Do you know/use a formula for every product you sell you spend "X" amount advertising

Hunter21

As the title suggests, do you know of or use a formula of; for how ever many products you sell you spend X amount on advertising or marketing?

Or explain what you and your business like to do.

Gloomtastic!

There was the famous quote 'Half of everything I spend on advertising is wasted. The trouble is I can never figure out which half.'

Notoriously difficult to quantify, the only media you can measure results is direct mail and Internet.

Companies that spend huge amounts on advertising like Unilever, especially during downturns, do so to gain market share as opposed to sales.

Sorry I couldn't be more helpful......

antoinolachtnai

In general, you want

gross profit from extra sales generated

> (greater than)

total cost of campaign.

Now, it depends on your business. In some businesses, they talk about a 'customer acquisition cost', i.e, the cost of getting a new customer onto your books. The typical example of this is mobile phone subscriptions, but it might also work for a cafe, hairdresser or other business with regular trade. To decide how much you can allow as the customer acquisition cost, you need to figure out the average value of a customer, in terms of the average gross profit per customer, and the number of years that they will typically remain a customer.

Some of this is covered in my book, as it happens ...http://www.amazon.co.uk/Making-Impact-Online-Works-without-Shoestring/dp/1408139901/ref=ntt_at_ep_dpi_2

The thing about most advertising being a waste of money - the Internet and direct marketing has changed that to a very large degree. You can now measure such things quite closely