Tracking Offline Advertising Success by Measuring ROI  

Tracking Offline Advertising Success by Measuring ROI   by Stone Evans, The Home Biz Guy

The great promise of online advertising has always been that

advertisers will now be able to effectively track the successes

and failures of their online advertising efforts. This promise

has been met.

Yet, for those of us who still employ offline promotions and

advertising methods, we must consider the various ways in which

we can effectively track our results in the old-world media.

TRACKING RESULTS BEFORE THE INTERNET AGE

How long has it been? Ten Years? Believe it or not, it has been

less than ten years since the Internet went mainstream.

Companies still utilize the same methods to track results as

they did before we laid our hopes on the Digital Superhighway.

TV advertisers ask you to call extension X. Radio advertisers

offer you additional savings if you tell them you heard it on

XYZ radio station. In newspapers and magazines, advertisers

suggest you clip the attached coupons.

Why do you think advertisers employ these tactics?

Simple. They need to know what advertising is bringing customers

in the front door and to their cash register.

By understanding what advertisers are bringing them customers

and dollars, they have a better understanding of where to spend

their next wave of advertising dollars. Additionally, they can

do a side-by-side comparison of their Advertising Return on

Investment (ROI) to determine which method brings them the most

percentage of return per dollar spent.

UNDERSTANDING HOW WE SHOULD MEASURE

The truth is that we really do need to know how people are

deciding to visit and buy from our business establishment.

Some consider this idea silly or even a waste of their valuable

time. Far too many people, who think of tracking in this

fashion, end up searching for a job at some point in their

future. Unless pure dumb luck is on the side of the business

owner, a business simply cannot survive if it does not track the

effectiveness of its advertising.

Somehow, some way, a business owner or his marketing staff must

look at their advertising and promotion budgets, and look at

their advertising mediums and find a way to know which is doing

the job for them and which is not.

DISCOVERING WHAT MOTIVATES OUR CUSTOMERS

Somehow, we must get our customers to tell us how they found us

and what ad motivated them to come in and purchase our product

or service.

Everyday, businesses motivate their customers to tell them how

they learned of them by having the customer call a certain

extension, offer them an additional discount to tell them which

advertisement they had heard, or to offer them a coupon to use.

Others motivate their customers to tell them how they had

learned of their business by offering a very specific product in

their advertising. They know that if someone shows up at their

business to buy a certain product, then they will know how the

person had heard of their business.

This is why you should make your radio advertising focus on a

different promotion than your newspaper advertising. Different

mediums should focus on different leader pieces so that you can

see which medium provides the best results.

UNDERSTANDING WHY WE SHOULD MEASURE RESULTS

We measure advertising results so that we can learn how to not

waste our money and to learn how to get the most bang for our

advertising dollar.

Return On Investment or ROI is the key measurement utilized to

determine the value of our advertising.

It is best to show in an example how ROI is measured.

Cost of Newspaper Advertising: $150

Number of Items Sold As a Result: 60

Retail Price of Individual Item: $ 10

Profit on Individual Item: $ 3

Gross Income on Items Sold: $600

Gross Profit on Items Sold: $180

In this example, you have spent $150 to make $180. Your ROI is

120%.

Cost of Radio Advertising: $ 300

Number of Items Sold As a Result: 50

Retail Price of Individual Item: $ 20

Profit on Individual Item: $ 6

Gross Income on Items Sold: $1000

Gross Profit on Items Sold: $ 300

In this example, you have spent $300 to make $300. Your ROI is

100%.

Utilizing these two examples, you can quickly discern why and

how we are calculating ROI.

Now, some people would consider both to be good investments of

their advertising dollars. In fact, many believe that so long as

their advertising generates enough sales to break even as the

radio example did, then they consider the investment to have

been in their future rather than their present. So long as you

do not lose money on the transaction, then you should at least

be willing to continue with the advertising medium that was used.

However, over time, you might find that the newspaper

advertising will continue to provide the 120% ROI. If that is

the case, then your newspaper advertising should take more of a

center stage in your advertising efforts so that you can develop

more profits which can be used to increase your dollar

investment into your advertising.

WELCOME TO THE WORLD OF TRACKING YOUR OFFLINE PROMOTIONS

With this introduction, you should now have available to you the

knowledge necessary to introduce tracking into your marketing

efforts. Those who take the time and effort to advertise and

track their results will benefit more than you can imagine.

Truth be known, a single person with a dream today started every

big corporation in the world many years ago. Each of these

corporations grew from a fledgling operation to a economic

powerhouse by tracking and tweaking their Advertising ROI.

Every corporation and small business who will remain in business

through the long term will be tracking their advertising and

promotional efforts today. It is an investment into their future

success. If you make the same kind of investment of time and

cash resources, you too will be making an investment in your

future success.

•How to Calculate ROI (Return on Investment)  
How to Calculate ROI (Return on Investment)   by Stone Evans, The Home Biz GuyROI (Return on Investment) is probably the most important calculation one needs to make to ensure the long-term viability of their business. It is not enough to build in a profit margin on the product or service being offered. One must track with proficiency the amount of dollars being invested into attracting sales and how much ROI those dollars put back into the business. If the investment meets too little return,...

•How to Measure Advertising Success Online  
by Stone Evans, The Home Biz GuyIt is easy for me to tell you that you need to track the success of your online advertising. It is also easy for me to tell you that you must do so in order to know which of your advertising is helping you to make a profit, to break even, or to break the bank. Far too many advertisers get caught in the online money pits in an effort to develop their online business.DON’T BE AFRAIDI also know that when I say these things, some people get spooked. People get...

•How to Maximize the Value of Your Time
   by Stone Evans, The Home Biz GuyHow is your business doing? Is it growing, stagnating or losing ground? If your business is not growing, it could be the result of a poor business idea or plan, a lack of advertising, or the mismanagement of your business’ resources.Let’s face it. Running a successful business enterprise is not the easiest thing to accomplish.Your struggles could be the result of factors beyond your own control or factors within your control --- your own actions and...

•Promoting Your Business with Copper Wire? Think Again.
Promoting Your Business with Copper Wire? Think Again.   by Stone Evans, The Home Biz GuySo many people launch their first or second business with the misconception that they can survive without advertising. It is their fear of failure that almost single-handedly assures their failure. They fear spending the money that they need to get and keep their business running during those early years of their operation.Let’s face it, when you start in business, money is usually pretty darn tight. So,...

•How to Stay Focused on Your Home B.usiness Goals   
by Stone Evans, The Home Biz Guy====================[ Advertisement ]======================== Build Your OWN, Money-Making Website in 24 Hours or Less With NO HTML, NO tech, NO design skills! It's easy as pie!Website Wizard is the complete set of 20+ web-building tools. Finally, a PROFITABLE website is *at hand*. Domain name included! Try it F'REE! >> http://WebsiteWizard.com/ar/ =============================================================Hi John,I hope you're having a great day! Remember to...

• Don't Forget About Offline Advertising  
• TRACKING YOUR ADVERTISING  
• The Secret Methods of Tracking Your Advertising  
• 10 Steps to Advertising Success  
• Ask Mr. D - On Tracking Ads  
• Ad Writing And Tracking: Tips n Tricks  
• What Advertising Can and Can't Do For You  
• What Is Advertising?  
• Ask Mr. D - Advertising  
• Insights to Advertising  

• Interested In Scofield Farms Real Estate?
• The 3 C’s Of Sterling Silver Earrings?
• Wallpaper Removal Tips 101
• Removing Negative Items From Credit File
• Spanish Property? Declare It!
• How To Locate Wholesale Properties
• Exploring Unique Ways To Make Money At Home
• The 789 Chevy Is One Cool Car
• Visiting Germany
• Plastic Benches - Not All Are Created Equally, So Don't Go Cheap.
• Pros And Cons Of Using A Head Halter
• End Tables - Not For Everyone, But Everyone Could Use Them
• Indoor Wooden Benches - Add To The Home Decor Before Your Next Family Gathering
• Jennifer Lopez's Astrology Analysis - It's All In The Stars
• Term Life Insurance With Return Of Premium
• The Use And Pleasure Of Indoor Water Fountains
• Online Certification
• Chiropractor College
• The Golf Putt | Are You For Dough Or For Show?
• Nights Out In Dunfermline, Fife