- All media are not created equal.
The average price of a digital ad
is roughly $1.50 per click.
A Superbowl ad goes for five million bucks
for 30 seconds of airtime.
The cost for a Superbowl ad in the 1960s was 40K,
and so the price has really gone up,
but so has the viewership of the Superbowl
and the interest in the NFL.
So a Superbowl ad still provides good value.
My point is, there's different media
at different price points, for different audiences,
for different purposes.
All media are not created equal.
If we can show a high ROI,
chances are much, much better
that you can defend and grow your budget.
That's where data can help.
So here's a question.
How do compare apples to apples
between an ad on social media
and an ad during the Superbowl?
The answer, benchmarking.
A benchmark is a standard rule of measure
at a moment in time that sets the expectation
for what the measure should be.
The operative word there is standard
and one such key performance indicator
that you'll wanna look at is cost per action, or CPA.
First, you should decide what action you want to measure.
It could be a lead.
It could be a new sale.
It could be participation in a program.
It's whatever makes the most sense to your,
what we call in agile marketing,
metrics that matter the most.
Take the woman's apparel company Casa Bella
as a case in point.
Their objective was to convert customers
with a high propensity to become buyers
and to improve their productivity of their campaigns.
So what they did, is they ran a series
of smaller campaigns to test
and benchmark different variables.
From there, they could make more informed decisions
about which programs to scale.
In agile marketing, you call this
the minimum viable campaign
to test, to learn, and then to scale.
It works like a charm.
Their return on ad spend increased
by hundreds of percentage points.
But to make sense of all that data,
you need machine learning.
There's an old rule of thumb in advertising
called the seven times rule.
It says that customers need to see your ad
seven times for it to be effective,
for it to trigger a response.
Is this true?
Sometimes.
Again, all media is not created equal,
and the same is true for marketing across the board.
It may be less or it may be more,
but the trick is to benchmark your effectiveness.