How do you know your ads are working?  

We get this question frequently.  The old straw among corporate advertisers used to be: “I know 50% of my advertising dollars are wasted, but I don’t which 50%!” 

The new straw involves some sophisticated (read “expensive”) print, TV and Web measurement tactics used by major advertisers.  But what about the little guy?  What about your agency? 

The Number One objective of advertising 

Insurance agency advertising has one job that it can do---build favorable awareness of your name and services. Period.   

Any direct leads your advertising generates should be viewed as bonuses.  And too often, these bonus leads represent “adverse selection”.  That is to say, customers who are “C” and “Y” (“Why are we doing business with these people?”) customers. 

So, how do you measure “awareness” gains? 

The formal way is to establish a BENCHMARK before you start your next advertising campaign.  Conduct a simple mail survey.  The goal?  To find out what percentage of respondents can identify your name and to compare that figure with what percentage can identify the names of your local competitors.   

At the close of your advertising campaign, repeat the BENCHMARK SURVEY.Has your campaign increased your name recognition?  How much? 

We recommend a formal measurement system. And we recommend that it be combined with an informal measurement system:  How often do people mention your campaign? When you ask new customers how they heard about you, what do they say?  When you ask clients if they have seen your ads, what do they say?