Gary Getto: August 2009 Archives

Advertising. Public Relations. Marketing. Investor Relations. Employee Communications.

Each function working independently with little interest or concern for the efforts of their colleagues has been the business norm for years.  But I think I hear the proverbial fat lady singing!.

New integrated communications dashboards and new data showing the impact of Public Relations on the effectiveness of paid advertising are beginning to demonstrate how much money marketers are leaving on the table by not integrating their activities.  But as significant as these changes are, what may be having more impact is the emergence of social media.  The need for cohesive messaging and two-way communication with stakeholders is becoming more urgent for each of the traditional silos. Integration and collaboration among departments seems unavoidable.

Technology is clearly the catalyst for achieving a fully integrated communications strategy.  Integrated communications tools provide visibility to valuable data "owned" by multiple departments, enable sharing of customer and stakeholder data, and results in vastly improved messaging for all stakeholder groups without loss of core brand identity.

The fragmentation of media and the multiple vehicles for communicating will continue to put pressure on old ways of doing things. Marketers won't be able to cope without new tools that provide access to traditional media and social media, as well as insight as to how these impact our paid communications investments and enable us to best reach our customers and stakeholders.

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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.

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