Cyndy Grimes: There is a point of diminishing returns. That means that if your ad budget is $15,000 and you are doing $300,000 in gross sales, you can not expect that a $30,000 budget will generate $600,000 in sales. The question becomes if you spend that extra $15,000 will your increase in PROFIT (not sales) offset the increase in costs. Your ad reps can provide some information, but since every business and all advertising has so many variables, the only way to really know is through closely tracking what you do, what's effective and what's not for your store over time. If your ad rep says they can increase your sales, tell them to put their money where their mouth is... link the amount you spend on the ad campaign to the increase in sales. If you are doing $300,000 and the TV station says they can increase your sales to $400,000 with a $20,000/month campaign, agree to pay $10,000 if your sales stay at $300,000, and increase their payment proportionately to your incre! ase in sales. If you hit $400,000, pay them the full $20,000....Show more
Phil Kuarez: Your advertising vendor likely has data on the market results of their service. For example if you do radio ads the the radio station should have data that shows the number of listeners, demographics etc. Putting a hard number to the results of a particular campaign may be quite hard. Maybe you can look at increased traffic following a campaign and start collecting your own data.
Stan Conley: Try google adwords or yaoo PPC.. It will bring you targeted visitors thereby you can incrase your sales
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