Telmar.com Telmar.com eTelmar.net Home Page The Advertising Media Internet Center

Telmar Home Page Telmar.com

 

Media Guru

Guru Search Results: 9 matches were found

Friday, April 30, 1999 #2480
What would you advise as an effective plan on determning an efficient roi on the net

The Media Guru Answers(Friday, April 30, 1999 ):
If the question is "how does one measure roi for intertnet advertising?" the key to the answer is in how you set your goals.

In the simplest scenario, your goal is to sell a product or service. If your advertising is web banners, and the banners click through to a page where the product is sold and there is no other source of the product, obviously sales dollars ÷ ad dollars is the calculation you need.

In any other case, it's the same as determining roi in all marketing scenarios. Did you advertise to biuld image or awareness? Do pre/post research on the change in awarenss or perception and comapre against $ spent.


Thursday, October 08, 1998 #2083
I have been asked to estimate the value of a one hour special on the TV Food Network. Our client was the "host" property for the filming and is trying to do an roi evaluation. A PR firm involved put the value at $3.3 million (!) Seems kinda high - any thoughts are appreciated.

The Media Guru Answers(Thursday, October 08, 1998 ):
The Guru's most generous estimate would be 60 minutes times the average minute rate for advertising at the time the special will air. At $3.3 million total, that would put an average minute price at $55,000 -- the Guru finds that high for the Food Channel, quite high. A more realistic, yet generous, pricing structure might be $1000 per minute, making the special's maximum advertising value $60,000.

Of course even if your client is a restaurant which was used as the "set" for a Food Network show, you probably shouldn't count every single minute of the special as if it had the weight of a commercial, but if there are 16 commercial minutes in the program and you have all of them, they probably should be given some premium value for the way you are featured in the program, perhaps 50-100% premium (again being generous).

This would make the value $24,000 to $32,000 (16 minutes times $1000 plus 50% or 100% premium.)

On the other hand, if other advertisers will have some of the commercial time, that should lead to deductions from your value.

Finally, if the special will be repeated, you can take whatever value you have determined above and add it again.

All the above ignore production cost, which are not usually considered in media value, and for which you, yourself may be paying, anyway.


Tuesday, May 26, 1998 #1608
We have a client who is considering terminating all spot TV advertising in markets where he has provided support for the past couple of years. His thinking is that additional advertising here would be wasteful as he feels that his sales have now optimized and he would experience bigger growth by diverting these funds into new expansion markets. Is there any research that says he should continue to provide support in the original markets for fear that he would be risking experience a high degree of share erosion by pulling the advertising there?

The Media Guru Answers(Tuesday, May 26, 1998 ):
There are a lot of "ifs".

IF the spot TV is the only advertising in the old markets, it seems too obvious to discuss that he will lose share without the advertising, IF we assume advertising correlates with sales at all, which we must since we are in the advertising business.

So the question is whether the sales in new markets will be greater than the lost sales in the old markets. IF the new markets can be bought more efficiently than the old markets, then there is a good chance that they will eventually be more productive than the old, after we establish awareness in those markets.

On the other hand, what kind of product is it? IF it is a product that everyone only buys once or rarely over a lifetime, like sodding a lawn, or cemetary plots, and the old markets are deemed saturated, then it will be easy for new markets to show a better roi than the old.

But, IF the spot TV is just part of a mix including national media, then this become a very complex question. The Advertising Research Foundation library would be the best place to look for research on the topic.


Tuesday, March 17, 1998 #1533
I am starting an online business soon, and I am perplexed as to what methods to utilize with our limited budget of $5000 per month. I want to initially do my advertising exclusively on the net, and I have been looking into using an interactive ad agency. What kind of targeted traffic should I expect for my budget, and what methods will an agency use to create traffic, besides search engine listings and optimization?

The Media Guru Answers(Friday, March 20, 1998 ):
$5000 might buy just a month of banner display on a major, general audience website. at $10 per thousand impressions. Therefore, you would have 500,000 impressions and perhaps click-thru 5,000 - 10,000 traffic to your site. Of this traffic, you might get 25 - 100 sales, depending on what you're selling.

Other, more targeted sites might sell for less out of pocket, at a higher cpm (e.g $25-$100), but ultimately generate more sales roi because their audience is more likley to be interested in your product.

Another technique that an agency might use is a revenue sharing model, wherein sites which send you customers earn a share of your revenue from visitors "referred" by their site.


Friday, September 20, 1996 #1143
Can you access competitive information that may be proprietary?For example; can I find out what dayparts & spending levelsa competitor did for 1995?

The Media Guru Answers(Monday, September 23, 1996 ):
You can't get the proprietary version, but CMR (Competitive Media Reporting) is in the business or monitroing and compiling such information, now including Internet advertising.


Thursday, March 21, 1996 #1257
Are there any services that track co-op media expenditures by manufacturers?

The Media Guru Answers(Friday, March 22, 1996 ):
There is a least one book which lists available co-op programs. Except for those few media with rules requiring a logo in the ad (like "CAP") to qualify a product ad for retail rates, it would be difficult for a monitroing organization of the CMR type to detact co-op and evaluate the manufacturers share of the cost.

But someone could have done estimates somewhere. Try searching Advertising Age at your library.


Thursday, March 21, 1996 #1739
Are there any services that track co-op media expenditures by manufacturers?

The Media Guru Answers(Friday, March 22, 1996 ):
There is a least one book which lists available co-op programs. Except for those few media with rules requiring a logo in the ad (like "CAP") to qualify a product ad for retail rates, it would be difficult for a monitroing organization of the CMR type to detact co-op and evaluate the manufacturers share of the cost.

But someone could have done estimates somewhere. Try searching Advertising Age at your library.


Tuesday, March 12, 1996 #1264
Dear Guru;I am in the process of launching a software product aimed at the magazine publishing industry. It is an internet software based on getting their content online, their advertising targeted, their subscriptions in order, and will provide user statistics to maximize their advertising and content.My questions are as follows:How do I find out how mauch advertising revenue is generated by the magazine industry-both online and print. What are the projections for future growth for online advertising for magazines?How do I find out what kind of money magazines have budgeted for online software and services?Thanks

The Media Guru Answers(Wednesday, March 13, 1996 ):
CMR (Competitive Media Reports) tracks magazine's advertising revenues and web site (magazines' and others). They are in NY at (212) 789-1422.

As far as growth is concerned, trade magazines will offer different opinions and a library search of the ad trades could be informative.

The Guru's opinion is that right now the web is "hot." It porbably is not generating a lot of business for most media who have web presence. But the TV networks and major publishers all have sites. The state of marketing is that a web site is a necessary validation of participation in contemporary marketing.

The software you describe, if it does all you say, will help make a magazine's web presence produce roi. The trick is probably to get to a magazine before it has hired or contracted out web design services.


Monday, February 19, 1996 #1757
Television's (network, spot are cable) and radio's (network and spot) advertising costs are typically measured in CPP's (cost per rating points). On the other hand, Newspapers' and magazine's advertising costs are measured in CPM's (cost per thousand). It seems the Internet is moving towards the CPM model and I have no idea how "out of home" or Direct Mail are measured. Apples to apples, based on CPM, how do these mediums compare on cost? -- how about roi?

The Media Guru Answers(Thursday, February 22, 1996 ):
First, understand that CPP and CPM are just cost indices rather than "measures." CPM (cost per thousand audience impressions) may be converted easily to CPP (cost per percentage point of population universe):

CPP = CPM x universe in thousands x .01

or

CPM = CPP / (.01 x universe in thousands)

CPM is simpler to deal with because we only need to know the audience exposed, a figure just beginning to be reported on the internet. CPP requires us to know a "universe," the number of people in the whole category under discussion. For the internet, or more specifically the WWW, where ads are usually found, universe is a hotly debated question. Is it the number of people with computers and modems or the number of people with the theoretical possibility to browse the web (an ISP and browser software) or the number of people who actually ever do use the Web? Even if we pick one of these, there are radically varying research estimates of the size of these possible universes.

If we decide to just use the total population as a universe for internet measurement, the ratings are agonizingly small, and we are still working toward how to define the rating. In print, no matter how often a reader picks up the same issue of a magazine, he or she only counts once in that issues impressions or rating. But website accesses are usually counting multiple weekly visits without the ability to distinguish repeats of the same viewer. There is not yet any common ground in pricing to talk of averages. There may be over 100,000 commercial sites, more than all the tv, radio and print vehicles put together.

The comparison you suggest between all media cpms also changes as we define which demographic to consider. TV has established averages to consider and companies like Spot Quotations and Data SQAD@ix.netcom.com publish these cpm/cpp.

Print may vary from $5 to over $200 cpm depending on selectivity of audience and total circulation.

roi can't be discussed without knowing the goals and depends on ad content, other marketing efforts and how revenue is measured. Web site development and web ads may be meant to sell product, build image or just bring viewers to sites. Web advertising needs to be evaluated against very goal specific potential and possibility.



Back