How to Improve your advertising ROI

How to improve your advertising: increasing Return on Investment (ROI) for your advertising.

In our business, we help clients improve client Retention and Acquisition.

  • Customer Retention refers to all activities that aim to sustain strong satisfaction for your current clients and make sure they keep coming back.

  • Customer Acquisition refers to all activities by your business to obtain new clients. This includes advertising, promotions, offers, PR, and recommendations from your current customers.

Advertising is one of the tools for Customer Acquisition that can be directly impacted by the business owner: you can decide how much you want to spend, where to advertise, who is the target, and what your ads should say. While it seems simple, there are many details that can boost or decrease the impact of your advertising. The ultimate goal for any business is to increase the impact of advertising for every dollar spent (i.e., its ROI).

Every ad has to break through the media clutter in order to get the attention of your potential customer. Once it does, it must clearly communicate a message about your business or products that resonate with your customer, that makes them consider buying from you.

Unfortunately, your ROI may be reduced at many levels of the advertising process. Above is a visual depiction of the different attributes of your advertising and spend; each can either boost or reduce your ROI. The more people see your ad, and the more of them are convinced by it, the higher is your ROI.

Advertising Research (testing your ad among a small group of your current or potential clients) can help you pinpoint issues at every attribute, increasing the effectiveness of your ad and efficiency of your buy.

Improving ad's Breakthrough:

There are 2 parts to improving ad’s Breakthrough:

1. Well placed ads. In other words, effective media buy.

2. Ad’s capability to get noticed and make sure people remember it was for your business.

Key things to keep in mind for ad placement:

  • Working with media placement agencies is an important step. Make sure your advertising reaches the right audience: our potential consumer. It is important that the advertising reaches as many people as possible at the lowest cost per impression.

  • When talking to the media placement agent, you need to discuss the reach vs. frequency of the media buy. For example, an ad placed near a business building may reach a small number of your potential customers, but they will see the ad many times. An ad that is placed near the highway will be seen by many people, but fewer times. It is important to set the ratio of reach and frequency right: higher reach is better; frequency should be maintained at 6 to 12 times.

  • Lastly, it is important to make sure your advertising is placed so that it is noticed. An ad that was not seen by your potential customers is wasted money.

Key things to keep in mind for improving your ad’s ability to Breakthrough:

  • Ad’s capability to get noticed and make sure people remember it was for your business. At this step, you would be working with an advertising agency. You will tell them about your business, what you would like your ad to tell about the business. The ad agency will come back with some concepts. And usually, advertising agencies do a great job of presenting them and convincing how good they are. You may even like the ads yourself. But the key question you should be asking will the ads be noticed by my potential customers. Are they grabbing attention? Will people remember it was for your business? The worst thing that can happen is that your ad will be misattributed, meaning your ads help your competitors, not you.

OK, so you’ve got a great ad that grabs viewers attention and makes them recognize and remember your brand. There a few more critical attributes of your ad that will lead to them knocking on your business’s door.

  • First, they must be able to understand what you are trying to convey in your ad. Customer don’t like ads in general, and they will not spend a second to try to figure out your ad if they cannot understand it right away.

  • Second, the ad must communicate something new, interesting, relevant to consumers. Something that differentiates your business and products from the competitor next door, and makes consumers think that your business will meet their needs better.

  • The message also must be credible. If customers have doubts about what your ad portrays, they are lost at this stage.

  • If your ad succeeded at previous points, your ad has a high chance to persuade customers to try your services or products.

Successful advertising is important for your business. Generic ads fail as they never get noticed, and if they do, they fail to interest customers. All this results in wasted marketing dollars that do not provide a return on investment. To make sure your ads work for your business think about the ad from the customer point of view, but better conduct a bit of research among your current or potential clients: show them the ad and ask key questions:

  1. If you would see the ad, would you stop and look at it?

  2. How much do you like the ad?

  3. What brand and type of services/products does it advertise?

  4. How different is the ad from other ads for this category of services/products?

  5. What does this ad tell you about our services/products?

  6. Does this ad tell you anything new about our business/services/products?

  7. Do you think the information in this ad is credible?

  8. Does this ad make you think our business/products/services are better/different/set trends?

  9. Does this ad make you think our products/services deliver what you would like to get from businesses in our category?

  10. How likely are you to visit our business (experience our products/services) as a result of this ad?


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