Ratings vs. ROI: How Would I Use TRA? - Bill Harvey - MediaBizBloggers

I hear this question a lot nowadaysIf you39re the advertiser your CMO brand managers and inhouse media group will be most interested in seeing how the overall TV ROI you39re getting from marketing mix modeling breaks down into components that are separately buyable amp8211 like networks program types days of the week dayparts different forms of brand integration target segments frequency levels recency etc These people together with the media agency will change plansbuys to get more ROI Ratings obviously don39t enable you to get these insights since ratings are about opportunities to see not sales effectsYour CEO and CFO will also be interested in seeing some of that TV ROI becoming more controllable probably makes TV allocations stabilize and perhaps grow againThe advertising people will be analyzing the different creative executions in the pool and together with the creative agency shifting the onair run rates to the higher ROI executionsThe research people will be using the householdlevel rich data to enhance marketing mix modeling analyzing targeting segmentation schemes with the beginning of an optimization approach and doing creative things that cannot be foreseen They will be analyzing which messaging works to understand whyMeanwhile over at the media agency buys will be made using the purchaser targets as index weights on the classical sexage CPM metric resulting in higher ROICorporate upfront stables will be allocated to brands by agency optimizers based on the same sexage plus purchaser metricsThe creative agency will be studying the ROIs by creative execution not only for their own ads but for all the ads They39ll be looking for patterns as to what distinguishes the creative executions that have the highest ROIs in order to drive the next wave of Big Idea creativeOr let39s say you39re a network Your ad sales people will gradually be able to reestablish new levels of value for your inventory It won39t happen overnight But sooner than you think you will have new opportunities for premium CPM that weren39t there before This is simply a matter of seeing where something is valuable to certain advertisers and pricing so that it is still a winwinYou39ll also have research people analyzing the places in programs where the audience suddenly fades out in order to see patterns and make decisions about making shows stickierAudience promotion will be analyzed more quickly through the TRA instant access system to determine what it cost to get that quarter rating point sustained series lift and if it was worth it it usually will be if it gets that Patterns in the creative and media placement dimensions will be discovered leading to better ways to plan and buy audience promotionSome of your network researchers will sneak minipilots on air in out of sight markets just to see the second by second audience retention patterns to decide whether to take it to pilotThose will be most of the common use cases of TRA No doubt that some of you will think of even further use casesBill 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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Ratings vs. ROI: How Would I Use TRA? - Bill Harvey - MediaBizBloggers

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