Main Criteria for Assessing Advertising Performance
Posted: Tue Jan 28, 2025 3:42 am
There is no universal formula for calculating the effectiveness of an advertising campaign. The assessment is based on two parameters.
Communication (information) efficiency . This refers to the degree of psychological impact of advertising on consumers, the growth of brand and product recognition, and changes in the audience's opinion of them. Positive results lead to more purchases of the product, including due to the rejection of products from competing companies, and audience loyalty grows.
Economic (commercial, trade) efficiency . In this case, financial indicators such as profit, revenue, sales volume, margin are assessed.
Employees at different levels of the company track the numbers that fall under their area of ​​responsibility, drawing conclusions and reporting to management, which sums up the results, collecting data from different specialists and bringing everything together.
Ordinary marketers analyze the italy email list effectiveness of the advertising itself, as well as the promotion channels used. Managers responsible for the advertising campaign receive the entire volume of information and have the opportunity to assess the full picture, and draw conclusions on the effectiveness of brand and product promotion activities.
2 Main Criteria for Assessing Advertising Performance
For example, employees responsible for placing advertising on radio stations and television use such indicators as channel rating, audience share, audience reach, number of contacts, etc. when evaluating the effectiveness of their work. At the planning stage of an advertising campaign, they will most likely consider the rates of a television or radio channel per thousand contacts or per thousand representatives of the target audience.
As for the press, it is important to evaluate the relationship between the type of advertising module, its location and the final effectiveness of advertising. The module can be of different sizes and located on different pages of a newspaper or magazine. The circulation of the publication and its distribution channels are also important.
When placing ads on the Internet, the ratio of views and target actions is usually assessed. Conversion plays a huge role on the Internet, and it should be consistent: a potential client sees an ad module and clicks on it - gets to the site and selects the product he is interested in, puts it in the basket - makes a purchase.
By performing several actions that were planned by marketers, a person goes from being a representative of the target audience to a real client of the company. The following indicators are important for an Internet marketer: CTR (Click-Through Rate, clickability rate of an ad), CPC (Cost per Click, cost of one click), CPA (Cost per Action, cost of a target action), etc.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Management is interested in such indicators as ROI and ROMI (Return on Investment, Return on Marketing Investment). They demonstrate the return on investment (in the case of ROI, all product costs are taken into account, and ROMI includes only advertising and marketing costs) and other top-level indicators.
An important indicator is CAC (Customer Acquisition Cost), which shows how much it costs to attract one client. Also important is LTV (Lifetime Value), that is, the income received from the client over the entire sales period. It is important to ensure that the cost of attracting a client is acceptable.
All this is especially important in areas where the main income is derived from the sale of consumables and spare parts. Let's say a company provides a coffee shop with its coffee machine for free, but the customer must buy coffee and other materials used to prepare the drink from it on an ongoing basis.
Communication (information) efficiency . This refers to the degree of psychological impact of advertising on consumers, the growth of brand and product recognition, and changes in the audience's opinion of them. Positive results lead to more purchases of the product, including due to the rejection of products from competing companies, and audience loyalty grows.
Economic (commercial, trade) efficiency . In this case, financial indicators such as profit, revenue, sales volume, margin are assessed.
Employees at different levels of the company track the numbers that fall under their area of ​​responsibility, drawing conclusions and reporting to management, which sums up the results, collecting data from different specialists and bringing everything together.
Ordinary marketers analyze the italy email list effectiveness of the advertising itself, as well as the promotion channels used. Managers responsible for the advertising campaign receive the entire volume of information and have the opportunity to assess the full picture, and draw conclusions on the effectiveness of brand and product promotion activities.
2 Main Criteria for Assessing Advertising Performance
For example, employees responsible for placing advertising on radio stations and television use such indicators as channel rating, audience share, audience reach, number of contacts, etc. when evaluating the effectiveness of their work. At the planning stage of an advertising campaign, they will most likely consider the rates of a television or radio channel per thousand contacts or per thousand representatives of the target audience.
As for the press, it is important to evaluate the relationship between the type of advertising module, its location and the final effectiveness of advertising. The module can be of different sizes and located on different pages of a newspaper or magazine. The circulation of the publication and its distribution channels are also important.
When placing ads on the Internet, the ratio of views and target actions is usually assessed. Conversion plays a huge role on the Internet, and it should be consistent: a potential client sees an ad module and clicks on it - gets to the site and selects the product he is interested in, puts it in the basket - makes a purchase.
By performing several actions that were planned by marketers, a person goes from being a representative of the target audience to a real client of the company. The following indicators are important for an Internet marketer: CTR (Click-Through Rate, clickability rate of an ad), CPC (Cost per Click, cost of one click), CPA (Cost per Action, cost of a target action), etc.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Management is interested in such indicators as ROI and ROMI (Return on Investment, Return on Marketing Investment). They demonstrate the return on investment (in the case of ROI, all product costs are taken into account, and ROMI includes only advertising and marketing costs) and other top-level indicators.
An important indicator is CAC (Customer Acquisition Cost), which shows how much it costs to attract one client. Also important is LTV (Lifetime Value), that is, the income received from the client over the entire sales period. It is important to ensure that the cost of attracting a client is acceptable.
All this is especially important in areas where the main income is derived from the sale of consumables and spare parts. Let's say a company provides a coffee shop with its coffee machine for free, but the customer must buy coffee and other materials used to prepare the drink from it on an ongoing basis.