An advertising campaign carried out correctly and in accordance with all the rules can significantly increase the financial performance of an enterprise. In order to adjust future promotions and amend the marketing plan, it is necessary to analyze the effectiveness of the advertising campaign. Such an assessment is an indispensable component of the marketing activities of the advertiser company.
Instructions
Step 1
Begin your analysis by bringing together data on market factors that may have influenced the bottom line. Remember that there is no universal method for assessing the effectiveness of advertising activities, since it is rather difficult to accurately determine the influence of one factor or another on an advertising campaign.
Step 2
Consider the nature of the advertising campaign when analyzing the problem. Image advertising has different goals and endpoints than advertising aimed at expanding product sales. Estimate the number of tools used in the promotion, as well as the features of the promotion channels (print media, television, radio, mixed channels).
Step 3
Prepare data on predetermined performance indicators. This can be an increase in the number of new buyers of a product, the cost of one ad impression, the cost of contacting an audience. When calculating the indicators, proceed from the statistical error of the research results accepted by you. Clearly separate the economic indicators of effectiveness and the effectiveness of the psychological impact of the promotion, expressed in the level of consumer awareness of the advertised product.
Step 4
Use objective metrics as campaign performance indicators, such as sales volume and its dynamics, the number of new customers (in relation to their total number), the level of product awareness before and after the advertising campaign.
Step 5
To calculate the economic efficiency of an advertising campaign, evaluate those indicators that reflect the company's profit and its sales turnover. To do this, use the formula for calculating additional turnover:
T = (T1 * P * D) / 100, where
T - turnover after the advertising campaign;
T1 - average daily turnover for the period preceding the campaign;
P is the increase in the average daily turnover for the period after and before the campaign (%);
D - the number of days taken to estimate the turnover in the period before and after the advertising campaign.
Step 6
Calculate the economic impact of advertising using the formula:
E = (Td * Nt / 100) - (U1 + U2), where
E - the economic effect of advertising (p.);
Td - additional turnover after the advertising campaign (p.);
Nt - trade markup (as a percentage of the selling price);
U1 - total costs of the advertising campaign (p.);
U2 - additional costs (p.).
Step 7
Estimate the profitability of your advertising campaign:
R = P * 100 / U, where
R - profitability (%);
P is the profit from advertising the product (p.);
U is the cost of the advertising campaign (p.).
Step 8
If individual promotions were carried out for several types of products, calculate the above indicators for each of them. Fill out the results obtained in the form of a report, providing it with a description of the advertising company and conclusions about how effective the marketing activities were.
