Quick & Dirty - What Are Direct Offer Ads and How Do They Work

Zack Greenfield • January 26, 2021
Today we're going to continue our series on advertising. And as we're going to talk about today and we're going to pull them apart and hopefully give you some of the ingredients. So you can apply these to your business. We're going to talk about direct offer ads. So stick with us, and we're going to deconstruct these and give you everything that you need to be able to do for your business. So you can run effective, direct offer ads. All right. So today we're going to cover direct offer ads, how to put them together. I got my notes here. And the first thing I want to say to you is there are direct offer ads everywhere out in the market and you, me and probably everybody is responding to them in different ways, depending on where we go. 

Does, they have their, uh, whether they do like the blue thing and K-Mart used to do the blue light special, and there's like 10% off, 20% off all this stuff. One of the things you need to know is direct offer at the objective. So start with that. The whole point is to get people to respond, right? So great marketing is designed to is an outbound message designed to elicit an inbound response and direct more direct, uh, offer ads or direct market. But direct offer ads specifically really hit the middle of that whole conversation. They are ads that we put together for our businesses that are designed to elicit an inbound response. We want the person to take the deal and come do business with us, right? So that's your objective. That's what we're trying to craft right now. We're trying to craft something with an ad. 

That's going to bring in an inbound response is very different than the branding ads, which we covered in this video. If you haven't watched it, she'd go back because it's part of the series. And, um, they work different and they've got different rules to play by. So let's start digging into them, right? But that's your objective right now is to elicit an inbound response. You want a customer to take a deal. You want to generate new customers. You want to increase total customer value. This is really all about driving revenue. Okay? So first thing you got to figure out is what are the deals that your customers really want, right? And what I suggest, you know, you, you know, your business better than anybody and you know, your customers better than anybody and you know, your ideal customer better than anybody is to start listening to those folks and seeing what they're responding to or what they're asking for. 

They might say, Hey, what can I get a deal if I bring some friends in, okay, that's like, they're telling you they would respond to a referral campaign. Um, how about if I buy three of these, could I, you know, would you cut me a deal? That's, they're talking to you about a BOGO deal, like buy three, get one free, buy one, get one free. Right? So they're going to give you a little clues about this stuff that they're going to respond to. And you just want to make a mental note of that and, and start to think about how you could craft stuff around what you're hearing, they will respond to. All right. So you need to know your customers and you need to know what's going to trigger a conversion of buying response from, okay, that's one of the first things you need to do. 

The next thing is these ads, if they're running them display, and even if they're PPC or, or even if they're like a coupon and during the mailer thing, or that you send out an email and you still got to play ball with the three to five rule. So if you haven't watched that, go back and watch the three to five rule video, very important, because as you're doing your word crafting on these, these ads, you really don't want to get long-winded. You've got to punch hard and you got to do it in a succinct, clear way. Okay? The other thing about these that's so important to understand is that people's minds, these ads involved numbers, okay. And people's minds work differently with numbers. Some of your prospects are going to respond to a hard dollar figure, a hundred dollars off I'm a buyer. Okay. Other types of buyers are going to respond to percentages. 

Like they like 30% off, 10%, 20%. Okay. And one of the things with all of those is you can test throw something out there for $5 off. Nobody takes it. It's not enough. You know, assuming, you know, you, you syndicated it well. And people saw the thing. Okay? So assuming all things being equal, $5 in work, try $10, $10 at work, try $20, $20 of work, try $50. Get to the threshold where people start responding and understand. And this is important too. You need to know what you can pay to acquire a customer, a new customer, and with direct offer ads because they involve numbers and they're going to invade your margins. You need to be okay with the, with that number, helping support one of two things, new customer growth or growth of revenue per customer, or also express as total customer value your TCV number. 

So if your customers are worth a thousand dollars a year, and you want to enhance that in, give them more incentive to buy more from you and drive that TCV number up to 1200, $1,300 a year, then you have 20 to 30%, top line growth in a 12 month period, right? So you can use direct offer ads to drive your TCV. You can also use direct offer ads to drive new customer growth. So you can do direct offer ads. Like every new customer gets a free pizza when they buy a pizza, right? So if you want people to try your pizza, give them one and you know, if they buy one, give them an extra. Now that's a great way to step in front of the pizza competition. Because if it's game day and they're shopping for pizzas and they see this ad, they're like, Oh, look at this - We can get pizza for everybody. And we're going to get a deal today to be a new customer of this pizza parlor. Now they love your pizza and you do a great job and you need to do a great job to keep your customers and get new customers. You need to be better. You just have to be better. It can't be a slouch and you can't suck if you're better and your pizza's great and they get to taste it and everything works out. There'll be back. And then you can pull like Kohl's does, right? My favorite example, the masters of bounce backs and, and frequency based discount, direct offer as Kohl's is just absolutely. You have unlocked, uh, key codes to getting people back into their store. They're very good at us. If you don't shop there, go there, buy a pack of socks and see how they start hooking into you with all these coupons and deals and bounce backs and all the other stuff that they do. 

And you can emulate that if the people like your pizza and you want to get them repetitively buying from you every game day, so that they get on your regular customer list, right. Then give them a bounce back. Like, Hey, you're a new customer this week. We gave you a pizza, have the delivery guy, or when they come pick it up, give them another, say, next week you get 10% off. Uh, you know, if you'd come in order again, and it's good for next weekend only, right? So cage, it was some emergency and give them a deal and, and get them in the habit of doing business with you. So they break the habit of doing business with somebody else and they start liking you. They like your pizza. The service is good. You know, all that stuff's working, you got yourself, a new customer, right? 

So direct offer ads that are very, are very important in starting relationships, driving revenue, per relationship. And in some cases, this is maintaining your com creating habitual customers like Kohl's does so well with their direct offer. The thing about this, and we did another video here. I want you to go back and I want you to watch the video on frequency versus amplitude. I got it. Just can't stress enough on these direct offer ads, frequency, frequency, frequency, okay. You don't need to have a big year-end sale once a year and expect that it's going to solve all of your revenue problems. Car dealerships do that. They gotta move inventory. Everybody needs. I used to get stuff off the shelves, but for you too, genuinely create a train of new customers and work on enhancing the value of every other customer that you're already have. 

Frequency is the name of the game. You gotta be pumping this stuff out once a week, you know, five times, month, twice a week, whatever it takes to get the conversions and get the activity level that you want in your business. Okay. So watch this frequency video versus amplitude. There is a time for amplitude, but in general, with this type of stuff, it's just not what you want to be done, right? If this helped you get your head around, starting to create direct offer ads for your business, please like, and subscribe this we're doing, you know, we're just pouring out the last 10 plus years of experience in running advertising for our local businesses and customers.
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