ROI-Driven Advertising: Catching the Economic Recovery Wave.

“This is not the time to cut advertising. It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times.”   

These professorial words of advice, from a Harvard Business School Working Knowledge article in 2008, rang true at the start of the economy’s difficulties — and they ring even truer today, when hints of a real recovery are growing stronger day by day.  A year-end member survey by the American Association of Advertising Agencies reported 64% look for “slow, steady growth” in ad spending during 2011.  How can brands be sure to catch the wave of an economic recovery while keeping a firm toehold on their ad dollars?

The phrase to focus on is this:  return on investment at lower cost.  Advertising is no longer a black hole of spending that may deliver results, or maybe not.  ROI-driven advertising is a standard that should apply to virtually any brand, and the key is analytics.  With tools in place to monitor and measure performance, ad campaigns — particularly TV, which might appear financially daunting to potential advertisers but is a powerful tool for building brands — can be managed to deliver actionable results and brought to scale only when, and if, proven successful.

Learn how:
 
• ROI-driven advertising has helped smaller to mid-size companies, including start-ups, grow into household names

• Starting with ROI and analytics leads to network attribution — identifying what performs best

• Setting a target acquisition number and beginning with 4-8 week tests can be measured and brought to scale

Recessionary times validated the need for an ROI approach to advertising, big time:  “Show me my marketing works or I won’t spend the money.”  As more marketing dollars re-enter the marketplace, the calls for proof are more important than ever — and the proof is more deliverable.

by Jay Langan
Jay Langan is Executive Vice President, Ocean Media
Courtesy of MediaPost