Advertising can be frustrating to business owners, because there is no exact way to measure its effectiveness. It is simply impossible to measure exactly how many dollars are brought in through a television commercial, for example. But there are ways to monitor the effectiveness of your ads, at least roughly.
There are many different ways to track the ads that you are using. One key to monitoring advertising is to begin recording your information before you start the campaign. While it is not exact, comparing the pre-ad income with the post-ad income will give you an idea of the effectiveness of the ad.
If you are advertising for retail products, you can evaluate your ads by tracking your sales before, after, and during the time your ad is running. Your results may not appear until after it is finished, and this is because the effect of it is often cumulative and is seldom immediate.
Another way to evaluate an ad is to include a coupon. This works for print and online ads. You can also offer a discount to customers when they mention your ad, which will work for TV and radio ads as well. Counting the number of coupons or mentions you receive will help you know how many people are responding to your ads.
If you are advertising with a phone number for people to call, consider using a dedicated line specifically for the responses to your ad. Then you can track how many people call, and it is safe to assume that they are calling in response to the ad. This works well for a toll-free line.
Online advertising can be evaluated by click through rates, which refer to the number of people who actually click on the ad. Many of the companies that sell online ads include software to allow you to track the click throughs.
Finally, ask your customers how they heard about you. This is one of the best ways to evaluate your advertising as well as help you determine which forms of advertising are most successful for your business. If successful it should bring new customers. This old fashioned approach can give you a good feel for the effectiveness of your ads.