Presenter: Adam Donmoyer
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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 as part of the Wizard of Ads trilogy, Adam Donmoyer is going to be take you down the path of clarity giving you a closer look at the formula and its elements.
This is the APE equation Adam will be reviewing:
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.