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Hot Potato Advertising

If you want to measure ROI, make an offer; no kidding

Vol. 6, Issue No. 1 | January 5, 2010 By Denny Hatch
7
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IN THE NEWS

Ads We Hate
Slate 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


 

Companies Mentioned:

7

COMMENTS

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Most Recent Comments:
Peter Rosenwald - Posted on January 06, 2010
I share Chris Altwegg's "right on" comment. The ROI (or better, ROMI) Return on Marketing Investment is critical if you want to get value from your advertising. And it is easy to calculate.

Want an ROMI template to help you with the math?

Send me an e-mail rosenwal@uol.com.br and just say "ROMI" and I'll happily send you one. It's free.

Peter Rosenwald
Sue Canavan - Posted on January 06, 2010
We've been using coupons for years. They do work, but in addition, we've found that even if people don't use the coupons for whatever reason, they appreciate the fact that we offer them.
Jerry Heisler - Posted on January 05, 2010
I couldn't agree with you more. I am reminded of something that took place about 40 years ago when I was new to the ad business. A friend of mine told me of a company that won a packaging award for their unique package that held paint in a plastic bag rather than in a can. I inquired as to how the company was doing in the sales of their newly packaged paint. I was told that they weren't successful at all and had subsequently taken the newly packaged paint off the market. Having spent my whole career in direct response I know that the only measure of successful advertising or packaging or whatever is "what was the return on our investment". Nothing else matters. You are right on Denny, as usual. Jerry Heisler
Drayton Bird - Posted on January 05, 2010
Wonderful! I too wonder what the hell Amex is playing at. Ducks and drakes by the sound of it. No measure, no manage, no clue.
Sheri - Posted on January 05, 2010
"If you list a Web site, do NOT take the prospect to your homepage." I have pleaded with many clients on this more times than I care to remember, (and usually lose the battle!) Most insist on using their home page - either because they feel it's too much time/trouble to do a landing page - or don't want to pay extra creative costs. It's insane: let's invest time/money in a compelling email or mail piece, craft an irresistible offer that captures your prospect; then dump him/her on a generic home page laden with too many choices - most bearing no relevance to the offer. Too often, prospects get distracted from buying, (or progressing in multi-step sales;) and may even be confused as home pages rarely match voice, tone, urgency and theme of the original ad piece. Worst of all, client loses valuable tracking/metrics. All to save a couple of bucks or because their web guy is "too busy".
Chris Altwegg - Posted on January 05, 2010
Right on, right on, right on!
Kevin Stecko - Posted on January 05, 2010
We advertise in magazines frequently. We always put a special url and tie that to a discount code that the site applies upon visiting that url.

The hard part about measuring success with this is that people will then post the special url to coupon sharing sites. That makes tracking the ad harder. I've come to the conclusion that the only way to truly measure ROI when sending prospects to a web page would be if you could print an individual code on every ad.
Click here to view archived comments...
Archived Comments:
Peter Rosenwald - Posted on January 06, 2010
I share Chris Altwegg's "right on" comment. The ROI (or better, ROMI) Return on Marketing Investment is critical if you want to get value from your advertising. And it is easy to calculate.

Want an ROMI template to help you with the math?

Send me an e-mail rosenwal@uol.com.br and just say "ROMI" and I'll happily send you one. It's free.

Peter Rosenwald
Sue Canavan - Posted on January 06, 2010
We've been using coupons for years. They do work, but in addition, we've found that even if people don't use the coupons for whatever reason, they appreciate the fact that we offer them.
Jerry Heisler - Posted on January 05, 2010
I couldn't agree with you more. I am reminded of something that took place about 40 years ago when I was new to the ad business. A friend of mine told me of a company that won a packaging award for their unique package that held paint in a plastic bag rather than in a can. I inquired as to how the company was doing in the sales of their newly packaged paint. I was told that they weren't successful at all and had subsequently taken the newly packaged paint off the market. Having spent my whole career in direct response I know that the only measure of successful advertising or packaging or whatever is "what was the return on our investment". Nothing else matters. You are right on Denny, as usual. Jerry Heisler
Drayton Bird - Posted on January 05, 2010
Wonderful! I too wonder what the hell Amex is playing at. Ducks and drakes by the sound of it. No measure, no manage, no clue.
Sheri - Posted on January 05, 2010
"If you list a Web site, do NOT take the prospect to your homepage." I have pleaded with many clients on this more times than I care to remember, (and usually lose the battle!) Most insist on using their home page - either because they feel it's too much time/trouble to do a landing page - or don't want to pay extra creative costs. It's insane: let's invest time/money in a compelling email or mail piece, craft an irresistible offer that captures your prospect; then dump him/her on a generic home page laden with too many choices - most bearing no relevance to the offer. Too often, prospects get distracted from buying, (or progressing in multi-step sales;) and may even be confused as home pages rarely match voice, tone, urgency and theme of the original ad piece. Worst of all, client loses valuable tracking/metrics. All to save a couple of bucks or because their web guy is "too busy".
Chris Altwegg - Posted on January 05, 2010
Right on, right on, right on!
Kevin Stecko - Posted on January 05, 2010
We advertise in magazines frequently. We always put a special url and tie that to a discount code that the site applies upon visiting that url.

The hard part about measuring success with this is that people will then post the special url to coupon sharing sites. That makes tracking the ad harder. I've come to the conclusion that the only way to truly measure ROI when sending prospects to a web page would be if you could print an individual code on every ad.