Question

Topic: Advertising/PR

How Much To Spend On Measuring Advertising Effectiveness?

Posted by Anonymous on 270 Points
What percentage of my advertising budget should I spend to measure its effectiveness? I am totally at loss as i cannot decide what amount would be the right compared to my annual ad-budget of about $100,000 which is largely used up for print advertising.
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RESPONSES

  • Posted by Pepper Blue on Member
    Hi KKJ,

    On suggestion is that part of your problem is that you stated that your entire budget is largely made up of print advertising, which is inherently hard to measure.

    If you moved to a more integrated program where you implemented online marketing/advertising i.e. through your website and e-newsletters, this would be much more measurable.

    Then you would not have to spend anything on measuring these components because it comes with the medium in the form of clickthroughs, opens, etc.

    Furthermore, you'll get more bang for your buck because the now integrated marketing (online and offline) will leverage and synergize each other, giving you more than $1 for every $1 you spend.

    I hope that helps!
  • Posted by Blaine Wilkerson on Member
    Very good question and quite an evolving subject. WE are just now trying to figure out how to measure various aspects of marketing that seem impossible to quantify.

    I think if you follow Tim's suggestion of adding more to your mix, youy can get a better idea of what is working. Having only one tactic, well, how is business? If you only use on type of print advertising, then you can easily tell if it is working or not.

    Try different promotional codes in different print ads to identify which ones are getting more exposure. This is the most classic way of tracking. So, run a promotion and in every newspaper, magazine, direct mailer, etc, use a different code. the person has to give you the code in order to get the promotion so you can keep track, and compare.

    I hope this helps! Feel free to send me an email if you require more assistance (just click on my name).

    Good Luck!

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