Entries tagged with “Ad Index ROI Advertising” from An Integrated Perspective

Perhaps the reason we have difficulty determining ROI from our advertising investments is because we tend to view all ads as if they are equally effective.

 

You only have to watch a dozen TV commercials or leaf through a dozen magazine ads to confirm that all ads are not created equal.  The chart below shows just how differently ads perform to create brand awareness, generate a call-to-action, or communicate a benefit.

image blog 10.JPG

As we currently evaluate ROI, if each of the ads in the graph above received the same ad spend we would expect each to have an equal impact.  The reality is that the Ad Index is a good predictor of how much impact each ad will have and those with a higher Ad Index will be far more impactful than those with a lower Ad Index.  Weighting ad spend by an ad index based on the effectiveness of the creative is a significant advance in calculating ROI.

Since often it is not just your advertising investment, but also that of your competitors, you need to know competitive ad spend for each creative and the effectiveness of each competitive ad.

 

While challenging, following this approach promises to make a real difference in understanding the impact of our communications investments.

| | Comments (0)