3 DRTV Testing Tips for Digital Marketers

Lately, I have been talking to several marketers that want to test direct response television advertising for their brands. Interestingly, these companies that want to test DRTV are category disruptors, born from the Internet. These are companies founded on direct relationships with consumers established through search engines and social media.

DRTVLately, I have been talking to several marketers that want to test direct response television advertising for their brands. Interestingly, these companies that want to test DRTV are category disruptors, born from the Internet. These are companies founded on direct relationships with consumers established through search engines and social media.

The reasons to complement data-driven digital marketing with television are convincing. These internet brands are faced with many challengers in the same space. It is difficult to establish a unique brand position through search. Television remains the most powerful medium for quickly communicating a message and establishing an identity.

More importantly, marketers are finding that building companies one-click at a time is not achieving their goals for growth. Nielsen reports the average American still watches 5 hours a day. With that large an audience television can quickly scale the reach needed to grow businesses.

Most companies are concerned with the high-entry costs for television and not getting the instant ROI expected from digital channels. That’s what makes the more accountable DRTV so compelling. The opportunity to lower media costs with the assumption that the spots will generate response.

These expectations for DRTV might be misunderstood and a little high. One of the companies that I spoke with did a test of television (on their own and not with my direction). They ended up canceling after 2-weeks because of cost and perceived lack of performance.

Before testing television’s impact on response and acquisition, ensure your test is set-up to deliver effective and measurable results. A poor test could result in mistakenly dismissing a potentially valuable channel for marketing.

Here are a few tips for an effective test:

Tip #1 – Utilize Television to Its Strength – Reach

Television is a mass medium and is most efficient when used to reach a mass audience.

Digital marketers might believe that an impression delivered to a non-targeted prospect is useless and a wasted expense.  Restricting reach to select areas using cable or specific homes through addressable OTT may seem to solutions for waste. However, these options reduce consumer reach while increasing media costs, impairing the benefits of television, efficiency and scale.

With your initial television test, utilize the networks, stations, and dayparts that best reach your target audience.  If the results are good, you can start looking for ways to optimize your buy to drive more efficiency. If the television doesn’t drive results, at least you don’t need to second guess your media execution.

When putting together a test with the right stations and dayparts, be less concerned about Reach, Frequency, and GRPs.  Those are metrics to predict the effectiveness of a traditional television buy. If you are testing DRTV with the intent of generating response, results should be the measure of effectiveness.  Do look for deals as a lower cost per spot should contribute to a lower cost per response.

Tip #2 – Track All Results!

My preferred method for tracking the performance of a DRTV test are dedicated phone numbers assigned to each station.  With time-stamped, phone number data it is possible to identify the best stations and dayparts for driving results.

However, a digital disruptor may not be set-up for phone calls. They will likely want to drive response to its online sales-funnel.  Spot airing times and web-traffic data can be aligned to measure direct response to the ads. Establish site traffic baselines before spots begin airing to quantify traffic lift in response to television.

When tracking all results, also look for lift in response rates to other channels. Unlike other mediums, the awareness created by television is likely to increase response in other channels.

Quantifying the impact television can have on other channels can be done with the classic tactic of Control versus Treated. By holding out a market from a recent program, I had comparison data to quantify the lift DRTV had on other channels. The test showed a 25% increase to the direct mail response and a 50% lift in the search clickthrough rate.

If a control hold-out isn’t possible, compare response rates from pre and post television advertising. The lift in response rates can be enough to support using television as a compliment to other direct channels.

Tip #3 – Give DRTV Testing Some Time

Testing television for the first time is big decision.  It requires company buy-in and investments of time on money to develop a spot and get it on television. The desire to show immediate success is great, however, it is a test. Results can take time to develop.

It can take a couple of weeks for a brand with limited awareness to connect with consumers.

Two-weeks of frequency may be needed to build enough interest to elicit a response. It can take longer depending on your DRTV schedule.

If results are limited after two-weeks consider adjusting the television schedule to test different programming.

At 4-weeks you should have quantified results, either direct response to the television or response lift in other channels. With results you can begin assessing the opportunities for expanding the program.

If the results are not seen in 4-weeks, then it might be time to suspend the program. As direct marketers know, more spending isn’t likely to improve ROI.

Because the initial test didn’t produce the desired results does not mean that television cannot work for your brand. Go back and reconsider all elements of the program including the spot, the offers, and the media buy.

Mobile’s Impact on the Consumer Path to Purchase

One in three ad dollars will go to digital advertising next year, meaning digital media spending will be almost equal to television spending. Digital strategies will help drive the U.S. advertising market to $172 billion in 2015, according to new research from Magna Global. This—in combination with mobile and social networking—will push digital to the forefront

One in three ad dollars will go to digital advertising next year, meaning digital media spending will be almost equal to television spending. Digital strategies will help drive the U.S. advertising market to $172 billion in 2015, according to new research from Magna Global. Additional research shows that digital advertising will overtake television advertising by 2017, due in large part to the growing popularity of online video, with sites like YouTube and Netflix. This—in combination with mobile and social networking—will push digital to the forefront.

A digital strategy is no longer a nice-to-have, but a must-have for retailers and brands. If you don’t believe that, then you need to take a hard look at the following data points:

  • Mobile devices lead to in-store purchases. 52 percent of U.S. shoppers have used a mobile device to research products while browsing in a store.
  • Tablets are the cornerstone of online shopping. Tablets are expected to bring in $76 billion in online sales, two times that of mobile devices.
  • Digital content and mobile devices go hand in hand. According to eMarketer, U.S. adults will spend 23 percent of their time consuming media on a mobile device this year.
  • Mobile advertising is at its tipping point. Ad spend is expected to hit $31.45 billion this year. By 2018, it will top $94 billion.

How Do You Get There From Here?
Effective digital strategies take a cross-channel approach that integrates the various mobile channels, such as SMS, app, Web and social.

Value comes behind the scenes, as brands can learn useful information from mobile interactions. For example, customers reveal their operating system when they download an app or open their Web browser. Smart marketers collate such data points into one centralized customer profile—an ideal asset to maximize personalization for mobile.

Companies just getting started with cross-channel mobile marketing should focus on small wins. True cross-channel takes time and iteration, so commit to integrating what makes sense in the short, medium and long terms instead of trying to do everything simultaneously. Below you will find some key areas to consider when building out a mobile strategy:

1. Tablets, Smartphones and Watches, Oh My!
It will be vital for brands to take different form factors into account as they roll out their mobile campaigns. Mobile campaigns can quickly be compromised if brands don’t think about the impact on visuals and the call to action across various screen sizes.

2. The Mobile Marketing Tipping Point
Mobile marketing is evolving as more than just a tactic and is being embraced as a core part of the marketing strategy. With the goals being relatively the same as traditional marketing, marketers will be able to attract, engage and retain new and existing customers. Marketers will be able to target their audiences through highly relevant content based on location, interests and interactions throughout the mobile lifecycle.

3. Deliver a Seamless Experience From Discovery to Purchase
Brands have to make a conscious effort to remove the silos across organizations to be successful at mobile marketing. The goal of marketers should be to collaborate across initiatives by taking in to account different screen sizes, channels, design and messages to deliver ONE consistent experience to consumers.

4. Connecting the Dots Across all of the Consumer Lifecycle
As digital becomes a more integral part of the marketing strategy it will be vitally important to understand how mobile campaigns are performing across the entire customer lifecycle—including mobile ads and messaging, QR Codes, mobile website, branded apps and social media. With these insights, marketers will be able to optimize their campaigns to better understand the triggers that lead consumers down the path-to-purchase.

People everywhere are becoming more reliant on mobile devices and mobile websites to provide them with instant access to product information, deals and the opportunity to purchase in an easy, straightforward manner. Brands have to make it easy for their customers to navigate mobile sites and quickly decide to purchase, regardless of what device they are on.