How To Measure The Results And Profitability
Of Direct Response Television Advertising

Testing Strategies
The next step in media buying is creating a test to find out how the creative production, product offer, and the price points impact sales. There are several factors that go into determining how much money should be spent on a test, but the goal of the test is to find out if you have a commercial that is profitable.

The strategies for DR short-form and program-length advertising (long-form) are quite similar, but the tactics to achieve results are radically different. Testing correctly is critical. There are 4 IRON rules for testing:

1. Define a successful result before you start!

The diversity of direct response campaigns demands a unique understanding of your marketing goals and how to translate the media results into total return on investment.  Marketing models should account for continuity programs, upsells, clubs, retail and catalogue sales.

Brand awareness is an intangible, which is difficult to give value to but will quickly be felt, especially in retail, if you are running enough media.  For every product sold from a DR commercial between 5-10 are sold in retail!

2. Include enough stations to give you examples of how different types of audiences react to your product.

For example, in long-form you might take about 20 local broadcast stations and four or five small cable stations.  In short form, you might take six or seven cable stations which target your primary demographic. This will give you enough information at the end of the test to draw conclusions. Too little information can be disastrous in mistakenly concluding the value of the commercial being tested.

3. Choose crème de la crème media outlets.

A test is exactly what it says, A TEST.  Everyone thinks they have a home run but the fact is that singles and doubles can earn excellent profits. 

Your media buyer should give you the very best media they have which they can prove works for the targeted demographic of your product. If the media is profitable, you can move forward  from a point of success.  If the very best media doesn’t work, then you know where you stand, and you won’t have to second guess forever.

4. Analyze results thoroughly after the media test is complete.

 Don’t make decisions about the success of your test until the test is completely over and all the results are in.  Each airing can reveal important information and the telemarketing reports have to be compared to the media that actually aired to know the results.

Even in very successful campaigns, clues about rolling out need to be studied.  Which airings were profitable which weren’t, how many people called vs. how many people ordered, percentage upsells taken and average revenue per order are all important statistics.

The purpose of a test is to accumulate enough information to know how to move forward with assurance.  Accumulating this info does not take very long so let the process unfold before you move forward.

A media test usually takes between one and two weeks and the results are finalized in just a couple of days.  Short form media tests usually run in the $ 10,000-$ 15,000 range and long form tests usually run between $ 10,000 – $ 30,000 range depending on the quantity of parameters being tested.

If your show tests well, a media rollout campaign begins.  This is where the fun starts because for several weeks media budgets are increasing while results are analyzed to find the most profitable media expenditure.  Sometimes media budgets go up $ 25-30,000 each week and sometimes they increase by $100,000.00 each week.

Now, live a day in the life of a DRTV media buyer after a campaign is in the middle of the rollout.  Now that is insanity at its finest!!
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For more information on accountability in advertising, contact the Direct Response Academy at 512-301-5900.