Comments on: Optimizing Marketing Bands 1 & 2 http://blog.jimnovo.com/2008/06/11/optimizing-marketing-bands/ Moving from a Low Accountability to a High Accountability Business Model Fri, 21 Nov 2008 13:39:29 +0000 http://wordpress.org/?v=2.5.1 By: Jim Novo http://blog.jimnovo.com/2008/06/11/optimizing-marketing-bands/#comment-27222 Jim Novo Thu, 12 Jun 2008 22:42:34 +0000 http://blog.jimnovo.com/?p=221#comment-27222 Mentioned we did controlled market by market testing, meaning: 1. Find two similar cable systems, or DMA's, based on demos, penetration, channel position, etc. 2. Establish baseline metrics, in this case, sales per household 3. Buy a ton of media in one market, buy none in the other 4. Look for variance in sales performance between two markets 5. Difference is sales "lift" attributable to media buy 6. (Net Sales lift x Margin %) - variable ops cost = Contribution to fixed cost 7. Is this Contribution higher or lower than media spend to generate it? 8. Repeat using various combinations of media (TV, radio, boards, papers, etc.) in different markets versus various control markets 9. Now with these many cases, is Contribution higher or lower than media spend for any scenario? Never, ever was. Conclusion: Interactivity is different; <a href="http://blog.jimnovo.com/2008/04/24/push-then-pull/" rel="nofollow">Pull outperforms Push</a>. <a href="http://blog.jimnovo.com/2008/05/13/not-on-line-in-line/" rel="nofollow">INline approach </a>(Band 3) far superior; reallocate media spend to analysis and improvement of "user interface"; the TV show is the "Landing Page" for all these channel surfer / clickers and should be Optimized for all the traffic <strong>we already get</strong>! Whatever free media we can get, fine, can't hurt (promotions, PR). Mentioned we did controlled market by market testing, meaning:

1. Find two similar cable systems, or DMA’s, based on demos, penetration, channel position, etc.

2. Establish baseline metrics, in this case, sales per household

3. Buy a ton of media in one market, buy none in the other

4. Look for variance in sales performance between two markets

5. Difference is sales “lift” attributable to media buy

6. (Net Sales lift x Margin %) - variable ops cost = Contribution to fixed cost

7. Is this Contribution higher or lower than media spend to generate it?

8. Repeat using various combinations of media (TV, radio, boards, papers, etc.) in different markets versus various control markets

9. Now with these many cases, is Contribution higher or lower than media spend for any scenario?

Never, ever was.

Conclusion:

Interactivity is different; Pull outperforms Push.

INline approach (Band 3) far superior; reallocate media spend to analysis and improvement of “user interface”; the TV show is the “Landing Page” for all these channel surfer / clickers and should be Optimized for all the traffic we already get!

Whatever free media we can get, fine, can’t hurt (promotions, PR).

]]> By: Moe http://blog.jimnovo.com/2008/06/11/optimizing-marketing-bands/#comment-27217 Moe Thu, 12 Jun 2008 21:50:01 +0000 http://blog.jimnovo.com/?p=221#comment-27217 Hi Jim, Can you expand a little on your statement "none of the mass advertising worked"? i.e what criteria did you use to conclude that? Thinking back to how I first became aware of the shopping channel, I do believe it was more of a channel surf than any mass advertising so I would agree with your conclusion and web analog advice. Would it be safe to say that a simple way to make band 1 decisions is by asking customers how they became aware of you and then decide from there. Hi Jim,
Can you expand a little on your statement “none of the mass advertising worked”? i.e what criteria did you use to conclude that?
Thinking back to how I first became aware of the shopping channel, I do believe it was more of a channel surf than any mass advertising so I would agree with your conclusion and web analog advice.
Would it be safe to say that a simple way to make band 1 decisions is by asking customers how they became aware of you and then decide from there.

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