W. Edwards Deming, the father of optimization, suggested that business owners should always strive to get maximum benefit and yield – indefinitely – for everything their business does. And since everything any business does is a ‘process’, this philosophy naturally applies to your business’s marketing and advertising activities, including the ads you run.
If we look at getting better ad results as just another process your business engages in, then the following distinctions apply to every single ad you run:
1. Its results can be measured and quantified.
2. Its results can be compared.
3. Its results can be improved.
These three simple distinctions can help you get dramatically better results for your ads. To help illustrate this, let’s look at each of them one at a time:
Measure And Quantify
The results you are getting right now is what’s called your “baseline.” It’s the average results your ads are producing when you run them – no matter if they’re classified ads, full colour display ads, television or radio ads. So your first job is to identify what your baseline is for your ads.
Your second job is to identify the ‘variance’ for your ads, or the difference in the results you achieve when different mechanisms are used. When you’re trying to identify levels of variance, you’re comparing the results of the same ad when various modifications are in place.
Using this formula, your job as a business owner then is simply to increase the baseline and reduce the variance of your ads over and over again. To do this, you need to test your ads – conservatively testing every part of your process or each individual mechanic – to try to get improvement. And when you achieve an improvement in any area, you then replace the less effective component with what you’ve proven to be more effective.
Every time you do this, you are improving your ad results in a calculated, measurable way that can be tracked and referred to any time you change your ad.