There is a well-known saying,

“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”

– John Wanamaker (1838-1922).

In our experience, every penny spent is assured to get you 1:1 Advertising ROI. In that sense, no money is wasted. However, the goal is not to get 1:1, but 1:10, or even 1:100 ROI. Therefore, it could be argued that 50% of the money spent gives great ROI and the trouble is we don’t know which half.

That is the half which is true in the above quote.

The pursuit & thrill of the chase to create that elusive viral campaign, that can elevate a brand to success & deliver multi-fold Advertising ROI, is what makes advertising glamourous. It gives a similar feeling of elation, that one gets from giving a hit film, and is just as rare. It is what draws many to the industry.

 

The Advertising Ecosystem

 

Advertising is a part of an ecosystem with at-least five stakeholders. Each stakeholder has an animate or human intangible facet and an inanimate or product/service tangible aspect to it. They

are also actuated by their own primary interest. This complex system with people and institutions with different goals, make it difficult for each to work in a way that could serve each other’s interest. They are all intertwined. The system itself is in a delicate balance, even at times, out of balance.

 

Animate	Inanimate	Primary Interest
Company	Brand/Product	Sales Top-line
Media House	Medium/Publication	Subscription
Agency	Creative/Message	Attention
Reader	Access/Subscription	Entertainment
Consumer	Store/Point-of-purchase	Information

This categorization could be debated; however, it is meant to illustrate a perspective of the intertwined relationship in the industry.

The company serves to the consumer, while the Media serves the reader. The consumer is a subset of the reader. The Advertising Agency is bang in the middle of this ecosystem, and that is the most vulnerable position. They neither have too much power nor can they afford to be not vigilant.

 

The Power triad

 

• Media derives its power from the subscription base and that is done by providing quality entertainment/information.
• The Company needs to reach to the maximum number of readers at the least Cost.
• The Agency needs to produce a creative message that will grab the maximum number of reader’s attention.

 

What makes advertising work?

Advertising is nothing but an interruption of entertainment to tell a message that is both entertainment and information and that convinces the reader to become a consumer.

The keywords here are ‘interruption of entertainment’. Whatever be the medium, the reader is only using that medium to get is entertainment and information. Anything else is an interruption. And readers/viewers tend to ignore interruptions. The reader tunes out.

Ask somebody near you (who has read that morning’s paper or watches TV regularly) what was the advertisement they saw on the front page (or who is the sponsor of their favourite sitcom). Most probably, they do not remember. If they remember, then, that is a clear sign that the advertisement has worked. Advertising works when it manages to break through the clutter and is more entertaining or more informative than the original content of the medium.

This can be extended to any medium. News Papers, Magazines, TV, Radio, Outdoor, Storefront, Store-shelf, Posters, Social Media, Online media, etc.

 

Advertising gives great ROI when it is entertaining and informative.

Yes. Advertising has to be entertaining and informative. A good creative agency just does that. Simply put, a creative agency, ‘infotains’ the promise of the product through a suitable medium. Such communications enhance reputation, build trust and reinforce loyalty.

The best way to ensure you get the maximum Advertising ROI is to engage a creative agency that knows the media landscape to get the maximum advertising ROI.