MARKETING
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any factors influence how long it takes to real- vertising done in your product or service catego-
ize the benefits of advertising. Listed below, in ry comes from your company? Share-of-voice cal-
order of importance, are concepts you should know culations should include any benefits you get
about in order to develop an effective ad campaign from store location, quality of signage,
and minimize “ramp up” time. length of time consistently ad-
Product Purchase Cycle: How frequently does vertising, etc. Your compa-
the customer purchase a particular product? For ex- ny’s share-of-voice is
ample, the average consumer buys a new car every estimated by com-
four years and dines out 4.2 times per week. There- paring the size and
fore, the average purchase cycle for new cars is four effectiveness of
years while that of restaurant meals is just shy of two your ad budget
days. to the collec-
The point is that the longer your product’s pur- tive ad bud-
chase cycle, the more time it takes businesses to feel gets of your
the positive effects of any advertising campaign. competi-
In general, the ramp up period ranges from 20% to tors.
40% of the product purchase cycle. Therefore, a car Frank-
dealership’s ad campaign should be run between 10 ly, it’s eas-
and 20 months before the full effect of advertising ier to win
will be realized. mindshare
Many advertisers say that their primary focus is when you
on customers ready to buy products right now, have a big-
choosing to worry about future customers lat- ger advertis-
er. This type of rationalization process doesn’t ing budget.
follow real-world results. Patient and steady ad- All advertis-
vertisers don’t necessarily expect to see huge ers, however,
results within a week, month, or year. Their ob- can estimate the
jective is to become the brand customers think financial impact of
of when they eventually need certain prod- reaching 100% of the
ucts. The longer advertisers maintain a sound target audience while
and steady plan, the more likely they are to win persuading only 10% of that
over customers. Only when there aren’t any con- same target audience. Converse-
sistent advertisers will the impatient advertiser ly, advertisers should also calculate the
looking for quick results be the winner. impact of reaching only 10% of the overall target
Share-of-Voice: What percentage of all the ad- audience but persuading 100% of them to buy your
0 ThinkBusiness April 2009 1
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