When Will My Ads Start Working?
It depends on a variety of factors. Here's how to create the most efficient campaign possible.
By Roy H. Williams
| August 09, 2004
URL:
http://www.entrepreneur.com/advertising/adcolumnistroyhwilliams/article72126.html
The length of the "ramping up period" your ad campaign
will require before you begin to see results is determined by the
following factors, listed in descending order of their importance:
product purchase cycle, share of voice, impact quotient of message
and media delivery vehicle. Here, I take a closer look at each:
Product purchase cycle: How often is the customer in the
market for this product? Due to the fact that we eat more often
than we redecorate, ads for restaurants yield results much faster
than ads for new carpet or furnishings. Nearly all the people
reached by advertising will buy at least one meal this week, but
only one in 2,000 is involved in any particular seven- to 10-year
product purchase cycle. The longer your product purchase cycle, the
longer you'll have to invest in advertising before you feel
like it's working. Generally speaking, the ramping up period is
20 percent of the product purchase cycle to no later than 40
percent. In other words, the advertiser selling a product or
service the average customer purchases once every five years will
likely be one to two years into his advertising plan before he
feels like it's "paying off."
The longer your product purchase cycle, the more important it is
that you plant your message before the customer is actively in the
market for your product. The simple-minded counterargument of an
overly anxious advertiser is, "But someone out there is ready
to buy my product today. I want to reach that person and get his or
her money today. I'll worry about tomorrow's customer
tomorrow." This advertiser is like the hare in that timeless
fable in which the patient but relentless tortoise wins the day.
The cheerful tortoise doesn't expect to win the race in a day,
a week, a month or even a year. His goal is simply "to become
the name customers think of immediately and feel the best about
when they finally need what I sell." The longer the tortoise
stays with his plan, the greater his likelihood of winning the
race. Only when there is no tortoise in a category will the hare be
the long-term winner.
Share of voice: What percentage of all the advertising
done in your product or service category is yours? A share of voice
calculation must include such benefits as the intrusive visibility
offered by an excellent location with a good sign, previous years
of consistent advertising, word-of-mouth recommendation by
customers and so on. Your share of voice is loosely determined by
the size of your ad budget compared to the collective ad budgets of
your competitors. Bottom line: It's easy to gain top-of-mind
awareness when you have more money to spend. An advertiser with a
smaller budget must decide whether he will reach a smaller number
of people with sufficient repetition to be remembered, or reach a
larger number of people with less repetition and hope that his
impact quotient is sufficient to overcome the deficiency. If he
chooses the latter, he risks reaching 100 percent of the people and
persuading them 10 percent of the way, when he might have reached
10 percent of the people and persuaded them 100 percent of the way.
The path you choose should be determined by balancing the number of
people you reach with how often you reach them.
Impact quotient: How persuasive is your message? Keep in
mind that customers aren't hearing your message in a vacuum.
They're comparing your message to those of your competitors.
Urgent messages making "a limited time offer" raise the
impact quotient for customers who are currently consciously in the
market for the product, but the lower the impact quotient for
customers who are not currently in the market. The brain is a very
smart organ. It refuses to store information that isn't
relevant. Therefore, you cannot establish a long-term brand
position with a series of short-term "limited time
offers." The only thing that will be remembered long-term is
"never buy from these people unless they're having a
sale." The best ads deliver a message powerful enough to be
remembered even by people who are not currently in the market for
your product.
Media delivery vehicle: A picture of your product-an
iconic recall cue-delivered by a visual medium will attract the
attention of readers and viewers who are currently in the market
for your product (assuming your ad has reasonably good placement
within the delivery vehicle). In other words, is your ad where it
will be seen?
But never forget that eyes and ears are not only separate
organs, but also connected to entirely separate parts of the brain
that gather, process, store and retrieve memories in entirely
different ways. One commonly held myth is that we remember
"more of what we see than what we hear." In fact, the
opposite is true. Visual memory is fragile and malleable, but
auditory memory is involuntary and long-term. This is why the
average citizen can sing along with more than 2,000 songs he never
intended to learn.
From this, one could easily generalize that products with
shorter purchase cycles should use visual media, and products with
longer purchase cycles should use auditory media, but like most
generalizations, that one would be flawed since there are two other
factors-share of voice and impact quotient-that can easily override
your choice of media delivery vehicle. Far more important than your
choice of media is your choice of message.
As you can see, there is no perfect answer. The choices that
yield the greatest results today will likely yield the lowest
results long-term. And the most tedious thing in the short run is
the most powerful thing in the long run. But that's just how
life is, isn't it?
Roy Williams is the founder and president of The Wizard of
Ads, a company serving the advertising and marketing needs of
business owners around the globe. Williams is also the author
of The Wizard of Ads and Secret Formulas of the Wizard of Ads.
The opinions expressed in this column are
those of the author, not of Entrepreneur.com. All answers are
intended to be general in nature, without regard to specific
geographical areas or circumstances, and should only be relied upon
after consulting an appropriate expert, such as an attorney or
accountant.
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