Thursday, April 16, 2009

Last Ad Philosophy

Marketers base their understanding of ROI on a flawed idea called Last Ad Philosophy. Basically what this idea says it that 100% of the credit for a sales is attributed to the last ad, click or view that the customer had.

The truth is a customer is reached by multiple ads the span across multiple channels the span an extended period of time. Given this any idea that gives only one ad or channel the entire credit for a sale throws off a true picture of your ROI metrics and may really damage your assessment on what really made the sale, thus casing you to divert your funds from very successful place into a marketing tool that only is a catalyst to the purchase. It is a known marketing fact that 9 out of 10 customers are exposed to ads across 2 or more sites or channels.

There are some ways to measure cross channel effects. You can get impressions to users who click on sponsored searches, or do a pay for click campaign. Happily there is a growing trend of advertisers to applying more advanced reporting that go beyond the last ad philosophy. These new models assimilate all the marketing touch points in a customer’s history. They are far form standardized and have a long way to go but they allow a glimpses of a better picture of a company’s true ROI.

Larson note: What is the real reason or cause of a purchase? What is a catalyst to the sale and what is the deal MAKER? Test, test, test. Then ask why and you might want to have a questionnaire or survey given out to new customers or current customers for that matter as to why they bought.

Howard Larson
Larson & Associates
Target Marketing & Telesales Professionals for new account acquisition
Making good businesses great and great businesses even better

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