Each year in most forest products companies the annual advertising and promotions budgets get nodded through, usually without too much debate. At least it does if the ad spend is more or less in line with last year’s budget. And it’s usually only a minor cost item.

But in 2007, if your ad budget is in line with last year’s spend, then this is the year to challenge it. Why? Because the advertising and media scene is in a state of revolutionary change which should be affecting how your own future advertising is shaped and measured. Advertising is now able to be highly targeted and it’s also more affordable than ever. This is the result of the rapid transition to online, a trend that is certain to accelerate in 2007 as more executives start accessing the internet via mobiles. These digital media channels are highly accountable and so investments in them can be readily measured and evaluated.

This lack of advertising accountability may have held timber companies back from building their businesses through investing in marketing and communication. Few have opted for messaging that targets the real decision makers who determine whether your products get used and specified: the end user, architect, QS or builder. Too many timber industry companies put all their eggs in the sales team’s ‘basket’ and leave it to them to negotiate (and often heavily discount) to get the business.

2007 is the year when managements everywhere need to seize these new marketing opportunities and evolve their business model to gain control of their destiny by building brands. It’s the year to question your marketing approach… and your ad budget.

Most distributors and retailers wish you would. Retailers are much happier to stock and supply brands that customers are demanding, rather than having a warehouse full of products their sales people have to push. Little wonder that distributors demand heavy discounts if manufacturers don’t invest in promoting their brands and products. Branding is the route to guarantee premium returns.

So for your review meeting of your 2007 marketing and advertising budget, here’s a 10-point checklist to ensure your business is on the right tracks:

How does your ad budget compare with 2006?

If it’s about the same – why? How effective was it in 2006? Given 2007 sales objectives and the changing media environment, should the budget be different?

What’s the end game?

Is your promotional budget totally committed to supporting your sales and marketing objectives in 2007?

How are you planning to monitor if it’s working?

What metrics are in place to monitor how effective the campaign is?

Outsmarting the competition.

Much as we respect colleagues in the timber business, if there are winners, then there have to be losers. We need to be winners! Advertising is there to give you a commercial advantage. Do your ads blow your competitors out of the water? Second best is simply not good enough!

Are you using media that your customers consume?

Given that most business decision makers spend more time online than with any other media, how has that changed your media plan for 2007?

Is your website best in category?

What do you need to do or spend on your website to achieve that position? How do you know it delivers what your customers need? Does it top the Google listing within your product sector?

Are you using the cost-efficiencies of online to stay in regular contact with key past contacts and customers?

Given that it could cost £500 to make a single sales visit, how are you developing a structured online (and mobile) customer relationship management programme to ensure your company is in regular touch with all your customers and also with your distributor’s key sales people?

Why are you still producing brochures?

We’re now 10 years into the digital era of online and mobile, so probe whether the information and messaging could possibly be more cost-effectively communicated online with downloads that customers can print where required.

Only accept a budget that delivers maximum impact.

Some print media deliver your audience exceptionally well, sometimes even better than online or any other media. TTJ is an example as it is unique in the way it penetrates deep into the sales channel (but it’s also where your competitors will sometimes advertise). So ask “Are your ads the best in category?” and “Is the space size and frequency of your ads likely to give you the edge over your competitors’ messaging?” If not demand a budget that delivers that! Or you’re wasting the opportunity.

What does the chairman’s wife think of your ads?

If she’s not said then perhaps she’s not noticed them. If so, then perhaps your customers haven’t either. Creativity in advertising is one of the wisest investments you can make! Time for a change!

Early in his career, Peter Travis worked for Seaboard International where he launched several wood-based products from the North American west coast before returning to advertising. He ran several London ad agencies for the world’s largest agency, the Japanese-owned Dentsu Group. His clients in the timber industry have included Medite, the TTF’s Think Wood Campaign and Potton Homes. He now heads up advertising and marketing consultancy +travis.