Be aware of the 5 factors that can make or break your next promotional effort!
Typically, underachieving last year’s sales produces a state of panic. If you encounter this situation, analyze the promotions that have worked in the past so you can duplicate the results immediately!
But the problem is being unable to duplicate results from past promotions. Why is that? Well, two promotions appearing identical actually present major differences, normally going unnoticed in the duplicating process.
Here are 5 factors often overlooked or not reviewed as completely as they should when evaluating promotion performance:
- GRPs. They are not a commodity. They are created unequal.
- Persons Using TV (PUT) levels. Seasonal variations in programming and viewer behavior affect PUT levels.
- Creative wear-out. It’s a real thing, not just something made up by ad agencies.
- Media trafficking. Strategic media placement can make a notable impact.
- On-lot point of purchase (POP). POP must correspond with an overall campaign.
Here is an example of a situation seen several times:
A client ran a promotion, which performed well when first launched. So, the client requested to duplicate the promotion. However, it did not perform nearly as well the second time. The client was frustrated and wanted to know what happened.
We began a review of the 5 factors above and found the following:
1. Creative wear-out was occurring.
In this case, the same creative had been running for a long period of time. The first time the promotion ran, it was fresh, creative and catchy. The client made a minor change to the creative for the second promotion, but it appeared relatively the same. This change went unnoticed by the viewer.
To avoid creative wear-out, a good rule of thumb is to start planning to create a noticeably different version after about 1,200 to 1,500 GRPs, or change the creative.
2. Media Trafficking was significantly altered
When the promotion ran the first time, it ran as a 30-second spot with new creative. The second time, it was placed as two separate 15-second spots with the same creative edited down. This difference can significantly affect performance.
3. On-lot POP was changed.
This one is big. During the first promotion, the core product was featured clearly and prominently. During the duplicate promotion, a different product was featured and mixed at a much lower level.
Review these steps when evaluating performance, and you’ll be able to make all your promotions as effective and successful as possible.