Measuring the ROI of your promotional clothing campaign
Marketing can be expensive. And in a world where everything online is trackable and measurable it is increasingly important for marketers to prove their campaigns are value for money. ROI (Return on investment) is key and being able to provide your client with an estimated ROI before they place their order may well just win you the business.
Calculating the ROI of promotional clothing
There are numerous different ways to measure ROI, the most straight forward is to workout an average cost per impression/OTS – i.e. how much will it cost you for every person who sees your ad or message.
This year’s Global Advertising Specialities Impressions Study by the ASI (Advertising Speciality Institute) gives us the number of impressions you will need for your calculations. The study states that on average an item of promotional outerwear in London generates 5,125 impressions, a promotional bag generates 4,066 impressions and a promotional t- shirt in London generates 1,852 impressions.
Taking the average no. of impressions from the report, there are simple calculations you can do to work out an ROI for your project before you place a promotional clothing order:
No. of items x Cost per item = Total send
Impressions per product x No. of items = Total impressions
Total spend / Total impressions = Cost per impression
So, for example:
100 Fleeces x £10 = £1000
5,125 x 100 = 512,500
1,000/512,500 = £0.00195 per impression
100 t-shirts x £3 = £300
1,852 x 100 = 185,200
300/185,200 = £0.0016198 per impression
And voila – you have a pretty strong measure to compare with other marketing channels!
An alternative (and arguably more accurate) option is to work out a cost per response after the campaign.
This relies on your design including a measurable call to action of course, which doesn’t always fit the brief. But if it does, you can do this using the same calculations, but by replacing the no. of impressions with the no. of responses received:
No. of items x Cost per item = Total spend
Total No. of responses
Total spend / Total responses = Cost per response
And if you want to get an idea of what sort of response you can expect before your campaign goes live, it’s worth noting that according to the BPMA research, 57% of respondents felt that promotional products were more likely to get them to take action than any other advertising media. This was further demonstrated by the fact that the same research states that a massive 50% of the UK public claim to have taken action after receiving a promotional product. When you compare this to other marketing channels it’s a pretty impactful sales hook!
For more useful facts and figures to help you sell promotional clothing to your customers, download our free eBook: Making an Impression with Promotional Clothing.