Pay Per Lead TV Advertising

Tuesday, 11 November 2008

Advertisers are more and more interested in spending their advertising budget in high ROI channels with a maximum transparency. The pay per performance model (CPC,CPL, CPS) introduced by online advertising networks seems to have spread out well over the online channel.
I recently came across a TV commercial on free to air promoting Pay Per Lead TV Ads!
The value proposition is really good. The reasons behind this are:

- It is hard to accurately measure the impact of TV commercials on sales and leads.
- TV is also an expensive media channel so more transparency on the ROI is always welcome!

I went to their website, where they (too)briefly explain how it works. Basically it is really similar to online advertising:

- Advertising Advantage create your TV ad with conversion in mind
- They choose the media, where the TV ads will be displayed
- They implement a third party tracking system
- They report on the results.
- The advertiser pay for all the leads.

Ben Shepherd mentioned that it could be really hard to measure the results from TV as TV exposure has impact on other channels (Someone sees a TV ads and then uses search to find out more, and then convert).
While it can be true for a "classic" TV ads, I not convinced that it would apply to Pay Per Lead TV (if it does, Advertising Advantage would lose quite a lot of money)
From what I have seen with the Pay Per Lead TV campaigns they have done, the TV ads implies a call to action through the phone and/or internet, which can be tracked easily and accurately. For example, the advertiser can redirect the audience to a specific landing page of their website or/and set up a specific phone number for the ad and measure the number of calls.

Ben Shepherd is right though. It is highly likely that people exposed to the TV ad will use other channels to reach the advertiser. Search is a great example.
In Drive to the web activities, I have noticed up to 5% of the audience using a search engine rather than the URL display in the Ad. These 5% represent additional leads that won't be tracked (lucky for the advertiser, which won't have to pay for it). However, the situation can also be tricky if a prospect uses a search engine to reach the advertiser, but cannot find it!

An Offline/Online intergrated approach will make sure that the offer is accessible in multiple channels. A Google Adwords or Yahoo Search Marketing campaign targeting a handful of keywords will be a cost effective approach, that will allow to capture all potential leads generated by TV and therefore keep a maximum transparency on the TV Ads ROI.


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