Before You Buy Another Ad, Look Around Your Community

A different way to think about advertising: put some of your marketing dollars back into your community while still getting your business name out there.

As a small business owner, I’m always thinking about where to spend money to get my name out there.

Facebook ads. Google ads. Boosted posts. Mailers. All the usual stuff.

But lately I’ve been thinking about advertising a little differently.

If I’m already planning to spend $100 advertising my business, do I want to hand that $100 to a giant company so my ad gets shown to a bunch of people who may scroll right past it?

Or could that same $100 help sponsor a local youth event, support a school fundraiser, contribute to a raffle or help an organization doing something good right here in my community?

I'm starting to like the second option a whole lot more.

Advertising Doesn't Have to Be Faceless

I recently came across a local skateboarding event looking for community sponsors, and that one immediately caught my attention.

Years ago, I ran a nonprofit centered around kids, music and art, and for three years I put on the UnderRage Music Festival. Giving kids positive things to be involved in has always been important to me.

So when I saw an opportunity to help support a local skate event, I thought, why wouldn't I put some of my advertising money there?

My business can still get recognition. My name and logo can be included with the sponsors. People in the community may learn about Bookkeeping by Jes.

But instead of paying for another faceless ad, my money also helps make something happen in the community.

That's a pretty good return in my book.

You Don't Have to Spend a Fortune

This is especially important for small businesses.

You don't need to write a $500 check every time someone asks you to sponsor something.

Maybe it's a $25 gift card for a raffle.

Maybe it's $50 toward a school fundraiser.

Maybe it's $100 to help sponsor a community event.

Small contributions add up when local businesses participate together.

And don't put yourself in a financial bind trying to be generous. Set a community marketing budget just like you would any other advertising budget and stay within it.

But Is It Really Advertising?

Here's the fair argument against this idea.

Digital advertising can be targeted and measured. You may be able to see exactly how many people clicked an ad, called your business or filled out a form. A $100 community sponsorship isn't always going to give you a neat little report showing what you got for your money.

And not every sponsorship makes sense for every business.

The goal isn't to sponsor everything that asks. Look for opportunities that fit your business, your customers and the community you actually serve.

Community involvement isn't a replacement for every kind of advertising. It's another option to consider.

People Remember Businesses That Show Up

There's something community involvement can accomplish that an online impression can't always duplicate.

People start recognizing your name.

They see your business sponsoring their kids' activities, contributing to raffles, supporting community events and helping organizations in their own neighborhoods.

You're no longer just another ad that popped up on their phone.

You're a local business they've seen before.

Will every $25 contribution bring you a new customer?

Of course not.

Neither does every $25 you spend on Facebook or Google.

But when someone eventually needs what your business provides, there's value in having a name they already recognize.

And Yes, Let's Talk About the Tax Side

This is where I put on my bookkeeper hat for a minute.

A lot of business owners hear the word "donation" and immediately think "tax write-off."

It's not quite that simple.

A charitable contribution generally needs to meet specific requirements, including who you're giving the money to, to qualify as a charitable contribution for federal tax purposes.

But that doesn't mean supporting an organization that isn't a qualified charity is automatically a waste of money or that there can never be a business expense involved.

The purpose and circumstances matter.

If your business is sponsoring an event for advertising or promotional purposes and receiving business exposure in return, the expense may be treated differently than a charitable contribution.

That doesn't mean putting your logo on something magically makes every donation deductible.

Keep the sponsorship agreement, receipt, event information and anything showing what your business received in return. Then let your tax professional determine how the expense should properly be treated.

And here's the part I think business owners sometimes forget:

Even if something isn't deductible, that doesn't automatically make it a bad business decision.

We should spend money on our businesses because it makes sense for the business, not just because we might get a tax deduction.

Ask a Better Question

Instead of always asking:

"Can I write this off?"

Try asking:

"Was this money well spent for my business?"

If I spend $100 on an online ad and nobody remembers seeing it, I technically advertised my business.

If I spend that same $100 helping sponsor a local event, my business name is seen by people in my community AND I helped something I genuinely care about happen.

Which one is more valuable?

That's going to be different for every business.

I'm definitely not saying stop advertising online. There are plenty of times when digital advertising makes perfect sense.

I'm just saying that before you automatically put another $50 or $100 into an ad, take a look around your community.

Is a youth program looking for sponsors?

Is a school raising money?

Does a local nonprofit need raffle prizes?

Is there a Walk-a-Thon, sports team, community festival or fundraiser that could use some help?

Find something that fits you, your business and the people you want to reach.

When you do have marketing dollars to spend, sometimes they can do a little good on the way.