Advertising Impact CAN Be Measured

Two stories:

Sporting Goods

A small western sporting goods chain saved over $400,000 in advertising expenses the first year they installed traffic counters by measuring the impact of print advertising on their traffic and comparing it with their sales. They found that a campaign initially drew additional heavy traffic (and sales); then the traffic increase fell off while the increased sales continued. They experimented with their next campaign and found that they could eliminate the advertising during the last week of the sale without impacting sales. They adjusted their campaigns accordingly and pocketed $400,000.

Department Store

A large downtown department store knew that its television advertising increased sales that justified the expense. It was only when they installed their traffic counter that they discovered that the television advertising didn’t increase store traffic. Sales were up, but it was due to an improved closing ratio and average sale. Subsequent studies revealed that the television advertising informed office staff from nearby buildings of the store’s “specials”. Many of these people used the store daily on their way to and from lunch. The store eventually found that in-store signage promoted certain merchandise as effectively as television advertising. The savings were significant.