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Tag Archives: ROI

How Many Times Should I Advertise?

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dans Database Marketing, Marketing Strategy

I’ve been thinking alot about this question, as some who are new to direct marketing have a hard time understanding the time-tested methods that result in positive return on investment.  It might be a generational or technological culture of instant gratification that makes us want to see our first marketing campaign rake in the dough.  It might even be the direct marketing companies that tempt those new to the field with the DMA’s latest ROI metric (and if you haven’t heard it, it’s essentially “For each $1 spent on DM advertising, it results in $10+ of ROI”).  I just feel it needs some more context, to put it in the correct light.

If you send only 1 Ad / Impression, then Give Away the Farm

First off,  most marketing campaigns require more than 1 touch. (If you haven’t heard the term “touch”, touch = impression = ad; but it can also be a phone call or other interaction.)  In fact, marketing campaigns require multiple touches over time to a given customer before they’re ready to buy – just think of any relationship you’ve made in the past – you’re more likely to buy from someone who you’ve had multiple interactions with, than someone you’ve met for the first time (given that choice).  The only exceptions to this marketing rule, are in those cases where a product or service is incredibly cheap or incredibly scarce.  In terms of offers, think $10 round-trip airfare specials  or a seller with an experimental iPhone not available to the public…. you get the picture.

Most of Us Like Balanced Offers

However these extreme types of offers are the exception, not the rule. Most marketing campaigns balance an offer with a description of marketing features/benefits.  Consequently, both your brand (if you have a new/unknown brand) and your specific offer needs time for consumers to recognize the brand, then hone in on your exact message.

Many clients ask – how many times do I send out my mailing / advertisement?  This question is relevant across marketing disciplines, whether you use TV, Radio, Direct Mail or any other outbound method.  I get the sense that most people are looking for a definitive number – an absolute truth in marketing that they can rely on, to do the marketing for them.  It’s good then that people step up to the plate:  some advertising students say 5 impressions is required,   Creative Directors say 8 impressions, and others say 27 times.  I’m glad they step up with these firm numbers, as I am not sure I would ever float a definitive number, because it really depends on all the demographic and psychological factors that go into a specific brand & offer  being marketed to a specific audience.  Even the proponents of the renowned professor John Philip Jones who asserts that in the end, a single ad impression can influence a buyer, have to consider the observable, historical fact, that “enough concentration of media weight” must be placed to that buyer, for it to cross the necessary threshold with her for a purchase decision.  So for many campaigns, this means that one impression won’t cut it.

O.M.G. – Is this going to be a drain on my marketing budget?

Most companies see ROI fairly quickly if they know how to approach their campaign.  Instead of asking “How many times do I send out this ad?”, it might be better to ask “How many minimum touches do I need to send in order to start seeing returns?”  This takes into account all the factors that I mentioned above.  Your ROI trendline will probably look more like a bell curve anyway, so expect that there will be a ramp up period and a period of ongoing positive returns that will make up for the startup cost of branding your impressions on a given audience.  Just make sure you send out your ads for repeated impressions.

Your 5th Ad should not be a Clone of your 1st Ad

I cannot tell you how many times companies take it for granted that they have designed the best possible piece  – and never consider improving it as they go along.  Do research on how to do A/B Testing  (sometimes called Split Testing). The same audience demographic should be getting two different versions of your ad.  Pay close attention which performs better.  Typically you need a large mailing to prove statistically which one wins, but even if you do two small mailings side by side – if you get zero responses from one and 7 from the other, I think you can feel secure to judge a winner.  (Caveat: there may not always be a winner).  The point is that you are increasing the effectiveness of your ad in measurable ways, and by the 6th, 7th, or 8th impression your piece will have matured enough to make the appropriate impact with your prospect.

As a closing thought to the number of times one should advertise – in most cases if your campaign is a direct order campaign, and you can link positive ROI from one of your “Nth” mailings, then watch that ROI percentage closely.   That metric will tell you better than any marketing veteran when to stop advertising.   If you’ve sent out your 20th mailing and there is still positive ROI from the marketing campaign, then ask yourself – is there any reason to stop?

Data, Data and Oh Yeah, More Data

1
dans Database Marketing, Integrated Marketing, Marketing Strategy

In the midst of outlining strategy for a new marketing campaign and summarizing the metrics I need to track on said campaign, I happened across an interesting article on adage.com, The Case for Less Data and More Vision.” Near the end of the article, the author, Jonathan Salem Baskin writes,

We need to stop embracing the latest variable or dashboard VU meter and demand a better, bigger, more thoughtful perspective on how to measure the ways marketing outreach meshes with consumer needs and expectations.

His statement confirmed my direction on the true goals of my upcoming campaign – to capture relevant market data, giving me a clear picture of the challenges that my prospective clients are facing, creating a relationship with said prospects based on their terms and needs, and adding them as a new customer by selling them a direct marketing solution that works…well, for THEM.

We too often get caught up in tracking numbers – hits, clicks, usage – and forget the main reason we are in business: to truly understand the client and customer challenges, needs and business goals by asking key questions; thereby increasing sales.

Imagine if you had data on an individual, not just a name and address, but what they are challenged with in their businesses (for BtoB). Your direct mail and email campaigns would take on a new light. They’d be personalized and relevant.

Ultimately, we should all develop better technologies, products and services that meet those relevant needs and see an increase in repeat sales — a metric worth tracking.

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Is Email Marketing The ROI King?

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dans Email Marketing

Ran across an interesting article in which a VP at Exact Target says that email marketing has the best ROI of any direct marketing method.

The article does make the point, rather subtly, that email has the best ROI when it’s done right.  I would have made that more clear.  Blasting out email for any address you can get your hands on won’t have a decent ROI, but sending relevant emails to people who want to hear what you have to say is very effective.  That’s the key: be relevant and send to people who want to hear from you.

Driving Online Conversations

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dans Integrated Marketing

Eric Cosway talks about various techniques in using personalized direct mail to drive customers to a company’s online presence, including Facebook and Twitter, to engage them in an ongoing dialogue and track the results.
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DMA 2009 and Optimizing Direct Mail

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dans Direct Mail Marketing, Marketing Strategy

Eric Cosway, CMO of QuantumDigital, talks about this year’s DMA conference and optimizing direct mail.

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