Ad Trends Advertising, Inc. specializes in Total Profit Marketing Plans. That means that each and every product or service we reccomend is specifically designed to generate profits for your company. Sure there are other benefits involved like branding, goodwill, and others, but when we design a marketing plan for you, you can be sure that we expect it to directly generate profits. So, how can you tell if your marketing campaign is making you money?

Definition of Terms:

• Impressions:
  The number of times your ad will be seen during the campaign.
• Response Rate:
  Total number of impressions divided by the number of leads.
• Leads:
  The number of people taking the desired response from your campaign.
• Close Rate:
  The number of leads divided by the number of actual sales generated from the campaign.
• Life Time Value:
  An average of all your clients – profit-per-order multiplied by orders-per-year multiplied by the duration-of-loyalty, number of years you retain the customer.

Formula:

Impressions: ________

X Response Rate: ________

= Leads: ________

X Close Rate: ________

= New Customers: ________

X Life Time Value: $________

= Total Market Profit: $________________

Example:

10,000 Impressions x 0.01 = 100 leads x 0.75 = 75 New Customers x $4,000 = $300,000 in Profit

If your marketing campaign reaches 10,000 people, gets 1% response rate, you close 75% of the leads, and each new customer turns into $4,000 profit over the course of the year, then you will generate $300,000 in new business. So, if you spent less than $300,000 on your campaign, then you will make a profit!

To learn more about our Total Profit Marketing Plans call
816-228-1123 or email: customerservice@adtrendsinc.com

Labels: marketing