03 Apr

ROI Of TV In Comparison To Social Media

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ROI: TV vs Social Media ROI: TV vs Social Media Business Review Canada

ROI is on the tips of everybody’s tongues.  You ask anybody about digital marketing and the first thing they ask is what is the ROI.  I wrote an article about how I think that digital is held to a higher standard than TV when it comes to proving ROI.  I am now going to discuss how the money spent on one :30 TV commercial might be better spent leveraging the size of social networks.


I am a former executive in the television advertising business and dealt with some rather large agencies that were purchasing national TV ad units for big players like Pfizer, Kraft, Campbell’s and Unilever to name a few.  My job was to make sure that the commercials we sold were for money than the commercial time we purchased.  A profit manager who had to know where and when commercials would work best.  One of the areas I managed was the Early Morning News.  We competed against the likes of The Today Show, Good Morning America and whatever the CBS early morning news program is.


If a commercial was sold to an advertiser for $20,000 they would receive, according to Nielsen, a certain amount of people watching.  Let’s assume that we are looking at women 25-54 (W25-54) and that the paid for CPM was $25.  Doing the math that would mean that 800,000 W25-54 watched the commercial, again according to Nielsen.  


What would happen after that commercial aired?  Maybe some would buy the product, maybe some would tell a friend and there might be some who actually send in an email or correspondence to the brand.  Do we know what actually happens?  No, it is nearly impossible to tell what happened after that commercial went off the air, and again after just 30 short seconds.


Let’s take that same $20,000 and apply it to social media.  Let us assume that your hourly worth is $100.  That means that you could spend 5 weeks of 40 hour weeks manning your social media platforms for the same price of a here today gone tomorrow commercial.


In those 200 hours a community can be built where influencers are identified and leveraged to generate more buzz about your brand.  Those influencers are essentially brand ambassadors that you are not paying directly.  You will have to dedicate time to engage them in conversation and time is money but it is still less than the cost of a commercial.


If, for example, you provided the influencer with a coupon code to place an order through your site you could easily identify the transaction and apply the revenue generated against that $20,000.  Could the influencer pass the coupon code out to friends and family?  Of course, and that is a good thing.  The domino affect of identifying your influencer works in your favor as you build brand loyalty.


This can all be measured and calculated against what you cannot measure except for how many people were watching the program but not in how many people purchased from watching the commercial.


Does television have a place in marketing?  Of course, but so does digital.  Digital is not a way of the future it is the now.  Waiting for some metric to come out to prove its worth is pointless.  The value of digital is different for each business,  but make no mistake there is value.

Jason Bahamundi

Jason Bahamundi is a marketing specialist with Sonix Studio, a web development, design, SEO and hosting firm with offices in Green Bay, Wisconsin and Dallas, Texas.  An MBA graduate from Iona College in New Rochelle, NY with a BS in Marketing from SUNY-Oswego Jason started his career in marketing in the television industry creating marketing plans for Fortune 500 companies including Pfizer, Clorox, Kraft and Darden Restaurants to name a few.

Jason is not only a marketing professional, but also an Ironman triathlete, which is to say that he knows no limits.  Being able to be creative on the fly is one of his assests and has benefited him and his clients along the way.

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