When it comes to advertising, small businesses often face the question of whether to go the institutional or direct response route. Institutional advertising is a type of advertising that focuses on creating awareness for a company or product, rather than generating an immediate response from the consumer. This can be a useful tool for businesses looking to build their brand and create a loyal customer base. However, there are also drawbacks to using this type of advertising, which include the high cost and the lack of a direct response.
For small businesses, the main disadvantages of using institutional advertising is the cost as this type of advertising can be very expensive, and it may not be within the budget of a small business. In addition, the return on investment for this type of advertising can be difficult to measure, because institutional advertising is focused on branding, it can be hard to track how effective it is in terms of sales or leads generated.
A further downside is that it can take a long time to see results it may take months or even years to see a return on investment. For small businesses that are looking for quick results, direct response advertising is always a better option.
Small businesses should weigh these factors carefully before deciding whether or not to go the institutional advertising route.