One of the classic quotes from the world of business is attributed to John Wanamaker:
Half the money I spend on advertising is wasted; the trouble is I don’t know which half.
I’m guessing this is a familiar refrain for many business owners. It’s easy to spend money on advertising, whether it’s in the community paper, the local daily, radio, or online. Wouldn’t it be nice to have a gauge that you could use to measure the effectiveness of that advertising?
But before I give you a few tips, a couple of theoretical points to address. First, it can take multiple exposures to a message before people will act on it — or even notice it. This is called, in the business, “effective frequency.” So don’t think that you can simply run an ad, and based on that one exposure, people will flock to your business.
Second, advertising plays a different role for businesses at different stages of their lives. Al Ries, a renowned brand strategist, characterizes it this way: “PR creates brands; advertising defends brands.” So if you’re a new business, you might be focusing your efforts more on the PR side. If you’re an established, mature business, advertising may be taking a more prominent role.
So once you have a strategy in place and understand the role advertising plays in it… how can you tell if you’re wasting your money? There are some simple things you can do:
- Track online. QR (Quick Response) codes are those square barcodes you see on ads, posters, and the like. If you use QR codes in your advertising, you can track how many times those codes are scanned. Even if you don’t use the QR codes, utilities like bit.ly offer similar abilities to track clicks (By the way, bit.ly will generate QR codes that you can use too). And plan out what your call to action will be. Don’t just send people to your website — create a specific page to point them to. Then you will know by traffic if your message is getting through.
- A/B testing is your friend. This may sound a bit intimidating. But the concept is simple. Don’t just run one ad. Run two, with a variation in imagery, copy, and the like. Then use the tracking tools mentioned in tip 1 to look at which one is performing better. The easiest place to do this is online, using platforms like Facebook Adverts or Google Adwords, but you can do similar things with other forms of media, like print or direct mail. And it’s particularly important to do this when using Facebook ads, which according to online marketing smart guy Brian Carter, “burn out” far more quickly than other forms of advertising.
- USE YOUR KNOWLEDGE. All of this stuff is only cool if you use it. Tracking the impact of your ads, measuring A/B results — you need to dedicate the time necessary to understand what the numbers are telling you.