Don’t worry; you’re not the first person who’s asked themselves this question: “How do I measure how effective my TV advertising is?” This question has come up frequently among marketers recently, as all advertising is now being quantified. Every marketer wants to know exactly how well their marketing is doing – and that’s a good thing.
Based on this analysis, marketers will also be able to answer possibly the more important question: How much should you invest in TV advertising?
The companies we work with most are using the most popular online advertising platforms like Facebook, Adwords (Soon to be Google Ads). Some also use Bing (see our recent article on Adwords Vs. Bing Ads here), Twitter, Linkedin and eg. Criteo for retargeting. We model the customer journeys and perform the attribution modelling for the channels and campaigns, as well as provide optimisations.
So, measuring TV advertising; how can you do it?
Thankfully, the impact of TV advertising is easily measured, with the impact typically most visible on the online brand campaigns:
There is an almost linear relationship between TV-spend and visitors coming from online brand campaigns, as the graph above shows.
This is important because these brand campaigns are usually the ones with the highest ROAS and are usually saturated and very difficult to increase with online-only efforts.
Surprise surprise, this is where TV advertising can be very helpful (and hopefully, profitable!).
If we look at the revenue and TV advertising relationship, we should ideally see that there is a correlation between both metrics visible:
With attribution modelling and marketing mix modelling, we can then visualize the spends and the attributed revenues:
Most channels have a return curve where the return on ad-spend starts to decrease after a certain point. From strategic perspective, the goal is to optimise the spend so that the total spend gives the optimum return on investment (avoiding that downward trend, resulting in wasted investment).
In the example below, the return starts to decrease after 14 000 daily TV spend per day:
Then at a certain level of spend, one arrives at the ROAS numbers:
To optimize the total ROAS, both high level adjustments and more granular changes are required. Both adjusting the total allocation of the budgets are usually needed, as well as also drilling down to the keyword and content levels, and making granular adjustments there.