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 Issue January 25, 2005 Mailworkz Mailworkz

 

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Today's Article: Troubleshooting Poor Response from Ad Campaigns 

Today's Ask Dr. Ebiz:  What is Spam?

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What Happened? Troubleshooting Poor Response from Ad Campaigns 
  

by Diane Hughes

Too many small business owners today run ad campaigns that get little to no results, and they have no idea why. When you have the knowledge to troubleshoot the poor responses, you also have the knowledge to make the needed changes so that - next time - your sales improve! Let's take a look at the breakdown of an ad campaign, and how to determine what went wrong.

Response vs. Results

It's important to understand the difference between response rate and results. When a customer takes the action you want him/her to take (i.e., clicking to your site, calling your 800 number, etc.), then you've achieved "response." This does NOT mean you've made a sale. The response rate of your ad campaign can be high without ever selling one product or service.

"Results," on the other hand, are the sales you make in conjunction with the response rate. When a customer takes the action you want him/her to take AND buys your product/service, then you've achieved results.

No Response

When you get little to no response, chances are that one of two things happened. One - your ad was poorly written and didn't generate enough interest to excite the customer to take action; or two - the ad didn't reach your preferred target customer.

How do you determine which one is the culprit? Test! Use the same ad, but place it in a different ezine or on a different Web site. If response rate improves, you know the ad is most likely fine, but the audience exposure was off. If the response rate does not improve, it's probably best to rewrite the headline, the ad, or both.

Response But No Results

If you run an ezine ad, banner ad, etc., and get responses without making any sales, the most probable theory is that your supporting ad copy or offer is not doing its job. Ezine ads, banner ads, and the like will never make a sale on their own. The customer is almost always going to be directed to click back to your Web site. If the copy/design of your ad is working, but no sales are being made, take a good look at the copy or design of your site. Chances are that *it* could be costing you sales.

Again, testing is the key. Change a headline, add links that direct to "more information" pages, and so on. Run the ad again, and see if your results improve.

You'll notice that in either case, testing is the recommended course of action. So many small business owners get in a hurry and neglect to test their ads. While it may seem costly to run an ad, change an ad, and run it again - the truth is that running unproven ads all across the 'Net without gaining any return on investment (ROI) is a huge waste of money.

Yes, it does take a good deal of time. Yes, it can cost additional money. However, once you've taken the time to test an ad, and the copy on the supporting Web site that customers will be directed to, you'll be in a much better position to ensure consistent sales from your campaigns.

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Diane Hughes is an accomplished Internet entrepreneur and editor of the popular ProBizTips Newsletter. Subscribe to her newsletter for more tips, tricks, and secrets of the trade -- plus get HUNDREDS of eBooks, software, and tools just for subscribing! http://www.marketersdream.com/diane

Editors Note: - A couple of products that will allow you to track the results of your online campaigns are Eztrackz (a service) and Adtrackz (a product).

 


 

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"Dr Ebiz"

"The 'unsolicited' requirement for e-mail advertisements to avoid spamming still eludes me, as to when it applies. I would greatly appreciate any help or counsel that you can offer with regard to how I may avoid spamming but still cultivate potential clients using e-mail that advertises a new product." -- Eugene S. Yankura

I am over-simplifying below, and since this regards laws, realize that I am not a lawyer and cannot give legal advice. For your legal protection you are responsible to fully obey the applicable laws, but I hope the information below helps you get the idea.

SPAM is often in the eye of the beholder. There is no single, fully-agreed upon definition, but it is usually defined as unsolicited commercial e-mail that is sent in bulk, that is, e-mails sent in bulk fashion to people who didn't request or give permission for those e-mails to be sent to them. US laws generally allow unsolicited e-mails, while laws of Australia and European countries prohibit them.

The American CAN-SPAM Act doesn't outlaw all kinds of spam. It is, unfortunately, an opt-out approach. That is, it doesn't prohibit unsolicited e-mail, but requires that the e-mailer not be deceptive and quickly unsubscribe people who want to opt-out or unsubscribe.

But what is legal doesn't dictate what is best. An opt-in approach -- only send e-mail to people who have requested it -- is much, much better, since it respects the customer. That is the practice of all respected marketing professionals.

Moreover, just to make sure someone didn't request my newsletter on your behalf, recipients must respond to a confirmation e-mail to make sure they actually wanted to receive the newsletter. The confirmation system is called confirmed opt-in or double opt-in. It is considered the best practice, and I strongly recommend that e-mail marketers move to this standard.

If you want to e-mail market to people who aren't on your own in-house subscriber list, you have three choices:

  1. You can rent e-mail lists of people who have agreed to allow third parties to send them relevant e-mail. (Whether true "permission" can really be transferred in such a fashion is another issue.) These typically cost 3¢ to 25¢ per name (or $30 to $250 CPM). Legitimate companies can be secured through a list broker or list managers such as NetCreations or YesMail.
  2. You can buy so-called "clean" e-mail lists that are essentially sold by spammers who don't care where they get their names. Any price under about 3¢ per name is almost certainly a spam list, not a true permission-based list. Such lists often contain e-mail addresses obtained by harvesting e-mail addresses from websites and/or "dictionary attacks" on e-mail servers. If you are prosecuted under the CAN-SPAM act, e-mailing to such names will cause you grief. Procuring e-mail addresses or procuring e-mail services could make you liable for jail time if you know or should have known that names were obtained illegally. Don't give in to this temptation, for it can get you in big trouble with your ISP, web hosting service, and the FTC.
  3. You could "trade" with friends stand-alone e-mailings to your list, but now you've moved to sending unsolicited e-mails and are responsible legally for the source of your friend's e-mail addresses. Not recommended.

To sum up: Spam is generally defined as unsolicited e-mail. However, it is considered legal to rent permission-based lists for e-mail campaigns. The CAN-SPAM Act in the US makes it illegal to send deceptive e-mails and to continue to send e-mails to people who have unsubscribed or opted out (among other things). If you live in Europe and Australia, sending e-mail itself is illegal without permission from the recipient. Canada has no specific anti-spam legislation at present.

"Copyright 2005, Ralph F. Wilson. All rights reserved. Used by permission."


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