How to analyze the effectiveness of an advertising campaign

Properly and in accordance with all the rules, an advertising campaign can significantly increase the financial performance of the 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.

Instruction manual

1

Begin the analysis by bringing together data on market factors that could influence the outcome. Remember that there is no universal method for evaluating the effectiveness of advertising activity, since it is rather difficult to establish exactly the influence of one or another factor on an advertising campaign.

2

When analyzing the objectives and nature of the advertising company. Image advertising has other goals and final indicators than advertising aimed at expanding sales of products. Evaluate the number of tools used in the promotion, as well as the features of the promotion channels (print media, television, radio, mixed channels).

3

Prepare data on predefined performance indicators. This may be an increase in the number of new buyers of the product, the cost of one advertising display, the cost of contact with the audience. When calculating indicators, proceed from the statistical error of the research results that you have accepted. Clearly separate the economic performance indicators and the effectiveness of the psychological impact of the promotion, expressed in the level of consumer awareness of the advertised product.

4

Use objective indicators as campaign performance indicators, such as sales volume and its dynamics, the number of new customers (relative to their total number), the level of product awareness before and after the advertising campaign.

5

To calculate the cost-effectiveness of an advertising campaign, evaluate those indicators that reflect the company's profit and its trade 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 - increase in 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.

6

Calculate the economic effect of advertising using the formula:

E = (Td * Nt / 100) - (U1 + U2), where

E - the economic effect of advertising (p.);

Td - additional turnover after an advertising campaign (p.);

Nt - trade margin (as a percentage of the selling price);

U1 - total expenses for an advertising campaign (p.);

U2 - additional costs (p.).

7

Rate your advertising campaign profitability:

R = P * 100 / U, where

R - profitability (%);

P - profit from product advertising (p.);

U - the cost of an advertising campaign (p.).

8

If individual promotions were conducted for several types of products, calculate the above indicators for each of them. Formulate the obtained results in the form of a report, providing it with a description of the advertising company and conclusions on how effective the marketing activities were.

• “An Effective Advertising Campaign, ” E. Farbey, 2003.
• "Receptions of advertising and Public Relations", I.L. Vikentiev, 2002.