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Research on the Impact Advertising Has on Sales and Revenues

Image of Advertising Research

Does advertising work? That’s a question many people who are looking for an advertising agency or digital marketing firm ask themselves.

The answer is … well, sort of.

The truth about advertising is that some of it works and some of it falls flat. But just because your advertising or digital marketing campaign didn’t have an immediate impact on sales doesn’t mean that the campaign was a failure.

In fact, research conducted several years ago by the Information Resources Institute (IRI) found that only about 20% of advertising pays out in the short term. The rest either pays out over the long term or doesn’t work at all.

But the secret to making your advertising or marketing campaign work is to test your way to success. After all, no advertising or marketing campaign works perfectly the first time. Instead, they improve over time via the constant tweaks and adjustments you make.

With all that in mind, let’s take a look at some of the findings about advertising effectiveness from the IRI research.

  1. TV Advertising Alone is Not Enough: Only about half of TV advertising heavy-up plans have a measurable impact on sales, although when it does work, it has a big impact. The research also showed that advertising effectiveness is often higher on new products or line extensions than on established brands.
  2. The Impact Advertising Has Lasts Longer Than the Campaign: Evidence shows the long-term positive effects of advertising last up to two years after peak spending. In other words, the flame keeps burning long after you stop adding fuel to the fire. What’s more, the long-term incremental sales generated are approximately double the incremental sales observed in the first year of an ad spend increase.
  3. Payout Statistics on Promotions are Dismal: About 16% of trade promotions are profitable. And the impact a promotional campaign has on sales are often short-term (except for new products).
  4. Allocating Marketing Funds Involves a Continuous Search for Marketing Programs That Offer the Highest ROI: If you have a reliable evaluation system that measures the ROI of your marketing, you can continuously optimize your campaigns as a way to extend your ROI.
  5. Long-Term Spending on Promotions is Not a Sound Strategy: There are strategic disadvantages for brands that rely on promotions for sales. These include losing control to the trade as well as training consumers to buy only on a deal. When all that is factored in, the case for establishing and maintaining a high-value brand makes economic sense. (Just ask Steve Jobs.)

In the end, any successful marketing program is going to involve a balanced, metrics-based approach. Relying too heavily on promotions or on short-term tactics will result in diminished returns over time.

Jamie Turner is the CEO of the 60 Second Marketer and 60 Second Communications, an Atlanta-based advertising agency and digital marketing firm that works with national and international brands. He is the co-author of “How to Make Money with Social Media” and “Go Mobile” and is a popular marketing speaker at events, trade shows and corporations around the globe.

Book by Jamie Turner

Top 5 Social Media Analytics Tools for Advertising Agencies and Marketing Directors

Image of social media tools

If you work at an advertising agency or are a marketing director for a large corporation, you’re probably interested in finding the best social media analytics tools to help you run your business.

There are a wide variety of social media tools out there, some of which are terrific and others of which are not so good.

We use a variety of good tools to help run marketing campaigns for our clients, and have learned a few things about which ones are the best and which ones are worth ignoring.

So, with that in mind, let’s take a look at the top social media marketing tools for ad agencies and marketing directors.

Google Analytics — This, of course, is a must for anyone running a digital advertising campaign or marketing campaign. By dropping a line of code into your website, you can track how people get to your site, how they navigate through your site, and how long they stay on your site. Google Analytics is getting more complex every day, which can make it difficult to use, but overall it’s really a terrific tool that everyone with a website should be using.

Act-On Software — Act-On is not a social media analytics tool as much as it’s a marketing automation tool, but some of the analytics features are so robust that it’s worth including on our list. If you’re interested in tracking how people engage with your brand via email and social media, then Act-On (or one of its competitors, which include SilverPop, HubSpot, Marketo and others) is a must. (Disclosure: Act-On is a sponsor of our sister blog called the 60 Second Marketer.)

KISSmetrics —The guys at KISSmetrics try to do what Google Analytics can’t. They take data and try to help you make sense out of it instead of just dumping it into your lap. It’s tough to compete against Google and it’s even tougher to compete against an entity like Google that provides its service for free, but KISSmetrics has done a good job so far and you have to give them credit for that.

Socialbakers — This social media metrics platform is perfect if you’re looking for in-depth data that allows you to measure, compare, and contrast your campaigns against your competitors. They provide a wide range of research and studies for free on their website and specialize in global analytics. According to the Socialbakers website, twenty percent of the Global Fortune 500 use Socialbakers.

SproutSocial —This platform allows you to publish posts to your social media channels while monitoring how people are responding to those posts. They have a dashboard that provides just the right amount of data and information so as not to be overwhelming. If you’re an advertising agency or marketing director that likes to see data visually instead of just a wall of numbers, then SproutSocial is worth taking a look at.

Here’s a screen shot of the SproutSocial dashboard to show you what I’m talking about:

Image of Social Media DashboardAs mentioned at the top of the post, if you work at an advertising agency or are a marketing director at a large corporation, you’re probably interested in finding ways to manage your social media campaigns. You’re probably also interested in finding ways to analyze data and put it to good use.

These are our top five social media management tools for people working in an ad agency or in a marketing department on the corporate side. What are your favorites? Let us know in the comments section below.

 

Jamie Turner is the CEO of the 60 Second Marketer and 60 Second Communications, a marketing communications agency that works with national and international brands. He is the co-author of “How to Make Money with Social Media” and “Go Mobile” and is a popular marketing speaker at events, trade shows and corporations around the globe.

Book by Jamie Turner

The Future of Advertising and Advertising Agencies in Atlanta

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If you’re conducting a search for advertising agencies in Atlanta, there’s something you should know — advertising and marketing have changed a great deal over the past several decades.

During the 1960s, widely considered the glory days of advertising and marketing, the list of marketing tactics available to most businesses was pretty straightforward.

Let’s take a look.

Here’s a list of advertising and marketing tactics available to marketing directors during the 1960s:

  • Print
  • Radio
  • Network TV
  • Telemarketing
  • Direct Mail
  • Events

Advertising and marketing professionals during the 1960s were known for participating in three martini lunches. And why wouldn’t they have a few martinis at lunch? There was nothing else to do!

After all, the list of marketing tactics above didn’t really require a rocket scientist to execute. That’s not to say there wasn’t plenty of work going on — it’s just to say that things weren’t as intense as they are today.

(For a closer look at advertising during the glory days on Madison Avenue, read 7 Marketing Lessons You Can Learn from An Original Mad Man on our sister website, the 60 Second Marketer.)

Today, marketing is much more complex, not only from an executional standpoint, but from a data and analytics standpoint, too.

Let’s take a look at the tactics available to you today.

In 2015, the list of advertising and marketing tactics is six times longer than it was during the 1960s:

  • Print
  • Radio
  • Network TV
  • Cable TV
  • Telemarketing
  • Direct Mail
  • Events
  • Websites
  • Paid Search
  • Online Display
  • Instant Messaging
  • Landing Pages
  • Microsites
  • Online Video
  • Webinars
  • Affiliate Marketing
  • Blogs
  • RSS
  • Podcasts
  • Contextual
  • Wikis
  • Social Media
  • SMS
  • Mobile Web
  • Behavioral
  • Social Media Advertising
  • Virtual Worlds
  • Widgets
  • Mobile Apps
  • Geolocational Advertising
  • Mobile Beacons
  • Mobile Email

If you’re a marketing director or an advertising manager, you can see by the list above that your job is now much more complex than it was just a few decades ago. But the job of a marketing director or advertising manager goes way beyond simply executing tactics. Today, you have to have a knowledge of statistics in order to be genuinely effective.

The introduction of statistics and analytics into the world of marketing is actually a good thing.

Early in my career when I launched my first Atlanta-based advertising agency, there was no real way to tell if an ad campaign worked. Oh, sure, we had plenty of rationale for why a campaign worked, but there was very little statistical data to support our point-of-view.

Today, marketing directors, advertising managers and advertising agencies are in a much better position because we can review and analyze the digital marketing data that confirms whether or not a campaign actually worked.

The Bottom Line.

What does all this mean for you? It means that your job as a marketing director or advertising manager has gotten more complex over the past several decades, but that’s not necessarily a bad thing. In fact, it’s good news because it attracts smarter, more talented people into the field. And when smarter, more talented people enter into any industry segment, guess what happens? Salaries increase.

And that, my friends, is good news for all of us.

 

Jamie Turner is the CEO of the 60 Second Marketer and 60 Second Communications, a marketing communications agency that works with national and international brands. He is the co-author of “How to Make Money with Social Media” and “Go Mobile” and is a popular marketing speaker at events, trade shows and corporations around the globe.

Book by Jamie Turner

25 Amazing Facts About Marketing That Every Business Person Should Know

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If you’re searching for an Atlanta-based advertising agency or marketing communications firm, you’re probably also interested in facts and figures about digital marketing.

Well, you’re in luck.

What follows are 25 amazing facts about digital marketing that every marketer should know, whether they’re based in Atlanta, Georgia or anywhere else in the country.

Ready? Terrific. Here goes:

  1. 75% of Americans bring their phones to the bathroom (11 Mark) http://www.11mark.com/IT-in-the-Toilet
  2. 40.5% of consumers said they would rather see targeted ads that reflect their interests rather than random ads http://www.aboutads.info/resource/image/Poll/Zogby_DAA_Poll.pdf
  3. 70% of people in U.S. say they would like to receive offers on their mobile phone http://pinterest.com/pin/128985976800648700/
  4. A new report commissioned by LivingSocial has revealed that small businesses are potentially missing out on $650 million each year by not using social media tools fully http://econsultancy.com/us/blog/63053-10-interesting-digital-marketing-stats-we-ve-seen-this-week-56
  5. More than 25% of American use only mobile devices to access the internet http://www.gomonews.com/mobile-web-growth-1-in-5-internet-users-dont-use-a-computer/
  6. 87% of those surveyed have used deal-of-the-day websites like Groupon or Living Social http://www.brandchannel.com/images/papers/534_nielsen_wp_mobile_media_report_1212.pdf
  7. 66% of U.S. consumers and 49% of U.S. marketers believe television commercials are more important and effective than online ads
    http://www.dmnews.com/is-digital-marketing-meeting-consumer-need/article/299173/#
  8. The average American spends 2 hours a day social networking from a computer, tablet and/or mobile phone http://www.marketingcharts.com/wp/interactive/social-networking-eats-up-3-hours-per-day-for-the-average-american-user-26049/
  9. 47% of those businesses surveyed have generated leads from Facebook, 35% from LinkedIn, 34% from Twitter
    http://www.mediabistro.com/alltwitter/digital-marketing-2011_b15395
  10. More than 30 million Americans watch television content via their mobile phones http://www.iab.net/media/file/NielsenStateofMediaConsumerUsageReport.pdf
  11. More than 65% of time spent on mobile is on apps http://visual.ly/top-4-digital-marketing-trends-2013
  12. Almost 50% of users install mobile apps after tapping on ads from the Facebook app http://visual.ly/top-4-digital-marketing-trends-2013
  13. Almost 90% of marketers use social media to distribute content http://visual.ly/top-4-digital-marketing-trends-2013
  14. 21% of Pinterest users purchased a product after seeing a picture on the site http://visual.ly/top-4-digital-marketing-trends-2013
  15. 98% of charities and non-profits are on Facebook http://mashable.com/2012/12/12/non-profits-social-media-infographic/
  16. Americans spend an average of 158 minutes every day on their smartphones and tablets (Flurry) http://orleansmarketing.com/2012-digital-marketing-stats-facts/#.UfalOBaxPHg
  17. 42.1% of consumers purchased a product or service after seeing or clicking an online advertisement
    http://www.aboutads.info/resource/image/Poll/Zogby_DAA_Poll.pdf
  18. In the United Kingdom, 93% of online experiences begin with a search engine www.reflectdigital.co.uk
  19. 42% of those surveyed in the U.K. click on the first organic search result
    www.reflectdigital.co.uk
  20. Twitter has, on average, a 1% engagement rate http://www.velocitypartners.co.uk/our-blog/the-future-of-digital-marketing-2013-a-review/
  21. The number of Tweets goes dramatically down during the really good bits of TV shows or sports events – then shoots up when the good bits are over
    http://www.velocitypartners.co.uk/our-blog/the-future-of-digital-marketing-2013-a-review/
  22. 93% of consumers subscribe to at least one brand’s email as opposed to 58% who Like a brand on Facebook and 12% who follow a brand on Twitter http://www.exacttarget.com/resource-center/digitalmarketing/infographics/sff-marketers-mars
  23. 69% of consumers favor email as their first online “check” of the day
    http://www.exacttarget.com/resource-center/digitalmarketing/infographics/sff-marketers-mars
  24. In the U.S., more users access the Internet through mobile devices than through PCs/wireline devices http://visual.ly/top-4-digital-marketing-trends-2013
  25. 40% of tablet owners said they’ve looked up information about a TV program while they were watching the TV show http://www.slideshare.net/impigermobile/mobile-strategy-2011-for-companies

 

Jamie Turner is the CEO of the 60 Second Marketer and 60 Second Communications, a marketing communications agency that works with national and international brands. He is the co-author of “How to Make Money with Social Media” and “Go Mobile” and is a popular marketing speaker at events, trade shows and corporations around the globe.

Book by Jamie Turner