How to choose media and advertising media with maximum cost effectiveness
When planning media for marketing activities, it is important to select the combination of media and advertising vehicles that will maximize cost-effectiveness.
The higher the sales per dollar spent on a certain media, the higher the ROI of that media.Marketing mix modeling (MMM)Effectiveness analysis by , you can evaluate the average ROI of the media that you advertised during the analysis period, and clarify the effectiveness and efficiency of each media. Here, it is important to know "which" media is most effective, but it is also important to dig deeper to know "why" it is more effective than others.
In this article, we will introduce the differences in the definitions of media and advertising media, as well as some points that will help explain media ROI.
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Introduction: About "Media" and "Advertising Media"
First, let's clarify the definitions of the terms "media" and "advertising media," which are easily confused.
Media refers to the route or means for delivering information and advertisements that connects advertisers and consumers. Various media can be used as media, such as television, OOH (outdoor advertising, transportation advertising), newspapers, magazines, radio, the Internet, and email. Advertising media refers to the specific medium within the media in which advertisements are posted.
For example, within the television medium, there are advertising media such as spot commercials and time commercials, while within the internet and social media, there are advertising media such as display ads and SNS ads (banners and videos).
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Useful points to explain the ROI of media and advertising
Media Reach
The reach* (number of viewers, number of impressions, etc.) that advertising measures can achieve varies depending on the media. By using a large-scale channel with a wide audience, the possibility of the advertisement reaching many consumers increases. On the other hand, with more specific media, fewer consumers are used, so the reach of the advertisement is narrower, but it is possible to deliver the advertisement to the target consumers efficiently.
*The "reach" explained here does not apply to digital marketing alone, but to marketing in general.
Media targeting features
Targeting capabilities refer to how well you can reach your target audience using the selected media. Online advertising media tend to have higher targeting capabilities than offline advertising media because they allow you to advertise to specific audiences. In principle, higher targeting capabilities will increase ROI, as it reduces unnecessary advertising costs to people who are unlikely to purchase the target product or service.
Characteristics of advertising media by media
Depending on the media, the characteristics of the advertising medium (such as the time slot and characteristics) may change. In addition, the effectiveness of an advertisement may change depending on the purpose of the advertisement and the consumer context (time of day, location, situation, mood, etc.).
For example, television commercials use video with sound, which means they can convey more information than still images in print and are relatively easy to appeal to emotions. This is thought to affect the appeal and response rate of the ad. However, this does not mean that video is always better than still images; for example, in the case of OOH, still image billboard ads can be more effective than video ads on digital signage depending on the location. For ads that are only seen for a moment while passing by, still images can sometimes be more suitable than videos for conveying a message in that moment.
It is important to understand these characteristics and then choose an advertising medium that is in line with the advertising objectives and consumer context. The differences in these characteristics also provide hints for formulating hypotheses to explain the "why" of advertising ROI.
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Residual effects of media and advertising media (Ad Stock)
The "ad stock effect," which is the effect of remaining in the consumer's memory after exposure to an ad and influencing their behavior, varies in magnitude depending on the media. For example, television commercials tend to leave ads more memorable than other advertising media such as display, and have a greater residual effect after exposure.
Frequency of media contact
Generally speaking, the more frequently you are exposed to an advertisement, the stronger the impression it leaves on you, and, in relation to the retention effect mentioned above, the easier it is to remember it. For example, repeatedly watching a commercial on television or seeing the same advertisement multiple times at the station or train you use every day often makes the product or service stick in your memory. On the other hand, especially with Internet advertising, some people may find repeated exposure to the same advertisement unpleasant, and rather than generating interest, it may lead to distrust. It is important to determine the appropriate frequency of exposure based on the characteristics of the medium and the content.
Media influence (indirect effect)
The media ripple effect is the effect of exposure to a certain advertising measure indirectly enhancing the effect of other measures. A common example is when awareness of a product or service through a TV commercial synergistically increases the call to action through Internet advertising (higher than if there had been no exposure to the TV commercial). It is important to consider these ripple effects when selecting media.
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To the end
These points are useful when comparing the cost-effectiveness of different media and advertising strategies. Understanding and being aware of these points is important when determining the optimal media mix to drive business results.
At XICA, we use statistics and data science to measure the impact of each media and measure on business results, including indirect and residual effects.A solution that can evaluate marketing ROIThis allows you to identify the media and advertising vehicles that will bring you the greatest ROI in your marketing activities, and to simulate the optimal investment allocation.
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