How to Track Ad Results
3 strategies for determining if you're
spending your advertising dollars wisely
You can't always track the effectiveness of your
advertising dollars. No matter how powerful and
persuasive your ad, most of the people you're paying
to reach won't currently need what you're selling.
But if your ad makes a deep enough impression on
them, they'll remember you when they need you later.
With that said, keep in mind that I didn't say
ad results can never be tracked. When you want to
hold your ad dollars accountable, there are basically
three ad-tracking strategies to choose from:
Strategy #1: Under-price
a well-known product
This is the classic "loss leader" strategy.
The general idea is that enough customers will buy
additional items to offset the losses created by the
under-pricing of the lead item. Would you make a trip
to the grocery store if they were advertising milk
at 75 cents a gallon and eggs at 25 cents a dozen?
You can easily track the effectiveness of the advertising
through the number of units sold, or by the increase
in customers. The losses created through the under-pricing
of the item will be relative to the amount of traffic
generated. Think of it as pro-rated advertising: The
better it works, the more it costs. The downside to
this strategy is that customers who switch to you
for reasons of price alone will switch from you just
as quickly, and for the same reason.
Don't confuse the loss-leader strategy with couponing.
Generally, coupons appeal only to the lowest quality
of customer. If you're going to offer a bargain,
do it openly. Your best customers--the relational
ones--will be offended by the idea that some customers
pay a higher price than others.
Strategy #2: Feature
an item with a powerful story
The quantity of customers generated through this strategy
will be less than when using the loss-leader strategy,
but they'll be a better quality of customer. The keys
to this strategy are:
You must find an item with a powerful story, then
You must find a writer capable of telling that story
well.
Again, the effectiveness of the ad can easily be
tracked through sales of the item and/or a general
increase in customer count.
Both strategies 1 and 2 must be limited-time offers--"While
supplies last" is always a bad idea. You must
name a specific calendar date when the offer will
expire and then be sure you have enough of the promotional
item in stock to satisfy every inquiry. "Limit
1 per customer" is usually okay as long as
it's plainly disclosed in the ad.
Strategy #3: Plant a
word-flag in the ad
A word-flag is an unexpected, memorable name, word
or phrase that customers will voluntarily mention
in their efforts to be friendly or to "connect"
with you. For example: I once ended a radio ad by
having an unintelligent-sounding caller call the store
and ask, "How much should a hamster weigh?"
The flustered clerk responded by saying he wasn't
sure. To which the caller replied, "I got one
that's up to 72 pounds! You think maybe it's a wolverine?"
Customers were smiling and asking, "Where do
you keep those 72-pound hamsters?" for several
months after that radio schedule had expired.
Another ad campaign explained the unusual childhood
of "Little Freddie," the owner-operator
of an obscure Mexican restaurant. Fred had never
actually been called "Little Freddie"
in his life, but a few hours after the ad campaign
was launched, new customers were asking, "Are
you Little Freddie?"
"Fat-bottom diamonds" was the word-flag
planted for a jewelry store. Within a few weeks,
dozens of customers were asking every jeweler in
town, "This isn't one of those fat-bottom diamonds
is it? I wouldn't want one of those." The downside
of the word-flag strategy is that is produces less
immediate traffic than strategies 1 or 2, but usually
of a higher quality. The customers responding to
word-flag ads will be coming to you because they've
decided they like you. Note: It's not a word-flag
to say, "Mention this ad and receive a 20-percent
discount." Those ads will only make you seem
unfocused and desperate.
Is it possible to combine one, two, or even all
three strategies in a single ad? Yes. But you've
got to have a brilliant ad writer.
Do you?
Roy William's is Entrepreneur.com's "Advertising"
columnist and the founder and president of international
ad agency Wizard of Ads. Roy is also the author
of numerous books on improving your advertising
efforts, including The Wizard of Ads and Secret
Formulas of the Wizard of Ads.
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