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Measuring Advertising

Customer responsiveness to mass media advertising is traditionally monitored by qualitative techniques which attempt to measure psychological response in terms of branding and awareness, and/or quantitative techniques, such as revenue or percentage change in sales, known as ‘advertising elasticity’.

Given the indirect nature of print, radio, TV and outdoor, the huge number of variants that may influence purchasing at any given time, and the ‘carry-over effect’ of advertising to subsequent sales periods, accurately attributing sales as a given result of any specific advert or campaign is a major challenge.

Some advertisers attempt to overcome this obstacle by incorporating more measurable direct marketing, such as a coupons or codes, limited offers, price promotions or smart numbers.

A key driver in the shift of advertising budgets from traditional mass media to the internet is the enhanced tracking and measurement capabilities of online media channels, resulting in more targeted communications, greater accuracy in identifying lead sources and better advertising accountability

Melissa How is a Melbourne based Marketing Consultant specialising in Digital Marketing and Internet Marketing Strategies.

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