In Terms of ROI: Another Episode of RAD MEN: "Not All Rating Points Are Created Equal" - Bill Harvey - MediaBizBloggers

INTERIOR DAY OFFICES OF LARGE CPG ADVERTISER BOARD ROOM Seated around table are CHIP HOLCUM Brand Manager BRAD STERLING Head of North American Media GARTH GENTRY Procurement Officer and DAN STANLEY Chief Investment Officer of the media agency on the account Standing and reading from slide projected on the screen is JOHN GREGORY EVP Advertising Sales at a major cable networkJOHNamp8230it39s not their real name but I like to call TRA quotThe Right Audiencequot As you can see we got left off the buy based on 1849 thinking but in terms of reaching actual cereal purchasers our cost per thousand is actually lower than most of the cable networks you did buy Can you really afford to depend on the gross 1849 metric when it is so misleading and when harder more financially relevant numbers are now availableDAN LaughsJohn you know you got left off the buy because we wanted a 6 down and you were the only network that didn39t go along with itJOHNBut the CPM trumps absolute cost our higher purchaser indices more than make up for the fact that we would only give 3 down Look at the side by sides here points to part of the slideBRADWe39ve been looking at TRA too like everybody else Before we shift that many dollars based on these new numbers how do we know they are rightJOHNWe like the fact that they are stable over time and the fact that they correlate highly with everything else we use and that the demographics and ratings in the singlesource sample look so much like those in the overall set top box sample even unweighted as independent industry consultants have commentedBRADUmm John I must say you39ve made some really good points and we can39t say we haven39t been thinking along similar lines Let us huddle on this and get back to you next weekTHE SEATED MEN rise to shake hands and escort John out the door where an assistant picks him up and leads him out The door closed again and men reseated the conversation continuesDANIn the end it39s a judgment call there is no certain knowledge in research Our modelers agree that the TRA data show a strong correlation between purchaser targeting and higher ROI and European results support that too We know we can do a better job using real purchaser targets but you the client have to help pay for the effort it will take to switch overGARTHAnd you guys think it will lift our ROI even in the ROI numbers we now get independently from the external modelersDANWe doThis will mean a change in our optimizer to use purchaser weights on the Nielsen sexage data and a complete retraining of the team on our end We believe it will be justified by the improved performanceGARTHWould you still be proposing this if it was your moneyDANIt is our money already we are betting that the ROI modeling numbers on which our bonus is judged will go up We have very carefully considered the risks of the opposite believe me Our skin is fully in the game with you on this We feel it can only go up or stay flat but the odds of it going down as a result of this are microscopic Everybody has always known that real purchaser targeting works Now the vast evidence from Internet has confirmed that over and over againCHIPAre we just safer doing nothingCHIP looks around table and after a long pause very slowly all heads shake side to sideBRADPrivate labelsamp8230price warsamp8230we need to exploit every last ounce of media capabilities we39ve built or can buildDISSOLVE INTERIOR OFFICE NIGHT BILL HARVEY still dressed in suit and tie rolls off office couch and lands on floor wakes up from dream Looks up to see standing figure of MARK LIEBERMAN in doorwayMARKYou still hereBILL groggilyJust having prescient dreamamp8230Bill Harvey has spent over 35 years leading the way in the area of media research with special emphasis on the New Media Bill can be contacted at billtraglobalcomRead all Billamp8217s MediaBizBloggers commentaries at Bill Harvey MediaBizBloggersFollow our Twitter updates MediaBizBlogger

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In Terms of ROI: Another Episode of RAD MEN: "Not All Rating Points Are Created Equal" - Bill Harvey - MediaBizBloggers

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In Terms of ROI: Another Episode of RAD MEN: "Not All Rating Points Are Created Equal" - Bill Harvey - MediaBizBloggers

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