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Of Gumball Machines and Commercial Jets

Of Gumball Machines and Commercial Jets

FromWizard of Ads Monday Morning Memo


Of Gumball Machines and Commercial Jets

FromWizard of Ads Monday Morning Memo

ratings:
Length:
8 minutes
Released:
Aug 24, 2015
Format:
Podcast episode

Description

“Bonding” is falling in love with a company, a product, a spokesperson, an outlook, a belief system. This bond of love inevitably manifests itself in a tangible way. And then again. And again.A bonding ad is about the customer.A direct response ad is about the offer.Direct response ads trigger immediate action.Bonding ads do not.The results of a direct response ad can be measured immediately. The public either buys what you’re selling or they don’t. This is how you know whether or not the ad is working. But that doesn’t mean it’s a good idea to build your company on direct response.Bonding ads build customer loyalty.Direct response ads do not.Hi Roy,I have a client who started his radio campaign a few months ago running a low frequency schedule. He is already starting to see the success of his campaign both through website visits and actual inquiries from potential clients. In the beginning his creative was written by us and read by him. He sells life insurance. My client is now concerned with measuring the effectiveness of each ad. He is trying to determine which ads are generating the most website hits and inquiries. He has stated:“With any direct response ad the trick is to determine wording based on the effectiveness of the ad. If the testimonials are driving the most hits, we should be pushing those. I want every campaign I do to be measurable. Without being able to measure each ad’s effectiveness we are just shooting in the dark. If I look at my website hits for instance, I can see that yesterday I only had 7 hits but on July 8th I had 39. What ad played on July 8th to garner such a response?”Any advice on how to explain why his radio campaign is effective without needing to measure each individual ad for its effectiveness?”JonJon, the success of a direct response ad is determined by the attractiveness of the offer made to the customer. What offer can this life insurance salesman make? Keep in mind that the offer must be compelling enough to get a person to take immediate action.This insurance agent’s best hope would be to use radio as a promotional vehicle for content marketing. What insights, solutions or valuable information might he publish on his website and talk about in his radio ads that would cause listeners to immediately visit his website to read it? Without this kind of “content” as bait, his direct response campaign on radio is likely doomed.Business people are attracted to direct response ads because they want their advertising to function like a gumball machine. “You put in your money and you crank the handle and out come the results.”In theory, direct response marketing is tidy and scalable and predictable. “Put in a penny and you get one gumball. A nickel gets you five gumballs. Give it a dime and ten gumballs emerge. A quarter? You guessed it: twenty-five gumballs.”The problem is that this gumball machine called “advertising” never functions quite like it should. Sometimes you crank the handle and get a huge gumball. Sometimes you get a tiny one. Sometimes you get nothing at all.Even when you’ve found an offer that generates predictable, scalable results – such as the response to that “content marketing” offer we described earlier – you’ll find these results will erode over time. The longer you keep pumping coins into that gumball machine, the less well the machine will work. The gumballs will keep getting smaller and smaller until you finally go broke.No direct-response ad campaign has ever worked long-term.Each offer has to be new, surprising and different. And then you must say, “But wait. There’s more! Order now and we’ll include at no extra charge…” This is called benefit...
Released:
Aug 24, 2015
Format:
Podcast episode

Titles in the series (100)

Thousands of people are starting their workweeks with smiles of invigoration as they log on to their computers to find their Monday Morning Memo just waiting to be devoured. Straight from the middle-of-the-night keystrokes of Roy H. Williams, the MMMemo is an insightful and provocative series of well-crafted thoughts about the life of business and the business of life.