Instruction

1

Start the analysis by bringing together data about market factors that could influence the result. Remember that the universal method of estimation of efficiency of advertising activity does not exist, because to ascertain the influence of a particular factor for a campaign is quite difficult.

2

Consider the analysis of the problem and the nature of the advertising company. Image advertising has different goals and outcomes than advertising aimed at increasing sales. Estimate the number of instruments used in the promotion, and especially promotion channels (print media, television, radio, mixed channels).

3

Prepare the data on predetermined performance indicators. It can be an increase in the number of new buyers of the product, the advertising cost per display, the cost of contact with the audience. When calculating indicators of the outcome of your current statistical error of the research results. Clearly divide the economic efficiency and the effectiveness of the psychological impact of the advertising campaign, reflected in the level of consumer awareness about the advertised product.

4

Use as indicators of campaign effectiveness objective indicators such as sales volume and its dynamics, the number of new customers (relative to their total number), level of product awareness before and after the campaign.

5

To calculate economic efficiency of an advertising campaign evaluate those indicators that reflect the company's profit and its turnover. To do this, use the formula for calculating additional trade:

T = (T1 * P * D) / 100, where

T – trade after the advertising campaign;

T1 – the average daily turnover for the period prior to the campaign;

P – growth of average daily turnover over the period before and after the campaign (%);

D – the number of days taken to evaluate turnover in the period before the conduct of the campaign and after the conference.

T = (T1 * P * D) / 100, where

T – trade after the advertising campaign;

T1 – the average daily turnover for the period prior to the campaign;

P – growth of average daily turnover over the period before and after the campaign (%);

D – the number of days taken to evaluate turnover in the period before the conduct of the campaign and after the conference.

6

Calculate the economic effect of advertising, using the formula:

E = (Td * Nt / 100) – (U1 + U2), where

E – the economic effect of advertising (p.);

Td – additional turnover after the campaign (p.);

Nt – distribution margin (in % to sale price);

U1: overall cost of an advertising campaign (b);

U2 – the additional costs (p.).

E = (Td * Nt / 100) – (U1 + U2), where

E – the economic effect of advertising (p.);

Td – additional turnover after the campaign (p.);

Nt – distribution margin (in % to sale price);

U1: overall cost of an advertising campaign (b);

U2 – the additional costs (p.).

7

Evaluate the profitability of an advertising campaign:

R = P * 100 / U, where

R – profitability (%);

P – profit from the advertising of the product (p);

U the cost of an advertising campaign (R.).

R = P * 100 / U, where

R – profitability (%);

P – profit from the advertising of the product (p);

U the cost of an advertising campaign (R.).

8

If promotional activities were conducted on several types of products, the calculation of the above indicators of spend on each of them. The obtained results will be issued in the form of a report, providing it with a description of the company's advertising and insights on how effective was the conducted marketing activities.