| |
| |
|
Advertising Information |
|
|
|
What's the Score?
You may be aware that in a basketball game the assistant coaches keep an almost unending list of personal statistics for each player. Rebounds, assists, points, minutes played, etc. Why is that? Because they know that these individual statistics all add up to the bottom line. The final score. If they can achieve even a small incremental improvement in these individual statistics for each player this will have a compound affect on the final score. And of course, it helps them know which players to give the most playing time too. In marketing your business you should be just as disciplined. Which products and which ads and which media should you give the most playing time? Do you know? What's the point of designing and implementing an advertising campaign if you don't know if it worked or if it was better than the last one? What a waste. How do you know where the best place is to spend your advertising dollars? By tracking everything. Incoming calls, emails, walk-ins, website visitors, etc. Train yourself and your staff to always ask these questions. Where did they come from? How did they hear about you? Which ad did they call on? Here is an example: Let's say you place a classified ad in the newspaper at a cost of $135.00 offering a free report on your product. You could track the incoming calls in many ways (for instance by directing them to a free recorded message with a unique extension number or simply by asking them where they heard about the offer when they call). Let's say you receive 12 calls on this ad and 2 of them end up as completed sales. What is your cost per prospect? (Cost of Ad) / (Number of Calls) = Cost Per Prospect $135.00 / 12 = $11.25 Your cost per prospect is $11.25
(Number of Sold Clients) / (Number of Prospects) = Conversion Rate 2 / 12 = .17 (or 17%) Your conversion rate of prospects to sold clients is 17%
(Cost of Ad) / (Number of Sold Clients) = Cost Per Sale $135.00 / 2 = $67.50 Your marketing cost per sale is $67.50.
Which ad is performing better? What is your cost per prospect for this ad? (Cost of Ad) / (Number of Calls) = Cost Per Prospect $450.00 / 27 = $16.67 Your cost per prospect is $16.67
(Number of Sold Clients) / (Number of Prospects) = Conversion Rate 4 / 27 = .15 (or 15%) Your conversion rate of prospects to sold clients is 15%
(Cost of Ad ) / (Number of Sold Clients) = Cost Per Sale $450.00 / 4 = $112.50 Your marketing cost per sale is $112.50. Depending on your products and profit margin both of these ads may be performing well enough to merit continuation. However, based on this information we would want to look for other opportunities to expand our use of the classified ad first. This may seem a little basic but this information is extremely valuable and often overlooked. The outcome of most athletic contests is normally decided by a very small margin, sometimes by as little as tenths of an inch or hundredths of a second, missing that pass completion by half a step or missing one basket. One would suspect that most winners and losers in business are also determined by very small margins. Not giving that extra little bit of caring and customer service. Not having your presentation skills honed, not including testimonials with your sales information. Not having the most effective headline in your ad or not having a headline at all. And worst of all, not knowing which ads are working and which should be put on the bench. "If at first you don't succeed, try, try again. Then quit. There's no use being a damn fool about it." - W.C. Fields Shawn Meldrum has spent the last two decades marketing everything from almonds to landscape lighting. He currently specializes in marketing for mortgage brokers, loan officers and real estate agents. For free mortgage marketing articles and much more visit: http://www.MortgageMarketingTips.com/
MORE RESOURCES:
Agency Competing on 'The Pitch' to Make a Pitch for Diversity in Advertising - New York Times (blog)
Google News |
|
|
|
RELATED ARTICLES
Offline Advertising Tips Since most of us are always online and our business is online, we often forget the importance of advertising our business offline. Print advertising can be one of the best forms of advertising for your buck. Secrets of Getting Free Advertising The opportunities for getting free advertising for your product or services are limited only by your own imagination and energies. There are so many proven ways of promoting your own objectives without cost that it literally boggles the mind just to think of listing them. How To Tell If An Advertisement Costs Too Much People say it all the time: "This advertising costs too much!" They practically go into cardiac arrest when they see how much the advertising for certain media in certain markets is going to cost them. It is pretty easy to get sticker shock when you see that a sixty-second radio commercial on a popular Los Angeles station could cost you a thousand bucks. Advertising, Public Relations, Newsletters, and Newsletters for Your Small Business If you own a small business you should consider ways to promote yourself through public relations to compliment you advertising regiment and keeping your name out in the public and in front of your best customers. There are many ways to keep yourself visible on top of your typical advertising choices. Advertising Basics for Beginners So many of us who have decided to do business online have no background in marketing or advertising. It can be so frustrating without any kind of guide. Advertising: 10 Powerful Secrets To Help You Sell Your Ad Space Like Crazy If you want to sell more ad spaces, you must read and use the secrets I am revealing here:1. Give your customers a discount when they spendover a certain dollar amount for ad space. Science of Advertising and How to Benefit From It It is very important to realize that persons buy from you. It is the mind at other end of the internet who will decide a sale from you. The Principle Of Advertising Online Advertising online is very similar to advertising in any environment. You really are trying to get your message or your product out there by the most cost effective means possible. Does Post Card Advertising Really Work? You've decided to try advertising your business with post cards. The idea came to you from the post cards you receive from other businesses. Lamination of Signs I suspect that everyone has an idea of what lamination is even if you have only seen it in passing. Restaurant menus are a common example. What are Text Adverts? Not everyone is aware of what are text adverts? Text Adverts are a form of low cost advertising used by website owners to promote their website and services to a quality targeted audience.Online advertising offers an outstanding opportunity to efficiently and effectively target your desired audience. 80% of All Advertising Is Wasted Due To This Common Mistake You're flipping through this publication as you wait for your latte, when suddenly you decide to stop and read an ad. What made you stop? I'll bet it was an attention grabbing headline. Customer-Involving Signage and Selling Here's some easy ways to create signage that will attract, not annoy customers (and local government agencies that regulate signage):1. Since movement always attracts attention, any banner, sign set of a pole that might move with the wind or electrically-turned sign will stand out from the static messages around it. Advertising For The Long Haul and Not the Short Term Gains New Age Media Concepts issues its first article of many that will focus on the advertising and marketing industry. "If a young man tells his date she's intelligent, looks lovely, and is a great conversationalist, he's saying the right things to the right person and that's marketing. Direct Mail Rules of Thumb First and foremost - You should identify your target market. Target your direct marketing lists. Media Planning: Smart Choices for Your Success Media Planning for SmartiesYou say you're ready to advertise. How are you going to choose whether to place your ad in the local newspaper or a national magazine? Why not do a radio spot or place a banner ad on a related company's website? Understanding the benefits and pitfalls of these different forms of media will help you get the most out of your advertising budget. 5 Newspaper Advertising Myths Revealed What I'm about to reveal are myths that most people thinkare 'true.'They seem set in stone yet they are deadly to theadvertiser. Ten Secrets for Getting FREE Advertising The opportunities for getting free advertising for yourproduct or services are only limited by your imagination andenergy. There are so many proven ways to promote withoutcost it's truly mind-boggling! Here are ten proven methods. The Man With The Grasshopper Mind The title of this article also happens to be one of the "20 Greatest Headlines Ever Written."Did you know, just changing the headline has been known to dramatically improve the effectiveness of an ad or sales letter by up to 1700 percent? Yes, headlines are that powerful--and that important!However, over the last few years, I've noticed a proliferation of badly written--or just plain weak headlines--both online and off!Particularly disturbing is the copycat syndrome. LED Score Boards LED scoreboards can be utilized in most of the sporting event for eye-catching effects replace traditional scoreboards. This high- tech lighting system is both energy - efficient and able to produce a very bright light.
|
|
|
|
|
