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Advertising PowerLIFT Service Details
Response advertising success depends on many strategic, creative and metric factors. The Advertising PowerLIFT service comprehensively analyzes, evaluates and improves every aspect of an ad to raise the response rate, increase advertising effectiveness, and increase profits.
Strategic and Metrics Analysis
Response Power Generation
Graphic Design and Copy
Outlook Reports
Advertising PowerLIFT Components and Deliverables
Strategic and Metrics Analysis
The Advertising PowerLIFT process begins by building a thorough understanding of the advertisement’s objectives and strategy. Then the qualitative factors to achieve the objectives are reviewed for improvement. The metrics affecting response and profitability are analyzed using 23 key drivers that create an Outlook Report with response and sales forecasts and a profit and loss statement. The Outlook Report also contains important analytics like the Advertising Expense to Sales ratio (A/S), Cost per Order, and the Break-even Response Requirements. The metrics analysis also addresses critical performance issues, such as:
- Is the gross margin sufficient?
- Are the advertising costs reasonable?
- Is the break even response rate realistically achievable?
- What happens to profit if the response rate drops 20% below forecast?
- Are repeat purchases required for the ad to be profitable?
- Can customer lifetime value strategies be used to increase profits?
After the strategy and metrics are analyzed, the advertisement creative execution is evaluated using the Advertising PowerLIFT Response Power Model.
Response Power
The Response Power Model is a comprehensive framework of the key traits, or characteristics, that determine whether an advertisement will create response. The model contains 13 positive traits that drive or generate response and 4 negative traits that can decrease or block response. The traits are very specific qualities in strategy, copy and design that can be analyzed and graded, or scored. The trait general description is the same for each different type of advertisement, such as lead generation or direct order. The trait executional descriptors, however, vary within each advertising channel, such as space, Web site, direct mail, and catalog.
Each model trait has a different value weight that represents that trait’s relative importance in the total task of creating response. The total of all positive trait value weights is 100. The 4 negative traits should not be present in a response advertisement, but occur often enough in real practice for inclusion in the model.
To measure response power, the advertisement is carefully analyzed and graded for the strength with which the creative execution accomplishes each trait. The trait strength is graded on a 5-point relative magnitude ordinal scale from low to high. Zero (0) signifies the trait is missing completely or negatively implemented. Five (5) indicates the trait is accomplished with full force.
The advertisement’s model score is calculated as follows: Each trait strength grade is multiplied by the value weight to determine the trait score. The positive trait scores are summed. Any negative trait scores are subtracted from the positive total. The net sum is the advertisement’s model score. For example, if an advertisement average strength grade is 3.5 on all traits, the positive trait score is 350 (3.5 X 100). If there are no negative traits present, the model score is also 350. If negative traits total 50, the model score is 300. The highest possible model score is 500; a strength grade of 5 on all 13 positive traits X 100, the total of all trait value weights.
The Response Power Model Score Report describes each trait and characteristic in rich detail, indicates the ad’s grade for accomplishing the trait, and provides specific detailed improvement recommendations for strengthening the execution of the trait. The trait is then re-graded using an assumption that the improvement recommendations will be implemented as suggested.
The report does not necessarily rewrite copy or make art revisions, but makes directional suggestions to strengthen positive traits or eliminate negative traits. The Response Power Generation Model trait descriptions provide the specific information about the traits to assist strategists, copywriters and designers make changes or build new creative executions.
The first trait grading and scoring (before improvement recommendations) is identified as Outlook One. The re-grading and scoring (assuming improvements are executed) provides the score identified as Outlook Two.
The report also compares the Outlook One score to the scores of previously scored advertisements. Only scores are revealed; the other advertisement identities are confidential.
The Response Power Score Report provides valuable insights to management for maximizing response:
- The model is comprehensive so all aspects of the advertisement concept, copy and design creative execution are evaluated.
- Any low scoring positive traits are identified for improvement and strengthening.
- Any negative traits can be reduced in strength or eliminated.
- The comparison to other ads of the same type and advertising channel gives a valuable relative measurement how much the ad’s overall strength and how much it can be improved.
Graphic Design and Copy
In addition to the model scoring, the overall copy text and graphic design are evaluated. If the copy text is sufficiently long, the copy is analyzed by programs for word complexity, readability, and sales persuasion. These evaluations provide further measurements and insights to strengthen the creative execution.
Outlook Reports
Advertising PowerLIFT Outlook Reports are produced two times in the evaluation process. The Outlook One Report establishes a baseline for the advertisement’s likely response, sales and profit outcome before any improvement changes. The re-grading and scoring assuming the recommended improvements are successfully completed provides the basis for Outlook Two Report. Both Outlooks forecast the response and provide sales and profit Income Statement, so comparing the two outlooks provides an estimate of the incremental response and profit increase.
Software
An unrestricted copy of the software that creates Outlook Reports is also provided as part of the Advertising PowerLIFT service. This Excel spreadsheet based software enables the user to create an unlimited number of plans, forecasts, Income Statements and Outlook Reports for any advertisement or campaign.
Telephone Consultation
A telephone conference is scheduled to review the completed Ad PowerLIFT reports, answer any questions and provide any further guidance or assistance that may be needed. This step helps assure complete understanding of the improvement recommendations.
The Ad PowerLIFT Service Component Deliverables:
1. Strategic Evaluation Report
2. Response Power Model Score Report and Improvement Recommendations.
3. Graphic Design and Copy Evaluation Report
4. Outlook Reports (Forecast and Income Statements) for the advertisement before Ad PowerLIFT and after the recommended changes.
5. An unrestricted copy of the software that creates the Outlook Reports and allows unlimited future “what-ifing.”
6. Thirty Minute Telephone Consultation to answer any questions and address any issues.
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