Paper Press Ads Ratios



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Navigation: All Balanced Scorecard Articles > Balanced Scorecard for Sales

Advertising can be waste of money as well as it can boost sales. This article ralks on why use BSC to evaluate efficiency of advertising in printed media. Check additional information about paper press ads ratios.

Advertising is something that promotes sales. This is an axiom in the business world. Besides, modern newspapers and magazines would have never survived without advertising. In fact, this is how they work. Journalists do not produce anything that people can buy, except for their articles. People buy newspapers but this is not enough for a newspaper or any other printed periodical to survive. That's why newspapers publish ads as printed media are the best place to reach target audience. A person specifically buys a newspaper to read it, and he or she is virtually compelled to have a look at the ad that is published near the article. Efficiency of newspapers and magazines ads is very high. However, every advertiser must constantly analyze ads efficiency. These days, advertising costs huge money, and naturally, advertiser expects return on this investment. Producers expect sales growth while companies offering services expect and increased number of customers.

When choosing key performance indicators in press advertising one should always bear in mind strategic goals of a company. Besides, top management and those responsible for advertising should analyze numerous factors, such as competition in the industry, customer purchasing power, circulation of printed media etc. In simple words, this is all about making a decision whether or not to publish an ad in a newspaper or a magazine.

Perhaps, the most important key performance indicators are located in financial category. It is all about money in advertising. The company spends a certain amount of money to earn more money. So for example, if one million dollars was spent to advertise a product and sales for advertising period never grew up such investment is a failure. Thus, it is very important to evaluate such indicators as advertising cost per total sales volume ratio and growth inquiries (number of people who got interested in a new product or service being advertised). The most important key performance indicator is cost per thousand (CPT) which is the amount of money spent to reach 1,000 individuals from a target customer group. There is statistics that shows how many people actually buy a product having seen advertising in printed media. These indicators will help measure efficiency of advertising campaign. If people start buying a product, advertising cost for sales growth ratio will drop, which will be a positive sign proving efficiency of chosen advertising methods.

There are also indirect indicators that can also show positive and negative trends in an advertising campaign in printed media. Awareness rate and number of inquiries do not directly result in sales growth, but it means that people got interested in the offered product. This increases possibility of buying it. It means that the ad has reached its target customer. The decision is to be made by customer and it depends on what he or she has seen in the ad. However, this is the issue to be considered by ad makers and advertising agencies.

Use of Balanced Scorecard will surely save advertising costs and improve efficiency of a press advertising campaign.

If you are interested in paper press ads ratios, check this link to find out more about paper press ads ratios. Also, you can check other articles in Balanced Scorecard for Sales category.



 

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