How do we measure the Impact of Advertising?

In the local scene, we have relied so much with advertising to increase our sales . Most of the cases we attribute positive or negative changes in our sales performance to the quality of campaigns we had and that includes advertisement. Let's ask ourselves first is it really advertisement? Which one (Print, Radio, TV, Outdoor, etc.)? Can we scientifically support our claim?

Can we establish the statistics for clients who have purchased our products because of Print, Radio, TV or other media? If not, we will not be effective in allocating our scarce resources for the medium that brought us the increase in sales.

If we really want to measure the impact of advertisement to our business, we must identify the objectives for each ad campaign and start designing the metrics even before the launching. A unique identifier for every campaign must be identified to avoid ambigous criteria of success.

On top of the "advertisement", we should also look into the media or medium used to convey the ads.

It is better to invest extra funds on determining quantitatively the effect of the ads on each of the identified target segment and be able to identify the profitable market segment of the business. In this way, the business is properly guided on where to invest more to earn more profits.

Juan Raul Ll. Relloso