In this economic climate, in fact, in any economic climate, advertisers are insisting on MEASURABLE returns on investment. All media owners preach return on investment, but leave out the measurability. ROI usually means "added value,"which is a euphimism for huge discounts. As far as I'm concerned, discounting devalues a brand. Yet even the big brand radio stations are doing it. Premium brands should command premium rates. With price as the main determination we are witnessing the commoditisation of airtime. Good for advertisers, bad for radio stations.
This was the motivation for my book: Radio Advertising. A Sound Investment. 10 Key Principles for Maximising Returns. Radio is now able to offer measurable returns in terms of how many new customers are required to break even on their investment and to use the formula to extrapolate the value of additional customers. Also in the book is a formula for determining optimum marketing spend for achieving a pre-determined profit objective.
I am available for workshops. If you're interested, contact Jean at jean@feathercommunications.co.za
Well not that makes no businesses sense, why pay a premium for an under preforming medium. Premium brands are having to discount because advertisers are not seeing results, this lack of results means less ad spend.
ReplyDeleteThe first part of your statement was correct, ROI is the only thing that counts, I for example control $150 000 a month ad spend, I will not spend it on any medium that does not yield ten x direct return.
If a vehicle can not make 5 to ten times its spend it is a waste of time.
Never ever spend on an any ad vehicle that cant make a minimum of 5 x direct measurable return, not leads actual sales tangible money anything less is marketing bullshit.