TOOLKIT: How to evaluate Advertising Proposals - A Guide for Business Owners
SCENARIO: You get a call from an advertising sales rep, they drop in, gather a bit of data, and then send you an advertising proposal. Looks great, sounds like they know what they’re doing, and you could always do with a few more customers, right? Trouble is, how do you know if it’s likely to give you a positive ROI? Here’s an 8 step approach to evaluating the next proposal that crosses your desk.
1. Understand Your Objectives
Before you evaluate the proposal itself, clarify your advertising goals. Ask yourself:
What do you want to achieve? (e.g., brand awareness, lead generation, sales)
Who is your target audience?
What is your budget?
Having clear objectives allows you to evaluate proposals based on how well they align with your goals.
2. Evaluate the Proposed Strategy
Assess whether the proposed strategy is appropriate for your business:
Alignment with Objectives: Does it directly address your goals?
Target Audience Reach: Will it effectively reach your desired audience?
Creativity and Innovation: Are the proposed ideas fresh and engaging?
Multi-Channel Approach: Does it utilize a mix of channels to maximize reach?
A strong proposal should demonstrate a clear understanding of your business and the market.
TIP: Determine who’s responsible for the development of the creative assets (ie the ads). In general there’s an extra cost (even if you have the capacity in house) and you need to factor that into the proposal cost.
3. Review Previous Case Studies and Testimonials
Look for evidence of past success:
Case Studies: Check for examples of previous campaigns that yielded measurable results in your industry with similar business profiles.
Client Testimonials: Read reviews and feedback from past clients to gauge satisfaction.
4. Consider the Budget
While it’s essential to stay within budget, the cheapest option isn’t always the best:
Value for Money: Evaluate the proposed costs against the potential return on investment (ROI).
Hidden Costs: Ensure there are no unexpected fees or charges (like creative).
Payment Terms: Understand the payment structure and any milestones tied to payments.
5. Assess Communication and Support
Effective communication is vital throughout the advertising process. Consider:
Availability: How accessible is support for questions and updates?
Reporting: Will you receive regular performance reports?
Support: What kind of support can you expect during and after the campaign?
6. Ask Questions
Don’t hesitate to seek clarification on any aspect of the proposal. Considerations:
How do you measure success?
What adjustments can be made if the campaign isn’t performing as expected?
Define who is responsible for what.
7. Make a Decision
Weigh the pros and cons of the proposal and consider:
How well does each proposal align with your objectives?
Do you feel comfortable working with them?
What is the potential for achieving your desired outcomes?
Trust your instincts, but make sure your decision is backed by data and thoughtful analysis.
8. Measure Campaign Impact
Once your campaign is underway, measuring its effectiveness is crucial. Consider the following metrics:
Return on Investment (ROI): Calculate the revenue generated vs. the cost of the campaign.
Engagement Metrics: Track likes, shares, comments, and overall engagement.
Conversion Rates: Measure how many leads turned into customers.
Website Analytics: Use tools like Google Analytics to monitor traffic and behavior.
Tip: Don’t get caught up in the vanity metrics of likes and engagement etc. Evaluation should be against your real business goals ie how many leads or sales did it generate?
BONUS: Recommended Tools for Tracking Impact
Tracking Pixels: Implement tracking pixels (like Meta Pixel) to gather data on user interactions.
Landing Pages: Create dedicated landing pages to measure specific campaign performance.
Google Analytics: Utilise detailed analytics to build insights into web traffic and user behaviour.
CRM Systems: Use a CRM system to track leads, and conversions/sales. This is particularly important if your campaign is designed to generate leads, you need a way of moving those leads through the marketing funnel to sales (and beyond).