Vistamax Productions

Direct Response TV: When Advertising Success is Truly Quantifiable

Direct Response TV: When Advertising Success is Truly Quantifiable

There are a multitude of benefits associated with conducting well thought out, direct response TV campaigns. The ability to accurately quantify one’s marketing investment is one of them. Sure, the success of other forms of advertising can be measured too. However, they are often not nearly as accurate. Here’s why:

When tackling the concept of return on investment, most advertising representatives refer to CPR, CPP and CPM. They are acronyms that stand for the following calculations:

  • Cost Per Reached
  • Cost Per Point
  • Cost Per Thousand

Essentially, they tell an advertiser how much it’s going to cost them to capture the attention of an individual that falls within his or her target market. That attention doesn’t necessarily translate to real, direct sales. Direct response TV measurements, on the other hand, do focus on authentic, direct conversions. That’s why advertising reps hoping to sell companies direct response television air time use the acronym CPO instead. CPO stands for cost per order.

So how can direct response TV ads offer buyers such accuracy? In some instances, a dedicated 800 number or text code is displayed during the ad. Thus, when the consumer calls the dedicated line or sends a text message in the hopes of placing an order, a record is made. Afterward, the advertiser’s marketing team may compare those sales records to when and where the direct response TV ads aired.

The amount of sales volume that was generated during, and immediately after, the direct response TV ad may then be used to determine the CPO. That is typically calculated by taking the total amount of money spent to make the sale and subtracting it from the total revenue generated as a result of the direct response TV ad.

To learn more about direct response TV, including best practices for making campaigns successful, please contact us At Vistamax Productions 813-907-1010, we’ve had the pleasure of serving many direct response TV clients and would love to help replicate similar successes for you too.