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Guerrilla marketing is achieving traditional marketing goals in untraditional manners that utilize energy, creativity, innovation, information and technology instead of "carpet bombing" techniques that are costly and have lost of waste. Accelerated Advertising located in Nanuet, New York, has always been dedicated to... Read More
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How & Why Tracking Your Advertising Is One Of The Best Investments You Can Make Part 1

Posted: August 24th, 2011 | Author: garlick | | 1 Comment »

Track Your Advertising and Marketing And
Get Your Business Where You Want It
Faster And For Less Ad Dollars!

 

The first reason you track your advertising and marketing is to determine your ROI (return on investment).  However, this is the beginning of tracking.  Once you have established the advertising and marketing vehicles that are producing your best returns both in numbers and in quality you have established benchmarks.  Benchmarks give us targets at which to aim similar efforts and against which to measure results.  Let’s say you have established that a certain direct mail project costs 30,000 to mail every other month for a year (or $5,000 per mailing).  Let’s say this projects targets your profitable niche markets (“sweet spot”) and produces a 0.5% return with a close rate of 30% and the average sale is $10,000 with a profit margin of 35%.  If we were mailing 5000 pieces every other month we would be generating 25 leads every other month and we would be generating 7-8 new customers who would spend $70-$80,000 and produce $24,500 – $28,000 of profit every other month.  Without tracking we would never know that the investment of $5000 every other month is producing a return of $4.90-$5.60 for every dollar invested. Without tracking $30,000 can become a big number to “save” because the accountant is always telling you to cut costs…  However if your accountant saw the data generated from tracking, he’d tell you that you need to continue and that you would be nuts not to.  Tracking gives you the tool to make advertising a measurable investment rather than “closing your eyes throwing the dart and hoping”.

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Stay tuned for Part 2 in this series

One Comment on “How & Why Tracking Your Advertising Is One Of The Best Investments You Can Make Part 1”

  1. 1 how much house can i afford said at 11:28 am on September 18th, 2011:

    i love your blog, i have it in my rss reader and always like new things coming up from it.


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