Monday, August 27, 2012

Redefining Value

Which would you rather have as an advertiser?

3M impressions?

300,000 viewers engaging with your commercial?

100,000 viewers watching all thirty seconds of your commercial?

Let me ask it this way.  Which would offer more value to the brand?

Take impressions.  An impression is an opportunity to engage the viewer.  How many actually engage or not isn’t known.  So we have little idea how effective the impressions actually are.

Take 300,000 viewers engaging with your commercial.  To engage means to start watching.  Again, without knowing how long they engaged for, the number is fairly innocuous.  Let’s say the average time spent was :05. 

Which means total time spent for 300,000 viewers would come out to 150,000 seconds.  Or 41.6 hours of time spent with the brand.

Now let’s take the 100,000 viewers watching all thirty seconds of your commercial.  That would come out to 300,000 seconds of time spent.  Or, 83.3 hours. 

That's 3.4 days.

I know, 3M impressions sounds impressive.  And maybe, all 3M watched all thirty seconds.

But chances are they didn’t.  Let’s say 10% did – that would be 300,000.  But because the commercial interrupted what they were doing, let’s say they didn’t pay attention for long (:05).

Which brings us back to the smallest number of people – 100,000 – but perhaps the most valuable number for the client.

First, that 100,000 (at a $20 CPM) cost the client $2,000.   To buy 3M at the same CPM would cost the client $60,000.

And yet, most advertisers will still feel more comfortable paying the $60K.  How come?  Because media can guarantee 3M impressions.  And advertisers mistake impressions for effectiveness. 

Can creative guarantee complete views for every one who watches?  No.

So advertisers go with what’s safe.

But what if creative was paid for based on viewer time spent?  The more time the viewer spends with the creative, the more the creative agency makes.

What happens then?  The client is only paying for results.  Not opportunity.  The risk it removed for the advertiser.

When risk is removed from creative, less media is needed.  Which means the media agency makes less.  Much less.

There is research available that measures viewer time spent.  This research is mostly controlled by the media agencies.

If you’re an advertiser, ask your media agency for this info.  Chances are, they will be hesitant to give it to you.

If so, cut a deal with the publisher for the data.

After all, as an advertiser, it’s your data.  Pay for it, but get it.

You’ll save money in the long run. 

Something your media agency already knows.  

But doesn't want you to.

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