Advertising Return On Investment (ROI) Analysis

Is My Money Best Invested In Yellow Page Directory Advertising? What About Online?

We can measure the Return On Investment Value of your Yellow Page Program.

As a businessperson, you are asked to make important decisions every day. But few have as much impact on your business as your advertising decisions. Unless you have an unlimited budget, you need to know that your advertising works.

By selecting the markets that will give a good cross section indication of your customer’s behaviour you will best benefit from a Return On Investment Analysis. Adperformance is also able to coordinate ROI testing of other advertising mediums including in INTERNET and PRINT MEDIA.

Call Tracking and Remote Call Forwarding Using Unique Dedicated Phone Numbers

Adperformance can show you exactly how many calls you receive from a Yellow Page Ad.

You are provided with a Special Phone Number (ex 555-1212 or 800 555-1313) that will appear in only one of your ads under a single heading, in a single directory, for the life of the directory.

When a potential consumer of your product or service dials the number, they are connected directly to your business - just as if they had called your regular number.

You receive their calls as usual and your current phone number doesn't change, so you won't lose any business from people who already know your number.

Your Special Phone Number is good for the life of the phone book (usually 12 months) plus three months after the next phone book is published. Potential clients who call the number during the three additional month period will hear a recorded message, referring them to your permanent phone number.

Remote Call Forwarding instantaneously passes each call through a special independent company’s switching apparatus, where Call Tracking Technology captures an accurate count of incoming calls on the Special Phone Number found only in a the ad.

Monthly Call Count Report Information

An independent company (not the phone company) provides the Remote Call Forwarding and Call Tracking Technology of how many calls are placed to your Special Phone Number, and we send you a Monthly Call Tracking Report.

Certain observations can be made from the information provided. This information can give you more details on the patterns of active consumer behaviour, helping you more effectively address and improve the sales cycles for your product or service.

From Time and Date:

This enables you to see when the calls are coming in. This indicates when active customers are looking for your product or service. The time that the calls come in can assist you in determining business operating hours and staff scheduling, or even identify the need for a call-answering device to capture any calls missed during regular business hours.

From Caller ID:

You can see where the calls are coming from by reviewing the phone number exchange of the incoming calls. This information can give you an excellent idea as to what geographic region business is coming from and hints as to how to employ other geographically focused direct marketing approaches effectively.

By reviewing the caller ID, if you keep a record of the phone number of people who make purchases, it can be compared to calls from this database to see which calls turned into actual purchases.

From Answer Status:

Often customers do not give second chances when actively pursuing a solution to a problem. It can be determined how many rings it took to answer a call. This information becomes increasingly important in today's world of 'fast service'. Your staff can be made aware of the importance of answering the phone promptly, or maybe, no one is aware that a problem exists. It is also possible to see if callers who received a busy or no answer condition called back.

From Call Length:

The length of a call may suggest the content and quality of a call. This can indicate the level of interest in the product or service. You will likely be able to see how effectively active customers are being dealt with from these statistics.

Return-On-Investment - ROI:

Yellow Page Directory Advertising is one of the few Medias that can link sales or profit directly to an individual ad. We can test the sales power of your ads in the Yellow Page and prove the Return on Investment. For example, if you spend $5,000 on a Yellow Page Ad and realize sales of $10,000 you experience a 2:1 ROI. In other words, for every dollar invested in Yellow Page Advertising generates $2 in sales.

ROI Calculation

Calculating Number of Calls Needed per Year for a 2 to 1 Return On Investment:

Example:

Summary: using these figures, receiving 10 calls per month will result in sales of $6000 and a profit of $3000, for a 2 to 1 Return-On-Investment. Only 5 calls per month are needed to break even (excluding the cost of capital).

ROI Call Count - Determining Your Call Count Expectations

Here are some questions we will ask to determine your call count expectations for a proposed Measured Ad Study.

1. What is your average Net Worth per customer? (Net Worth: Revenue after Expenses and Cost of Operation; Gross Revenue x Profit margin)
   
   Example: $200 is gross sales and 50% is profit margin. $200 x 50% = $100 net customer worth.
    
2.  Approximately how many callers currently turn into customers? If 10 people call, or ask you for estimates, etc., how many actually turn into business for you?
   
   Example: 2 out of 10 callers turn into customers. 2 / 10 = 20%.

Cost Per Lead

In certain companies there is insufficient data to determine their ROI so instead a Cost per Lead metric is used

Example:

What Will A Return-On-Investment (ROI) Analysis Cost?

You may qualify to benefit from Yellow Page industry support to help make informed decisions whereby there may be no extra cost to you. A testing program funded by the Yellow Page Industry is available to qualified advertisers. Adperformance is able to successfully coordinate the Application Process and ROI Testing.

Some clients prefer to test outside the Industry program where the cost per phone line is approximately $2000 per year (effective March 2005 and subject to change).

Take advantage of this tool.

A well planned Return on Investment Analysis is a simple effective way in which you will gain valuable, conclusive testing data to support your growth strategies through your Yellow Page Advertising Program.