The main problem regarding measuring of TV ad efficiency remains in the realm of control. Such indicators as cost to sales/inquiries and similar should be used carefully because they become meaningless if a company runs a complex campaign with TV advertising as a part of it. The situation is more straightforward with the direct response TV advertising where number of inquiries and orders may be directly tied up with the ad broadcasted. High cost of TV advertising means that every mistake in planning, production and etc., will result in additional expenditures that is why the indicators with internal perspective are of a great importance here as they will point out at the possible problems inside the organization.
Read Why do business professionals choose ready-to-use KPIs? to find out the answers to these questions:
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Making the desired effect through TV advertising demands a close watch of the kind of people who watch Television and the timings at which they do so. The outcome that results is the interplay of a large number of underlying principles and dynamics.
Therefore, to make real benefits from Television advertising, it is necessary that a deep understanding of the subject is developed and tactics implemented.
Though establishing this is in itself a cumbersome task, the process does not end here. This is because the need for 'performance evaluation' comes in as soon as one is over with the previous job in the context of TV usage for advertising.
However, this issue can be accurately addressed by using BSC (balanced Scorecard) as the tool. It promotes the usage of 'metrics approach' for arriving at concrete business decisions. This is possible because by having this instrument in hand, one can easily and smoothly use the 'values attached metrics' for knowing and identifying the problems that exist in the organizational structure. Add to this the fact that difficulties from any direction can be measured due to the 'multi-dimensional' approach taken forward by this management strategy. This makes it a beneficial device for studying the utility of advertising via Television.
On the whole, to analyze the extent to which one used TV as the 'advertising mode', BSC can be used.
This is the actual scorecard with TV Advertising Measures and performance indicators. The performance indicators include: cpt (cost per thousand) - average cost of reaching 1 000 individuals from a target group, cost tv ad / in ratio (cost of tv advertising to number of inquiries ratio), internal perspective, budget allocated for the tv advertising/ budget spent, sovtv ad/som ratio (share of voice/share of market), customer perspective, tvrs - rating points, ots - opportunity to see, tarps - target audience rating points, ots/in ratio (opportunity to see to number of inquiries ratio), inquiries growth (%) following the tv ad campaign.
Download a trial version of TV Advertising Evaluation Balanced Scoreboard or purchase a full version online.
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