Traditional Media’s Efficiency and Effectiveness Failures

What is this blog about?


Large sums of money are spent on marketing by many dealerships through conventional media outlets like radio and television. We demonstrate how waste and inefficiency are built into traditional media.


What makes it worth reading?


You might not have time to consider the waste associated with traditional media given everything else you have to do to manage a business.


How will we be of assistance to you?


We have taken the time and effort to analyze the ways that traditional media outlets squander funding.


Let’s have an open dialogue.


It is foolish to invest a significant amount of your resources in conventional media, including television and radio. Your return on investment is harmed by relying on these channels in two significant ways:


It cannot be particular to your PMA, or primary market area.

It can target based on demographics (which is excellent), but not on real shopping habits (which is poor).

Stimulus marketing, or the process of generating interest and brand exposure, is a subset of traditional marketing. You must specify your audience in order for any stimulus channel to be effective. This procedure involves categorizing shoppers according to their gender, household income, age, education level, and marital status; however, two essential steps are missing: the ability to assess shopper behavior and the kinds of inquiries they’re posing.


That is a high-level summary of how inefficient traditional channels are. Let’s look more closely.


An Analysis of the Waste from Traditional Media

The fundamentals of traditional media buying are as follows:


You choose programming that is the most popular and has the highest proportion of your target demographic.


Why does that matter? Let’s examine a TV advertisement budget example.


You want to market compression leggings for women. Your target market might resemble something like this:


Women aged 25 to 54

minimum annual income of $70,000

takes frequent exercise.

We’ll estimate that out of a million people in your market, 20% meet these requirements. A channel obtains an index of 100 if 20% of its viewers fall into your defined audience.


So …


An index of 50 is assigned to a channel with 10% matching viewers.

A channel with 30% matching viewers has a 150 index.

an illustration of the waste of viewership and spending caused by traditional channels

An explanation of the waste and inefficiency of traditional media.

You have now obtained the demographic information from all of the networks.


We are aware that 20% is the cutoff point for a 100-point index. As a result, we are aware of the following:


Winner: The Travel Channel. ESPN is also.

We could pick CBS if we had the money.

Spending money on NBC and the Food Network would be wasteful.

Remember that the targeted audience is not something you are paying for. Because these networks can’t distribute your ads to just the homes that match your targeting, you must pay for the entire market audience of your channel.


This implies that even though your CPM at the end of an ad run on ESPN is $15, you still need to take into account the thousands of people who didn’t fit your criteria.


To make up for all of that waste (those viewers who are not matched), the cost per thousand impressions needed to reach your actual targeted demographic must be higher. Because of this, the total cost to obtain your target audience’s impressions on that channel is $57 rather than $15.


Programmatic Advertising Is the Answer to Wasteful Media Buying


Cable networks and radio stations are becoming much less cost-effective in their existing forms as the media procurement landscape changes. It’s also the reason that these same businesses are figuring out how to switch to a programmatic channel using phone applications and other tools.


What exactly is programmatic advertising, then?


Take some time to process what we just covered before you get started.


Do you have any inquiries?


If so, contact at (888) 829-1110

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