Someone mentioned that I should be measuring the effectiveness of my advertising. How do you go about doing that?
There are three ways to measure the accountability of your advertising program. The first is easy – it’s measuring advertising performance. The second is ROO – or return on objectives – which examines the consumer’s response to your ad programs. Finally, there’s the traditional ROI – or return on investment – and measuring the various marketing tactics you may be using. Let’s look at each one.
Advertising performance is a way to measure whether your ad actually ran, and whether it ran at the right times on the appropriate stations or in specific magazines or newspapers. Did the ads exceed or fall short of the projected audience numbers you expected? Your agency can give you these answers - assuming you have one. And if you’re out there spending dollars on media, you should.
Return on objectives – or ROO - asks whether or not you achieved your marketing goals. Did you change consumer behavior? Did you make a new audience aware of your product or service? Did your target audience understand your message? Measuring ROO is usually done by surveys. You’ll find out whether people actually intend to purchase your product in the future, what they think of your product or service and whether or not you’ve changed anyone’s mind about what you’re selling. While not 100% accurate, these surveys can give you a pretty good picture of how your advertising is doing, and whether or not it’s doing its job.
ROI, or return on investment, is used to measure the return on your money. Did you get back what you spent? Are you making – or losing money for each dollar you invest in advertising? Thanks to today’s technology, you’ll know pretty quickly whether or not your money is being spent wisely.
Here are some lessons learned by advertisers who measure ROI and ROO – and you should be pleasantly surprised! Advertising usually works better than expected; a more balanced marketing mix is likely to improve your results; and each medium in your overall mix contributes to results in its own unique way. Just to give you an example, in a study of 140 advertisers, it was shown that those advertisers who spent a higher percentage of their budgets on advertising received a ten times greater return on their overall marketing investment!
Just goes to show you that advertising does work – but be sure to measure your own results!
There are three ways to measure the accountability of your advertising program. The first is easy – it’s measuring advertising performance. The second is ROO – or return on objectives – which examines the consumer’s response to your ad programs. Finally, there’s the traditional ROI – or return on investment – and measuring the various marketing tactics you may be using. Let’s look at each one.
Advertising performance is a way to measure whether your ad actually ran, and whether it ran at the right times on the appropriate stations or in specific magazines or newspapers. Did the ads exceed or fall short of the projected audience numbers you expected? Your agency can give you these answers - assuming you have one. And if you’re out there spending dollars on media, you should.
Return on objectives – or ROO - asks whether or not you achieved your marketing goals. Did you change consumer behavior? Did you make a new audience aware of your product or service? Did your target audience understand your message? Measuring ROO is usually done by surveys. You’ll find out whether people actually intend to purchase your product in the future, what they think of your product or service and whether or not you’ve changed anyone’s mind about what you’re selling. While not 100% accurate, these surveys can give you a pretty good picture of how your advertising is doing, and whether or not it’s doing its job.
ROI, or return on investment, is used to measure the return on your money. Did you get back what you spent? Are you making – or losing money for each dollar you invest in advertising? Thanks to today’s technology, you’ll know pretty quickly whether or not your money is being spent wisely.
Here are some lessons learned by advertisers who measure ROI and ROO – and you should be pleasantly surprised! Advertising usually works better than expected; a more balanced marketing mix is likely to improve your results; and each medium in your overall mix contributes to results in its own unique way. Just to give you an example, in a study of 140 advertisers, it was shown that those advertisers who spent a higher percentage of their budgets on advertising received a ten times greater return on their overall marketing investment!
Just goes to show you that advertising does work – but be sure to measure your own results!
