From Stove Salesman to Billionaire: The Importance of Measuring Return On Investment
Written by Matt Fisher on Oct. 10th 2016
David Ogilvy was a 1950's Stove Salesman turned Billionaire. He sold so many stoves he was asked by an enormous advertising agency to join their ranks and he quickly made partner. He was a master at Ad Copy and Direct Mail Advertising. But what made Mr. Ogilvy head & shoulders above his competitors was he used different phone numbers on his different Adverts and measured their performance. Simple Genius.

Fast Forward almost 70 years and most business owners I speak to would not have the faintest clue which form of advertising is generating the best return on their investment. By putting different phone numbers on different ad media they would very quickly be able to assess why their competitors are dropping traditional advertising and flocking to digital advertising to grow their businesses.

Yellow Pages and Radio stations were able to hide their negative return on the advertising spend from small businesses for almost a decade because businesses weren't sure where exactly the new business was coming from. Everything was just blended in together. Referrals, SEO, Billboards, Newspapers, Leaflet drops. They just know 'something' is working, so they keep spending on all forms of advertising according to their budget, instead of according to the best return on investment or R.O.I.

Today, in just the same manner as how Yellow Pages & Newspapers were able to get away with poorly producing advertising methods, I see a lot of Digital ad agencies attempt to hide their poor performance by not using proper tracking and measuring. And the best way to track real world results? The same way as David Ogilvy did way back in the 50's... using Call Tracking Numbers.

So if you're thinking about doing Digital Advertising and your Ad Agency doesn't provide phone calls as part of their daily reporting, then not only don't you know if your ads are giving you a positive return on investment, but neither does your Ad Agency!

By being able to track and measure which campaigns resulted in phone calls that resulted in profitable jobs, you can very quickly cull the ads that aren't performing; keep the ads that are performing, and by continuously split testing new versions of the profitable ad campaigns, you end up with a seriously profitable lead generation machine. Without Call Tracking this is next to impossible.

Where Instant Clients comes into a league of their own is that on our corporate plans we can even track which search terms triggered the ad that led to the phone call. Once you know this, you can scale your business to the moon and leave your competitors in your dust as they'll be spreading their money across all ad platforms and all keywords and all ads, not having the faintest idea what's working and what's not. Meanwhile, you're able to quadruple down on what works and killing off what doesn't. This is the David Ogilvy methodology on steroids. The methodology that made him a Billionaire, starting off as a humble stove salesman.

Matt Fisher

Matt Fisher helps service based businesses generate inbound calls using digital marketing with a measurable return on investment. If you're interested in getting more customers or scaling up your business then reach out and request a free strategy session today.
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