Like all investments, investment in marketing must be paid and profitable. It is therefore important to understand whether advertising works, whether it produces the expected result. This requires an assessment of its effectiveness.

Before launching a publicity campaign, it is important to define its objectives. The global objective of progress is generally to create demand, stimulate marketing and profit. The purpose of a specific advertising campaign may be to increase brand recognition, attract new clients, increase sales of a particular product or service. This will depend on the choice of channels and instruments for advertising, the content of the promotional message and the methods for measuring results. For example, for an entrepreneur who has launched a new product, the priority is to increase its knowledge.

In evaluating advertising, there are two types of efficiency:

Communicative (information) performance - in terms of increasing knowledge, creating a positive image and trust in the product - brand in general. It is difficult to assess the effectiveness of advertising on this criterion. This is done through surveys, marketing studies, focus groups and other methods.

Economic efficiency implies increased sales. It is considered by special metrics based on figures, using indicators such as ROI, ROMI and ROAS. They demonstrate the ratio of advertising and income it generates. The effectiveness of the advertising campaign, as well as its individual tools, can be assessed.

ROI (return on investment) is the rate of return of investment in business, i.e. their effectiveness, how much investment has been paid. Costs include not only advertising costs, but also production costs, salaries, rental of the office, etc.

ROI = (income)/expenditure x 100%

ROMI (return on marketing investment) - Returning investment in marketing and all advertising. This indicator is most commonly used to estimate investment in marketing. But the cost should include not only the advertising budget, but also the marketing agency, the freelancer, the blogger or the FP of the Marketing Division, the lost profits of stock products, prizes, advertising materials, etc.

ROMI = (receipt of advertising costs)/contribution costs x 100%

ROAS (return on ad spend) - Returning investment to a specific advertisement. The indicator makes it possible to understand which of the commercial instruments are purchased and which are not. Allows the decision to remove the advertisement in time or to increase the budget on the other.

ROAS = Advertisement/Account Cost x 100%

A correct and objective assessment of the performance of advertising will help in advance work that records the starting points. At this stage it is important to formulate a goal, set key metrics and KPI. When it comes to internet-marketing, website analysts need to be built to correctly collect the metrics on interesting positions.

The advertising offices provide detailed statistics on the performance of advertising campaigns. Postal services will provide information on the opening and climaticity of letters, conversion. In launching a simulus advertisement, it is necessary to conduct surveys, questionnaires, recording point A.

The Marquetologists advise before a major campaign starts to run the test runs. They will help to adjust advertising creativity, assess channels of promotion, relevance to target audiences. After the beginning, it is also important to track the results of both the campaign as a whole and the individual channels of progress, creativity and so on.

Intermediate results are an important parameter for measuring trends. To keep the budget straight, we need to be ready to adjust the strategy in case of problems.

Inefficiencies may include:

It's not right to have a client portrait. Reclama sees the wrong audience. As a result, there's no coverage, no conversion.
The pathway is wrong. For example, SEO and context advertising rarely offer a high conversion in the promotion of an innovative product.
It's not a good budget. The funds allocated may not be sufficient to complete the progress strategy. And overbudgeting may be inefficient.
No preliminary work has been undertaken: without testing options for announcements, pages, use of ad hoc data analysis tools and promotion. Also, the announcements, the references, the landing page and the like may not be checked.
Targets are not correctly formulated. They must also be measured. For example, the number of new clients can be counted as new contacts.

After the end of the advertising campaign, it is always necessary to analyse and evaluate the results. How they matched the projected figures. Were there investments in marketing? Which channels were most successful, they could be scaled up or used in the next launches.

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