Do Ads Work? If you get Traffic from an Ad why Not Buy it?

I just read Seth Godin's latest blog, Do Ad's Work? - As long as it's working why wouldn't you? Good question, I'd like an answer.

If I told you that I have call tracking numbers to prove that 10 people a month on average were calling a business, would you be interested in finding out more about the ad? Really it depends, if you are a Chinese Restaurant this wouldn't be enough traffic to generate enough business to get excited about. What if I told you that the call tracking number was associated with a realtor in a smaller city? Even if he closed one sale out of the 10 calls his return the first month would be 200%. Would that not be a great investment for any realtor in that area?

Lots of businesses are cutting back due to the recession. Some are being smart about it and some are ignoring those that are still looking for them and cutting back on advertising. I wouldn't recommend any business cut back, I would recommend that they focus those dollars better. Funnel your advertising dollars into ads that have stats that prove they are working. Limit the amount of awareness and look at me ads and focus your dollars where you know your clientel look to find you.

How well do you track your advertising results? If you don't track the results but believe your ads aren't working how can you be sure you are right? I always hear that advertising doesn't work, but when I ask how they track their ads and what their return is, I always find they don't know.

I was talking with one insurance salesman in a larger city and mentioned that we have call tracking numbers that prove businesses like his get over 100 calls per month. I also had proof that over 200 people a month were looking on our online product for businesses like his. He choose not to advertise, the other day he told me his business was down 70% from last year. If you don't advertise how will anyone find you?

Have you choosen not to advertise? Why? Is Seth Godin's response (or mine for that matter) way off the mark or does the arguments make sense to you? Want to know more about advertising and why you should advertise? Contact me via skype - there on the left hand side is the skype contact or leave your contact info in the comments.

Links:
Wizard of Ads
6 Tips to Survive Lean Times - Vancouver Sun Article
Should you Cut Back on Advertising