Advice for Managing Your Advertising Budget

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THE SUBJECT IS PLANNING YOUR ADVERTISING BUDGET…AND… SOME OF THE BASIC QUESTIONS FOR EVERY BUSINESS ARE…

1) How much should you spend on your advertising?

2) How, when and where should you spend it?

3) What should you say?

4) What is the best media mix for your company and your advertising budget?

5) Which ads and which media are producing the best results?

6) Which media should you increase, and by how much?

7) Which media can you decrease, and by how much?

AND…WHAT IS THE BEST WAY TO DETERMINE THE BEST WAY TO SPEND YOUR ADVERTISING BUDGET?

Depending on whom you ask, you might get different answers to each of those questions, but luckily, now there is some very easy-to-use advertising math that can help all kinds of businesses answer those kinds of questions much more objectively, and, the math is so easy to use that all of the calculations can be done by one person, in moments, with just a simple calculator.

The math is a very simple equation that actually lets you quantify the relationship between your advertising and sales, and businesses of all kinds can use the math to help them make a lot more money.

Robert Barrows

The math is called “The Barrows Popularity Factor.” It was developed by Robert Barrows, President of an advertising agency called R.M. Barrows, Inc. Advertising & Public Relations in San Mateo, California.

THE REASON THE MATH WORKS SO WELL IS VERY SIMPLE:

The Barrows Popularity Factor reduces the relationship between advertising and sales to its lowest possible common denominator…namely: “How much did you sell? (divided by) “How much did you Advertise?” (But the key is this…don’t do the math in dollars…do the math in units per gross impressions.)

In mathematical terms, the formula looks like this:

“The Barrows Popularity Factor” = How much did you sell? (in units) divided by/ How much did you advertise? (in gross impressions)

The answer you get is a rate of return on gross impressions.

(Gross impressions is the number of ads multiplied by the audience per ad.)

“Once you can quantify your rate of return on gross impressions, then you can start using some additional math to help you determine the best way to spend your advertising budget,” according to Barrows.

“The math will give you more of the information you need to make key marketing decisions with far less risk, and businesses of all kinds of can use the math to help them increase their sales, increase their profit and decrease their risk, says Barrows, and the math is so easy to use that all of the calculations can be done by one person, in moments, with just a simple calculator, and as they say in advertising,…”It really works!”

The math and how to use it are explained in a booklet he wrote called “The Barrows Popularity Factor” which you can download for $4.95 at www.barrows.com.

WHEN YOU LOOK AT THE BASIC ADVERTISING QUESTIONS LIKE HOW MUCH SHOULD YOU SPEND AND HOW, WHEN AND WHERE SHOULD YOU SPENT IT… AND WHAT SHOULD YOU SAY…

“The answers to these kinds of questions are very complex and there is no way to quantify all of the intangibles that affect the sales of a product…intangibles like the demand for a product, the availability of product, the consumer’s propensity to spend, whether you had a good sales force or a great sales force during the period of time of a specific promotion, and even the weather can’t be quantified with cold, hard numbers…and all of these factors are intertwined,” says Barrows.

“Plus, everything about the product and everything that you do to promote a product, and everything in the marketplace that affects the sales of a product will be reflected in the ‘Popularity’ of your product…and that is the essence of ‘The Barrows Popularity Factor.’” It quantifies the effectiveness of your advertising because it lets you measure the  “popularity of a product and its promotion,” and in doing so, it lets you quantify the relationship between your advertising and sales.

“In short, the easy-to-use math in ‘The Barrows Popularity Factor’ will let you to test and compare your advertising copy and media, better, faster and less expensively. Plus, it will also give you more of the information you need to help you fine-tune your entire marketing program to help produce much higher sales and profit, says Barrows, and any company that is trying to figure out the best way to spend their advertising budget should take a look at this math immediately.

So, whether you are trying to plan your advertising budget for the next few weeks or the next few months, or all throughout the year, the best place to start is to start analyzing the effectiveness of your past and current advertising with the math in ‘The Barrows Popularity Factor,’ says Barrows. It will give you objective answers as to which advertising copy and which advertising media are producing the best results.”

“With the math in ‘The Barrows Popularity Factor,’ businesses can start taking a lot of the guesswork out of their advertising and they can use the math to help them make a lot more money,” says Barrows.



The post Advice for Managing Your Advertising Budget appeared first on Home Business Magazine.

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    Updated on 21 September 2017

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