Home  › Marketing › Strategies

Offline Performance-Based Media for the Integrated Marketing Practitioner

  |  October 20, 2011   |  Comments

Stay on top of this new trend by taking note of performance-based deals in the offline space.

A friend of mine, who was a longtime executive at one of the major broadcast networks, once told me that at the network, the one thing they never did was sit around and ask themselves, "Does any of this @!#% work?"

Digital advertising has taught marketers to expect more from their ad spend. Namely, there is an expectation that advertising should be directly related to some performance metrics.

I've run into many people who believe the online world created this model for advertising. However, purchasing media based on its performance is not entirely new. What has happened, however, is that digital media has made pay-per-performance a bigger part of everyone's budget.

Tying Advertising to Performance Is Not New

Performance-based media has been available in nearly all offline channels for quite some time. And while it is by no means the normal method of buying offline media, it is a growing trend, given the glut of new cable channels, radio stations, etc.

Integrated marketing professionals should take note of performance-based deals in the offline space. But how can an integrated marketing practitioner use offline performance-based media?

In most cases, offline performance-based media is tracked and paid for by calls and/or leads generated through a unique 800 number. Nowadays, media companies taking these deals may also look at tracking by unique site visits, and form fills. It is extremely rare, but not impossible, to find an offline media provider who is willing to take on a cost-per-acquisition or cost-per-sale.

Pay Only for Response, but Get the Cross-Media Benefit for "Free!"

One of the key reasons to include offline performance-based media in an integrated strategy is that not only do you get the consistent direct return on your investment by setting the payouts, but you can also get much of the same cross-channel value that offline media traditionally delivers. For instance, a successful performance-based television campaign running at volume will impact your SEM volume, direct traffic, and response to other offline channels like direct mail, radio, and newspaper.

It's in the broadcast space, both television and radio, where an integrated marketing professional can best leverage performance-based deals. In our experience, a marketer may see a 20 to 30 percent lift in overall web traffic and activity once a performance-based television campaign is running at full speed. Radio can similarly drive activity well beyond the specific metrics used for the performance-based deal. In fact, we've seen radio campaigns where for every one lead generated via the phone, roughly five additional leads come through the web. The best part is that you typically only negotiate a payout or bounty on the phone activity…the web activity is "free."

Not All Offline Performance-Based Media Is Equal

However, not all offline performance models have the same impact. With readership declining in print media (specifically newspapers), response is limited, which means a rollout of performance-based print can take six months to a year before you can generate enough volume to be meaningful. The cross-media impact of performance-based print is also limited - meaning payouts need to be set at a level that is ROI positive from the get-go.

Certainly with traditional media buying methods you're able to have greater control over the reach and frequency of your message, but for many, the trade-off of shifting the risk to the media provider is well worth giving up some control and visibility into placement.

There are some limitations; particularly in television where ad inventory is limited for performance-based media opportunities…especially for short form spots (2 minutes or less). With major brands returning in greater numbers to TV in the last couple of seasons, performance-based deals are becoming harder to come by.

Radio, however, can be a great source of performance-based media. Consider that according to Arbitron, overall radio listenership has risen slightly over the last couple of years while there is an ever-increasing amount of "audio" venues for your commercials. The pressure from non-traditional radio channels like SiriusXM, Pandora, Slacker, etc. and increased competition for local advertising from online media has made performance-based deals a realistic opportunity in radio.

Do you think offline performance-based media can have a role in your integrated media strategy? I'd love to hear your thoughts.

Tags:

ClickZ Live San Francisco This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!

ABOUT THE AUTHOR

Gavin Ballas

Gavin Ballas is vice president of business development for MDC Partner's Integrated Media Solutions, an integrated direct response media agency. He has nearly 15 years of experience building direct response campaigns throughout online and offline media channels.

COMMENTSCommenting policy

comments powered by Disqus

Get the ClickZ Marketing newsletter delivered to you. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

BigDoor: The Marketers Guide to Customer Loyalty

The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.

WEBINARS

    Information currently unavailable

Jobs

    • Internet Marketing Campaign Manager
      Internet Marketing Campaign Manager (Straight North, LLC) - Fort MillWe are looking for a talented Internet Marketing Campaign Manager to join the...
    • Online Marketing Coordinator
      Online Marketing Coordinator (NewMarket Health) - BaltimoreWant to learn marketing from the best minds in the business? NewMarket Health, a subsidiary...
    • Call Center Manager
      Call Center Manager (Common Sense Publishing) - Delray BeachWanted: Dynamic Call Center Manager with a Proven Track Record of Improving Response...