television advertising

Growth in Ad Spend in Major Media

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Sunday, April 14th, 2013 news No Comments

See The 10 Most Effective TV Ads Of Q2

Source: http://www.businessinsider.com/here-are-the-10-most-effective-tv-ads-of-q2-2012-7

zooey-deschanel-apple-iphone-4s-ad

Television advertising research firm Ace Metrix released its list of the top 10 ads of Q2 2012 and the results are somewhat surprising: Samsung’s ads were more effective than Apple’s by a longshot—but not in the way you think.

Unlike traditional Nielsen ratings where measurements center around whether or not an individual actually watches something, Ace Metrix measures how viewers react to and receive the ads. This means these are the most-liked ads, not necessarily the most-viewed ads.

The ads are ranked by panels of viewers on a scale of 1 – 950.

#10 Audi — “Alien” (651)

#9 Lowe’s — “A Fresh New Start” (652)

#8 Apple — “Zooey Deschanel: It’s Raining” (653)

See the rest of the story at Business Insider

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Thursday, July 5th, 2012 news No Comments

CCA – cost of customer acquisition

how do we judge the relative merit and effectiveness of different types of advertising? By finding a common parameter that can be used to compare “apples to apples.” We argue that cost of customer acquisition is a great candidate for such a parameter.

For example, if television advertising cost $50 million to produce and air, and 1,000 people came to the acquisition website, and 10 people applied for and received credit cards then the CCA — cost of customer acquisition would be $5 million ($50 million / 10 people who got the credit card). Of course television advertisers would claim that the “impressions” from TV would have “branded” millions more people and they would eventually get a credit card from the company. That’s possible. But for the purposes of this exercise, if there is no absolute end-to-end tracking, we don’t count it. Because, for example, many other possible scenarios can also occur, like the person saw this ad for a credit card but ended up getting a card from a different bank, they saw and remembered the ad but they already had several credit cards from the company, etc.

With “online” we can easily see lift in search activity around the time that brand/awareness advertising is in-flight. This is one of the best indicators of interest — the person saw the TV ad, and was inspired enough to go online to do more research to inform their own purchase decision. Modern consumers will typically search and then click through. In rare instances, they will type the URL, but it is usually the domain name, not the special URL — domain_name.com/special_url — just because of pure laziness or simply because they forgot the /special_url portion.

Now let’s look at a print example: a print ad cost $5 million to produce and traffic in targeted magazines. About 1,000 people came to the website and 10 people ended up purchasing the advertised product. So the CCA is $500,000 per customer acquired.  There may be more people who saw the ad and eventually came in to buy a product. But again, there is a problem of attribution.

Now a final example from “online” marketing.  Search ads were run using Google Adwords and a $1 CPC (cost per click) was paid. Of those people who clicked through 1 in 20 purchased a product. So it took 20 clicks at $1 each to achieve 1 sale – so the cost of customer acquisition is $20.

OK, so what about prodycts not sold online? We can use a proxy which has a known conversion to sales. For example, once a coupon is printed from the website, from historic data the advertiser knows that 30% end up using the coupon – i.e. redeeming with a purchase. So, again, if we used a $1 CPC and 1 in 20 ended up printing the coupon and 30% of those “converted” to an offline sale, the CCA would be $66.67  ($20/0.30).

So to recap

Television – $5 million CCA

Print – $500,000 CCA

Paid Search – $20 CCA

Paid Search + Offline Sale – $67 CCA

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Saturday, February 21st, 2009 digital, integrated marketing, marketing No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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