Question

Topic: Advertising/PR

Advertising Campaign Roi Evaluation

Posted by Anonymous on 7/2/2008 at 2:55 AM ET 250 Points
I'm currently preparing a proposal on ROI evaluation on our advertising spending. I'm thinking it would be good if it could be evaluated from short-term and long-term, but from research perspective, I'm not sure what methodology would be most appropiate and what criteria to set. Meanwhile, should I get data from internal resource or external? Any simple approach available for in-house handling?
Thanks in advance for your comments!
To continue reading this question and the solution, sign up ... it's free!
SUBSCRIBE
Or, SIGN IN

RESPONSES

  • Posted by Frank Hurtte on 7/2/2008 at 9:15 AM Member
    I would build a cost analysis. Exactly what did the advertising cost? Include everything... Including prep time, delivery mechanisms, etc.

    I would build a short term impact by harvesting all the numbers for gains in sales, new customers, etc.

    Then project the short term impact further into the future.. by making some very conservative estimates of future gains.
  • Posted on 7/2/2008 at 1:51 PM Accepted
    ROI on Advertising is probably one of the hottest debated topics in Marketing today. There are no proven formulas, that are able to fully measure the direct impact of advertising, especially traditional advertising like TV, Newspapers etc. Having said that you can employ some basics. I will split a few of the basic ones into external and internal resources.

    External
    1. Advertising awareness. This is the measure of how many people saw your ad and recognised the brand. This is measured with your target consumers and externally by professional research houses. You should measure this on an ongoing basis otherwise you will not know if your campaigns are working or not .
    2. Trial. This is measured once again in similar fashion as above and is tracked to see if your ad campaign forced people to try the product. This can affect sales directly and in turn ROI if you get this conversion right.

    Internal
    1. Sales Volumes. Measure sales results one month before your ad campaign, the months during the campaign and also 1/2 months after the campaign to get the REAL NET impact of the advertising. This increased sales must then be linked back to your costs and a simple ROI can be calculated.

    The total brand value you add to increases in Trial and Awareness are very subjective and are very industry specific.

    These are some starters for you....there is alot more but try and measure the basics upfront.....
BACK TO TOP

Post a Comment

Related Discussions

Community Info

Top 25 Experts
(Advertising/PR)