You never know when an analytics opportunity may appear. Recently, when I stopped for gas in rainy, grey Seattle, I saw a sign near the pump that read:
The sign got me thinking. Was it a good ad or a bad one? It certainly caught my attention. But did it compel me to buy the coffee?
The creative and copy weren't very professional. The offer also seemed to flunk Economics 101. I mean, don't people usually want coffee more in the winter, when it's cold and dark outside? Yet, the offer gives you the lowest price for hot coffee when you want it the most. Supply and demand. Hmm...
I decided to score the ad on a simple, subjective scorecard:
The most important question may be, did the ad "drive" more traffic to the gas station and make them buy gas? In a city like Seattle, where buying coffee is an option everywhere you look, and the temperature rarely gets too hot or cold, I seriously doubt anyone will care if they save five cents if they "buy now." (Were the ad run during wintertime in Chicago or Nome, AK, maybe the result would be different.)
I shared my coffee story with my friend Jason Burby while we were on a recent flight. He one-upped me with his story of a recent trip to the liquor store. As he walked the aisles looking for his favorite gin, he saw this sign:
The type was huge and bold, highlighted in yellow. He'd never heard of Ninkasi, but soon realized it was a micro-beer. Only after that did he realize the offer was for a whopping 0 percent discount.
Though both ads were designed for simple, everyday use, they also have broad applications. Examining them from analytics and predictive modeling standpoints offers insight into how to market your most important products.
Setting ad goals is very similar to predicting the future. You need to think about what you want to achieve and make sure the incentive ties to the business outcome you desire. Next, understand what the offer will cost. Understand the upside. Do the math. Be sure to include a contingency for unknown factors. Then analyze the performance and response rate to your ad and offer, and be sure you can clearly attribute the performance and results.
Lastly, don't forget to optimize. Fine-tune the offer and ad to get the maximum performance. You may not be able to sell your product at a zero percent discount, but if you're smart and clever enough, you may get close.
In 1998, Shane co-founded ZAAZ to advocate a different approach to Web services — one that respects and delivers on the power of the individual and the promise of Web technologies. As CEO, Shane leads the company's long-term strategic vision of working with leading financial service organizations, consumer brands, startups, non-profits, and community-based organizations, helping each realize the potential of the Internet and its meaningful impact on their business.
May 22, 2013
1:00pm ET / 10:00am PT
June 5, 2013
1:00pm ET / 10:00am PT