The Value of Advertising

I recently had a discussion about the future of small businesses in Udon with a local business owner and we came to the conclusion that there are two diametrically opposed schools of thought with regard to the value of advertising, especially via the internet.

I think that we can safely assume that the expat/western tourist customer base in Udon (as elsewhere) is shrinking due to either less people taking vacations or local people having smaller or less secure incomes. The two ways that expat orientated businesses are dealing with the challenge of survival appear to be thus:-

1. They realise that they must advertise to increase or maintain their visibility to ensure the maximum possible number of people are first, aware of their business and second, are up to date with recent developments and offers.

2. As income into the business gets tighter they feel less inclined to spend money on advertising, instead using the money to pay for everyday business expenses.

It seems to me that those who follow school of thought #1 have a better chance of surviving the next few years than those who subscribe to #2, but the majority of business owners in Udon are not prepared to invest much money in advertising. One bar owner I was chatting to last Saturday didn't even have a namecard or email address. A phone number is fine for local people (or if you live in 1987), but what about someone planning a trip here?

Unless many of Udon's business owners wake up and start doing something to protect their livelihoods, I can see a distinct reduction in expat/western orientated business over the coming couple of years.

Unfortunately advertising is affected by diminishing returns. As discretionary spending capital dries up, advertising becomes ineffective.

unfortunately from what ive seen of farang run business in udon , except for a very small minority , they are not business men at all . other than a handfull which are very well run on a professional basis day in and day out , and i include udonmap in my assesment , even though i moan about it the rest are simply playing at running a business , for what reason i dont know ., but i know they would not last five minutes in farangland . does anyone out there know why ,oh why does someone come to thailand with no experience what so ever , and suddenly think they can run a bar , restaurant , build a house , or whatever other whim comes into thier head ???? ive run businesses in the U K for several years , and its hard enough when you speak the language and know the rules , i would not even give a business here a second thought . as for advertising , well i always worked on a percentage of turnover , so in a recession with turnover down , advertising like many other variable costs , would of course be reduced . another point is , if your going to spend money on advertising , make sure your business is worthy of the expense .

jetdoc wrote:Unfortunately advertising is affected by diminishing returns. As discretionary spending capital dries up, advertising becomes ineffective.

But surely the few people who do have money to either go out or visit Udon will visit those establishments that they know about rather than those who are unknown or have slipped from having a visible presence?

"the few people"
There you go -- diminishing returns;o)

using UM as a fine example of kissing butt and advertising.......................how many tourist would of ever known about nong rib, glens, nobi's old location, maeya, thai orchid, relax place, good everything, green leaf, taco place and so many more, i'm missing. as they all frequent what is available in main shopping area or NPJ park. so many places right around the corner from where they are or short walk/tt ride.

how many that live here would of sampled and enjoyed so many places with out UM and/or advertising of same. or even met and had the option to compare notes, without advertising, which sponsors the forum, and cycles itself into more advertising, sponsored or not, including all business option, hotels and food for myself.

obviously word of mouth is the best, but a little help never hurts, especially if location isn't where the high traffic areas are.

I would agree with LA there. When I make one of my trips into Udon, - usually incognito - I invariably make sure I have a copy of Udonmap with me to use as an aide memoir of places to visit or re-visit, or to try somewhere new. I wouldn't have known about the Factory had it not been for the map and this forum.

If I am a stranger to any new place, then I look for maps or guide books to give me an idea of where to visit.

jetdoc wrote:"the few people"
There you go -- diminishing returns;o)

So you think it is better to have no customers than a few.

I'm not saying businesses should take out full page ads in The Times, but just get the basics right; Udon Map, Website & Namecards.

usually incognito

in that case, i guess i won't post you pic............i try to go incognito, but sadly, impossible..........have total strangers looking, taking a double take, then asking if 'I AM' the handsome one

though i don't remeber my nickname ever being mentioned as a-hole.............cliff spreading rumors again.

on topic.............i try to keep 2 copies in car, as i occasionally get turned around or need info at last minute, and the other................i try to give a little back............poor LP'ers walking around with that useless paperweight, usually in a daze...........i'm there to save the day w/UM.

OK........PROOF READ.............DAMN.........STILL FULL OF MYSELF......OR SOMETHING

Just a note on advertising in general,
Even in the hard times if i did not do net advertising i am sure i would not survive...if you get the balance right and you know where your market will be then you will increase chances of survival...all takes time to find the right combo but what i have got going now is good and at a minimal price with MAX impact.....cutting out advertising altogether is a bad move like signing your own death warrant imo and experiance, you need to ask where your customers came from, how did they learn about you, again takes sometime to research the best ways of advertisiing, cut out the costs that are not paying off, streamline the advertising,cut it down but don't cut it out....

yes you are spot on marmite.

"So you think it is better to have no customers than a few."
Because you use the term "no customers" the D/R rule is no longer relevant, just bar the doors. B/M has it right, during down turns, cost cutting is directly related to survival, at least that has been my experience;o)

Times are pretty tough for any business these days, and from my own personal experience when business is slow and the profit margin low, the first thing some local businesses sacrifice is their advertising.

We (udonmap) have many happy customers that have been with us for several years, these businesses IMO understand the importance of advertising, the power of the internet and establishing a brand name. These same businesses offer a quality service so the customers who discovered them via the map, magazine or website are likely to return and tell others, therefore creating a larger customer base.
On the other hand there are some clients who's services are not quite on par, the customer's unhappy and never returns, they tell their friends and the customers decrease. The client then thinks that the advertising is not working and pulls the plug. Advertising can only do so much, it can get you customers but after that it's over to the business to do the rest.

Businesses with tight budgets we usually suggest alternative advertising strategies i.e. downsizing advert size. However some would prefer a full page or nothing, maybe it's an image thing. I think any sensible businessman would agree that it would be better to downsize an advert rather than pull the plug altogether, so at least you keep your name in the public eye.

Shameless plug time: I think our advertising rates are good value, the map is still the same rate as it was 5 years ago. It's still only 500bt per month for a 6x6cm colour advert with free webpage and thread on the forum or 333bt per month for a magazine advert which I believe is within most businesses budget range.

Publications in general..
A full page will have the right impact, half page is acceptable,a quarter page is ok if its in the right place but a thumbnail..well a bit bigger really might well be over looked or just bunched up with all the others, Front Cover, inside front cover or rear covers are best spots along with double centre spreads....but now you are talking money...the best and cheapest form of advertising is word of mouth, (hence glowing reports on the forum of good places).

Most if not all publications now a days will come with internet advertising alongside it...and as long as you are getting the net advert/coverage then you still got your feet in the water.


Internet advertising is a must in todays world.

saint wrote: if your going to spend money on advertising , make sure your business is worthy of the expense .

A very good point.Its no good spending money on advertising if your place is dingy,the staff unsmiling and the food awful.
Brighten the place up,employ friendly staff and ensure you have a competent chef.
Internet advertising as well....if you have your own website so anyone who googles Udon has your name,products and location.
I think the prices Lee charges for adverts on Udon Map are very reasonable as well.....500 baht plus 333 baht,thats probably the cost of missing one night out per month......unless you are a cheap charlie,then its one week a month !

unless you are a cheap charlie

hey, i do resemble that, 2 outings per month, less than 300 each if a 5 saturday month, ok, 1 more outing

what a cheap arse

on topic, also agree, rates are very good and i was quite surprised on the low end of pricing for advert. well done.