “geo-target” - that is, send a text message when a mobile user is within a certain locale.  For example, one time I was visiting San Francisco (I live in Idaho) and got a text message with a coupon for a certain coffee shop in San fran.  I thought it was pretty cool and proceeding to buy my coffee there!  If you are a location-oriented business (like one that depends on foot traffic in a city or mall), this might be a good approach for you.

OK, so you want to do it, but are asking, “How do I buy mobile advertising?”  There are several ways.  You can buy direct from a cell phone carrier (Verizon, Sprint, etc), through a mobile ad network, or through an ad or media agency.  Each has its advantages and disadvantages - going direct could give you more control and visibility, but likely provide less reach and could be costlier, going through an ad network could be cheaper and give you greater reach, but will provide less control over who sees your ads, while using an agency could also be more expensive, but should come with lots of advice and experience.  Remember, just because the latter two are more expensive per message, doesn’t mean they won’t be more effective, which could result in better return on your investment.

Another way we’ve bought mobile is actually through other media owners – for example, some radio stations have lists of listeners who have opted-in to receive text ads – this could be a great way to reach a very targeted demographic who will be responsive to mobile ads.  It may take a little more legwork to find such lists, but the results could be well worth the effort.

Using a “test and control” approach is a great way to get started in any new medium - it limits your risk in trying new things for your business.  Think of the money as a “tuition” - an investment in learning and hopefully improving relative to your competition.

Coming into 2009 with headlines blaring ‘RECESSION’, ‘MASS LAYOFFS’, ‘NEXT GREAT DEPRESSION’, etc. it was difficult to feel optimistic without feeling either guilty or naive. Who knew what 2009 would bring? To stay on track, our team worked diligently to develop individual goals for each division of the company. Armed with challenging yet feasible goals, each division set off to try to contribute to meeting our ultimate goal for the first quarter.

It was with great excitement last week, when the first quarter of 2009 came to an end, that we announced that we had in fact, risen to the occasion! This success was truly a team effort - each division had their unique objectives, everyone identified what it would take to succeed and then everyone supported each other in making it happen.  Definitely cause for a celebration!

To celebrate we went to Boise’s TableRock Brew Pub & Grill! 

This post is actually intended to be more than just a self-serving pat on the back - rather it’s a thank-you to all those that helped us be so successful in this business climate. 

First, and most importantly, thank you to all of the local stores and affiliates that use our Local Marketing Automation platform everyday to run their marketing efforts.  You are the single most important reason we’ve been successful.  It’s your ingenuity and tenacity to plow through these challenging times that has kept us going.  Together, we’ve been able to make the most effective and efficient use of your marketing budgets to ensure you thrive.  Your success begets our success and we’re committed to continuing to deliver, day in and day out, outstanding technology and service that will leave us both ahead of the competition when things loosen up. 

Secondly, our outstanding clients at the national level.  Companies such as Carpet One, Flooring America, Nobel Biocare and others I can’t mention publicly.  Your trust in us to deliver true value to your local affiliates had clearly paid off for all parties, and for that we thank you. 

Finally, the exceptional team that is Balihoo.  Media, creative, account management, sales, operations, accounting, technology, marketing - everyone has contributed to building not only a great company, but a great culture.  Thanks for your determination, tenacity and above all a laser-focus on making our customers successful.

Here’s to continuing a fantastic 2009! 

Below is an excerpt from our bi-weekly internal company newsletter:

Industry News:

Franchise Fever: Who Is Recruiting New Talent

Overview: While most businesses are struggling due to the recession; many franchises are steadily growing. Franchised businesses currently make up 11% of the U.S. economy and take in 41% of every dollar spent – in past recessions, franchises actually saw growth. With the cost of opening a franchise ranging anywhere between $20,000 and $350,000, locating new franchisees is a challenge for most franchisors, especially with the struggling economy. Some suggestions for franchisors trying to attract new franchisees: offer free kiosks, waive the first year royalty fee, think green, etc.  

Balihoo Perspective: While this list doesn’t go deeply into any of the franchise businesses they identify, it does shine some light on the whole give-and-take mentality that franchisors need to embrace in order to attract new franchisees. One significant area that franchisors should consider helping their franchisees with is marketing. Franchisors should ask themselves if they provide a marketing platform that serves as a point of competitive advantage – do they help their franchisees market locally and do they do it well enough to attract new franchisees?    

RAB: Radio Accountability Initiative Introduced

Overview: To improve radio’s accountability with advertisers, the Radio Advertising Bureau is throwing its support behind Ad-ID, the commercial identification system supported and authorized by the American Association of Advertising Agencies and the Association of National Advertisers. The ‘Radio Accountability Initiative’ will help ensure that an advertiser’s commercials get on the right radio outlets at the right time.“As radio aims to grow its share of ad dollars, proof of performance, improved commercial workflow and consumer interactivity are increasingly important at the station level. It is beneficial to make radio commercials as interactive as the purchase-enabled songs to which they are attached,” said Jeff Haley, president and CEO for the RAB. 

Balihoo Perspective:  Radio advertising offers some great advantages: less expensive than TV, usually hits a captive audience (in the car), power of repetition, etc. However, radio ads can also be too short and might fail to reach their target audience (both vary with the advertised brand and its target audience). Accurate reporting is something that has ailed radio advertisers for years – discovering a solid reporting/tracking system would undoubtedly help radio stations and their advertisers. 

The Persistent Gap in Integrated Media Planning 

Overview: Marketers are still struggling to successfully integrate their campaigns. More than ever, marketers need to be able to analyze and evaluate all media in one place to enable easier optimization and attain greater insight. The overall conclusion in this article is that it is time for “someone” to develop a multi-platform integrated media solution. iMedia Brand Summit survey showed that:

• 41% of marketers say that coordinating marketing efforts across internal departments (brand, promotions, sports marketing, etc.) is often difficult
• 39% of marketers find it tough to negotiate efficient cross-platform deals with publishers and media companies
• 38% find it difficult to field campaigns across multiple media channels35% find it tough to get different agencies to collaborate together.

Balihoo Perspective:  To solve this problem, marketers need a solution that allows for the easy creation and management of an integrated communications plan. Holistic campaign visibility, measurement, optimization and ROI can all be enhanced for both franchisors and their franchisees through the use of a multi-platform integrated media solution such as our own. While medium-specific tools (TV, radio, online, digital out-of-home, etc.) add efficiency to the buying process, they fail to solve the larger issue of streamlining both the inventory management of media properties or offering fully integrated marketing solutions for brands with clear, consistent and connected messaging designed to reinforce the national brand. 

10 Area Eateries Employ 290 Workers: Jack in the Box Franchise Owner Michael Norwich Excels 

Overview: Michael Norwich, winner of the 2007 U.S Small Business Administration’s Small Business Person of the Year award, explains how he took over his father’s struggling Jack in the Box, turned it around and then went on to open 10 restaurants and employ over 290 people. Interestingly, Norwich doesn’t praise Jack in the Box’s corporate marketing model. “We have a little bit different business model than even corporate Jack in the Box. I believe that the Jack in the Box brand is a little bit of a destination. I don’t consider myself to be as convenience-driven, so we don’t try to penetrate the market as much as corporate Jack in the Box does. I like to draw on larger trade areas.” 

Balihoo Perspective:  While Michael Norwich says he doesn’t completely adhere to the corporate Jack in the Box business model and doesn’t try “to penetrate the market as much as corporate Jack in the Box does” it is important to really think about why he can do this successfully – I would argue that corporate Jack in the Box’s strong, penetrating national advertising is the very backbone to Norwich’s preferred ‘soft sell’ approach. Without strong brand awareness generated at the national level, it would be more difficult for Norwich to focus solely on connecting with his local customers (who already have a conceived notion of what the brand stands for). Norwich’s focus on connecting with his local customer base is what franchisees should be encouraged to focused on – franchisors need to ensure that they give their affiliates the tools to do so properly. 

McDonald’s Franchisees Take Online Marketing Into Own Hands 

Overview: McDonald’s franchisees in southern California recently launched a website to drive local coffee drinkers to their restaurants. The website, www.mcdonaldssocal.com, provides Southern California customers with a way to locate ‘McCafes’, local community activities (involving McDonalds) and menu changes. 

Balihoo Perspective:  This is a great example of how franchisees can generate local interest. What is key about this franchisee-developed website, packed with local community information and activities, is that it is completely in-concert with the national brand. Thus, remaining closely tied to the national image while also zeroing in locally (by featuring a community calendar of events). For a franchise as highly recognized as McDonald’s building a sense of community between each individual restaurant and its local customer base is understandably difficult – this website is a great way to forge a connection.  

Analyst: Google, Myspace Make a Bad Fit 

Overview: Suggests that social networking platforms are gradually making search less relevant. Pali Reseach analyst, Richard Greenfield notes internet users’ growing inclination to search for specific information by tapping into friends’ and colleague’s knowledge through platforms like Twitter’s own search product, as well Facebook’s status update tool. To boost revenue, Greenfield recommends that MySpace continue to expand its portal-like ad strategy, which has proven successful in attracting major advertisers to its home page and music channels. 

Balihoo Perspective:  Chances are you are involved in some form of social networking. Have you found yourself using social networking for search – has social networking led you to discover new information that you may or may not have been ‘searching for’. Do you think social networking has the capability to really compete with the large search engines? I have found myself using Twitter’s search feature more and more when it comes to current topics, issues or discussions – however, when it comes to anything historical or dare I say factual, I feel more comfortable researching through a search engine (Google).

When Career Turns Down, Franchising is an Option

Overview: More and more laid off workers are considering franchising as an alternative to working for someone else. Some see franchising as an easy way to entrepreneurship and economic independence. But becoming a successful franchisee takes a lot of hard work and money. This article goes into some things potential franchise owners should consider before taking the plunge.

Balihoo Perspective:  Overall, the number one thing any potential franchisee should do is their homework – once it is done, do it over again. Owning a franchise is a lot of work and requires someone who is entrepreneurially spirited, committed and very knowledgeable of the industry they are going into. Make sure that you identify with the franchise corporation that you are considering joining and that it has a solid business plan, solid branding support and an integrated marketing plan, if they don’t keep looking until you find one that does. 

The In-Store Strategy 

Overview: With the economy down, many in the quick-service restaurant (QSR) industry are embracing POP advertising more than ever. Brands such as Wendy’s, Five Guys, Checkers and Dunkin’ brands (which has over 6,000 locations across the U.S) say they will not be reducing in-store advertising at all. With 20 to 30% of marketing dollars going to waste every year because brands haven’t invested in specific customization for their location(s), it is more important than ever to make sure you are fully customizing your marketing materials. Dan Wittner, chief customer officer for RBM, says that in the midst of this economic climate, efficiency is just as important as consistency. “The first thing you have to do in this kind of economy is get smarter about every dollar you are spending, Wittner says. “We’re talking to a number of quick-service restaurant groups right now, and we’re going to get them organized around their individual restaurants’ attributes.”  

Balihoo Perspective:  POP is a very important part of the marketing mix. Franchisees need to have the necessary tools to fully customize their in-store advertising in order to maximize their ROI. Pulling back on POP right now is an awful idea – both for the national brand and the brand’s local presence. 

Banks are Killing the Next Big Thing 

Overview: Even Facebook is struggling to get a loan. Having raised $500 million in equity and debt financing without producing a profit, Facebook is continually working on growing their revenue and their advertising. “Venture capital is suffering right alongside commercial lenders. In a recent survey, law firm Fenwick & West found that, of 128 companies that received venture funding last quarter, one-third had to accept new money at a lower valuation. The rub? VCs are too pinched to take chances.” 

Balihoo Perspective:  Interesting time indeed. While Facebook is nearly as recognizable today as Google and is most commonly hailed as a “success story”, it is struggling to get additional funding. With the recession and loan crisis, it has never been more important to generate profit – even for nationally recognized “successful” and “accomplished” companies.