Hot Potato Advertising
If you want to measure ROI, make an offer; no kidding
Vol. 6, Issue No. 1 | January 5, 2010 By Denny HatchIN THE NEWS
Ads We HateSlate readers sound off on the year's worst commercials.
... it's time again for "Ads We Hate," an occasional Ad Report Card feature in which readers sound off on commercials they love to despise.
—Seth Stevenson, Slate.com, Dec. 28, 2009
In Holiday Retail Sales, the Best Ad Doesn't Always Win
New survey says favorite TV campaigns have limited influence on consumer spending
When asked to choose their favorite holiday TV commercial, 26% of consumers chose one from Walmart, upsetting Target's holiday-ad dominance.
—Natalie Zmuda, AdAge.com, Dec. 15, 2009
After 50 years of advertising—writing, designing, placing and analyzing the stuff—the most important thing I've learned is this:
I cannot judge good advertising; it judges me.
Slate.com reader opinions, at right “IN THE NEWS,” don't matter. If the ad works—brings in orders, donations or inquiries at the budgeted return on investment—it's good. If not, it’s bad.
Never forget the legendary Anacin commercial that was offensive to millions, ran for years, sold tons of product and cured a zillion headaches.
If an ad is successful, our job is to analyze it, figure out the elements that make it work and then steal smart.
I have absolute contempt for ads whose ROI cannot be measured.
Quite simply, the perpetrators are wasting money and are traitors to their stockholders.
E-mail From a Reader
In the November issue of Target Marketing, I excoriated American Express for running a national campaign of full-page newspaper ads that broke all design rules: headline in an all-caps serif font, text in sans serif mousetype and all the text in white against a black background. Footnotes and disclaimers ran vertically along the side in 6-point sans serif type. The entire thing was unreadable. This from one of my readers:
Your article “Fire the Agency—Now!” is a great read. In fact, I have it posted on a bulletin board next to my desk.
The rules you mentioned are simple: the cleaner the ad, the easier it is for readers and (typically) the higher the ROI. It makes sense.
I’d like to send your article to a graphic designer I work with as we are often at odds about the exact ad elements you discuss in your article. If I do send it to him, however, the first thing he’ll ask about is ROI. Do you know how poorly it performed? I understand it’s confidential, but maybe you heard a water-cooler ballpark.
The designer I mentioned above wrote this to me yesterday: “You gotta let me use all caps and reverse type once in a while. They are appropriate, and they are attention getting. The entire catalog can't be upper and lower case serif type. That gets to be a too monotone and boring. We need to have a little variety in the font usage.”
Takeaways to Consider
- Perpetrators of ads in which ROI cannot be measured are wasting money and are traitors to their stockholders.
- Currently in the business-to-business arena, ads devoted to branding and positive PR no longer cut it. Marketers want ROI—viable leads and sales that prove advertising dollars were well-spent.
- If you don't include an offer—a good reason to respond—you'll get no response. No response means no ROI.
- No response, and you'll have no idea whether anybody even saw your ad (or mailing), let alone read it.
- If you want ROI, think “hot potato.”
- The only ones that hate coupons—and measuring ROI—are general agencies, because they don't want proof of how much money was wasted by their inept people who didn't follow the rules of sane, profitable marketing.
- When you run a hot potato ad, it's imperative that everyone in your internal fulfillment operation and external distribution chain be alerted in advance. Example: During the first week of May 2009, Oprah Winfrey announced on her TV show that viewers could download coupons for free chicken from KFC. Outlets across the country were not alerted and unable to handle the rush. The result was a PR catastrophe for KFC that also made Oprah look like a bumbler.
Web Sites Related to Today's Edition
“Ads We Hate: Slate readers sound off on the year's worst commercials”
http://url2it.com/bptt
“In Holiday Retail Sales, the Best Ad Doesn't Always Win”
http://url2it.com/bqac
“The Lowly Coupon: Hot Potato, Reminder, Offer and Contract”
http://url2it.com/bqae
“In Lean Times, Online Coupons Are Catching On”
http://url2it.com/bqag
Anacin Classic TV Commercial People Hated
http://url2it.com/bpql
Denny Hatch’s “Fire the Agency—Now!”
http://url2it.com/bqle



