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Advertising cost, how to calculate it?

What is the value of advertising? The cost is mainly calculated based on visibility; a newspaper calculates it based on circulation, television based on viewers. Online it is calculated…

3 min read

What is the value of advertising? The cost is mainly calculated based on visibility; a newspaper calculates it based on circulation, television based on the viewers who watch it.

Online is measured in several ways, not only based on the views of your advertisement but also on the interactions obtained and sometimes even on the sales achieved for the product.

When you are offered an advertising package, it is therefore important to assess the actual amount of visibility it provides.

The second factor is effectiveness, because you could spend millions to tell everyone to buy ice cubes, but if no one cares, it will be wasted money.

Then you have to evaluate the message you want to convey, if you want to say that our bicycles are the best when the interest of potential buyers is whether they can deduct the cost of the bicycle from the health insurance, it will still be a waste of effort.

In summary, there are therefore three implicit factors in an advertising campaign: the visibility of the channels used, market interest, and the message used.

When you have all three, you have a successful advertising campaign.

How do you take care of each one?

1. The first question is: what market does my product have? Suppose I live in the desert, is water a valuable commodity here? I think so, and heaters? I think definitely not; try selling heating systems to people living in Egypt and you’ll see you won’t sell much. So the first thing in marketing is to find a need, a market area where there is demand, an interest whether people are aware of it or not; often they are not, but with our marketing campaign we can make them become aware.

2. Advertising channels are analyzed based on who watches them; for example, Instagram is mainly followed by young people, motor magazines by mechanics and garage owners, Google is suitable for products that require a search such as artisans and special products that people don’t know who to turn to, need them and therefore go to Google. You can use a mix of the different channels; everything is based on the product itself and who the potential customers are. A channel that is viewed by 10 people a day is not an advertising channel, regardless of what the seller tells you. The advertising channel serves to connect the company with the potential buyer.

2. Message. Now that we have the product, we have the channel, what’s missing? The message: what do we tell the potential customer? We sell towels on the Amalfi Coast through stalls, here it’s simple, we simply show them the towels. Want to sell coffee capsules online? Promoting our advantageous price could be a winning move, or promoting biodegradability could be effective. We’ll need to do a small survey and ask capsule coffee consumers what they want, what they desire from a coffee capsule. Suppose, for example, most say: I want it to be intense! Good, our advertising message will be based on that.

This point includes, it could be called point 2A, the analysis and optimization of results. If a message is not delivering results there will be something wrong with one of the points above, so it is analyzed and corrected as we go until achieving a successful campaign!

Here are the three fundamental points of an effective Marketing campaign. Obviously, efficient delivery lines and the quality of the product itself must be added to ensure continuity over time. But the above will be enough to create a sales boom!

Good luck.

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