Tag Archives: Increase ROI

Love at First Sight – Who Get’s the Credit?

Is there such a thing as love at first sight? Sure there is, but in most cases, it’s a process. The question is… Who gets the credit for closing the deal?

Here’s a real-life example of the point I’m trying to make.

Through a mutual friend, I introduce Gary to Bonnie. I then arrange, through another mutual friend, to provide Bonnie’s phone number to Gary.

Shortly after, they go on their first date and have a good time. After several dates that include dinners at nice restaurants, movies, and even some flowers, she invites Gary to meet her family. They begin dating more seriously on a regular basis. Then, Bonnie’s dad, being an avid hunter like Gary, invites Gary on a bear hunting excursion.

Ultimately, one nervous night, under a romantic full moon, Gary gets up the nerve to ask Bonnie to marry him. She says, “Yes”, accepts his ring, and the sale is made.

Who gets credit for the sale? Me, the friend who introduced them? The restaurants, movie theatres, or flower shops? Bonnie’s dad? The months of dating and getting to know each other? The ring? Or how about the full moon?

Human behavior, including perceptions, attitudes, relationships, and buying decisions is seldom based upon one singular event, but rather on a series of events, experiences, and influences.

Advertising is no different. Many advertisers give all the credit of the sale to the “moon”, or the last touchpoint. Years ago, it was the newspaper or yellow pages. Today, it’s Google and social analytics that now provide a “Last Interaction Attribution Model” and give 100% of the credit for a sale, which they call a “conversion”, to the clicks that immediately precede the sale.

And… advertisers, hungry to measure the ROI (Return on Investment) of every expenditure, eat it up!

The “Last Interaction Attribution Model” would leave out me, the friend who introduced Gary to Bonnie, the countless dates, good times, the hunting trip, and give all the credit for the marriage to the “moon”.

Are you and your people trained to understand the Purchasing Funnel and the Targeting Pyramid? Are you able to explain, articulate, and sell radio’s role in the entire “conversion” process from introduction, to building a relationship, branding, and asking for the order?

Digital media and last-touch clicks shouldn’t get all the credit. All exposures play a role in what those in search of ROI call “conversion”. In reality, there is no single source that can take credit for the sale and no single source that can make the sale without the influence of other touchpoints along the path to conversion.

 P.S. Gary and Bonnie have been happily married for almost 25 years, and like radio’s role in the Purchasing Funnel, I’m proud to take my fair share of the credit!!

Click here to inquire about facilitating a workshop for your annual sales conference or broadcast association to train local radio account executives on how to sell Radio’s ROI.

Broadcast Deserves 78% of Advertiser Budgets

 The Advertising Research Foundation released a study at last week’s Re!Think 

     Conference that makes the case for radio advertising.

     The ‘How Advertising Works Today’ study, hailed as “the most extensive industry study in more than a quarter century”, spanned 5000 campaigns for 1,000 advertisers in 41 countries.

     The study found, among other things, that advertisers can increase their ROI (Return on Investment) by not putting all of their eggs in the digital media basket.

     In fact, the study found that a budget with 78% placed on traditional media and 22% on digital worked best for audiences as a whole. For people aged 18-34, the most successful split was only slightly different, 71% to 29%.

     You know that the internet is replacing all things print, making this The Age of Electronic Media.  An electronic media mix of broadcast to inspire and internet to inform eliminates the need for advertisers to pay lumber jacks, pulp and paper mills, truck drivers, printing press operators and delivery people to produce and distribute their message.

     The bottom line? Broadcast (radio and TV) deserve the lion’s share of the recommended 78% traditional media spend.

     The How Advertising Works Today study also revealed that the cross platform message must have a common thread to be effective. In other words, their reactive digital campaign must deliver a message that is consistent with their proactive broadcast campaign.

     Our SoundADvice radio e-marketing system and our Radio Works advertiser seminars clearly position radio and TV as the strategically proactive media, creating a pre-need preference for an advertiser, and digital as the reactive media audiences turn to once they’ve discovered a need.

     The take away from this study, is we now can justify proactive broadcast media capturing 78% of the budget!

Research like this seldom convinces advertisers with stubborn opinions about the importance of print or digital to change their minds. But it can help over time.

     Where this research can really create a tipping point is with undecided advertisers… those advertisers confused and bewildered by all of the competing media claims. And that’s probably more than half of all local advertisers.

     Contact [email protected] to inquire about using Radio Works and SoundADvice to increase your local-direct revenues.