Return on Your Advertising Investment

What does a return on a consistent advertising investment look like?

First things first: Unless you are handing out $100 bills or having a legitimate (meaning you don't advertise one every week) sale, no advertising medium is going to bring masses of people in your door at once. Only 5% of any population (or media consumption) group is in the market for what you have to sell at any given time.

Over time, however, that adds up to dollars to your bottom line. And here's what it looks like:

If you added 5% of Asheville radio station 98.1 the River ‘s listener base to your customer base over a year (as the result of a frequent, consistent advertising campaign):

1 out of every 10 people in Asheville listen to 98.1 the River
8,500 listeners
5% is 425 listeners in the market for what you have to sell

What 425 new customers over a year means to your business:

Book Store/Coffee Shop Café/ Bar:
$60 per customer over a year
(6 visits at $10 per visit)
$25,500 in added revenue
50% annual profit: $12,250

Massage/Salon/Spa
$150 per customer over a year
(2 visits per year at $75 per visit)
$63,750 in added revenue
50% annual profit: $31,875

What would 425 new customers in a year LOOK like?
About 1.2 new customers per day-not really a noticeable mass coming in the door but VERY noticeable to your bottom line

Now what if EACH of those 1.2 people told a friend about you??

ROI squared.