Home Leadership Leadership Lessons Simple advertising math that can help your company make more money
Simple advertising math that can help your company make more money PDF Print E-mail
Written by Robert Barrows   
Friday, 25 October 2013 13:57

What’s the best way to measure the effectiveness of your advertising? Well, there’s actually a very simple formula that lets you quantify the relationship between advertising and sales called The Barrows Popularity Factor.

Businesses of all kinds can use this simple formula to increase their sales and profit, while decreasing their risk. The reason the math works is simple. The equation reduces the relationship between advertising and sales to its lowest possible common denominator – “How much do you sell? divided by How much did you advertise?” Make sure you don’t do the math in dollars, do it in units per gross impressions.

 

In mathematical terms, the formula looks like this:

The Barrows Popularity Factor = How much did you sell? (in units) divided by How much did you advertise? (in gross impressions)

 

The answer is a rate of return on gross impressions. Remember, gross impressions are the number of ads multiplied by the audience per ad.

 

Once you quantify your rate of return on gross impressions, you can start using some additional math to help you determine the best way to spend your advertising.

 

The best part is that a single person can do all the calculations in moments, and with just a simple calculator.

 

The math will give you more of the information you need to make key marketing decisions with far less risk, and it can help you fine-tune your entire marketing effort.

 

Robert Barrows is the president of R.M. Barrows Inc. Advertising and Public Relations in Burlingame, Calif. Barrows has written a booklet on advertising called “The Barrows Popularity Factor,” which is an easy-to-use mathematical equation that actually lets you quantify the relationship between advertising and sales. For more information, and to download the booklet, visit www.barrows.com.

 

 

Last Updated on Friday, 25 October 2013 14:01
 

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