Wednesday, December 05, 2012

The Value Of Time Spent With A Commercial

TubeMogul has just come out with a report indicating that a positive relationship exists between commercial completion rates and message recall.

While logic would assume that this would be true, the numbers are still rather impressive.  Among viewers that watch an entire commercial, the rate of message association more than doubles, growing from 8.3% to 20.5% over control.

Which means that viewers who watch a spot through to completion better associate the benefit talked about with the brand in the spot.

How does this affect sales?

Again, we will have to resort to logic, but it seems as if it would have a positive affect on sales, doesn’t it?

I mean, I don’t know of many advertisers who pay to create and run a thirty-second spot who are pleased when viewers watch only five seconds of that spot.

There is little positive ROI on production dollars when 30 seconds are produced and only 5 seconds are consumed.   Especially when the average cost of a produced second is in the neighborhood of $12,000.

The way we have stated this in the past is that a positive Return on Involvement in a viewer’s attention to the commercial, will deliver a positive Return on Investment in production dollars spent.

Why is this important?

Because it allows advertisers to calculate ROI on production dollars spent.

Which in turn, allows advertisers to have some accountability on the creative process itself.  As well as on the agency that developed that creative product.

Up until now, an advertiser’s Return on Investment on marketing dollars has been based on sales.   This has allowed both creative and media agencies to avoid accountability - as they could blame the other for dismal sales, not to mention a myriad of other factors – weather, shelf-placement, pricing variables, etc.

By understanding that the total ROI on marketing dollars consists of two smaller and non-connected ROIs – one based on media, the other on creative – allows an advertiser to separately hold each group accountable for what they actually do.

TubeMogul’s research results are just one more example of a mounting pile of digital evidence that advertisers can use to help redefine effective ROI in the future.

The most promising being that a positive Return on Involvement in a commercial will lead to a positive Return on Investment in the marketplace.

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