A Scientific Method
What’s the best way to make every advertising dollar count? Answer: Design your advertising so that you can determine how much profit each ad dollar generates. The best way to do this is to calculate the revenue from a specific ad, then subtract the cost of the ad.
Look to direct-response companies for an example. These companies build a specific code into each ad that allows them to determine precisely how much money it generates. This code can take the form of a unique number on a coupon or a specific extension for customers to call.
For example, you may include a numerical code in your newspaper ad that customers should repeat when they call. Or, you can simply ask customers how they heard of you and keep a tally of the ads that are most often mentioned.
However you choose to do it, tracking ads allows you to allocate incoming revenue to specific ads. You can also calculate gross profit by subtracting the cost of the ad from the total revenue it generated. It’s a scientific way of getting the most from your ad dollars.