By Shahnaz Mahmud.
Direct Response TV (DRTV) advertising has a (not-so) secret weapon: Media Efficiency Ratio. With this metric, you can set yourself up for success in seamless marketing beyond television, from small screen to website.
Television advertising, within the context of the multiplatform approach that marketers take, will be discussed at the upcoming LeadsCon New York conference, August 22-24. The session, “One Platform to Another: Getting the Most Out of TV Advertising while Cultivating Consumers with Your Website,” is the final afternoon of the event.
Stan Hall, digital marketing coordinator at Cesari Direct, explains that with direct response, yes, the benefits are seeing “frequency and reach,” but the more critical factor is a metric known only within its industry: Media Efficiency Ratio (MER). “Because we are able to track direct sales, via phone calls and web orders, we can then attribute them to specific station airings that ran and a specific time and region,” writes Hall. “This gives the client a full picture of their ROI.”
Hall points out that MER actually doesn’t account for all of the customer traffic that gets driven to each of your distribution channels. That spells good news because, as Hall says, “DRTV advertising will help increase your retail sale through, drive more traffic and sales to your online site and any other online sites carrying your products or service.”
How to Reach a High MER Score
Stefanie Genauer, chief revenue officer at Kairos, provides some insight into how to reach a high MER score. The math is simple: MER is calculated by dividing your total sales by the cost of the media buy itself.
The trick, she says, is the due diligence prior to the media buy. “Quantifying subjective metrics, like if you’re improving your brand perception, whether you’re effectively engaging with your target customers, or simply if your audience likes what you’re putting out there, can be difficult,” says Genauer. This complexity is why it’s important to use the available tools during the planning phase, before you make your media buy, to make sure the math works out.
Once you have arrived at the perfect media mix for your brand across social media, online video, TV and print, you have to put time into planning what to run on each platform.
“Implementing emotion analysis experiments into your creative vetting process can provide you almost instantly with results on whether that new commercial is going to deliver that chuckle you think it will or just leave you hearing crickets,” suggests Genauer.
It’s a simple formula: Media buy due diligence + Optimal media mix + emotional analysis = successful MER.
Click here to register for LeadsCon New York 2016.