Question: What’s the bestway to make every advertising dollar count? Answer: Design your advertising sothat you can determine how much profit each ad dollar generates. The best wayto do this is to calculate the revenue from a specific ad, then subtract thecost of the ad.
Look to direct-responsecompanies for an example. These companies build a specific code into each adthat allows them to determine precisely how much money it generates. This codecan take the form of a unique number on a coupon or a specific extension forcustomers to call.
For example, you may includea numerical code in your newspaper ad that customers should repeat when theycall. Or, you can simply ask customers how they heard of you and keep a tallyof 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 canalso calculate gross profit by subtracting the cost of the ad from the totalrevenue it generated. It’s a scientific way of getting the most from your addollars.
– Source: Tire ReviewBusiness Toolbox