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How to measure the effectiveness of your advertising

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Page 1: How to measure the effectiveness of your advertising

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Page 2: How to measure the effectiveness of your advertising

• These days there are more options than ever before to promote your business, with a

range of offline and digital media competing for your marketing dollars.

• To ensure you’re spending your advertising budget wisely, you need to know which

media channels are performing best for you, by understanding how people interact

with your business, where your leads, calls and sales are coming from, plus which

sources your customers are using at each stage of the purchase journey.

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Page 3: How to measure the effectiveness of your advertising

• Because Kiwis search for products and services in print, online and mobile, you need

to be found across channels, and although we can generalise about which channels

customers are finding you through, ultimately this will be different for every business.

• This is the crucial information you need to know to help you make decisions about

which form of advertising is right for you, and what proportion of your advertising

budget to allocate to each media channel.

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Page 4: How to measure the effectiveness of your advertising

• But before you can get to the point of measuring your campaigns, you need to be

clear about what you want your advertising and media to achieve.

• What are your goals?

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Page 5: How to measure the effectiveness of your advertising

• Not sure? To give you a bit of an insight around how other Kiwi businesses think that

digital helps their business, we asked nearly 3,000 NZ businesses how digital

marketing can help them, and here’s what they said

• Once you know what your business needs to achieve, you can start to implement

measuring mechanisms to tell you whether you’re achieving these goals.

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Page 6: How to measure the effectiveness of your advertising

• We’ll now take a quick look at a few simple methods to measure your advertising

effectiveness and how this can help you make decisions about where to spend your

marketing spend.

These include:

• Call Tracking which is advanced technology allowing you to understand where and

when your calls are coming from. This can be used across your online AND offline

media channels

• And Google Analytics which is absolutely essential to measure visits to your website

and the actions people take once they get there

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Page 7: How to measure the effectiveness of your advertising

• Let’s first take a look at the power of Call Tracking. Use Call Tracking to help plan your

next quarterly or annual budget, by ensuring you’re spending your money where it

counts.

• Let’s have a look at a fictional example to show the value of Call Tracking. If you

receive 25 calls from your one day’s advertising in the newspaper and 130 from a year

long campaign in the Yellow Pages®, you can clearly see which is delivering the most

value.

• But short of asking every caller where they saw your ad, the only way you can

measure exactly what advertising or promotion tool spurred your customer to call is

through Call Tracking.

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Page 8: How to measure the effectiveness of your advertising

• Call Tracking is advanced telephone technology that allows you to monitor and track

incoming calls.

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Page 9: How to measure the effectiveness of your advertising

What can you business learn from this?

• How many calls you received. Once you know how many calls you receive, you can

tally this up with how many quotes you provided or how many queries you answered

and then work out how many are translating into sales.

• Where the call is located. Does your business service a specific local region or are you

looking to expand your service area? This knowledge can help you to see whether you

are advertising in the right suburbs or areas.

• How long each call lasts. If there are common questions being asked in your calls,

you may want to answer these questions on your website in a FAQ section so your

customers can find this out themselves.

• Time or call and any missed calls. This allows you to allocate resource effectively and

ensure there’s someone there to answer calls at the right time. Nielsen research

shows us that in many industries, Kiwis only contact 1 or 2 businesses when finding a

supplier. If you’re not there to answer calls, you could be losing business!

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Page 10: How to measure the effectiveness of your advertising

• One of the best parts about Call Tracking is that you can use this technology to

measure all of the metrics we’ve just spoken about across ALL your media – print and

online.

• By placing different call tracking numbers on each of your marketing methods, we can

track calls from your Yellow Pages® print ad, your website, radio and TV advertising

and even your website and Google AdWords campaigns.

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Page 11: How to measure the effectiveness of your advertising

• If you have a website or other online activity, Google Analytics can provide even more

data to help you with customer insights.

• Google Analytics is essentially a website reporting tool that measures how your

website is tracking.

• It lets you find out more about your customers and improves your return on

investment by measuring your sales and conversions.

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Page 12: How to measure the effectiveness of your advertising

Google Analytics provides a wealth of information including:

Number of visitors to your website each day – see if you have a spike in traffic on

certain days of the week

Number of visitors to each page, in rank order –see which pages of your website are

being viewed by your visitors, and what content they are engaging with the most.

Where your visitors are from – See what countries, cities and towns your visitors are

finding you from.

What device your visitors are using – shows how many people are browsing for you

from a mobile device. Use this to ensure your mobile browsers are getting the best

experience.

Who your referrers are – See what other websites and social networks your visitors are

clicking through from.

Search Keywords – If you have a Google AdWords (paid google advertising) account then

users who find your website through Google will have their keywords saved in your

Google Analytics data; helping you to see what people are searching for.

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Page 13: How to measure the effectiveness of your advertising

• Google Analytics complements your digital media.

• While you focus on other areas of your business, Google Analytics will record and

track everything about your website behind the scenes. Checking and analysing this

information, even once a month, will provide you with all the necessary information

you need to know.

• Use this information to tailor your website and provide a more targeted user

experience. This should eventually prove to be one of your greatest assets in

generating higher conversion rates from your website, and hopefully an increase in

leads and sales.

• Plus Analytics can show you the differences in behaviour between customers viewing

your desktop site and those looking at it on a mobile device, which again will help you

tailor the experience to different consumer behaviour and needs.

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Page 14: How to measure the effectiveness of your advertising

• Google AdWords or Search Marketing is paid advertising on Google’s search results

pages. It’s essentially an auction model that works in real time where competitors bid

against each other to show in competing positions on the search results page.

• The goal is to get people to your website and turn these potential customers into

actual customers.

• In terms of measurement there are many different variables that can be measured to

show success on this platform. The challenge of Google AdWords is to maximise

efficiency and relevancy while generating the maximum amount of value from the

advertising.

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Page 15: How to measure the effectiveness of your advertising

• With Google AdWords reach and relevance are key – that means you only pay for

qualified prospects, i.e. the ones who actually click on your ad.

• And you only advertise to people looking for your product or service because your ad

only appears to people who have entered a relevant search term on Google.

• In AdWords we talk about Cost Per Click or CPC. It’s also sometimes called PPC – Pay

Per Click. The trick here is to pay less than people below you in the search results

page or to generate more clicks than the person above you. There are no set prices,

the cost you pay for each click is based on how relevant the search query is to your ad

and your website and how many people are actually clicking on your ad compared to

people clicking on your competitors’ ads.

• Managing Google AdWords campaigns is about getting what you paid for, so if you

can get more traffic for your limited budget on a lower position, then that’s a good

thing. The aim of the game is to drive down your cost per click and improve your

conversation rate from clicks to sales.

• The key to this is constant measurement and conversions tracking through Google

Analytics.

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Page 16: How to measure the effectiveness of your advertising

• One of our customers, Fresco Shades, is also an advocate of the importance of

measuring your media. Fresco Shades was established in 1998 and is a proud NZ

owned company.

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Page 17: How to measure the effectiveness of your advertising

• The Google Display Network is another way to promote your business with ads

appearing on a wide range of sites e.g. Stuff, TradeMe, and YouTube. By analysing

reach and frequency data from your Google Display campaigns, you can estimate how

many people saw your ads and how many times they saw them over a certain period

of time.

• The goal of the Display Network is simple: to bring your message to exactly the right

customers wherever they are online. There are 2 types of targeting tools:

Contextual targeting tools match your ads to relevant web pages: like targeting golf-

related websites if you sell golf clubs.

Audience targeting tools match your ads to people who are most likely to be interested

in what you're selling: like showing your golf ads to people who are sports enthusiasts.

• Measuring the success of this targeting enables you to show which of your Google

Display ads get the most clicks. Use this knowledge to refine your advertising and

continue to use what works.

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Page 18: How to measure the effectiveness of your advertising

Why should you measure your media?

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