In Terms Of ROI: What Is The Optimal Strategy for New Breakthrough Ideas? - Bill Harvey - MediaBizBloggers

We used to call them quotBig Ideasquot and the advertising business considered these to be the highest gold produced by the artThese were amp8211 and still are amp8211 ideas that profoundly reshape the brand39s business in a positive wayThey always start from seeing through the fog to an untapped essence within the brand alreadyAnd then they flip the switch and perceive the way to communicate this hidden brand strength to its constituencies so as to increase ROIAlong the way these Big Ideas tend to be ground down by three processes1 Everyone is too afraid to do them although they love to talk about them2 Those ideas that actually do make it to implementation get watered down along the way by committee think which is all about risk avoidance and chopping corners off of ideas to reduce perceived risks3 Long delays in implementationBy the time most Big Ideas get off the ground their potential benefit has been substantially inhibitedOne of the reasons we created TRA was so that there would be an industry platform for the affordable and rapid testing of undiluted Big IdeasWhat if your company39s policy was to test Big Ideas as quickly as possible using sneak media in cable zones with ROI read by TRAHow much would this add to mediaresearch investment in 2010 What would the likely impact be on sales and ROI and what X would that be of incremental investmentLet39s model it for a moment Say there are two levels to consider amp8211 the test and then the rollout The test cost might be 500K in producing any new creative spot cable zone media buys broadcast cutin costs to cover specific base plan spots research costs incremental personnel time allocation amp8211 the rollout cost if the test is successful might not be an increment at all if what was tested involves media dollar shift rather than heavyupSay that were the case amp8211 for example the Big Idea might be using TRA to index onto Nielsen in TV media selection which can be tested like any other Big Idea in a few cable zones The combined media and research cost could be well under 500KSay it shows that the media shift that favors purchaser target X produces a 15 higher ROI than the existing planIf the brand39s TV spend is 20 million and the brand39s current TV ROI is 120 a 15 increase means an incremental 18 cents return for every dollar invested which at 20 million would be an incremental 36 million Minus the 500K that would be a net first year gain of 31 million The gains in subsequent years would increase the ROIWhatever the Big Idea amp8211 whether it be a Cause Marketing idea a podbuster idea a creative execution Big Idea branded entertainment innovation True SponsorshipGratitude Effect see Harvey et al Journal of Advertising Research Dec 2006 use of TRA purchaser targeting weights use of TRA ROI program type weights or whatever it can be affordably and quickly tested in TRA cable zonesWhat is the risk of not immediately taking advantage of this opportunity to more quickly and surely integrate tomorrow39s Big Idea into your company39s process Why not test and then if successful ratify a policy of testing all new Big Ideas now that it is affordableGiven the size and representativeness and data hardness of TRA massive passive samples can there still be methodological qualms large enough to not even test something like thisOr will Rogers and Kuhn39s diffusion curve for the adoption of innovations rule again In other words will some companies wait to be fast followers and give up enormous longterm advantages to the leadersBill 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 MediaBizBloggers

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In Terms Of ROI: What Is The Optimal Strategy for New Breakthrough Ideas? - Bill Harvey - MediaBizBloggers

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