Company News
How To Create An Effective Ad
by DW Green — March 11, 2010
“Never stop testing, and your advertising will never stop improving.”—David Ogilvy
“If you don’t have a competitive advantage, don’t compete.”—Jack Welch
Effective advertising attracts an audience and motivates them to action. It drives customer traffic, differentiates your store and your ad from your competitors’, and always supports your store’s strategic position. 
By creating ads that accomplish these four things, you’ll achieve the short-term goals of increased sales and customer count while developing advertising that will become the building blocks of tomorrow’s success and prosperity.
Create ads that people will read and respond to
The reality is that most folks don’t read supermarket ads — maybe two out of 10. And of the folks who do read ads, they normally read the ads of stores they regularly shop in. So why do most supermarkets insist on putting their name and logo at the top of their ads? If the reader does not like the store, they will not read the ad, regardless of the benefit the ad is offering.The supermarket industry routinely violates this basic principle of effective advertising. Look through an issue of USA Today or The Wall Street Journal and count the number of ads that have the company name and/or logo in the headline—you won’t count very many.
Your ad must have a compelling headline and clearly communicate how a customer will benefit by shopping at your store. In newspapers and magazines, the headline will either entice you to read the article, or cause you to completely ignore it. The same is true with advertising. Effective headlines attract readers. Remember, your primary shoppers are more likely to be interested in your ad already; focus your efforts on attracting new shoppers instead by offering a strong headline and a convincing reason or benefit to shop your store.
Image is often the only basis of comparison between similar brands. Advertising store attributes often pays off in profitability (even if sales don’t immediately increase) because it emphasizes competitive advantages and reinforces many of the past and present experiences that your satisfied customers have had. Your ads must create an image that people will respond positively to.
Drive customer traffic
The most effective ads feature an appealing price, an appealing item or an appealing event. Don’t be afraid to promote mangos or papaya or kiwifruit and then demo these items in store during the promotion. Produce is a great feature item because of its self-limiting markdown. How many avocados, for example, can people eat in a week? The number of customers that 19¢ avocados can drive into your stores might surprise you.
When it comes to price points, many retailers get locked in a trap. They presume that if T-bone steaks can’t be advertised for $4.99 per pound, or tomatoes at 59¢ per pound, it’s not worth advertising them at all. Not so. What matters most is that the sale price represents a value to the customer. 
If T-bone steak retails for $8.99 per pound, you can feature it for $6.98 per pound and still be offering the customer an enticing savings of $2 per pound.
Promote special events like Cajun cooking or authentic Tuscan cuisine. Food is the international language, a universal experience. Promoting cooking makes good sense. After all, isn’t that what a food store is all about?
Differentiate your store and your ads from competitors
One way we have successfully differentiated our ads is by featuring a single item or a focused theme on the cover page. Some will argue a single item limits the chance to appeal to more shoppers. Some suggest you need to have an item from every major department of the store in order to persuade shoppers to shop in every department. I say no, no, no! Don’t fall victim to the mentality that you must feature numerous items just because your competitor does. That’s not differentiation. Showcasing one item or theme has far more impact. Plus, it limits your markdown. Another unique approach: feature items your competitors would never feature, such as garlic, or product variety in different categories like jams, mustards, or olive oils.
Support your strategic position
Another important driver in creating effective ads is your store’s strategic position. For example, if you position your store as a low price leader, then your ads should support low prices and pricing activities. If your store position is quality perishables, then promote those items, and explain why they are better than your competitors’.
It takes more than snappy creative work to create an effective ad. You need a distinctive store format, a customer benefit, and a unique message that reinforces your strategic position. If you can pull all of these concepts together in a way that draws customers into your store, you’ve undoubtedly created an effective ad — and a competitive edge.
Filed Under: Company News
