82 - How To Measure Advertising Effectiveness The Right Way
Sep 3, 2024
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Jeremy Neisser, an expert in advertising effectiveness within sports marketing, dives deep into the intricacies of measuring success. He reveals that consumers often need multiple reminders before making a purchase, highlighting the significance of tracking new versus repeat customer metrics. Neisser advocates for focusing on ROI and buyer numbers for acquiring new customers, while emphasizing the power of direct channels like email and text messaging to engage return customers. His insights provide a roadmap for brands aiming to sharpen their marketing strategies.
Understanding advertising effectiveness requires distinguishing metrics for new customer acquisition and repeat customer engagement to enhance marketing strategies.
Leveraging direct communication channels like email and text messaging is crucial for driving repeat customer purchases and measuring their responsiveness effectively.
Deep dives
Understanding Customer Acquisition
Analyzing customer acquisition involves distinguishing between new and repeat customers, as each group responds differently to marketing strategies. New customers are typically attracted through a variety of advertising channels, including social media, billboards, radio, and influencer partnerships, which aim to raise awareness and drive ticket sales. By tracking metrics such as the number of new ticket buyers and the revenue generated from these sales, marketing teams can assess their return on investment (ROI) effectively. A hypothetical example provided illustrates how spending $10,000 on advertising could result in $40,000 in ticket sales, showcasing a successful three-to-one ROI that indicates a profitable customer acquisition strategy.
Evaluating Repeat Customer Strategies
Repeat customers represent significant value as they have previously engaged with the team's events, and thus, their return can be influenced through targeted marketing efforts. The effectiveness of channels like email marketing and text messaging is critical in bringing these customers back, as these methods allow teams to communicate directly and measure responses. By comparing metrics such as the number of return ticket buyers and the revenue generated, teams can determine if their strategies are successful and how much revenue repeat customers contribute compared to new ones. This approach emphasizes the ability to refine marketing messages, subject lines, and special offers specifically for return customers, enhancing the overall engagement with this valuable audience.
Challenges of Attribution in Marketing
Attribution in marketing poses a challenge as multiple channels may influence a customer's decision to purchase tickets, making it difficult to determine which source deserves credit. For instance, a potential fan may see an advertisement on social media, hear a radio spot, and view a billboard, all of which contribute to their final decision to buy tickets, leading to confusion over which channel is most effective. This complexity suggests that rather than focusing solely on attribution, it is more beneficial to evaluate marketing based on the broader reach and impact on both new and returning customers. By analyzing overall engagement and sales across all platforms, teams can better understand their marketing effectiveness without getting lost in the metrics of individual channels.
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Navigating the Complexities of Advertising Measurement in Sports
In this episode, Jeremy Neisser discusses how to analyze advertising effectiveness in sports marketing. He breaks down advertising into two categories: new customers and repeat customers. He explains that consumers rarely buy the first time they see an ad and need to be reminded multiple times before making a purchase.
Neisser emphasizes the importance of looking at new customer acquisition and return customer metrics to understand the effectiveness of marketing efforts. He suggests tracking ROI, number of buyers, and revenue for new customer acquisition, and leveraging direct channels like email and text messaging for return customers.
Takeaways
Focus on new versus returning customers rather than analyzing by source
Measure ROI and buyer numbers for new customer acquisition
Leverage direct channels like email and text messaging for return customers
Chapters
00:00 - Introduction 00:41 - Analyzing Advertising in Two Buckets 02:07 - The Importance of Multiple Touchpoints 03:30 - The Challenge of Attribution 04:28 - New Customer Acquisition 07:15 - Channels for Return Customers 10:35 - Focusing on New and Return Customers 12:28 - Leveraging Direct Channels 12:57 - Conclusion
