Measuring Effectiveness of Traditional Advertising
In the article “Benefits of Traditional Advertising“, I touched upon some of the key benefits of Traditional Advertising. In this article, I will try to cover some simple ways you can use to measure effectiveness of your Traditional Advertising efforts. Although there are many parameters one could use to measure and analyze a marketing campaign’s effectiveness, one of the most widely used parameters are number of audience reached, conversion rate, and overall sales generated from the campaign. Let’s see how these parameters can be estimated (and if possible, measured accurately) in a Traditional Advertising Scenario.
Estimating Number of Audience Reached in a Traditional Advertising Scenario
One of the key challenges posed by Traditional Advertising is estimating number of audience the campaign was able to reach out to. Unlike online campaigns, there is no full-proof way to determine how many people actually saw the Ad in the news paper, or listened to the commercial on the radio, or opened that mail-in-coupon you sent them, and so forth. You can get circulation numbers of most major publishers in the United States from trusted authorities such as the Audit Bureau of Circulations, but then what about all those (still legitimate but smaller) publishers out there who haven’t been accredited by any such trusted authority? Furthermore, such trusted authorities would be able to provide you only basic circulation numbers based on past data and surveys. Hence, first off, the data will still be an “estimate”, and secondly, it would be still hard to find out how many people actually saw your Ad.
There is no perfect way to solve this problem. Here’s what you can do though: Try as hard as possible to get the right circulation numbers from your publisher. But wait, these are just the “circulation numbers”. This won’t give you an idea of how many people actually saw your Ad. For example, if the daily circulation of a news paper is 100,000 per day, that doesn’t mean that all those 100,000 people would have viewed your Ad. So work with the publisher to get the circulation numbers of the sections in the news paper where your Ad was posted. For instance, most accredited news papers would not only tell you their overall circulation but also would be able to give some fair idea around the number of people who read the sports section or the job openings section, etc. If Circulation Analytics is not your forte, take help from some company who’s good at it and have them do the correct estimation for you. Keep in mind that having correct analytics is just as important as running the right campaign and coming up with the right marketing message. Otherwise you’d never know exactly which campaign really worked for you and which one didn’t.
Measuring Conversion Rate
The next important parameter in any Marketing Analytics is the conversion rate; in other words, from the number of audience to whom your campaign reached out to, or who actually viewed your campaign, how many actually initiated some sort of dialog with you. This could be as simple as going to your website, or giving you a phone call, or writing to you via email. Again, this is very simple to do in the online advertising space; Not so much in the offline and traditional advertising though. However, the good news is that unlike the problem of estimating number of audience (as mentioned above), this problem is much simpler to solve.
Here’s what you can do to measure Conversion Rate in your Traditional Advertising Effort: Make sure to tie all your Ad Creatives with some key code so that you can later collate the responses received from your campaign. For instance, if you are running an Ad in a news paper, make sure to add a key code that is not only specific to your campaign, but also to the news paper. For example, a Christmas Holiday Promotion to be listed in The Wall Street Journal could use a key code XMASWSJ, and say XMASSMN in the San Jose Mercury News. That way, when the visitors would use the key code (either by telling it to the sales representative they called, or by typing it as a coupon code on the website), and you’d be able to track the conversion rate. The same can be used as a parameter in the Redirect URL and tracked accordingly.
Accurately Finding Sales Generated From a Traditional Advertising Campaign
The challenges and implementation methods for this are similar to the Conversion Rate Problem as discussed in the section above. Since offline and traditional marketing campaigns typically rely on a call to action method instead of a click to action, the onus of keeping the Sales CRM up-to-date and accurately capture sales falls in the hands of sales representatives. This means that your sales representatives must be aware of the promotions that are running at any moment, they must know how to tie an incoming lead against the right campaign and the publisher (for instance perhaps by using the key code as discussed in the previous section), and they must understand the importance of adding the right information in the Sales CRM system. This might also mean investing in the right set of tools and technologies (perhaps the right set of Marketing Automation Tools).
In the US alone, businesses are estimated to spend around $120 Billion each Year on Traditional Advertising as compared to around $30 Billion a Year on Online Advertising methods. Of course Online Advertising methods are rapidly growing each year, and one of the main reasons of that is the fact that they can be tracked and measured much more easily, and hence “proven” to be better than Traditional Advertising methods. But is that really the case? If there were processes and methods to measure Traditional Advertising methods as effectively, would businesses continue using them? What do you think?
February 27, 2012 at 9:00 am Comments (0)




