“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.
Here’s the equation:
To better understand the APE, you must consider the three separate equations it combines:
Share of Mind x Personal Experience Factor (PEF) = Share of Market
Share of Market x Market Potential (MPo) = Sales Volume of the Advertiser.
[UPDATE: Jan 5, 2010…I'm going to be teaching the APE in an exclusively on-line venue. To find out about it when we're ready to launch, just subscribe to my newsletter list right here on the blog.]