Welcome. Jonathan Rolley tuning in for another session of Rolley's Rant.
This is tip number ten, rounding out this small little series. So this is about trusting your numbers. This is specifically for TV advertising, and it applies to radio advertising as well, but in TV advertising, you'll see numbers thrown around for, you know: 'this is your rates', 'this is how many people you're going to get seeing your ad'. This information is gathered from a series of boxes. There are only several thousand in the country and they're placed in specific regions. So you get a snapshot of everyone in the country - different demographics, ages around a grid - but you think about, say, a couple of boxes getting all this data. That's multiplied out for our population. You just look at the numbers in the scale of that and it's quite staggering to think that, 'Yes, this is an indication,' and it's an indication of what's occurring.
Some boxes being switched off or changing channels can influence the numbers so much because of the percentages. So what this really means is, when you're media buying, looking at the audience and the rates and cost per thousand is an indication of what's gonna happen and it's usually an indication of this time last year or the last four weeks. So if you're making all your decisions on that, and that alone, you're setting yourself up for trouble. This is how media has been purchased for the last couple of decades, or since we've had these metrics in place, and it's great because then you had some metrics to blame media. But what we have now are metrics in place where we can measure when a spot goes live in a particular network and how many people take action on a particular time of day. So we can say, 'on this particular network, at 2pm on a Tuesday, we get a $2 cost per click'.
So they're buying $2 to get a user to your site on this particular program. Then, another time of day, which could be Friday night, for example, at 7pm, we're getting a $500 cost per click, but the audience is the same. The cost per thousand or the cost per TARP is the same. So you look at your media plan and that's what you're buying on. You don't know, 'this spot buys me a $2 cost per click and, hey, this spot buys me a $500 cost per click.' So buy on what transpires into results. That's why it's so important to have metrics in place because you can buy a whole lot of $2 cost per clicks, or you can buy a handful of $500 cost per clicks, before you run out of your budget. So, having metrics - trust your own numbers rather than buying the audience numbers.
So I've got many clients now that actually have sometimes a day and programs it. If you look at it on the plan, you'd never buy, because the cost per thousands is so high, but when you run the data and you look at it, you're like, 'Wow! On paper, using this box technology, it's a poor investment because I'm not reaching anyone in the audience and I can buy a lot more of these spots'. When you look at the impact that's actually had, you'll be like, 'I want to buy so much of this environment', because the cost efficiency from the cost of impact or cost per click metrics are ridiculous. In comparison to some other spots, they were technically cheaper using the measurement system of the boxes.
So anyway, if you need help or any assistance with getting these metrics, we'd love to help. We're an advertising agency in Melbourne, Australia and we're literally changing the faces of many businesses in both this country and New Zealand. We're expanding very quickly because this type of metrics is really vital, especially if you're a TV advertiser or radio advertiser.
So thank you so much for tuning in to Rolley's Rants. I hope you found this valuable and I look forward to chatting with you in the near future. Thank you.
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