What?s the Score? > NetSparsh - Viral Content you Love & Share

Home
>
Advertising
>
What?s the Score?

What?s the Score?

You may be aware that in a basketball game the assistant coaches keep an almost unending list of personal statistics for each player. Rebounds, assists, points, minutes played, etc.

Why is that?

Because they know that these individual statistics all add up to the bottom line.

The final score.

If they can achieve even a small incremental improvement in these individual statistics for each player this will have a compound affect on the final score.

And of course, it helps them know which players to give the most playing time too.

In marketing your business you should be just as disciplined. Which products and which ads and which media should you give the most playing time? Do you know?

What's the point of designing and implementing an advertising campaign if you don't know if it worked or if it was better than the last one?

What a waste.

How do you know where the best place is to spend your advertising dollars?

By tracking everything.

Incoming calls, emails, walk-ins, website visitors, etc.

Train yourself and your staff to always ask these questions. Where did they come from? How did they hear about you? Which ad did they call on?

Here is an example: Let's say you place a classified ad in the newspaper at a cost of $135.00 offering a free report on your product. You could track the incoming calls in many ways (for instance by directing them to a free recorded message with a unique extension number or simply by asking them where they heard about the offer when they call).

Let's say you receive 12 calls on this ad and 2 of them end up as completed sales.

What is your cost per prospect?

(Cost of Ad) / (Number of Calls) = Cost Per Prospect

$135.00 / 12 = $11.25

Your cost per prospect is $11.25

What is your conversion rate of prospects to sold clients?

(Number of Sold Clients) / (Number of Prospects) = Conversion Rate

2 / 12 = .17 (or 17%)

Your conversion rate of prospects to sold clients is 17%

What is your cost per sold client?

(Cost of Ad) / (Number of Sold Clients) = Cost Per Sale

$135.00 / 2 = $67.50

Your marketing cost per sale is $67.50.

Now let's say you place a display ad in a large local corporate newsletter and it costs you $450. You get 27 calls which turn into 4 sales.

Which ad is performing better?

What is your cost per prospect for this ad?

(Cost of Ad) / (Number of Calls) = Cost Per Prospect

$450.00 / 27 = $16.67

Your cost per prospect is $16.67

What is your conversion rate of prospects to sold clients?

(Number of Sold Clients) / (Number of Prospects) = Conversion Rate

4 / 27 = .15 (or 15%)

Your conversion rate of prospects to sold clients is 15%

What is your cost per sold client?

(Cost of Ad ) / (Number of Sold Clients) = Cost Per Sale

$450.00 / 4 = $112.50

Your marketing cost per sale is $112.50.

Depending on your products and profit margin both of these ads may be performing well enough to merit continuation. However, based on this information we would want to look for other opportunities to expand our use of the classified ad first.

This may seem a little basic but this information is extremely valuable and often overlooked.

The outcome of most athletic contests is normally decided by a very small margin, sometimes by as little as tenths of an inch or hundredths of a second, missing that pass completion by half a step or missing one basket.

One would suspect that most winners and losers in business are also determined by very small margins.

Not giving that extra little bit of caring and customer service. Not having your presentation skills honed, not including testimonials with your sales information. Not having the most effective headline in your ad or not having a headline at all.

And worst of all, not knowing which ads are working and which should be put on the bench.

"If at first you don't succeed, try, try again. Then quit. There's no use being a damn fool about it." - W.C. Fields

Shawn Meldrum has spent the last two decades marketing everything from almonds to landscape lighting. He currently specializes in marketing for mortgage brokers, loan officers and real estate agents. For free mortgage marketing articles and much more visit: http://www.MortgageMarketingTips.com/

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Reuters
Facebook removes accounts advertising stolen identities
Reuters
(Reuters) - Facebook Inc has removed a number of accounts and pages that advertised and sold social security numbers, addresses, phone numbers, and alleged credit card numbers of dozens of people, following a report by news website Motherboard. FILE ...

and more »

Business Insider
What you need to know in advertising today
Business Insider
Google-parent company Alphabet topped Wall Street targets with 23% revenue growth in Q1, but the better-than-expected performance was not enough to allay worries about rising expenses and the most significant risks of a regulatory clampdown the company ...
Google's Parent Company Spends Like It's Thinking of a Future Beyond AdsNew York Times
Google Parent Alphabet's Earnings Beat Expectations, Investors Still Worry About Advertising Outlook, Gov't ...Deadline
Google CEO tells investors not to worry about Europe's upcoming privacy rulesCNBC
Alphabet
all 463 news articles »

Texas A&M The Battalion
Developing professionalism in advertising
Texas A&M The Battalion
From promoting the logistics of advertising to developing members individually, Aggie Advertising Club (AAC) provides first-hand education and professionalism in advertising. AAC, founded in 1995 at Texas A&M, is a student chapter of the American ...

AdExchanger
Mobile Performance Advertising Is Broken. Here's How To Fix It
AdExchanger
"Data-Driven Thinking" is written by members of the media community and contains fresh ideas on the digital revolution in media. Today's column is written by Maor Sadra, managing director and chief revenue officer at AppLift. In last-touch and last ...

Director of Advertising
Publishers Lunch Deluxe
W. W. Norton & Company is seeking a Director of Advertising to join its College marketing department. The Director of Advertising will be responsible for directing advertising strategies and analyzing the effectiveness of advertising campaigns. This ...

Seeking Alpha
JC Decaux: Acquisition Or Not, This French Advertising Player Looks Good For Value Investors
Seeking Alpha
JC Decaux SA (OTCPK: JCDXF, OTC:JCDXY) is easily one of the oldest and most established companies within the outdoor advertising space. The management has grown its international footprint over the years beyond its core market of Europe to emerging ...

Chicago Tribune
Reddit to open Chicago office as part of advertising push
Chicago Tribune
To promote the new Audi Sport performance models, Audi and its advertising agency partnered with Reddit to host a live Ask Me Anything session in which actors Adam Scott and Elizabeth Banks took questions from Reddit users as they sped around a race ...

and more »

Business Insider
An advertising executive asked job candidates to apply via text message — and it changed the way he thinks about hiring
Business Insider
Unless, that is, you recently applied for a summer internship via text message at Havas New York — a global advertising company. The hiring campaign — dubbed "Text Me, Harry Bee" — asked internship candidates to text Havas' chief creative officer ...

and more »

Broadcasting & Cable
Viacom Makes Advanced Advertising Deal with Comcast ...
Broadcasting & Cable
Viacom and Comcast said they are teaming up on advanced advertising. A new long-term agreement will integrate Viacom's targeted advertising skill and national reach with technology from Comcast's Freewheel unit and data the on anonymized cable ...
Comcast, Viacom Team on Advanced Advertising EffortsCED
Viacom, Comcast sign advanced advertising pactFierceCable
FreeWheel Gets Bigger Ride Through Advanced Advertising PartnershipRadio & Television Business Report
Viacom Corporate (blog)
all 14 news articles »

Digital Trends
Twitter Bans Kaspersky Lab From Advertising on the Site | Digital ...
Digital Trends
Twitter has banned Moscow-based security company Kaspersky Lab from advertis9ing on its platform due to the company's alleged ties to Russian intelligence organizations. “This decision is based on our determination that Kaspersky Labs operates using a ...
Twitter bans Kaspersky Lab from advertising on its platformFox News
Kaspersky calls out Twitter's Jack Dorsey over ad banCNET
Kaspersky Lab Chief Says Company Banned From Advertising On TwitterRadioFreeEurope/RadioLiberty
BleepingComputer -Twitter for Business -TechCrunch -Reuters
all 95 news articles »

Google News

What?s the Score?

Advertising Advertising