How to Get Maximum Return on Advertising Spend (ROAS) for TV/Radio

The world of marketing is changing. On one hand, there is tension between the demand for financial transparency and accountability. On the other hand, there are more complex demands, from multi-screens to social media blogs, powering customers in an increasingly digital world. This means there’s a growing need for Return On Advertising Spend (ROAS) in real time, so that synergy between ROAS and Real Time Engagement (RTE) will complement each other. To understand more you have to analyse the performance of each network with a blending of two different marketing models: complete effect model and instant effect model.

1. Complete effect model: Objectives to calculate the outcome of TV advertising on brand,

2. Instant effect model: Objectives to calculate the outcome of creative/idea of that ad.

Most of the time, both models perform together and yield the comprehensive user-level information about respective channels, you can obtain that report from any web analytics tool but you have to analyse it against the scheduled timing of TV or radio ads. The analytics report clearly shows that Instant effect of the ad is very low – meaning the ad creative is very poor and you’ll need to fix your tv/radio ad creative just like multi-variate testing of digital ads to maximise engagement. Also, Complete effect is not that effective. It means overall it’s a failed campaign or better to put a stop to your budget on TV/Radio. Now the question is how to get the maximum ROAS for TV or radio ads? Answer: Use paid search or display ads scheduling according to radio/TV ad time with maximum bidding, you will find ROAS is increased by 20-60%.

Summary:

1. Allocate search and display advertising budget (Min 20-30% of TV/Radio spend).
2. Analyse the Instant effect to know the ad creative effectiveness.
3. Change or stop your TV/Radio ad as per result or change the schedule.
4. Test again till you get the optimised ROAS.