Posts Tagged ‘DRTV’

June 29th, 2010

DRTV Campaign analysis using spot matching

If you are running a DRTV campaign it’s important to measure and analyse campaign performance in detail. Information gleaned from DRTV campaign analysis can inform subsequent DRTV campaign planning and performance.  The main thrust of analysis work in DRTV is to measure the variables that can be realistically controlled in media planning and buying. Typically, these are the following criteria:

  1. Day of Week
  2. Time of Day
  3. Channel
  4. Programme type
  5. Time length of ad
  6. Position in break
  7. Position in programme
  8. Diminishing returns (audience size)

How does DRTV Spot Matching work?

The established way to undertake these analyses is to use a technique called “spot matching”.   In simple terms, spot matching involves matching two files with each other. The first file is the DRTV spot schedule which contains spot transmission times, programme, channels, audience size and timelength. The second file is the response file which contains information about inbound response, the time of calls, and often the outcome of those calls e.g. whether it resulted in an action with value (i.e. became a qualified lead) or the call failed (i.e. caller not interested, hoax, timewaster etc).

How are the response files matched and reported?

The files are matched using a response curve.  It is generally accepted, from numerous research studies, that around 75% of DRTV calls occur within 15 minutes of spot transmission, and around 50-60%% occur within around 7-8 minutes.   By overlaying the response curve across every spot, it is possible to allocate calls to spots throughout the whole DRTV transmission schedule. When call volumes have been “attached” to each spot transmission, it is then possible to establish the call response rates for each spot.   This then enables reporting by time of day, day of week, channel, timelength etc.

Establishing Financial ROI

By multiplying spot audience volumes by the cost per thousand (CPT) rate at which the DRTV audience was bought,  we can establish the cost of each spot. Because we know the call volumes attached to each spot we are able to report cost per call by spot.  If the advertiser has a notional value that they can attach to a call with a positive outcome then it is possible to establish ROI based on the cost of call from each channel, time band, day of week, programme genre etc in order to report a ROI based on prospect value.

For more information on our analytics services visit www.teqtonic.com

June 1st, 2009

TV media planning for site traffic generation

If you are an advertiser looking to use TV to drive traffic to your web site or increase brand term searches, you can do a lot worse than employ some well tested techniques from the world of DRTV advertising to improve your results. In this short think-piece, I am going to review some of the techniques that can be borrowed from DRTV media planning to increase site visits from your DRTV media spend.

Before we go into techniques, it’s important to recognise that measurement is key to the response planning process. Many believe TV is not accountable, but in fact, audience delivery is measured on a minute by minute basis across the day. The BARB audience measurement panel allows us measure the audience size and composition for any spot on almost any channel at any time of day. This is minute by minute data which is ideal for matching to your second source of planning data; your own web traffic logs.

Using a combination of these two data sources enables advertisers to track web traffic, leads and sales back to their point of TV origin. So for example, we may be able to conclude that sales for product X with a value exceeding £50 are most likely to be gained from a given channel at a given time of day on a given day of week (which was traded at a given cost).

It is also possible to undertake other tests by developing a text matrix and deploying it over a given time period.  For example an advertiser can run a creative effectiveness test by running creative 1 over week 1 and creative 2 over week 4 (leaving a gap of two weeks to eradicate lag from the first campaign). From a test like this it may be possible to conclude that creative treatment 1 is more effective at driving online sales than creative treatment 2.

What do the results look like?

If you imagine that weekdays are twice as cost effective as weekends, and Channel 2 is twice as effective as other channels, and that creative 1 is three times as effective as creative 2, then you are already into the type of performance multipliers that can make the difference between an average campaign and a very strong ROI performance.

Let’s now look at this in currency terms. Let’s assume that an advertiser is experiencing a TV to Web cost per sale for a financial services product of £500 across broadcast media. Our day of week selection could reduce that to £250, our channel selection could reduce it to £125 and our creative selection could reduce it to £62.50.  This means the difference between a TV generated web sale costing £500 and a TV generated web sale costing £62.50.  These are the differences between making a sale at a significant potential profit and making a sale at a loss.

May 27th, 2009

Does TV advertising drive web site traffic?

The answer to this question is a resounding yes. In my experience  - and if you are running optimised TV activity - then you can expect to see web response rates to TV activity of between 0.1% and 1% (measured as site visits/TV impacts).  That’s between 1,000 and 10,000 site visits per 1 million TV impacts.  This is much higher than traditional phone-based DRTV where a good response rate is around 0.05%, with weaker campaigns performing at 0.005% or even less.  Of course one could argue that a click is a much less committed response than a person to person phone call and this is generally reflected in a much lower online conversion rate from click to sale.

What do these web response rates this mean from a cost efficiency point of view? If you are paying a £3.00 CPM for TV impacts then 1 million TV impacts will cost £3,000. At a 0.5% site visit rate from TV, we’d see 5,000 site visits. This gives a cost per visit of £0.60 (60p) each. That’s a reasonable cost per click when compared to online sources of click traffic - especially search engines.

The challenge  is to make sure that the clicks you generate from TV are high quality clicks, but this is becoming easier as TV fragments and targeting opportunities increase. So how do you optimise TV to web site activity?There are two answers to this question. One is optimising how you select and use TV channels and the other is how you manage traffic when it comes to your site. Were going to look at how you achieve these objectives in a mini series over the next few posts.