Revisiting the Advertising Performance Equation

“Have You Calculated Your APE?” is the title of chapter 47 of Roy H. Williams’ bestseller, Secret Formulas of The Wizard of Ads.

Deceptively simple, the Advertising Performance Equation (APE) encompasses every aspect of your advertising and marketing. Traditional media, the competitive landscape, the power of your ad to convince, your location, helpfulness of your staff, word-of-mouth…it’s all in there.

Now, almost 10 years after it was first published, we’re going to be taking a closer look at the formula and its elements in the next few months. This is all leading up to a workshop in Denver where you’ll be guided in the ways of Calculating your Own APE. 

Here’s the equation:

SoV x IQ x PEF x MPo = Sales Volume

To better understand the APE, you must consider the three separate equations it combines:

Share of Voice (SoV) x Impact Quotient (IQ) = Share of Mind

Share of Mind x Personal Experience Factor (PEF) = Share of Market

Share of Market x Market Potential (MPo) = Sales Volume of the Advertiser.

Comments

[Suhel Khan]

Sounds interesting Dave!

I think this will help me in creating a framework for measuring ROI in Social media marketing

Thanks for sharing your insights.

Cheers!

[jim cae]

"How to find a champion to sell your ideas"

great advice - will buy this one

Jim
http://www.brandoa.co.uk/

[GholamReza Dargi]

Dera Sir,
I am student of Ms Degree in Business Management,I am from Iran and I study in one of Tehran's university .As I am working on my thesis, I need some details about Measuring Advertising Performance ,I want to ask you if possible do me a favor and if you have any reference about the topic , please introduce me related links or send me related files .I appreciate your time and effort on this subject in advance and I will be grateful to hear from you soon.
Best regards
Gholam-Reza DargiManagerknowledge Development & University RelationsIran

[GholamReza Dargi]

Dera Sir,
I am student of Ms Degree in Business Management,I am from Iran and I study in one of Tehran's university .As I am working on my thesis, I need some details about Measuring Advertising Performance ,I want to ask you if possible do me a favor and if you have any reference about the topic , please introduce me related links or send me related files .I appreciate your time and effort on this subject in advance and I will be grateful to hear from you soon.
Best regards
Gholam-Reza DargiManagerknowledge Development & University RelationsIran