An assessment of the effectiveness of an advertising campaign must be carried out to identify the needs in this business as a whole. It also reveals initiatives that can help this enterprise achieve its strategic objectives.
Instructions
Step 1
Outline the main tasks, goals, the circle of the most interested users of specific advertising information, methods and techniques for solving all the necessary tasks for assessing the effectiveness of the company.
Step 2
Determine the volume of changes in the property of the advertising company, as well as the availability of sources for the formation of such assets over the period under consideration. Then identify the reasons for all the changes.
Step 3
Analyze the fundamental indicators in the activities of an advertising organization, such as: profit from perfect sales, the amount of services sold, distribution costs and cost. These indicators should be reflected in the company's balance sheet for the current period.
Step 4
Assess the presence of accounts payable and receivable from the organization. For these purposes, it is necessary to compare the values of the size of these debts, and then calculate the amount of their growth.
Step 5
Analyze the state of the ad firm's equity capital. In turn, for this, determine and then compare the following elements of own funds: additional, authorized and reserve capital, the amount of earmarked receipts, the fund of the social system. Values for the assessment can be taken from the balance sheet of the company for the reporting period. As a result of evaluating the system of the amount of the company's equity capital, you can draw a conclusion about the amount of its own funds that the advertising organization spends on its own production activities.
Step 6
Assess the company's production performance for the current period. To do this, you need to calculate the value of the indicator of the profitability of the advertising company. This coefficient will be able to show how much profit from the sale of services falls on one unit of cash costs. In turn, the volume of the company's profitability is calculated in the form of the ratio of the profit from sales to the cost of the sold service.
Step 7
Identify the reasons that influenced the current state of the advertising firm. Then identify and justify the management decisions necessary to mobilize reserves that can improve the efficiency of the production activities of the organization in question.
