How to measure the effectiveness of your DRTV ad?

When you spend upwards of a quarter of a million dollars to get the prime TV spots when you think your target audience will be watching, you know better than to have just slapped on your domain URL at the end. Your ad is, of course the epitome of emotion evoking power that will definitely have people checking out your site, registering, and buying your widgets. At least your creative reflects that.

But, what about the data?

Do you have your analytics in place to actually measure the effectiveness of your advertisements? Metrics like how many people took an action when they saw the ads, how long did they wait, how many people signed up, registered, or bought something because of the ads immediately, or a few days later? Do you know which ad(s) were profitable and which ad(s) were completely lost on your audience and should be dropped from future plans?


Is your mind spinning? This sounds more like a data dump that can make anyone overwhelmed. The truth is, you might be using a basic analytics tool and have access to a lot of charts, graphs and numbers from every TV channel. But come on, who has time to make sense of pages and pages of numbers? More importantly, the data needs to be granular enough to make data driven decisions… and fast! But first, you’ll need to align your goals with your data so your end results are directly related to your bottom line.

For a DRTV ad, typically, this can be two things:

  1. To drive X visitors who perform an action such as signing up as a client, making a purchase or submitting their email address.
    • Metric: Cost per Conversion (CpC) – refers to the cost per customer performing the action.
  2. To generate at least X visitors with Y budget
    • Metric: Cost per Visit (CpV) – refers to the cost of attracting a visitor.

Another metric which measures the long term effects of the ad as far as customers and profits are concerned is called the Customer Lifetime Value. This metric refers to how much profit a customer will make for you in their lifetime. For example: Starbucks’ customer lifetime value is $14,000. You may never have encountered this metric before as it is rarely calculated for ads, yet it is a crucial metric to ensure data driven decisions are made for future ads.

You may be wondering, how do you define X in your goals?

Your ad should generate between 300 to 500% return on investment, which means you’ll have to make at least triple on what you spent. If you spent $300,000 on the ad campaign, it should generate at least $900,000 in sales. This can be a combination of immediate sales and a predicted customer lifetime value.

Once you have your goal in place including targets, you’re ready to test out your commercial in different combinations of channels, programs, times, and show placement related to your target audience’s viewing habits. Similar to Google Adwords, it’s important to test a variety of combinations to get the most data. Once you have this initial testing data, the real fun begins as we start to really zero in your sweet spots that will maximize your ROI.

The chart below is an example of TV channel performance insights that we produce for our clients based on their TV ad analytics. In the chart, channel 9, 13, and 25, located in the bottom right corner appear to be the best options as these channels attracted the most new users, over 7500, at the least cost per user, less than $2.

TV Channel Performance Insights

You may have realized that there are some major issues that exist when it comes to basic web or DRTV analytics tools that may not be getting you the ROI you expect. Here are three solutions to challenges that we help resolve with ResultsOnAir:

    • Granular Data Collection – Given that TV ad spots are bought by the second, it should be measured accordingly. This results in additional insights applicable in offline and online campaigns thanks to a more specific measurement system.
    • Showing You What Truly Matters – Customer Lifetime Value  There may be many conversions throughout the lifetime of your customer, for example: multiple purchases for an e-commerce business. We analyze the different user segments in the long run to make valid data-driven decisions based on business objectives. When and how fast customers react to your advertisement may vary as it’s dependent on factors such as industry, campaign type and the actual ad. Moreover, what happens after a user has landed on your website and when they really converted is crucial to knowing the real effect of your TV ad.
    • Custom Attribution taking into account all marketing efforts – Objective attribution can only occur by taking into account the characteristics of all the campaigns in different advertising channels (offline and online marketing efforts). You will get the most relevant and valuable information to optimize your performance to the next level.

ResultsOnAir will give you a detailed overview including actionable guidelines for best ad placement and creative characteristics. Our personal approach helps you to make better decisions in the future thanks to systems that get more predictive with each day by staying up-to date with the most recent results.

Not only do we have granular data down to the second, lifetime value, and delayed actions attribution, but we also make sure you optimize with better strategies than your competitors, which will positively impact your bottom line. Our business is analytically driven, and we want to make sure yours is too!

Are you using an analytics tool for your DRTV advertising? What other issues do you face when it comes to making advertising decisions?.st the beginning. Stay tuned for a whole lot more..