Do Ads Work?

referral marketing, marketing, customer serviceSeth Godin is probably the most popular business blogger in the world. I enjoy reading both his books and his blogs. Not long ago, Godin responded to the question, "Do ads work?" Godin’s response to the question of ads was this: “If the local bank were offering a sale on dollar bills, ninety cents each, how many would you buy? Most rational people would say, ‘I'll take them all please.’ Especially if you had thirty days to pay for them." So, why, precisely, do you have an ad budget?

Do Your Ads Work?

If your ads work, if you can measure them and they return more profit than they cost, why not keep buying them until they stop working? And if they don't work, why are you running them? The time-tested response is that you're not sure, that ads are risky, that you can't tell. And for some sorts of products and some sorts of ads, you'll get no argument from me.

ROI is Not a Mystery

Digital ads are different (or they should be). You should know cost per click and revenue per click and be able to make a smart guess about lifetime value of a click. And if that's positive, buy, buy, buy. And if you don't know those things, why are you buying digital ads? When Amazon was at its key growth peak, the mantra there was $33. They would buy unlimited ads, of any kind, as long as they generated new customers for $33 or less each. There was a risk that $33 was too high a number for the business to sustain, but the ads were no risk at all. As long as they came in under that number, there was unlimited money to buy them. How often do you hear the marketing person say, ‘That's a neat idea, but we don't have the budget this year" Shouldn't she say, ‘We have an unlimited budget for ads that work’?” Tweet This

Measure Everything

Godin’s response raises this question: Are you measuring your marketing/advertising dollars? Do you know what your return is? You can and you should! Measure, measure, measure! Measure everything. If you need some help, contact us and we'll help you develop a plan to answer the question, "Do ads work?"

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2 Responses to “Do Ads Work?”

  1. Joe Fournet says:

    A successful ad also depends on one’s definition of “work,” as in how will the ad be judged if it works. Measuring is vital to better understanding the ad’s performance but one should define or form the parameters of success before running anything. No matter the creativity involved, success boils down to how will one know if the ad is successful.

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