Measure Revenue Generated by Advertising
Many companies use “year-over-year” sales numbers (or “comps”) to describe the performance of their advertising campaigns.
It’s common to hear people describe success of an advertising campaign by saying, “The advertising program was a success. We’re up 5% this quarter.”
Unfortunately, these “comps” aren’t an effective measurement for advertisers, because comps describe overall company performance -- they don’t isolate the contribution of advertising to sales growth.
Business executives are quick to question this sort of report. They’ll point out that there are a variety of operational and economic factors that contribute to the growth, and may dismiss (or at least undervalue) the contribution of advertising to the company’s performance. Marketers lose credibility with other executives when they can’t represent the results of these investments.
How We Help
We help our clients improve the way they report on the results of advertising campaigns by separating the effects of advertising from other factors. We create clear, concise, and unbiased reports that stand up to the scrutiny of skeptical executives.
To create these reports, we use huge data sets and proven mathematical models to isolate the effects of advertising in our customers’ sales data. We draw from a variety of data sources, including years of our customers’ historical data as well as external data sources to “teach” the models about our client’s business.
Our first deliverable for every new client is a preliminary analysis, which quantifies the amount of incremental revenue that can be attributed to historical advertising spends.