3 ms·
I work at a major advertiser who's media budgets measure in the billion dollar zone. > I've wondered how advertisers look at broadcast advertising compared to
by throwaway284728 9y ago
I work at a major advertiser who's media budgets measure in the billion dollar zone.
> I've wondered how advertisers look at broadcast advertising compared to digital.
At our levels of spend, we build econometric models to understand media spend effectiveness and spend a fair bit on tracking and vetting the methodologies of trackers.
> For one there's no direct correlation (as in a click) with broadcast television.
Correct. Frankly, we're interested in valid human viewable reach, not clicks. Not even Impressions though most our buys are CPM today and we want to buy viewable CPMs. We use in fraud detection providers and generally don't pay for Impressions detected as fraud.
> Is broadcast advertising so much cheaper than digital that it makes sense to just blanket ads and hope for the best?
In many cases yes... In some cases no - especially when there are demographics who simply don't watch much TV which is increasingly a reality. At our scale, digital - even the biggies struggle to give us reach affordably.
- hyperpape 9y agoHow many companies have ad budgets in the million dollar zone? And roughly what percent of revenue is that?
- shostack 9y agoFellow senior buy side guy. Used to work at a top search agency and am now client side. This is the correct answer. At that scale focus groups, surveys, econometric modeling, etc. are what determine success. The harder part is for mid size advertisers who don't have the budget to move the needle to make those things viable, but still need to be branding heavy. Beyond that, digital is way more trackable and often more efficient as a result, even on the branding side.